Long post.I'd be very grateful if you can help me get some clarity here.We do not plan to get funding. This is going to be a bootstrapped online businessReason - Many told that if we can grow without funding, that's the best.My question is very simple.What's the advantage of hiring employees as opposed to hiring co-founders with complementary skills when the company is at its initial phase, not creating any revenue?To make it clear, let's imagine we are making an ed-tech company which helps students to prepare for tests such as SAT.We need1, Somebody to create the online course - Creator2, Somebody to market the course - Marketer3, Somebody to manage all processes - ManagerThese three roles are enough.If these people are co-founders, they can share the profit according to their equity. If the equity is equally divided among them, it's 33% profit for each one of them.Also, there are tools to divide things according to their job role.Instead, if we hire them as employees, they should be given a salary instead of a profit percentage and they wouldn't have equity in our business.However, they might not actually produce enough revenue to give them salary unless we have funding.I do understand that when the revenue of the business gets higher, it is better to hire employees rather than giving equity but is there any advantage in hiring employees when the business isn't creating any revenue or during the first phase?Thank youReferenceshttps://matters2.com/the-trinity-of-management/http://foundrs.com/ see hubwealthy.com/wealthy
0 comments:
Post a Comment