I joined a start-up 4 months back as its CEO, after discussing the business plans and growth objectives with the promoter/investor. The company is based in India, and the promoter/investor had intended to set up a branch in the USA around this time, and we had jointly prepared business plan, sales and financial estimates, and it was approved when the company was started 4 months ago.
Then problems came-up: insufficient funding given by the promoter/investor for the approved business plan, which meant I could not recruit the right people, and the overall technical capability is much less than what is required to go the US/Europe. We are facing serious problems, and obviously the business numbers are not being met. At the same time, my promoter/investor has decided to give 15% stock of the company instead of cash salary that was agreed at the time of my joining.
So today, after 4 months of full time work here, I have not got a single rupee/dollar. Can you please advise me? Thanks. Best Regards, A Kumar
Kumar, this is a difficult situation for you, and this is not uncommon in start-ups, to switch compensation between cash and stock, depending on how things are happening. In your case, it does look like your promoter/investor is not fully committed to this business yet (assuming he is not facing genuine capital shortage).
Please have a direct conversation with him, and tell him you want to make the company successful, but the current state of affairs is bad, and there are two options only:
(a) X amount of funds need to be made available to the company within next Y days, of which you will a modest Z rupees/dollars as your salary and allocate the remaining into the business. Or (b) You will be forced to leave because of promises that have not been kept.
Do not postpone this important conversation…the sooner the better.
I hope it helped, and feel free to reply on this post if you want further help.
Best Wishes/ Shankar
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