Never take a first offer as they say ... but on the other hand don't be too greedy if the other party is already generous!
On Tue, Feb 10, 2009 at 9:38 AM, [email protected] <[email protected]> wrote: > > Wow, Thanks for overwhelming replies :) > > So it is not a bad deal at all. > > Do I need to mention anything else before I sign up the contract? (ie. > bonus, car park, etc) > > On Feb 10, 7:23 am, Phill Coxon <[email protected]> wrote: >> On Mon, 2009-02-09 at 21:57 +1300, Craig Cochrane wrote: >> > As a business owner I am shocked that someone would offer a % on turn >> > over. Turn over does not mean profit. You can turn over 20k per month and >> > only make 2k profit or no profit! Then to give away a % of turn over is >> > very generous indeed. >> >> Paying a % of turnover can work if you have a very clear idea of what >> your expenses and you know that those expenses aren't going to change by >> much. >> >> Business owners usually would much rather pay a % of profit. >> >> However, a % of profit can be risky to an employee because they have no >> control over the expenses. >> >> I've worked with companies where the directors would waste thousands of >> dollars on overseas travel, expensive "business" meals, buying unneeded >> items all claimed as business expenses etc. >> >> Even though turnover was high, profit was very low. >> >> Before accepting a % of profit offer I would want an agreed list of >> expenses with some clauses about unexpected large expenses being >> independently reviewed etc. >> >> One advantage of % of turnover is that it's extremely easy to calculate >> on a monthly basis. % of profit often has to wait until the end of the >> financial year. >> >> I've been on both sides (employer / employee) of this situation and it >> can work very well but make sure you have a very clear contract. > > > -- Blue Horn Ltd - System Development http://bluehorn.co.nz --~--~---------~--~----~------------~-------~--~----~ NZ PHP Users Group: http://groups.google.com/group/nzphpug To post, send email to [email protected] To unsubscribe, send email to [email protected] -~----------~----~----~----~------~----~------~--~---
