Two Different Roles in your Business
Employees inside the company, owners and shareholders outside it: Stefan Neuss explains why both roles get paid in entirely different ways and why that difference can change your life.
Every business or limited company has two major kinds of roles. According to Stefan Neuss, founder and managing director of WERA Capital Partners, understanding the difference between them is one of the most important lessons in business: both roles get paid, but in entirely different ways.
Roles inside the business: employees
Inside the company sit the employees, on several levels. At the top is the managing director or CEO. Below them is the C-level, and below that are the specific roles hired to deliver the products and services the company sells.
All of these levels have one thing in common: they receive a salary. Employees get paid by the company through their salary. That's it.
Roles outside the business: owners and shareholders
Outside the company stand the owners and shareholders. They get paid too, but only after a few ifs and buts, and only when the company makes a profit at the end of the fiscal year. The process looks like this:
- The company prepares its accounts.
- It declares its taxes.
- It pays its taxes.
- It distributes a portion of the profit after tax to its owners or shareholders as a dividend.
Understand the difference
An employee works in the business, but that does not mean they own it. And a shareholder owns the company, but that does not mean they work in a specific role inside it. Seeing these roles separately opens up far more opportunities to build something solid for your family and create generational wealth.
The most important lesson
For Neuss, this was the most important lesson of his career. In his view, it is what separates the rich and super rich from the rest of the population: they understand the difference between these roles and actively work with it.
WERA Capital has created a Online Training course - BASIC & GLOBAL BUSINESS SETUP that explains every role in detail, with its benefits and its drawbacks. Learn more: BASIC & GLOBAL BUSINESS SETUP
Watch the full video: Two Different Roles in your Business on YouTube