Taking Your Business To The Next Level

So you feel like your ready to take your business to the next level, then…

Own the business. Don’t run it.

  1. Search: Pay a Task rabbit to go to your alma mater and post “CEO Wanted” signs with your contact info and relevant info about the new position for which you’re hiring.
  2. Leadership: Interview 5 candidates. They’ll all be clueless, but look for the one who can make intelligent decisions without having to ask you about every detail – the one who’s comfortable ACTING in a state of uncertainty. Don’t settle. Interview until you find the right person who’s going to make you both money.
  3. Short-term Incentives: Pay this person 20% of revenue + (plus) 40% of all new business – (minus) 60% of all lost business. I made up those numbers – do what you think makes sense but don’t be short-sighted or skimpy or you won’t find the right person. The incentive here is to put an end to your churn problem.
  4. Team: Ask them to propose a product development and marketing budget and to go hire 2 folks to work part time (with your approval). You’d be surprised what poor college students will do for $15/hour!
  5. Long-term Incentives: Give your CEO equity (assuming you have an incorporated company here). Put them on a one year cliff. Award them x% of the company if they make it 1 year – meaning they’ll take not only their salary but also x% of all profits. I recommend that x be large… I’m talking 20-60% vested over a total period of 4 years, meaning they would cliff into 5-15% of the company after year #1…and could eventually take control – which is fine if they’re making you basically free money!

Bottom LineLife is all about incentives. This setup incentivizes you to 1) find the right person, and 2) fire the wrong person. It also highly incentivizes this person to do a great job and grow this business or GTFO.