Should I Stay at My Stable $175k Job or Jump to a $130k+10% Equity Offer from a Growing Company?

Decision Dilemma: Stay in My Stable $175k Job or Take a $130k + 10% Equity Offer from a Growing Company?

I’d love to hear your thoughts and advice on this situation!

Current Position:

I’m a Financial Controller (CPA) at a tech firm, earning a total compensation of $155k CAD for 2024, which includes a $20k bonus. My company is experiencing rapid growth, with projections of $84M-$90M in revenue for 2025 and potentially exceeding $100M in 2026. I estimate job security is around 70%, and the work-life balance is excellent, allowing me to possibly stay here comfortably for years.

New Opportunity:

A longtime friend has offered me a position at his company for a salary of $130k plus a 10% equity stake. He’s set the price for the equity at $500k, to be paid through future dividend payouts rather than upfront. His company, founded in 2018, achieved over $30M in revenue in 2024 and distributed $2.5M among its three shareholders—I’d be the fourth. Based on current profitability and minimum asset valuation of $13M, I estimate the company’s current worth at around $15M-$20M. He anticipates significant growth in 2025 and 2026, and the industry appears stable with minimal tariff and economic risks. I’ve been casually advising him for the past few years, so he values my contributions.

Potential Upside:

If his company were to be acquired in the next decade, I believe my 10% stake could be worth $3M-$4M, which is an enticing prospect—an opportunity to be part of something with real equity potential.

Concerns:

My wife has reservations about this transition. She prefers I stay in a role with a better work-life balance and worries that I might end up working long hours since there are only two Accounting staff at the smaller company. Additionally, she is concerned about the risks associated with smaller firms, particularly during economic downturns.

Our Background:

I’m a 42-year-old male, married to a 40-year-old female, with two children aged around 10. Our family has a net worth of $3M, free of any debt or mortgage, providing us with a solid financial foundation.

What do you think? Should I stick with my secure tech job, or is it worth taking the calculated risk on my friend’s company?

This is definitely a big decision, and both options have their merits. Here are a few factors to consider that might help you weigh your options:

Stability vs. Opportunity

Current Job Stability: Staying at your current job offers financial stability, a solid income, a good work-life balance, and job security (70% feels low for your role in a growing tech company). If you value stability, especially with your family’s needs, this is a strong point in favor of remaining where you are.
Potential Upside with New Job: The new offer presents significant potential for financial upside. The equity could lead to substantial wealth if the company is successful. Being part of a growth phase and having a significant stake in the company can be exciting.

Work-Life Balance

Current Role’s Balance: You enjoy a good work-life balance now, which is important, especially with kids. You need to weigh how the demands of the new role could impact family time and your well-being.
New Role’s Demands: Smaller companies often require more intensive involvement, impacting work-life balance. If your wife is concerned, it’s important to address these worries since family support is crucial.

Equity and Financial Implications

Assess the Equity Value: Buying equity for $500k through future dividends could be a smart investment, but it’s important to assess the risk. Consider if you would have the liquidity to take on that requirement at a time when you might not personally receive significant compensation initially.
Potential for Growth: If your friend’s company is projected to grow and there’s a credible plan for acquisition, this is an attractive opportunity. However, consider the likelihood of this happening based on past performance and current market conditions.

Risk Tolerance

Your Financial Position: With a solid financial foundation and no debt, you may have the capacity to take risks. But a detailed risk assessment of both your financial situation and the new company should guide your decision.
Wife’s Concerns: It’s essential to factor in your wife’s comfort with the risk. If she feels uneasy, it’s vital to have open discussions to find a compromise or a shared understanding of the risks involved.

Conclusion

Long-term Goals: Think about where you want to be professionally in the next 5-10 years. Does the new role align with your career aspirations? Is it a stepping stone or a high-risk venture?
Seeking Counsel: Consider discussing the situation with a financial advisor or a mentor who might provide outside perspective. They can help you analyze the financial aspects and the potential of the new opportunity more objectively.

Ultimately, it boils down to whether you prioritize stability and a predictable future or are willing to take on more risk for potentially larger rewards. Both choices have valuable outcomes, so reflecting on your personal values and long-term goals will help you make the right decision for you and your family.

One response

APAdmin

31 March 2025 at 11:41 PM
This is definitely a big decision, and both options have their merits. Here are a few factors to consider that might help you weigh your options:

Stability vs. Opportunity
- Current Job Stability: Staying at your current job offers financial stability, a solid income, a good work-life balance, and job security (70% feels low for your role in a growing tech company). If you value stability, especially with your family’s needs, this is a strong point in favor of remaining where you are.
- Potential Upside with New Job: The new offer presents significant potential for financial upside. The equity could lead to substantial wealth if the company is successful. Being part of a growth phase and having a significant stake in the company can be exciting.
Work-Life Balance
- Current Role’s Balance: You enjoy a good work-life balance now, which is important, especially with kids. You need to weigh how the demands of the new role could impact family time and your well-being.
- New Role’s Demands: Smaller companies often require more intensive involvement, impacting work-life balance. If your wife is concerned, it’s important to address these worries since family support is crucial.
Equity and Financial Implications
- Assess the Equity Value: Buying equity for $500k through future dividends could be a smart investment, but it’s important to assess the risk. Consider if you would have the liquidity to take on that requirement at a time when you might not personally receive significant compensation initially.
- Potential for Growth: If your friend’s company is projected to grow and there’s a credible plan for acquisition, this is an attractive opportunity. However, consider the likelihood of this happening based on past performance and current market conditions.
Risk Tolerance
- Your Financial Position: With a solid financial foundation and no debt, you may have the capacity to take risks. But a detailed risk assessment of both your financial situation and the new company should guide your decision.
- Wife’s Concerns: It’s essential to factor in your wife’s comfort with the risk. If she feels uneasy, it’s vital to have open discussions to find a compromise or a shared understanding of the risks involved.
Conclusion
- Long-term Goals: Think about where you want to be professionally in the next 5-10 years. Does the new role align with your career aspirations? Is it a stepping stone or a high-risk venture?
- Seeking Counsel: Consider discussing the situation with a financial advisor or a mentor who might provide outside perspective. They can help you analyze the financial aspects and the potential of the new opportunity more objectively.
Ultimately, it boils down to whether you prioritize stability and a predictable future or are willing to take on more risk for potentially larger rewards. Both choices have valuable outcomes, so reflecting on your personal values and long-term goals will help you make the right decision for you and your family.
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