Where does a startup company get the money to pay my salary.?
A startup company has sent me a job offer/proposal. Although they aren’t offering me any benefits other than paid vacations, there salary offer is well within my liking. My question is how do they have the ability to pay me and the other 3 – 4 developers our salary. Where does the money come from?
when a business starts up they do a 5 year business plan and submit it to a bank or lending institution and get a loan to start up their new business. They hire people who they believe will "hit the ground running" and they will pay you from that loan. If you all don’t "hit the ground running" you will run this business owner and his business right into the groups. So pay attention and work hard so that you will have a future job with him and his business can prosper.
One question, you mentioned they give one week’s vacation. Is that after you worked there 3 months, 1 year, or are there any conditions attached to it like you can’t take vacation unless he allows you to be away from your job (otherwise you don’t get it)…or can you get the vacation money in liew of work, or if you leave do you still get it?
Comes from the people that invested in the company or the bank that gave them the loan to start the business up in the first place.
Hope that helps
Lisa
Starter of the company may have money in his hand or they are run on a credit periode
They have startup funding. There would be partners who would have done that, or venture capitalists who will be interested in the business plan of the company.
You should think like an investor before joining – who is behind the firm? Is the management strong enough? What is their biz plan? Is it looking good for a longer term? Is it too risky for you to leave your current job, and join them? Etc etc.
investors. startup capital.
Either investors in that company have given them operational money or they have the money themselves to run their operations.
They get the money from small business loans ie banks or government, private investors, personal investments or grants. I am sure that they have a business plan you could ask to see it if you are that concerned or just ask them where they are getting there start up money from.
savings from /or loans previous employers or enterprises, family,estate or other, in general , capitalization from interested and hopefully liquid sources start-ups are called either eggs, unhatched or chicks, hatched companies
The investors.
It depends on the people who have started the company, if they have planned well they would have set up operation costs for about six months as they need to look for new business. THe benifits are not included but they will be added on later showing that the company has kept that in mind.
Working for a small business mught not pay well in the begining but once that business prospers, you have the right to say that i was a part of the founding team.
There are different ways startup companies get their money to pay their employee salaries. The following are just some common ones.
1. Start-Up Capital
2. Venture Capitalist Funding
3. Small Business Loans
4. Angel Investors
5. Sales Revenue (Profit)
6. Loans from Shareholders
Some companies also use a combination of the ones mentioned above to get the necessary funding for their projects of startups. Hope this helped.