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!
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
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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