New company asking employee to incur direct cost?

I am involved in the prelimenary stages of opening a dealership selling kitchen furniture. We have a small group who is experienced in sales, office management, & service in the business. There is an investor who has expressed interest in opening a shop that he wants us to hire us for. They have proposed that we incur some of the direct costs by receiving a lesser base salary, paying 20% of our paycheck in to buying shares in the company and then sharing a certain percentage of the profit quarterly or annually. 20% being taken because we don't have any money up front to buy shares. I am wondering is if this is normal or is this inappropriate? I get the feeling they they are trying to stick it to the little guy.IMO we should be fully compensated for our work as producers and if we were to buy shares that we would then fair and square share the profits as decided. I am really concerned about this. It seems they really just want us to sacrifice our pay for direct costs. Is this fair?

If the "investor" owns 51% or more, he calls the shots. That can also mean he closes the business and you all get nothing.

I'd pass on the deal.

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