6 ms·

What about the chap that mortgaged his house to rent a factory and buy a widget maker and employs these people? What % should he take?

• danbruc 2mo ago
  He will get the same as the others if he works the same number of hours to run the company. The dept would ideally be company debt and not personal dept, after all one reason to found a company is to separate personal and business risks. But if you invest personal money in the company, you get that money back plus some risk and opportunity premium just as you would pay back any other loan. What fraction that is will of course depend on the amount, premium, and payback period. Just investing some money will not provide you a perpetual income.
  • gadders 2mo ago
    That sounds like an amazing way to stop people taking risks to start companies.
    • danbruc 2mo ago
      Only people that see businesses primarily as a way to get rich and not as a way to satisfy consumer demand while doing something you like.
      • gadders 2mo ago
        Well it should be both, no?