As the one who will be hiring our first employees (and as a non-technical founder) I am curious what people think about and expect from a brand new start up with low level ($600k +/-) funding for year one. We cannot offer huge salaries but will offer milestone increases over the first few years to arrive at higher levels. We're talking around $70k to start, increasing up to $90k at the end of the first year and continuing to increase as we grow. Options are naturally part of the deal as well.

Also, we're considering using a location that would offer our team a live/work option in a new complex close to the beach (in So. Cal) rather than just traditional commercial space. Would having free housing in a pretty sweet new pad be an incentive to take a bit less cash? It saves the company a bit of money that first year and saves the team in cost of living expenses at the same time. Anyone care to share their opinions/advice/experiences?