What is the amount that you should expect to receive if your business is doing well?
Answers are appreciated
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Jared ChungCareerVillage.org Team BACKER
You should expect to receive a share of the profits of the business based on the % of the company that you own. Similarly, if you sell the company, you should expect to receive a % share of the proceeds from that sale. If you have raised funding from other people, you often compensate them with a % of the company, which erodes the share that you get. This is fair, though, because without their funding you might not have been able to have a successful company at all. Therefore, to estimate the amount of money you can receive from running your business, you can take the profits you expect the business to make each year, multiply that by your % ownership stake, and you will have an estimate of what your share is. Remember to subtract taxes so that you don't overestimate the proceeds. As I'm sure you'll realize, the high level of uncertainty in these figures means that there will be a high level of uncertainty in what you can earn as an entrepreneur. Your business could have annual sales of millions or billions of dollars, or your business could fail and not sell anything to anyone.