Risk Accompanied by Commensurate Rewards
Hypothetical Case Number 1:
A Motivated Entrepreneur and Risk-TakerContact Us
While some individuals seek stability and reassurance, others look for the motivation and potential rewards that taking on more risk provides. Let's look at how we could work with an individual who wants to build her own practice.
Anne, a hypothetical person who is highly motivated to build a practice, embraces the risk-reward proposition that building a new practice presents and wants to be richly rewarded as it takes root and grows. She is also interested in eventually participating in company ownership someday.
When a Team Member wants to Directly Profit from One's Own Efforts
She fully understands the reality that the building process will be difficult, requiring patience as she lays the foundation of client connections and workflow that are the essential predicate to establishing a financially stable practice.
She also fully expects that she will be commensurately rewarded and that these rewards could include becoming a partner at Verus Forensic.
Solutions: Providing a Base Salary with Increasing Profit to Reward Success
Anne, our hypothetical example, and the firm agreed that a compensation package in which she fully participated in the risk-reward proposition would be most appropriate.
As such, we established a base salary that would meet her near-term needs, but that, frankly, was below what Anne could command in a traditional salaried position.
We also entered into a profit-sharing arrangement in which we would track the financial performance of her budding practice as a discreet profit center.
Each quarter, we would produce a profit-loss statement for her practice that accounted for the revenue her practice generated, along with the expenses incurred.
We negotiated a specific percentage of the resulting profit that would be distributed to Anne on a quarterly basis. The greater her success in building a financially stable and profitable practice, the greater her compensation would be.
In the early stages of her practice building, she expects to receive a lower than market-rate salary that is sufficient to meet her needs. As the practice takes root, she and the firm fully expect her compensation to increase far beyond that market-rate salary.
She and the firm fully believe that Anne will ultimately become a member of the ownership at Verus Forensic.
Entrepreneurs usually have to choose between the security of a job and the potential of starting their own business, with all the associated risks.
Not so at Verus Forensic. We work with you to provide a mutually beneficial arrangement that allows you to build the practice and lifestyle you've always wanted.Next Story