Startup Sales — 5 Common Sales Mistakes by Founders
August 12, 2025
Founders are responsible for the first sales a startup will make. For many founders, this is one of their very first experiences of sales and mistakes are often made.
I often see founders hesitate when employees ask for a larger equity stake in their startup. However, I would urge most founders to be generous with equity, here’s why:
In the early days, your company needs runway or time more than it needs equity. If you give an employee more equity, you can reduce their salary, giving your company more financial runway.
Most equity grants come with a 1 year cliff, so you get 11 months to see if this employee is worth all the equity they’ve been allocated. With a high salary, you start paying immediately.
Skewing employee compensation towards equity aligns the interests of founders and employees, as everyone will get paid the most when the company sells or IPOs. Don’t be frivolous but the first 10 employees should be heavily invested in the company via stock options.
Best of luck out there.
