Author Topic: job dilemma  (Read 5070 times)

bballfreakunc

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job dilemma
« on: August 07, 2015, 10:50:29 AM »
So I'm debating between 2 options:
1: work for company A, which would pay $120-130k + 10% bonus per year. Also, after 2 years, you get 5% employer contributions to 401k per year. I'd be working from home exclusively with some occasional travel.
2: continue to work for company B, which pays $105k + 10% bonus per year. There are no current employer contributions to 401k. I get to work from home about 1 day a week and have to bike 2 miles the other 4 days a week.

The benefits at company A are slightly better than those at company B, but not enough to sway one way or the other (e.g. $100k in life insurance v. $50k in life insurance).

So it would be easy to make the decision normally. However, I have a mentor/friendship with the owner/CEO of company B. He is a serial entrepreneur and could possibly take me along for future rides in future companies.

Do I make the leap to company A or do I stay with company B and the serial entrepreneur for the next startup?


MonkeyJenga

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Re: job dilemma
« Reply #1 on: August 07, 2015, 11:25:04 AM »
Try to negotiate the salary where you are, but it's unlikely to match that large of a jump. In which case, take the money on the table, keep the friendship. You'd be giving up a huge amount of guaranteed cash on the hope that this other guy will pay off with something in the future.

Mother Fussbudget

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Re: job dilemma
« Reply #2 on: August 07, 2015, 12:49:11 PM »
Take Option B...

... and sign *ME* up for Option A! :-) 

Seriously, you want to "hitch-your-wagon" to a serial entrepreneur / go-getter, as you never know when he might come up with the next small startup that gets bought by a big company like Google, Yahoo or Twitter.  Working from home is great, but you'll miss the daily interpersonal connections with SmartPeople(tm).  And the 2 mile ride is a great alternative to a gym membership.

partgypsy

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Re: job dilemma
« Reply #3 on: August 07, 2015, 12:50:35 PM »
A sounds like the much better deal. I wouldn't count on friend taking you along for ride. Two examples off the top of my head, someone I know was like the first 5 employees and a friend of person started business, always hinted would have more of a cfo type role. However when their business expanded, hired outside, re-wrote his job description and actually makes less now and less benefits (the promise didn't pan out). Other story, friend hires a few of his friends, starts a business. Doing great, business is growing, and when it gets to a certain value friend allows business to be bought out. He is multi-millionaire, friends who are still there, get let go. I could go on, but I won't.

Besides, if he was such a good friend, wouldn't he try to hire you out from A when his next great idea comes along? What do you have to offer that you are so sure he would take you along for the ride, and be rewarded for it. Like above just "being there" doesn't usually cut it.
« Last Edit: August 07, 2015, 12:52:40 PM by partgypsy »

AZDude

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Re: job dilemma
« Reply #4 on: August 07, 2015, 01:01:57 PM »
At that salary rate, all your needs and most of your wants are taken care of. You are on the fast track to FIRE either way. Go with the one you personally would like better.

Mother Fussbudget

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Re: job dilemma
« Reply #5 on: August 07, 2015, 01:12:28 PM »
At that salary rate, all your needs and most of your wants are taken care of. You are on the fast track to FIRE either way. Go with the one you personally would like better.

+1.  AZDude has it spot on:  Follow your happiness.  Take the job that brings you joy.

bballfreakunc

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Re: job dilemma
« Reply #6 on: August 07, 2015, 01:36:40 PM »
partgypsy, I definitely agree that that is a possibility, hence why I'm debating it so hard. I want to be loyal but I also want to look out for my best interests. I have already helped him set up/develop a few ideas for his next "business". With that, I got a 2% share in the LLC. I don't think he's going to change the industry, but given that he's already sold a company 8 years ago for $500MM and is getting ready to sell another for $1-2B, I would love to be around him when he starts working on that 3rd company (I don't think he's started on this one yet). But who knows if he'll keep me around or if he has any more great ideas.

larmando

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Re: job dilemma
« Reply #7 on: August 09, 2015, 06:41:09 AM »
If he's a good businessman he'll hire you for his next company if you think you're the best fit. No matter if you work for company B or A, he'll make you an offer. If he's a businessman choosing on other reasons than "best fit" you may not want to work for him. Also if you're near to FI when he asks it'll be easier to take a riskier offer, so the higher salary will help.

Bumbling Bee

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Re: job dilemma
« Reply #8 on: August 09, 2015, 07:23:35 AM »
partgypsy, I definitely agree that that is a possibility, hence why I'm debating it so hard. I want to be loyal but I also want to look out for my best interests. I have already helped him set up/develop a few ideas for his next "business". With that, I got a 2% share in the LLC. I don't think he's going to change the industry, but given that he's already sold a company 8 years ago for $500MM and is getting ready to sell another for $1-2B, I would love to be around him when he starts working on that 3rd company (I don't think he's started on this one yet). But who knows if he'll keep me around or if he has any more great ideas.

If he takes your leaving as a personal betrayal, that's a warning sign, IMHO (obviously, you shouldn't torch your bridges when you go). As larmando says, he should hire you if you're the right person regardless. I have friends who have worked for the same person multiple times, when the fit was right for both sides, and then parting amicably when it wasn't.

Zamboni

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Re: job dilemma
« Reply #9 on: August 09, 2015, 07:31:30 AM »
If you have a written offer for A, then I'm in the camp of trying to negotiate at least a matching deal with B first. Read some books or watch some videos about raise negotiation first, then try it an see how it goes. That will tell you your answer. You don't want to keep working for B if they treat you badly during this negotiation or it they think it's okay to underpay you relative to other offers you can get, and the lack of 401K match is a drag as it is.

bballfreakunc

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Re: job dilemma
« Reply #10 on: August 10, 2015, 08:23:27 AM »
Thanks everyone. I'm relatively young (25 yo) so FI is still 5-10 years away at least. I know I'm making a lot (in a relatively low COL area) relative to my peers, but I'm always hungry for a few extra "workers".

Seppia

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Re: job dilemma
« Reply #11 on: August 10, 2015, 09:07:56 AM »
All else being equal, it's a no contest. As many pointed out your friend could hire you again in the future.
Or you could just be upfront with him and say
"Listen friend I love working with you but I got this amazing offer and it makes so much financial sense that, well, I think I should go."
Then see how he reacts.

LouLou

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Re: job dilemma
« Reply #12 on: August 11, 2015, 07:43:54 AM »
If he's a good businessman he'll hire you for his next company if you think you're the best fit. No matter if you work for company B or A, he'll make you an offer. If he's a businessman choosing on other reasons than "best fit" you may not want to work for him. Also if you're near to FI when he asks it'll be easier to take a riskier offer, so the higher salary will help.

True.

I was in a somewhat similar situation.  I chose my equivalent of A.  I make more money, and I'm on perfectly great terms with my friends at my old firm.  Now they've started a new place and they've offered me a job.  I'm staying at my new job (the salary difference is much greater than your options), but I could basically join them whenever I want.

Ipodius

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Re: job dilemma
« Reply #13 on: August 13, 2015, 11:28:16 AM »

If he's a good businessman he'll hire you for his next company if you think you're the best fit. No matter if you work for company B or A, he'll make you an offer. If he's a businessman choosing on other reasons than "best fit" you may not want to work for him. Also if you're near to FI when he asks it'll be easier to take a riskier offer, so the higher salary will help.

Agreed! I think your best option is A, while maintaining the benefits of B


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bballfreakunc

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Re: job dilemma
« Reply #14 on: October 05, 2015, 12:18:29 PM »
I got company A's offer up to a base of $135k. I mentioned that to my boss at Company B and he mentioned that they wouldn't match/budge. After about 2 weeks of a lengthy background/drug checks, I'm about to give my 2 weeks notice to Company B. Thanks everyone for the help in this dilemma.

HairyUpperLip

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Re: job dilemma
« Reply #15 on: October 05, 2015, 01:21:19 PM »
I work from home. I'd take a paycut before I'd go back to the office.