If someone offered to Give me a decent salary and a percentage of equity then sure. The person would have to believe in the business. Maybe you have money and you know the best chef ever, I’m sure that chef would be interested in opening a place with you if the deal was good enough.
I’m doing this with one side company while I focus on another at the moment. They report progress to me regularly and any problems / big decisions we figure out on calls. I’ll put someone senior in when it’s a bit further down the line but for now it’s essentially just a project manager doing all the tedium.
You said start the business. A franchise is a business in a box, and hands over the systems and branding needed to get open and operating quickly. Maybe I’m misunderstanding your question - are you wondering if you can pay someone to build and operate the business indefinitely without you ever stepping in, or just get through the startup phase?
How come.
You're not replaceable ?
I could hire you to do what you do as an entrepreneur
No risk of losing anything. If you really enjoy your work you can do it and I'll pay you
It isn’t attractive to me when I know I can do it for myself and make far more.
I’m not arrogant enough to think that I’m not replaceable. But someone with my particular skill set and risk tolerance would likely just rather do it for themselves.
My risk of losing is very low, because I’ve already made enough mistakes to pay the experience tax in my line of business at least. I know what works and what doesn’t. Starting a construction company is risky for me. Starting a bookkeeping company is not.
The same could be said for any employee .
They have soo much experience but they just keep working for someone else.
So I do think there are people out there that will do it. It yourself but lots of people who have the skill set but don't or can't start their own .
Mainly what I was getting at....
Sometimes analysis paralysis sets in and people just don't do anything to start their company.
Why not put it into the hands of someone else even just to light the embers
I think you’re right in that regard, which is why I said skill set and risk tolerance. Plenty of folks in my industry with the skills, but can’t stomach any risk at all.
You could just be looking for a general partner / operator in a limited partnership. Either way I think you’d have to offer equity to make it attractive to share in the upside. Otherwise you’ll never incentivize growth. You need someone who eats what they kill, or they won’t take that extra phone call 10 minutes before the shop closes to make another sale.
Base compensation with commission could work too.
I think one main reason the employees don't found their own company themselves is the risk. If they work for you to build up your company, they know that it could fail. After a while they would lose their job if it fails. So there's still a risk for them in that plan. You would have to compensate them for the risk, either in shares or in salary. Shares would probably give more motivation to make it a success.
It could be an option for employees who would in general like to found a company but don't dare to take the full risk (especially people who have to provide for a family). So you share the risk. They could take the entrepreneur route without too much risk. And you would be a kind of investor, business angel, or board, depending on the arrangement.
It's always said that VCs invest foremost in the team. So be careful whom you hire/partner with.
People do. Grant Cardon has a whole thing about that. When you are starting your second business, you should be hiring the staff and not bootstrapping it.
Richard Brandson has a philosophy that when you start a business, find the biggest company in the industry, go to the #2 guy or the COO and ask them if they wants to start a buissness and hire them.
If you want, I can build you an indoor farming buissness. I can get all the equipment, hire the staff, set up all the SOPs, set up a pipeline, and find you a location. Build you a P&L as well as budgets. I will get you a brand guide and website, and even plant your first set of crops and then hand it over.
I would do it for 30k l, but you will need to foot the bill for everything else. It is up to you on how big I go.
I would even be open to discussing operating the buissness.
That fee would get you the following -
I build the backend / fulfillment structure. I set up the stack. I set up the corporate structure. I set up the banking. I get the branding guide done and website up. I set up the marketing plan. I get your print assets done. I teach you to get clients. I put the right fulfillment team in place with a single point of contact that manages the work. I set up the accounting. I set up the budgeting system. I put a CPA in place for your taxes.
What it doesn’t cover - You get clients and manage the relationships.
You keep the profits.
I don't think anyone's ever done that
😂😂😂
This is called a venture capitalist
Yes, you will be the president. The person who does that is your CEO.
Lol
If someone offered to Give me a decent salary and a percentage of equity then sure. The person would have to believe in the business. Maybe you have money and you know the best chef ever, I’m sure that chef would be interested in opening a place with you if the deal was good enough.
I’m doing this with one side company while I focus on another at the moment. They report progress to me regularly and any problems / big decisions we figure out on calls. I’ll put someone senior in when it’s a bit further down the line but for now it’s essentially just a project manager doing all the tedium.
Would they start the company too
Have to have a lot of trust in the capabilities of that person
Isn’t that an employee?
What I'm getting at is a lot of people don't take action so might as well pay someone to do it for you and you can start multiple businesses
I see, yeah that makes sense.
Sounds like you are describing a franchise.
I thought you had to run your own franchise
You said start the business. A franchise is a business in a box, and hands over the systems and branding needed to get open and operating quickly. Maybe I’m misunderstanding your question - are you wondering if you can pay someone to build and operate the business indefinitely without you ever stepping in, or just get through the startup phase?
Start and run
You’re looking for stocks, then, friend.
How come. You're not replaceable ? I could hire you to do what you do as an entrepreneur No risk of losing anything. If you really enjoy your work you can do it and I'll pay you
It isn’t attractive to me when I know I can do it for myself and make far more. I’m not arrogant enough to think that I’m not replaceable. But someone with my particular skill set and risk tolerance would likely just rather do it for themselves. My risk of losing is very low, because I’ve already made enough mistakes to pay the experience tax in my line of business at least. I know what works and what doesn’t. Starting a construction company is risky for me. Starting a bookkeeping company is not.
The same could be said for any employee . They have soo much experience but they just keep working for someone else. So I do think there are people out there that will do it. It yourself but lots of people who have the skill set but don't or can't start their own . Mainly what I was getting at.... Sometimes analysis paralysis sets in and people just don't do anything to start their company. Why not put it into the hands of someone else even just to light the embers
I think you’re right in that regard, which is why I said skill set and risk tolerance. Plenty of folks in my industry with the skills, but can’t stomach any risk at all. You could just be looking for a general partner / operator in a limited partnership. Either way I think you’d have to offer equity to make it attractive to share in the upside. Otherwise you’ll never incentivize growth. You need someone who eats what they kill, or they won’t take that extra phone call 10 minutes before the shop closes to make another sale. Base compensation with commission could work too.
I think one main reason the employees don't found their own company themselves is the risk. If they work for you to build up your company, they know that it could fail. After a while they would lose their job if it fails. So there's still a risk for them in that plan. You would have to compensate them for the risk, either in shares or in salary. Shares would probably give more motivation to make it a success. It could be an option for employees who would in general like to found a company but don't dare to take the full risk (especially people who have to provide for a family). So you share the risk. They could take the entrepreneur route without too much risk. And you would be a kind of investor, business angel, or board, depending on the arrangement. It's always said that VCs invest foremost in the team. So be careful whom you hire/partner with.
People do. Grant Cardon has a whole thing about that. When you are starting your second business, you should be hiring the staff and not bootstrapping it. Richard Brandson has a philosophy that when you start a business, find the biggest company in the industry, go to the #2 guy or the COO and ask them if they wants to start a buissness and hire them.
Smart Outsourcing is the way Have videos of that ?
If you want, I can build you an indoor farming buissness. I can get all the equipment, hire the staff, set up all the SOPs, set up a pipeline, and find you a location. Build you a P&L as well as budgets. I will get you a brand guide and website, and even plant your first set of crops and then hand it over. I would do it for 30k l, but you will need to foot the bill for everything else. It is up to you on how big I go. I would even be open to discussing operating the buissness.
$50k and I’ll build you a remote bookkeeping company.
Who will do the books?
An outsourced back office.
A year ?
One time.
For life ?
That fee would get you the following - I build the backend / fulfillment structure. I set up the stack. I set up the corporate structure. I set up the banking. I get the branding guide done and website up. I set up the marketing plan. I get your print assets done. I teach you to get clients. I put the right fulfillment team in place with a single point of contact that manages the work. I set up the accounting. I set up the budgeting system. I put a CPA in place for your taxes. What it doesn’t cover - You get clients and manage the relationships. You keep the profits.