Ur exactly right
You pay yourself a meager salary I think but yeah
Door dash did manage to make profit last year (pandemic so makes sense) and say they they lose money from customer acq costs which is their excuse for well have real profitability later
Big part of when I snapped in pro leagues was because of that. I just saw that fuck I have to barely pay myself to make this shit run for the next couple years blyat
No I don’t think anyone pays themselves a salary in real deal business
They do. At certain point they pay themselves a salary
As an owner of the company you are entitled to a percentage of the profits regardless, paying yourself a salary is what you do when you’re using someone else’s money and you don’t really care, why would you pay yourself a salary out of your own money?
But actually there can be tax reasons to pay yourself a salary on paper or through “payroll”, however the idea of taking a large salary and calling the business unprofitable is just ridiculous
Yeah tax reasons I believe, I had some portion of my income go through payroll from my s Corp to my personal account for this reason
A real shareholder in a C corp is supposed to pay themselves out at a rate that isn't too low or high to take advantage of tax deductions, they're exempt if you do either I think
You pay yourself X amount. Probably something to do with taxes. The rest gets reinvested in the company
Like Jeff Bezos (bad example) has a salary of 80k a year
The dividends are not tax deductible which is why they do that stuff
Bro the founder of DoorDash is literally a billionaire from Stanford
He lives in pacific heights San Francisco
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High level execs at companies like door dash justify their pay by modeling on like 0.x% of revenue
These companies are not deriving large profits but believe they will which justifies them breaking even or below as you said before, it's good for tax deferral
I just think for companies like uber and door dash they're kinda already in the places they want to be and both have to deal with impending competition, lack of "global foothold" as businesses in those regions just cater to locals better, but I'll happy to be proven wrong otherwise
Guy lives in the most expensive neighborhood of San Francisco and owns a house there
I mean they Are deriving large profits but op costs and the people making them money are hella costly
Let’s just keep it real that’s where you would expect someone who founded a very successful and profitable business to live, not a business that “isn’t profitable” it’s all just accounting tricks
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There is some math thing. The squared root of the # of employees in a company does 50% of the work. That's how it's justifies
I suppose if they just gave up on CAC figures would look a lot better
Bro u just jelly you can't scan ■■■■■■ out millions with bullshit