Employees VS Partners

Choosing Between Employees & Partners

The number one rule in business is to never give out equity.  I would much rather pay someone a good chunk of change than give out a percentage.  When I had my first business I had a hard time figuring out my role when I bought in to the company.  Was I an employee or a partner?  My “employer” made a good call on that one.

I’m suggesting that you learn from my experience, and do the same.  Never give up a percentage of your business, especially if you’re going to hit it out of the park.  If you’re willing to give up a big piece of your business than you’re expecting to lose. Does that sound like you?  Expecting to lose is a big challenge that you need to overcome.

There is nothing wrong with going back a few steps.  Take a look at a couple of my older posts on mindset, sales training and making sure to reexamine your why.

Employees VS Independent Contractors

Employee

Now that we have the foundation down; understand this, there are huge advantages to having independent contractors.  NOLO has some very interesting points in their legal encyclopedia of whether or hire an employee or independent contractor.

Pros of having a Independent Contractor:

  • Saving Money
  • Flexibility in Staffing
  • Reduce your exposure to headaches
    • Unemployment Cases
    • Minimum wage issues
    • Sick & vacation time

Cons of having a Independent Contractor:

  • Less Control over them
  • Worker come and go more easily
  • Limited rights to fire a independent contractor
  • Increased risk of government audits

Given my business experience I will always take a independent contractor over an employee.  NOLO makes some very good points, but my biggest point is mindset.  Unfortunately, many employees have an employee mindset.  They are looking to get paid the most while doing the least amount of work.

When contracting out work you’re able to get a better quality worker because it their time, not yours that their wasting.

What did I do Today?

The What I Did Checklist

Keeping yourself in check is very important when starting a business.  When starting my first business it was difficult.  Distractions are everywhere from Facebook to nights out at the bar.  These distractions are consuming a lot of time.  You need to keep yourself in check.

The What I Did Checklist is one of the best ways to keep yourself in check.  Other ways to hold yourself accountable is getting your wife on board, friends, or having an accountability partner.  We can get into those other ways in later posts.

Creating your Checklist

As I talked about in older blog posts, it is very important to write your goals and have a battle plan to attack each day.  I’m going to take back what I said about writing your goals down every morning and night.  Instead of writing them down every night, start your “What I did” checklist.  Keep writing your goals down in the morning though – it is very important.

End every night with writing down exactly what you did that day.  Be hard on yourself, and give yourself a written grade.  Keep honest with yourself, and soon you’ll learn that maybe your not doing enough.

Example Checklist

October 2nd, 2016

What Did I Do Today?

Contact 5 prospects for my Business

Put up 2 blog posts

Collected $5000 in money owed

Etc..

Rating = 7/10

 

Start your Checklist Tonight

Seriously, it’ll be embarrassing for the first few days until you realize how much you need to step up your game.  Stick with it.