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I joined a friend's business as an employee and worked for him for years. I think for the most part that went ok but the fact that we're not friends any more p
by YZF 3y ago
I joined a friend's business as an employee and worked for him for years. I think for the most part that went ok but the fact that we're not friends any more probably tells you something. At some point I felt like I was being taken advantage of, left, and that sort of ruined the friendship. We weren't particularly close friends to start with and we were still on talking terms when our work relationship ended.
I also repeated my mistake (sort of) by investing in a friend's small business. When the business wasn't successful and we didn't see eye to eye on the path forward that totally killed our friendship.
- wahnfrieden 3y agoAnyone giving you a wage while seeking a profit instead of partner equity is taking advantage of you tautologically
- brianwawok 3y ago[flagged]
- sdenton4 3y agoExecutive don't take risks, they make bets... It's more money, but less risk.
- s1artibartfast 3y agoGood luck telling that to founders that have dumped their life savings and years of their life into their company.
- deleted 3y ago[deleted]
- brianwawok 3y agoApparently you have never founded a startup bub.
- golergka 3y agoPartner equity in most startups or small businesses ends up costing nothing or even less. Thanks, but I'd rather take a wage.
- s1artibartfast 3y agoIf anyone has this mentality, I suggest they dont work for friends.
- deleted 3y ago[deleted]
- Prcmaker 3y agoA fine opinion if you can afford it. I'll take a wage any day of the week, equity is nice to have once I know I can eat this week.
- wahnfrieden 3y agoThere are well trodden schemes for offering both over time in worker owned cooperative structures without sticking to a wage that is kept as low as the market will bear for your role (and may leave you finding you can’t afford the wage either for many) Regardless it is possible and common to be taken advantage of even with your basic survival needs covered for you
- wahnfrieden 3y agoA wage btw is no help after a lay-off and job security is pure gambling in cycles like our current one
- bruce511 3y agoAs an employer, I'll push back on this. I'll start by saying that if you want equity, then by all means seek out jobs that provide equity. In mu experience, people don't want equity as much as they want a living wage. They want a proper salary, every month, not some mythical payday in the future. If you can find a place that does both, thats fantastic. Incidentally if you have meaningful equity that comes with a bunch of stress as well. Our responsibility is to make payroll every month. In good years we get some profit (so do employees) in bad months we get paid last, sometimes short, sometimes late. I've voted you up, not because I agree with your point, but because you help readers to understand that different people have different goals. And the trading of stability for equity is not necessarily exploitation.
- financltravsty 3y agoI’ll push back on everyone here: if you’re looking for a stable living wage, you’re a fool — especially in tech. The economy is cyclical. Tech runs on speculation and (used to) on lax tax rules. Likewise, hiring is based on asinine processes, asinine vogues of fashion, and asinine practices. At any moment in time you could be made persona non-grata in tech. If you joined tech for the passion of if, and you’re not independently wealthy, I think that is a foolish thing — no different than doing a physics PhD while inhabiting the middle or lower classes. The most logical and rational path is to make as much money as quickly as possible, and enter the capital class. After that, do whatever you want. Anything else is just sticking your head in the ground.
- TheCapeGreek 3y agoWell put. Although, I'd say this view, much as I share it, makes it harder to find companies to work for. Especially in a tougher job market like right now. I'll do conversational technical interviews all day. Leet code and 6 interviews unrelated to the job, hell no. It's cynical, but once you've been through the meat grinder with layoffs, obsessive VC overgrowth and unfulfilled promises, I don't see another way so get to where I want to be financially without either letting go and becoming a hermit or as you say "enter the capital class".
- badpun 3y agoNot neccessarily. For example, all companies are seeking profits, but some are actually losing money. Such companies still have to pay wages, in which case they're partially paid out of owners' pockets.
- ozim 3y agoAnyone giving you equity instead of a salary in cash is looking to take advantage of your not understanding what equity really means. How major shareholders can change the deal by dilution, how can they just spin up separate entities to compete with what you have even though it might seem they are on the same boat while in reality they are not. One would say "you can always go to court" - can you? If guy that gives you equity was already in the game he already has lawyers and most likely more capital in his pockets. If your equity will be worth $200k and he drags court case so you have to pay for your lawyers $300k in fees is it worth? Especially if you are an engineer that has mortgage instead of loads of cash in bank or other investments. Can you stretch $100k over to win the case and then even if you win and he has to pay you back all the costs with interests, you believe someone will just wire up it in one day instead of dragging it out for another 10 years where you as small time guy cannot sleep at night because all of the crap.
- dotnet00 3y agoThis does not account for the investment in terms of personal risk.