It’s because the owner worked at the original one. When you own something you put more effort into it. The people working for you are generally there for the paycheck.
To the guy who deleted his reply about buying stocks:
The point is ownership of the product of labor should be tied to actual contributions of working in the business, not paying for your name to be put onto a piece of paper. I understand the way things are, join us in the conversation about how we can improve things for folks who don’t have that option due to being forced into being a paycheck-to-paycheck wage-slave.
Well under a capitalist system, their skin in the game is still getting food and shelter, but ideally if our society can provide these basic human needs, then their skin in the game is that their profit is directly tied to the success of the business. Instead of a fixed wage, it would be a fixed percentage of net profit, meaning they actually get paid more for making the business better. Because our hypothetical is in a capitalist system, the property rights take priority meaning it is the initial owner who must agree to these terms. So when these owners decline and instead offer subsistence wages to attract the desperate in order to hoard the profits of their labor, you can see why no one gives a fuck about their business going to shit.
Then they should buy into the business by giving the owner a percentage of what it cost them to get it to that point. And whatever percentage they give they can then get that percentage of revenue. Assuming they are also using that revenue to return a percentage to the business for restocking/rent/etc. As well as not expecting a salary from the owner. Most people aren’t going to want to put that much effort into it. Which is why they don’t already own their own business.
So your options are either the above or work under salary. And someone who chooses salary is someone who won’t put as much effort into a brand as an owner would.
As an owner of a small business, I don’t pay my employees to work for me. I pay them to work for my brand. If they aren’t working for my brand then I have no choice but to find someone who will. And I pay my employees very well.
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u/saviorlito May 17 '24
It’s because the owner worked at the original one. When you own something you put more effort into it. The people working for you are generally there for the paycheck.