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Income of owner

Good afternoon,

What an interesting case!

I have a question out of curiosity. I was considering calculating with 3 FTEs, assuming that the owner also needs some income to live on. The case mentions that the owner lives from the profit, but if there's a loss (like in 2014), the owner would have no income at all. Is it common for an owner to not have a basic income, relying solely on the profit?

Thank you in advance for your response, and have a nice day!

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Top answer
Mattijs
Coach
on Mar 09, 2025
Free 15m intro call | First session -50% | Bain| Hiring team | 250+ successful candidates

Hi Amber,

Very good questions.

At the early stage of a business/start-up, it is common not to have a basic salary as the business owner first focus on growing it's business. When the business is more mature, it's very common to earn a basic salary and when the business is profitable receive a dividend as shareholder (business owner). A business owner can always decide not to pay-out a basic salary for one year, but that's not sustainable. 

Feel free to reach out via chat for further questions.

Mattijs

Pedro
Coach
on Mar 09, 2025
Bain | EY-Parthenon | Principal | Recruiting Team Leader

Yes, this is something that may happen, usually for fiscal reasons, although it may happen if the owner wants to show exceptional commitment to investors.

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