Shortly after launching tech start-up SevenRooms — a client relationship management platform that makes better service easier for restaurants, nightclubs and hotels — co-founder and CEO Joel Montaniel had his back up against the wall.
"We made all of the mistakes that first-time founders make," Montaniel, who co-founded the company in May 2011, tells CNBC. "One big mistake was not raising enough money out of the gate. Embarrassingly enough, we also didn't account for payroll taxes, which adds an additional 10 percent on top of what you pay people."
By month 12, the start-up was out of money, and the three co-founders cut their salaries to zero in order to pay their one employee at the time, who was a developer.