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Sort of agree, except for the time value of money. Someone who puts cash in is putting it in up front. Whereas someone who forgoes earnings is foregoing a small
by ojbyrne 16y ago
Sort of agree, except for the time value of money. Someone who puts cash in is putting it in up front. Whereas someone who forgoes earnings is foregoing a smaller amount periodically over time.
Of course the time value of money is near zero right now anyway.
- JoeAltmaier 16y agoBy me forgoing money, the entrepreneur has More Money to spend. It IS cash flow. It IS putting money up front.
- ojbyrne 16y agoIf you invest $50k in a company, you pay up front. If you forego $50k in annual salary, you pay each paycheck. Discounted, the first is slightly more.
- JoeAltmaier 16y agoYes, true. I didn't parse the previous comment right, I see the point now.