Uncle Alders Alder

 Uncle Alders Alder was interesting to me because it helped visualize how profit margins decrease as the size of a company expands. For example the profit that unc made off  the first chair was 100%. As he produced more chairs it required more time equity and the manufacturing cost of mass producing the chairs dug into the profit margin. eventually Unc had a salary position at the company that was paying enough money to make him have a middle to upper class income. However, if he is making 160k a year on a company that he started that is doing 6M in revenue, he doesn't have the liquid amount of his ownership in the company until he sells it or gets out. This is a weird part of being an entrepreneur where most a large portion of your wealth is in equity, but if the company goes down or something wild happens that affects the industry, your wealth in equity goes down with the business. This makes me wonder if a founder could give up their equity to a buyer in return for a larger guaranteed salary. This would mitigate their equity risk if the company goes down but on the other hand, if the value of the company goes up, they will miss out on that due to not having equity in the company. The way that I see this apply to my window washing business is selling it to another company where I remain the head manager and receive a manager salary and sell my equity for whatever the company is worth. This way I still have a consistent salary and made a bonus for the time equity that I put into getting the company started. 

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