Do start-ups need to pay all of the same payroll expenses as a large company?
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It just seems like an enormous financial burden for a start-up with just a few employees.
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Answer:
Start ups face the dual problem of establishing the enterprise with the one-time, non-recurring activities necessary to get the operation underway and at the same time acquire the core management talent and subsequent help as the business grows. Even established companies find they cannot sustain a work force for large scale programs until the contracts are in hand to finance them. A core team is an absolute necessity; it may be small and the business proposals may be few at first. But the core team product must be strategic in terms of high probability marketing to build the company base. Supplementary help can be acquired by permanent ads at the company web site for generic skill sets, contingent hire agreements with prospective employees and similar techniques that position the resources on deck for business growth. Small businesses commonly utilize contingent hire agreements to locate promising individuals who can bring projects or contacts with them when they join the firm. They are willing to negotiate a prospective wage and salary arrangement in advance of a proposal submission and commit to an offer of employment with benefits and commission should the program be won. They further offer to reimburse the participant for expenses and business related costs during the proposal period, if pre-approved. The key to these arrangements is to identify target projects that both you and the candidate can go after, where the candidate is uniquely qualified to : (1) Help win the job (2) Contribute heavily to the proposal. Just bringing someone on who has no ability to offer targets usually does not work. You can review a free generic contingent hire agreement at the site linked below: http://www.smalltofeds.com/2009/05/generic-contingent-hire-agreement.html
Ken Larson at Quora Visit the source
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