We all know if we’re in a niche market or just starting out, our business highly depends on know-how, information and/or repeating processes.
There’s one big problem, though: how do you find employees and keep them loyal? I know the feeling well. It’s an uncomfortable process to trust your livelihood to other people. The things you do are how you eat. It’s how you take care of your family. It’s how you pay the bills. Depends on what you do for a living but probably the problem is, there’re not that many barriers to entry.
You teach someone how to find customers for your business, deliver the order, keep the business running, then they pretty much have everything they need to compete against you.
So, should I only hire relatives and family members?
Of course no;
The first thing we have to address is the compensation – that’s why people are working for you. Imagine this scenario;
You’ve helped your boss make $10,000 profit this month. You know everything about this business and have the ability to run it on your own. You’re doing ALL the work but the boss only pays you minimum wage. Why would you stay on? If you want to keep employees loyal, you have to pay them well.
It’s very hard for most entrepreneurs and business owners to swallow, we think like; “I’m the one who built this company! I’m the one who took all the risks! I should get all the money!” The problem is that talented workers don’t come cheap.
What’s the right amount to pay someone? Well, you have 2 options, project based commission(ideal for service and sales businesses) or equity(works better for larger companies. Almost all startups gives 1 – 10 percent shares to its first employees as an incentive, that’s called sweat equity.).
If you run an internet company or some sort of agency, you can start off low like 10% and then increase the percentage as they hit certain milestones. Add in extra benefits if you can like health, retirement, adequate vacation time and you’re good.
Happy employees = productive employees.
Productive employees = more money in your wallet.
How well do you treat your employee?
This is HUGE. If all of your employees keep quitting, then maybe you’re just an *sshole. Seriously. Don’t treat your employees as slaves.
Can you divide your business to multiple parts?
Don’t do all the important stuff in your office. Let’s say you’re running an SEO agency and have to build 100 links for a client. Instead of teaching one guy everything, hire a VA for outreach and let your in-office employee create the content or vice-versa. The main point is, you can create barriers easily.