I work for a startup company, been here for a couple years. My boss has initiated a new “investment opportunity “ for staff only. Basically we would front him money for materials that would get turned into product that we sell. Just because we’ve been having great success & ramping up with B2B sales, and more inventory is needed to scale I guess. NOW WOULD IT BE RETARDED to get a 50k Amex loan at 8.99 APR to throw into this situation & reinvest the earnings. Bossman basically said we would make 10%-20% a month. If we ever want to pull out money out after material is bought but before it’s made, it’s ok. He will refund us what we put in. I know a coworker who has put in $66,000 and made $3700 in the first month.
time for a psychology lesson. a boss even suggesting the idea of using employees' personal wallets as business leverage shows an extremely aggressive risk-taking mindset. you'll need to be the judge of whether you think he's trying to share the wealth with the best intentions, or is he trying to position himself to reap the lion's share of the rewards while putting in the least amount of personal risk?
>>62153631Why can't he take a business loan if the shit is so successful?
>>62153666somewhat correct, satan,but also - the team taking in some shares is pretty normal
>>62153631nice jugs
>>62153631You have no training to know if its a good investment. Investing takes years to get good at, and investors never put all their eggs in one basket. Invest, sure, but taking a loan to invest is a huge gamble.
>>62153631>>62154046To follow up, if you invest like this you're no longer an employee but an entrepreneur. Some entrepreneurs hit it big and become billionaires, but 9/10 companies fail.
50k at 8.99 sounds really low....
>>62153631Your friend put in $66k and after a month made $3.7k which is only 5% and you still say that you will make 10-20%. I don't know what exactly to make of this, but if you are really making 5% a month it would definitely be worth it.
>>62153631HR
>>62153631You have to look at it like an independent investment opportunity, ignore the fact that you work there. So you should some sort of financial model. The $50k loan is presumably tax deductible, but the amount you can deduct depends on your tax bracket. Of course you have to pay tax on the income. It sounds like you get no equity in the business, just a share of the profit; that could actually be better than the typical employee share offer where you only get paid if the company goes public. Why don't you put all the details into a chatbot and get it to model it for you. But, you probably need to figure out why your boss isn't raising cash through more established channels.
