Growing My Business

I doubled my workforce this morning when I took on my first ever employee.

I’m going down the tried and tested capitalist route of growing my business via the energy and hard work of others.

After years of working on my own, it will be nice to have some company, and to have someone to bounce ideas off.

I’ve never taken on staff before – I think I’m more nervous out of the two us.

growing my business

A friend of mine is the senior managing partner in a local law firm. Her take on employing newly qualified professionals is that it works on a 33/33/34 split.

An employee should be paid 33% of the fees they bring into the business. The other 33% is the cost of doing business, with the remaining 34% being the profit that employee should contribute to the companies bottom line.

My costs of doing business are extremely low, other than professional indemnity insurance which is ridiculously high. Maybe I’m being a little over generous by working on an assumed 50-50 split but I’ve always thought that money is a great motivator for a new starter.

I’ve read lots of books which say that personal autonomy is a greater motivator than money – which it probably is once you’ve been in a job for a while and become competent at your role. But I still think that for new starters – cold hard cash is the carrot that people chase the hardest.

 

Comments

  1. It sounds as if you continue to move in the right direction. Congratulations on your expansion!

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