He Takes $20,000 a Month and Does Nothing

He Takes $20,000 a Month and Does Nothing

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[MaryWehmeier]

Attorneys are employees. Truer words were ever spoken.

[billcarlson]

Would love to hear dad's side. LOL

[yeoooo]

My friend inherited a construction company from his father that does $2M per year in profit. He got all of the contracts, customers and equipment handed to him.

He has to pay his father $2, 000 a week until he dies.

Outrageously good deal lol

[shard]

Attorneys are not in charge. What great advice. I wish more people knew this in business.

[dcallahan]

Dave's well rounded expertise was solid on this call.

[buckybarnes]

This is an amazing example about Dave's background can help this thriving business and while saving the family

[BigRed]

I’m a partner with my son in a company that does $50 Million a year revenue and i get $1Million a month and do nothing why? Because i started the damn company and was the one who risked everything

[innovate.integrate.transfo]

Not hearing both sides of the story here... Did DAD create the business? Did DAD get things going? Does DAD consider himself the CEO or President? At 51% ownership, did DAD give that 49% to son? How much is son profiting off what DAD did?

P.S. (Added after many comments below) Dave DID finish strong and gave great advice and insight. Just would have been good to get some probing of the son's perspective.

[cryptoking-cz]

Dave was an absolute OG on this call! Realist he ever said! Honor your dad! Quit with the greed, why cant you take some of your profits and start another company on the side and own 100% of that?

[dc]

If I start a business, I'm keeping it forever for the cash flow. If I bring a kid in and they make good money, it is a gift to them, not the other way around.

[serdaragirbas]

I paid my Dad a fixed rent for setting me up in business for over 8yrs that he just made up out of thin until he passed away😢. Did not once question him and i also paid an actual rent to the Landlord that owned the property we worked out of. Also gave him money to invest in other businesses aswell. That is respect this guy needs to learn. His Dad probably keeping the 51% because he knows deep down from experience.... an this guy proved him right again!

[hounslowparks]

How can you run a company and not know the difference between dividends and salary.

[surebrah]

Dad building a successful business and THEN bringing Gary to participate is what the commenters are hearing. Gary and his Dad starting the business together from nothing is something completely different.

[fancycavegaming]

I'd like to hear how the "ashes" really worked. Who came into the business with what equity? It's important. It's easy to gloss it over and call it "the ashes".

[rrichter]

Did the same thing, took my dads business to $5 million a year, working 60 hour weeks and made $40k a year bc I was going to be "given" the business. Then after 12 years I was told I was going to have to "buy" the business. Left in less than a month.

[raymondyanez]

If it was my dad, I'd take care of my old man till the man above takes him to a better place.

[richsanossian]

He said the word “MY” about 7 times within his first sentence. Just saying

[aashiqthawerbhoy]

Why not show your dad a road map to how this would benefit both of you:

1. You become the CEO and accept a CEO salary.
2. You identify at current revenue what sorts of profits you could take.
3. You outline a plan on how to grow the business of you were to reinvest some profits into growth efforts.
4. You show your dad that he can make as much or even more money in distributions bc you have successfully grown your business.

Win win for you and your dad

[simshengvue]

Dave is right on this one. The father is not an employee so it is time to get the numbers completely right

[rationalsamrat]

Does this guy realise that he would get 51% as inheritance eventually (so just shut up and just adjust 20k /month is good)
Dave is right, Take a salary for your work .