Posts Tagged salary requirements
Salary Requirements from Investors
Posted by Steve in Leadership, Plan on May 7, 2009
Whenever I did a proforma for a company seeking investment or a bank loan, the principles salary was always an interesting stopping point. Some people did do the research or identified the value proposition but most treated it as they were entitled to the money regardless of performance. This was a recipe for failure: getting turned down for investment.
Investors do not need to hear how you, the entrepreneur, need $150,000 per year because you have four children in college. What the investor needs to hear is that you will create value that earns the $150,000. The best approach is to identify the basic salary you need to get by and focus on the business, and anything above that is based purely on performance. If you do not perform and show success, then you do not make that money.
On the other hand, investors should not expect you to starve your family. If any investor tells you that, then you should walk.
A challenge comes when the entrepreneur needs $150,000 base because of certain required needs but does not create the value to match that base (or have the track record). Unfortunately, most investors do not care and will insist that either the entrepreneur cuts back expenses, uses savings, or has their spouse work. Note, I did not write have a second job. The investor expects the entrepreneur to work in the invested company and not moonlight.
Finally, the investors know that you need a competitive salary for your job. When you research the position, do not pick the CEO’s salary that is in the millions when your last salary was $60,000. Instead, figure out what the typical lead supervisor gets paid, and then match that with a package of base and performance. Typically, if you earned a salary at your previous job and lived well enough off it, it is a good idea to start with that as a base. Anything over that can be paid on performance.
Rite Site
Posted by Steve in For Job Seekers on May 5, 2009
This one is for job seekers…
Never ever pay a fee for someone to help you find a job…except when that fee gives you tangible access to something of value.
I read a book by John Lucht, called Rites of Passage at $100,000 to $1 Million+: Your Insider’s Lifetime Guide to Executive Job-Changing and Faster Career Progress in the 21st Century. ISBN is 978-0942785302 and it retails for $19.77 on Amazon after discounts.
The book offers invaluable advice to the job seeker. Here are the reasons to get it based on what I think are some of the toughest obstacles facing a job seeker:
- Explains how to work with recruiters, the differences between contingency and paid, and when to turn down a recruiters offer to help you.
- Shows why you need to not listen to the 2-page only resume people and do what you think is right. I still have a 2 pager and even a 1 pager but that is because I can focus my resume on one thing.
- Explains that you need a text resume as well as a Word doc resume and why! My text only resume is amazing.
- Explains how to differentiate yourself from the other job seekers from the introduction to the interview discussion to the follow up. Includes what type of stationary to get.
- Explains how to mention your salary requirements and not to be afraid of it.
- Explains how you work with recruiters once you get that job and how to maintain your credibility and contact.
There are many other points in his book, and I found it invaluable for these and two other reasons.
Additionally, he has a web site and two mailing lists. One list was for the book and ideas on a job search. The other list is called Insights, which discusses ways to move ahead in your career (there is a book on that too).
John’s web site, RiteSite.com, allows you to communicate with other job seekers, search classifieds for jobs, and read the latest information at his University for finding the right job. What makes his site unique is two things. First, he has two groups of people that he allows on there. The first are paid only recruiters, which his company screens to insure that they are not contingency. When you read his book, you will understand why, but safely say that it is not worth it to have a contingency recruiter blast your resume.
The second reason is that each of these paid recruiters have set up a method to receive your resume from his site. You enter the resume in two ways: Word doc, and text. You also include a cover letter. When you press send, your resume goes to these 1000+ companies. These companies signed up and went through the screening process in order to get these resumes. Every three months you can resend your resume to these recruiters for their files. Furthermore, his book and site explains how you approach this (and why) after you accept a new job offer.
When I did it, a few years ago, I got replies back within a week; and got a few interviews out of it.
There is a cost to the web site: $95/year, but I notice that he often gives a free renewal. He also provides a reward for each paid referral (which I have received). So, for $95, I was able to contact over a thousand recruiters who did not blast my resume to every company. Considering the time and cost of running that with my printer and postage $920+, I think it was a bargain.
The site is also useful for hiring managers as you can search resumes, post jobs, and look for high value people. You will still have to pay a fee, but then it’s a bargain compared to doing it other ways.