In the development stage of launching a start up. I am initially outsourcing the development as I am not located in a place where there is an abundance of programmers. The dev timeline is 6 weeks. During that time I will be chasing investments, recruiting team members and beginning to speak with clients.
As soon as the development phase has concluded I will be needing additional staffing to handle menial tasks such as contacting potential clients and conducting some basic marketing.
As the sole founder I have 100% of the company but will want to allocate equity to the team-members I will be recruiting for executive roles. In the preparation of my financial projections (more like financial needs for the first 1.5 years) I have built in salaries for all employees, both laborers and execs. From an investor's prospective, is it better to show these salaries (as they add up quick) or should I attempt to divy out more equity in an attempt to present lower operational costs?
If I can raise enough capital, I would prefer to pay industry-standard wages early on and leave myself and 1 or 2 undetermined co-founders the maximum amount of equity to leverage with in subsequent rounds of financing. Thoughts?
