Need Advice on Hiring/Paying Help at Early Stages of Business

InvictusSportsInvictusSports subscriber Posts: 1
edited November 2006 in People: Hiring, Partnering, Mentoring
My partner and I are in the infant stages of our business and we have several excellent contacts for people who will work with us on website development, content development, etc.  We are trying to figure out how to compensate these people for their services before the business begins earning income.  I understand that generally speaking, some promise of future benefit is required, but can anyone tell me what their experiences have been or what method they recommend?  Right now we are a two-member LLC, but we are considering transitioning to an S Corp.  Thanks.
 
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Comments

  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    How much of an expense is this?  Not having done a website I`m not sure but my guess is probably a few thousand dollars?  Monthly payments would seem appropriate.  Certainly you do not want to give equity. 
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  • inactivemember2inactivemember2 subscriber Posts: 0
    Hi - you`re probably not going to want to hear this, but ,when I first started out I wanted to find someone to clean my house and I thought "I`ll trade them for graphic design work" and I was complaining to a group of my colleagues that no one had answered my ad and they said: "Trade doesn`t pay your mortgage". You will have to be creative to accomplish this without paying up front. Not sure what you business is - maybe if you sell sporting goods you could trade someone involved with Little League or something to get them to do your work? You said that you already had the talent lined up - if they don`t have anything to gain by what you are offering you may have to go with other talent.
    Good luck.
     
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  • melcoachmelcoach subscriber Posts: 1
    Congratulations on your new venture!
    Now to the reality of business start-up. Your website is one of the most important marketing tools that you will have. Depending on your type of business, some people will look for you there first. If your website isn`t a good reflection of your brand and offerings, it will LOSE you business.
    Also, even though it is tempting to want to save money on big expenses in the beginning, chose wisely where you "scrimp." Trade for important assets like a website can be disasterous and you may end up spending 2 - 5 times as much in the end in order to really get it right.
    Find someone who can build a website on a budget. I don`t know what kind of website you want but I do have a few good resources. If you want a basic website, I`d recommend a guy named Adam Hommey. He can be found at www.accesscommunicate.com</A>.
    I hope this helps. I`ve mentored a lot of 2 - 3 year business owners who were very disappointed with their first "trade" website. Remember, successful business owners invest in their future success.
    Best wishes,
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  • BusinessServicesBusinessServices subscriber Posts: 0
    If you have the money to compensate them then make up a budget sheet and see how much you can pay them and not go under. If you don`t have the money all you can do is barter with them or help them to understand that by them helping you it`s not in vain but that you are all working to the common goal of earning income and to be patient while the business gets on it`s feet.
    Congratulations on your business. Hope this helps.
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