Forum Workshop
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Starting your
OWN BUSINESS
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SPREADING
THE WEALTH
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Your most productive employees will expect to
share in their own profitability. Nothing is more
discouraging than when one good salesperson
“makes up” for three mediocre ones, and knows
it.
If your company is doing well, but your star
employee isnʼt getting his or her fair share, and
knows it, you are courting disaster. That personʼs
morale will sink, his productivity will decline, and
he will start to look for opportunity elsewhere.
How much salary is enough? As I said before,
it depends on age and circumstances. It also
depends on what the employees thinks he or
she is “worth.” Corporate employees tend to
be worth more than small business employees
F because national and international corporations
O make more money. (Iʼm talking about successful
R corporations, of course.)
U
M What an employee is really worth is a percentage
of the total profit that he or she generates for
your business. At the minimum, anyone on your
payroll should “sell” enough to pay his or her own
salary. The good ones will pay their own salary
and contribute to yours. The good ones expect
to be rewarded for high performance. If you are
carrying a lot of poor performers on your payroll,
you wonʼt be able to hand out these rewards,
because the profits your stars generate make up
for those other folks.
Donʼt tell your star salesperson that if he “wants
to earn more, just sell more,” unless you, as the
owner, are doing things to make this possible,
and the economy is in good shape (people are
buying what you have to sell). At some point he
will sell all that is possible to sell in an eight-hour
day. Unless you introduce a popular new product
or raise your prices, your employee has peaked
with your current inventory or product line.
Be honest. Be honest with yourself first. Then
youʼll be honest with your employees. The best
ones are worth keeping. Put them on a regular
salary that compensates them for their value to
your company. If someone performs tasks other