a question for the entrepreneurs
 

This thing recently hit my head today

lets say you "launch" a company
you pay for all the $ needed to launch it, set it up, its running perfectly...
and one day you decide that instead of working in it as the owner, you want it to become an asset, so you make someone else run it 100% for you, so all you do is kinda forget about it and collect some money

how would you pay the person who runs your company for you? (let the company be big or small)

would you pay him a %? 25%? 33%? 50%? 75% 95%?
or would you pay him a flat fee? (depending on how big the company is)

thanx in advance for your input!

:1orglaugh :1orglaugh

,

you really find it funny? :eek7

I would pay a certain % because that makes makes people work harder. I think the % shouldn't be to high because you have put in the cash for the company and therefore take all the risks. But then again it depends on the situation, so I can't give you a good answer

WTF ?:helpme

thanx for your answer! according to you, what would be a fair %?
thanx :)

% system based on income milestones.

thanx 5 dolla! I shoulda came and asked you on ICQ before even posting here

but it's interesting to see what most ppl think of a situationlike this :thumbsup

You pay flat fee+ bonus that's how real business man works... like



.






Grogan.

:1orglaugh

There are alot of different ways to do this. The most common is to
hire a GM (general manager). His or her job is essentially to
oversee your entire operation, so you don't have to. All other
employess will now report to him. Normally a base salary is given, just like any other position. However a handsome bonus structure is introduced, to motivate the GM. Set of certain sales and profit goals. If the GM can hit these marks they will earn more and more in bonuses. This is there true motivation. you don't really want to give them a % because they are not really an owner. Also this person has to be extremely trustworthy, but that is stating the obvious. Hope this helped

Depends of the company. But since you put in the cash and it allready runs perfectly, I think you should find somebody that does it for a max of 50%. But you should only pay him a % if he has the ability to increase the profit, if not just pay a flat fee.

I dont consider myself to be an entrepeneur but I have some dude running a company for me and he used to get a flat fee. But now I pay a % and all of a sudden the profit has increased 45%.

indeed it did!

so you think of it as a flat fee with bonus'
and others can see it as % as a real source of motivation

thanx alot! :thumbsup

there we go :thumbsup

congratz on the $ increase dude!

flat fee with performance bonus %

dont think that this will work very well.

what wont work very well? making someone work for you?

:thumbsup

Nice advise.

Salary + bonus based on hitting performance goals (sales, profits, employee retention, etc).

hey bd

if the person believes in your business plan,,,give them a % basis.

In my opinion there are a LOT of factors that would determine such a thing. For example, the size of the company, the industry, how many employees, revenue, etc.

I like that way of thinking :thumbsup

to me, it seems as if the % will establish a much better connection between you and the person.

also it is a huge motivation to work as hard as possible, as much as possible, as smart as possible

I am having a kid soon and when she starts getting old enough Im going to do the same and pay a very trusted business partner of mine 40% to completly run the company and from there I want to start out on my next big business venture which is going to be a real estate investments company.

I agree with the majority of the posts here in paying based on a percentage system.

-Pun

I think it depends how bad you need him and how easy it would be to replace him if he ever quit.

If he's indispensible, partner status is best.

If he could be replaced, the best pay structure is salary plus incentives for hitting documented benchmarks.