Time is pretty much the main contribution of Grunts. It is also the most important contribution. Ideas are nothing without people willing to put the time in to turn it into a company with paying customers.

Determining the value of a person's time, however, can be difficult because people often think they are worth more or less than they actually are.

Using a Grunt Fund, the value of an individual's time is based on whatever salary you would have paid them if you had the cash times two. You double the amount because they are assuming risk by joining an early-stage start-up. Next, divide the number by 2000 which will help you calculate the Grunt Hourly Resource Rate (GHRR!)

I use 2000 hours which is 40 hours per week times 50 weeks per year. This allows for a couple of weeks' vacation and it gives you a nice, round number to work with. Most Grunts work longer than 40 hours per week but it doesn't really matter. What is important is that you keep it consistent from Grunt to Grunt.

Speaking of consistency, it's okay to round the GHRR up to the nearest $10, $50 or $100. If you and your partners had similar earnings levels at your previous jobs you should consider agreeing to the same GHRR for each of you. This isn't a good time to split hairs. Come up with a rate you are comfortable with.

If the job you are hiring a Grunt for is typically paid on an hourly basis, you can simply multiply their hourly rate times two to determine their GHRR.

Make sure the base salaries you use for calculations are realistic. If your company doesn't need a $300,000 CEO then don't hire a $300,000 CEO because their base rate will be too high.