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Thread: Appropriate salary

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    Appropriate salary

    Following situation:

    I have planned a business from scratch, including marketing, found all suppliers, negotiated contracts and so on, just everything. I have already built up another business and have about 10 years of management experience when it comes to that.

    Now I have found investors and the company is equally shared. I am the only active person as I am the only one in the country and I will continue doing my work.

    Question is: what’s an appropriate salary to be paid to me for doing all this work, managing and running this business in the future and at the same time building up more of those shops to make it grow into a franchise.

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    Platinum Member sterne.law@gmail.com's Avatar
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    You and your partners should look at what the market is paying for the position that you are in. If some of teh tasks are beyond the scope of the industry norm for your current position tehn factor in the cost of a consultants fees. Eg If the industry norm for your position is R10000 but you do about 20 hours a month of work that persons in that position would not normally do then add on say 20hrs times R250 and you get R15000 in total. As to the growth of the business and the franchise perhaps a share option, which gives you equity and cashflow, or profit share, which does not give you the equity. Alternatively a combination.

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    Site Caretaker Dave A's Avatar
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    I suppose the correct way is the shareholders appoint the CEO and approve his/her salary. As a start-up, at this point just what is available to be offered should be guided by the business plan.

    It's at times like these that awarding shares to the CEO makes sense.
    Or a percentage of profit growth.
    Last edited by Dave A; 01-Nov-09 at 10:01 PM.
    The trouble with opportunity is it normally comes dressed up as work.

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    Everything turned out great. Every of the 4 parts gets 25% shares, and I get a salary on top of that.

    They offered amount A, I said amount B and we just met in the middle - perfect negotiations.


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    Site Caretaker Dave A's Avatar
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    The trouble with opportunity is it normally comes dressed up as work.

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    I stay out of determining salaries. My talents lay in helping SMEs to survive.

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