So I've recently applied for and been offered a new job, which is great.
The reasons i wanted to leave my current role are, it's about 45 mins from where I live, just a little too far for me to cycle, I don't particularly enjoy the job and it's just me and the boss, so it can get a bit lonely.
The new role involves a pay cut, but puts me much closer to where I want to be, has slightly shorter hours, will allow me more holiday time, I'll be able to cycle and it's more public facing and working with a team so it won't get so lonely.
When I handed in my notice, I explained my reasoning with my current boss who understood my reasons and motivation. However this morning he's come back to me, offered to alter my hours, increase my salary and, give me a 10% share in the business (worth approximately twice my annual salary) I've asked for the weekend to mull it all over, I think I'm erring to turning it down, but was just curious to guage as much opinion as I possibly can before making a final decision in case there's something I've missed out of my thought process, so over to you!
Tricky.
So the job is the same, but the conditions and pay have been improved (apart from the commute)?
You need to decide what made you apply elsewhere, the job or the conditions.
Stick.
Unless you've tried public facing jobs before!
a share of the business - otherwise known as a noose for future thoughts like this?
I think this is going to be something only you can decide, as it relies on other factors.
For instance - you say it's a pay cut. Whether you can take that hit is entirely dependent on your current financial status. A couple of grand off your salary might not be a big deal if you're on £60K but a deal-breaker if you're on £15K.
How happy are you where you are? Will you forever regret not moving? Does the adjusted hours offset the longer commute?
You could be cheeky, go back to the other company and tell them what's happened, see if they can improve their offer? They can only say no and you've not lost anything.
Having done it (not that I had a choice this time), I'd choose the cycle commutable job every time now.
But your monetary requirements, views of driving, ambitiousness etc are all, no doubt, different to mine, so you need to weigh it all up.
What are your long-term prospects in the current role - and what are the long-term prospects of the business?
"a share of the business – otherwise known as a noose for future thoughts like this?"
Agreed...
10% of what? Have you seen the accounts?
Is the business thriving? Is it expanding or going tits up?
If you're not enjoying working there now it'll be worse watching your stake dwindling to nothing despite your best efforts...
All good thoughts, I've seen the accounts, so know it's a good offer and I know the company is on as secure a financial footing as any can be on this day and age.
Since the initial offer I've been writing lists of positive and negatives and I think the current negatives aren't really going to change and the lifestyle changes I'm looking to make out weigh the benefits of staying.
I think. Going to discuss properly with close friends over the weekend.
Is it 10% of the company with shares as the same class as the other owner, or 10% with a different class?
With unequal share classes your 10% is only worth what somebody will pay for the business, which could well be nothing if matey decided to pay himself a massive dividend / run it down.
If it's the same share class and he's in the habit of paying himself dividends from profits then you will also share in those dividends.
Is it 10% if the profits or 10% of the actual company. Is the latter consider if the company needs finance you may need to dip into your own pocket. You will need to do some due diligence on the accounts and how the business is performing. I’d be nervous is someone offered a percentage share just like that without any other conditions
What will more money get you?
If the other role is what you want and allows you to do the stuff you want to do (be realistic if you don't currently have kids and stuff about what your future financial needs might be), do that.
It's very encouraging that your boss values you so much, but there is more to a job than that. It won't make the commute any shorter.
If the 10% is equity/shares in the business you also probably want to understand the long term plan. Is there a plan to grow and sell and as such the potential for a good return on the equity?
Or,is it just a lifestyle business for the owner that will pay a wage and a dividend occasionally.
Also if its equity/shares check that the scheme cannot be easily restructured without you having a say so that you get a diminished return.