You might have the determination and resources to work at a start-up for months without profit, but what about your employees?
Nearly every start-up needs employees to start making money, but it needs money to pay its employees. There are lots of ways to find the funds to put in your team’s pockets early on, but how do you get that money to them?
There are various employee payment methods, and it’s important to choose the best one for you, especially when you’re just starting out. We’ve compiled a list of some of the best payment methods for startups — we hope that one of them will set you up for success.
Employee Payment Methods for Startups
Some of the methods here might seem a little unconventional, but you have to get creative when you’re low on funds, sitting on the next big thing. Consider some of the following payment methods:
1. Give Employees a Piece of the Pie
If you’re coming up short on liquid finances to give employees, consider giving them stock in the company. Employees who are confident in you and the company’s mission should be really excited at the opportunity to own stock because it could mean big rewards later.
That said, it would be unethical to offer stock when you were unsure if it would be worth anything later. Sit down with your employees and discuss what amount of stock would be appropriate.
2. Work with Interns
If your brick and mortar location is near a college campus, you’re in a lot of luck. Offer compensation in the form of an unpaid internship. Students are chomping at the bit for real-world experience, and you can offer it to them.
Who knows? By the time you have the funds for actual payment, the interns will be your tried-and-true employees.
3. Hire Independent Contractors
If you know that you don’t have the means to pay skilled employees an hourly wage, consider paying for the work that needs to be done as-needed.
Hire a contractor when a project needs to be completed and compensate them a fixed amount. This way, you won’t have to provide regular pay, benefits packages, or expectations.
4. Create Pay Stubs If You Can Afford to Pay
If you’re in a position where you can afford to pay employees, don’t do it in a round-about way.
The best way that you can pay your employees is with a straight-forward paycheck. The process of creating a pay stub is a lot simpler than you would expect.
Consider using this check stub maker if you’re looking to create your employees’ pay stubs.
Fleshing Out the Fine Details?
Employee payment is one of many details that you’re probably working on in your startup.
There’s a lot to keep in mind, and you can’t afford to forget or slack on any of it. Check out our other blog posts for unique ideas on how to make your startup as good as it can be.