I should start this off by saying im 25 years of age and have little experience in running a business and little knowledge of tax and finance in general (some terminologies may be incorrect). I do however, consider myself very good at my profession and am very confident and aware that my skills bring valuable assets to the company.
I have been working at this company for a year now, there are 6 employees in total including the director and myself and the company is only 2.5 years old but has been relatively successful. I have a great relationship with the director (we are friends outside of work) and im happy with my work environment and have great colleagues.
Because my contribution to the company has been significant (obtaining a small number of new clients,managing other colleagues, leading projects etc), the director has offered me a 33% share of the company in order to try keep me here. The other two 1/3 shares are going to be distributed to himself and his wife who is the accountant for the company. I understand this means any future decisions we make to steer the direction of the company will be in their favor as they can easily both agree to vote against me, however I don't see this being too much of a problem as their decisions up until this point I have all agreed with and have proved to be good ones which I normally wouldn't think about.
The buy in is at 50k and all the money will go into a trust to be used for company expenses. I have the annual financial report with me and this year we have profited (after taking out ALL company expenses including staff salary) 300k, which means in one year (assuming business remains the same and doesn't grow or decline) after tax I would break-even my initial buy-in price with my share profits alone (I will also still receive my 70k employees salary on top of this) Does this seem like a good idea to you all? Is the buy in price reasonable considering the amount of input and contribution I have given to the company in the past year? The property market we are in isn't looking too good for the next few years but we cant predict it precisely and don't expect anything to crash down to the ground, if I don't immediately make back my buy-in amount (50k) within a year would this offer still be enticing to you guys? I should state that if i buy-in and the company preforms equally as great next year and turns over the same amount, i would have doubled my salary from 60k to 120k+.
If i do not accept this position, i would consider starting a similar company in the near future however there is no way i can guarantee i would be equally or more succesful on my own despite my skills. Average salary for my position within the next 2-4 years increases to around 80k where it is mostly capped. Any help would be greatly appreciated.
Submitted December 09, 2018 at 06:02AM by lookslikevomit https://ift.tt/2L4gm83
