There is no doubt that a team of workers is essential to a company’s success. From increasing output to completing critical tasks, they are the lifeblood of the organization. In short, they help to dig a business out of a deep ditch and keep it on track.
The thing is employees won’t work for free. Even worse, a typical startup doesn’t make money for at least tent to eighteen months. The problem is finding the funding to ensure they stay at their desk and help the company through the complicated process.
Thankfully, there are solutions. Here’s how to pay the workforce when the business has no money.
Take Out A Loan
Normally, an organization doesn’t want to get involved with a bank, especially when said enterprise isn’t cash rich. The potential drawbacks are significant, yet it’s the only way to pay employee’s wage on time. Think of it as an investment where the loan is a stopgap until the money begins to roll through the door. By taking out an advance now, the business can turn a profit in the future. An excellent tip is to use p2plenders.co to avoid banks altogether. A peer-to-peer loan is an agreement between private lenders, which means the details tend to be favorable.
Offer Stake In Firm
The interest rates mean that a loan is going to be a risky option. Even if the employees make money, they have to make double to cover the overall costs. It’s for this reason that business owners offer employees a stake in the firm. The total amount might be less than 2% each, but it’s an offer of good faith. If the team believes the company is going to make it big, they might accept a percentage of the business. In the long-term, anyone with shares stands to make a killing. Usually, it’s a great way to offset a basic wage and appease employees.
Paying employees nothing is the simple solution to this conundrum. However, it isn’t possible to pay people nothing for their time, right? Surely there are laws in place to prevent it from happening? Yes there are, but not for every worker on the spectrum. People who are young and want to gain experience, interns, generally work for free. By volunteering, they hope to gain experience and make contacts to further their career. They are hard workers who want to impress, and they don’t cost a penny.
Full-time workers demand a big salary. Part-time employees, however, cost half as much because they work less. The trick is to use a mixture of full-time and part-time employees in conjunction with interns. That way, the firm can avoid paying over the top for workers while maintaining a high standard. Also, it is possible to pay people for the work they complete. Marketing and sales people, for example, don’t get a basic wage but do take a cut of any sales.
Just because the firm is broke doesn’t mean it can’t afford a quality workforce.
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