[kazisdaman]

Although this may seem like a silly question, I have enough work currently to hire on an individual full time to start working on some developments. However, without the adequate cashflow to support an employee I'm wondering if any of you have employees and do not pay them per hour? How many? Or how do you work around limited cashflow to pay for work?

I assume equity, but what else?

[JAllenConsulting]

I currently have four part time people working for me. The part time solution works well since they are all college students and it helps avoid some of the state mandates for full time employees.

When I hired my first employee, I was in a situation similar to yours. I had projects to keep another person busy, but was cash poor. I set him up as a salary employee (think a really LOW salary) with project based bonus incentives. This kept my immediate cash flow minimal but still compensated him for solid work.

I’m not familiar with all of the state-to-state legalities that effect the salary-hourly-partime-fulltime hiring decisions. Before you go forward, be sure to investigate the rules in your state.

One last note, I HATE to give away equity if I can avoid it. Sometimes it is necessary; I have sold off / partnered out a total of 25% of my consulting company myself. But if you can avoid it, I think you would be better off.

[orange655321]

If you cannot afford to pay the initial job then you just start off shore. Build your staff up with one person and work to increase it to a small team using an outsource staffing firm. Then, when you have enough growth you can begin to hire staff back home and/or replace the existing team with full time local support. you dont even need full time if you can use a site like getafreelancer.com. You can just strike a deal with someone to send all of your work in bulk for them to do at a set price. You might find it cheaper then taking them on as an employee.

[kbud124]

can you do the work yourself? do you have friends that can help you out in the meantime? the beginning stages are always tough..can you borrow to pay ur employees (if you know the cash flow is coming)