Re:My Sixth Year as a Bootstrapped Founder
by Aurornis on Friday February 16, 2024 @09:09PM
(#39405630)
> Also, a nit fwiw, you automatically assumed the entire profit of the business is the market salary for the person running this business
Not really a big assumption given that the person is capable of operating an entire software and hardware business by themself.
It’s more complicated than that, though: The salary someone receives from a company isn’t 100% passed through untouched. To pay everything from taxes to benefits, the most they could realistically expect to take in equivalent compensation would be closer to $150K (approximate), which is actually below market rate just about anywhere for someone with these qualifications.
Not really a big assumption given that the person is capable of operating an entire software and hardware business by themself.
It’s more complicated than that, though: The salary someone receives from a company isn’t 100% passed through untouched. To pay everything from taxes to benefits, the most they could realistically expect to take in equivalent compensation would be closer to $150K (approximate), which is actually below market rate just about anywhere for someone with these qualifications.