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The day your home business reaches the level where you can earn money from the work of others is the day your riches will begin to pile up. Why? Because you can accomplish only so much by yourself. Beyond this you need the help of others.
You must, however, be careful when using others to pryamid your riches. For instance, you’ll soon go broke if you pay a man $10 per day to work for you and he earns only $8 per day for your business.
you have twenty people working for you and you lose $2 per day
each you’ll soon have little left other than an empty purse.
So be sure each person you hire at least earns his keep. Better yet, follow the advice of Paul L., a brilliantly successful home hair stylist. Paul helps restyle women’s hair, advises them on the style of clothes that make them look their best, and offers guidance on other aspects of good grooming.
“When my business became so 1arge I couldn’t handle it by myself, I began looking for help,” Paul recalls. “As I analyzed the
that I wanted to fill I realized that I’d have to train the person, watch his work closely for the first few weeks, pay extra payroll taxes, etc. In other words, the new person would have to earn for me more than his salary because it would cost me money just to have
on the payroll. This was the best decision I ever made.
“As a pure guess I told myself that each person I hired must earn
least twice as much for my company as I would pay him. Thus, a man being paid $100 per week had to bring in no less than $200 per week in business. The extra $100 per week goes towards payroll taxes, benefits, and my profit on the person’s work. After all, I should receive some return for providing the job, taking the risk, etc.
“I learned, as I hired more people, that my ‘two-times’ figure was
little low. I should have made it two and one-half times. Also, I learned that some large companies use about the same two-times- salary figure; others use a four-times figure. This is an important way of taking care of overhead—that is all the costs you have to pay just to stay in business.”
One of the best ways to pyramid your riches is by hiring more people for your business. Just be sure you understand, and use, the two-times or better rule for covering overhead and you’ll solve most
the problems new home fortune builders face.