EPTApproaching the $1million revenue mark. - Page 2
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Kukaracha
France1954 Posts
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Skilledblob
Germany3392 Posts
But that's just me and I wish you the best in your endeavours  | ||
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Firesilver
United Kingdom1190 Posts
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BrTarolg
United Kingdom3574 Posts
If you make 1mil in revenue how does that translate into profit for your company? | ||
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Sky101
United States1758 Posts
On February 12 2012 19:12 icydergosu wrote: I think you are wasting your money on a CEO. How much of that revenue is profit? Currently, roughly 30-35% of that is profit. I'm probably going to end up paying him $100,000, which is roughly a 3rd of my profit. But if he can assist with my expansion, he's going to bring in more money than what I'm spending on him. Plus I have someone to share my workload, and guide me on the right path. So, no, it's not really a waste, if you think farther ahead. If I intend to stay at my current revenue, yeah, he'd probably be too expensive. @Wohmfg: Hmm, to be honest, I feel the same. More headaches (seriously I'm taking a lot of Advil/Tylenol now more than before), always having a sense of urgency, like I'm being pulled in so many different directions, no time for any leisure activities (though, one can argue that making money is a fun activity in itself). I do feel good though, but I'm always in a worried state, it's annoying sometimes. Plus my mood has come from happy-go-lucky to intense, serious, and generally hard to get along with (especially if I'm behind on something). I think I need to spend time learning Yoga or work out to relieve stress or something. @Kukaracha: Yes, I started with 2 empty hands. Well, I had like $10,000 left over money from all of my previous business ventures (that failed :D) but that was pretty much my entire starting capital. | ||
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StorkHwaiting
United States3465 Posts
Some people you can bring on short term to learn from them and acquire their skillset but I definitely think you should look to improve your own skills using this CEO and then get rid of him down the road or bring him on as a partner so he has a bigger incentive to grow the company. Otherwise, if this guy really is that much better at doing business than you, what's to stop him from learning your operation, contacts, and methods, and then starting up his own version to compete with you? | ||
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zalz
Netherlands3704 Posts
On February 13 2012 20:38 StorkHwaiting wrote: I think the only thing you don't want to have is the mentality of hiring someone for business admin. because you don't think you can do the job. Unless it's creative, as the boss you should be able to do anything you hire someone else to do. Otherwise, how are you gonna manage this employee and get max productivity out of them? Some people you can bring on short term to learn from them and acquire their skillset but I definitely think you should look to improve your own skills using this CEO and then get rid of him down the road or bring him on as a partner so he has a bigger incentive to grow the company. Otherwise, if this guy really is that much better at doing business than you, what's to stop him from learning your operation, contacts, and methods, and then starting up his own version to compete with you? A guarenteed 100k paycheck? | ||
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StorkHwaiting
United States3465 Posts
That's really not much in the business world, especially if a guy is that skilled and experienced. Plus, the mere fact that you are an employee rather than a shareholder is a huge factor. Everyone wants to be on the equity side of the equation. | ||
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QuanticHawk
United States32157 Posts
You should do a blog about how you got to where you are now, with all the past failures and stuff. Would be interesting and inspiring, I'd imagine | ||
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Sky101
United States1758 Posts
On February 13 2012 20:38 StorkHwaiting wrote: I think the only thing you don't want to have is the mentality of hiring someone for business admin. because you don't think you can do the job. Unless it's creative, as the boss you should be able to do anything you hire someone else to do. Otherwise, how are you gonna manage this employee and get max productivity out of them? Some people you can bring on short term to learn from them and acquire their skillset but I definitely think you should look to improve your own skills using this CEO and then get rid of him down the road or bring him on as a partner so he has a bigger incentive to grow the company. Otherwise, if this guy really is that much better at doing business than you, what's to stop him from learning your operation, contacts, and methods, and then starting up his own version to compete with you? Good point StorkHwaiting, that's exactly what my plan is, to acquire as much skills and knowledge as I can from him while inviting him on as my partner down the road. He expressed his desire to be my partner a while ago, so this should be easy. You're absolutely correct in the possibility of him starting a competing business with me. There are things that I can do, precautions that I can take, to make sure this doesn't happen. Anyway, all your points are valid, and I've considered them all before, but thanks for the reminder Will be helpful to always have that in mind. | ||
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