How to Pay Employees When Starting Your Business
HOW TO PAY STAFF WHEN STARTING YOUR BUSINESS
Starting your own business can be a stressful and daunting experience. Every entrepreneur knows the importance of hiring the right people to do the job in order to ensure company success. However, hiring the right people can be a strenuous process in itself. Certain resources are required in order to find the perfect candidates, and better yet, employees. Not having the proper finances to pay talented employees is one of the most challenging issues entrepreneurs face. Luckily, there are ways to hire employees without breaking the bank;
Crowdfunding is the process of raising money to fund a project or business through donors using an online platform. It allows entrepreneurs to raise money to fund their venture without surrendering equity. Crowdfunding is a great way to raise money to be able to pay your staff during the early stages of your startup. Not only is crowdfunding something to consider to pay your staff until your business becomes profitable, but it also allows the business to gain notoriety amongst the community before risking everything once launched. It’s a way to gauge market responses before going live with the product. You can use crowdfunding platforms to market your business as well, as it puts your product “out there” and gets people curious as to what the company is. You can use crowdfunding to secure finances and market your company.
Hiring interns can give you a fresh, outside perspective on your new venture, while also cutting the costs of having to pay someone with years of experience. Students who are eager to gain real experience in their field are excellent candidates to consider. Many students want this experience so they can add it to their resume, so offering them a position in return for real work involvement can create a mutually beneficial partnership. This also allows you to essentially “test run” the intern for when your business becomes profitable. If the intern was a good employee, you know you can hire him/her without any of the financial risks that go along with hiring a new person.
Stock options are beneficial to both employees and employers. If you are unable to pay your staff during the initial phases of your startup, offer them stock options. If they believe in your business and are passionate about what you’re offering, then this is a great way to compensate your employees. Not only is it a way to pay your staff, it also allows them to be much more dedicated to the growth of your company. Obviously, if they’re making more money as the company grows in terms of profitability, you know for certain that they’re going to give it their all in that position. One of the most challenging things any CEO faces is keeping their employees motivated, so what better way to do this than offering them company stock.