Join Rudolph Rosenberg for an in-depth discussion in this video Offering a variable-pay element for employees, part of Entrepreneurship: Bootstrapping Your Business.
- If you're not too thrilled about…giving away shares of your company,…or if you need skills right now…that will be easily serviced by…paid employees in the short term,…then you might want to consider variable pay…as an alternative.…Variable pay is usually proposed to salespeople…as a way to tie their compensation to their performance.…But if you think about it, you can apply it…to any role in your organization.…
The benefit of that is that the compensation of your team…will be tied to the success of the company,…and in tough times it will go down,…and in good times it will go up.…The way is works is that you set a portion…of their compensation as a fixed salary.…That is a part of their salary that never changes,…and you'll always have at least to pay that part.…Then you have a variable part to their compensation,…which depends on the achievement…of a certain level of performance.…
That performance can be either individual…through the attainment of concrete results within their job,…or through the collective achievement…
He shows why beginning with the end is important: framing the venture by anticipating your exit strategy. He explores key resource-planning factors as well as the competencies and considerations required to fund and grow a bootstrapped business. The course then details how to manage the startup and evaluate it realistically to determine whether to stay the course or pull the plug. Finally, viewers will learn how to validate the business-plan assumptions effectively to determine viability and growth trajectory.
- Summarize the five pillars of bootstrapping.
- Determine which type of office space would be most beneficial for a given business.
- Explain the concept of linearizing expenditures.
- Identify the reason why making sales quickly is important to bootstrapping.
- Recall strategies for attracting new customers.
- Recognize the advantages of working in short cycles.
- Explain the importance of having a work-life balance.