Shaf
Verified member
This can be a challenge for some people, especially if they are new to it. You will need to hire staff especially if it's a large scale business, so how do you get money to pay them when you are not making a lot of sales or even profits from the business?
The most common way is to get it from the initial capital you used to start the business. This means it is part of the initial plans even before you start. There is a concept called burn rate for this, where you use part of the venture's capital to fund overhead expenses before generating positive cash flow.
Whatever you do, be sure you have a plan to pay and pay on time. Your employees are exchanging their time for money and it can lower morale, negatively affecting their output if they don't get paid.
Another way is to give them shares and motivate them to work as volunteers who will reap the benefits when the business eventually succeeds.
The most common way is to get it from the initial capital you used to start the business. This means it is part of the initial plans even before you start. There is a concept called burn rate for this, where you use part of the venture's capital to fund overhead expenses before generating positive cash flow.
Whatever you do, be sure you have a plan to pay and pay on time. Your employees are exchanging their time for money and it can lower morale, negatively affecting their output if they don't get paid.
Another way is to give them shares and motivate them to work as volunteers who will reap the benefits when the business eventually succeeds.
