Need advice from those business owners out there

[xmanz3]

I have a national company providing different healthcare services to Workers Comp and insurance companies. Over a year ago I met this lady with vast experience in the industry and I hired her as a VP of Business Development (compensation= profit sharing for each contract/client for a period of 3 years with the option to renew for another 3 years). Since then she has been helping me to expand/setup my company to offer additional services to our clients. We started by meeting once a week and later on we were meeting twice a week.

After 6 months, she started coming to my office 2 days out of the week and helping me with some of my staff, checklists, HR, and Accounts payable and receivable. She has been doing all of this at no charge because she truly believe in my company and the business opportunities that are ahead of us.

The question I have is if I should give her some of MY leads and possible clients that I'm currently working on so she can finalize those contracts and give her a 15% profit sharing. She is currently working slowly on getting some contracts (20% profit sharing agreement) on her own but it is taking longer than expected. We are currently giving our Sales people between 15-20% profit sharing from any contracts or business they bring in from their own efforts. I truly believe that even though if I give her leads and possible contracts, I can continue working on other sides of the company and still working on growing the business. I do not see the reason why someone will hold back to make 100% if it might take you several years due to lack of time. I rather share 15-20 % and start making 80-85% in the next few months and gain new clients.

I'm very thankful for all of her help but I really want her to start making some serious money asap since she is a very valuable asset for our company. I have talked to two people so far and one of them said they will do it and the other one said no. I would like some feedback from some business owners out there and how will you handle a situation like that if you were in my shoes.

Thanks in advance!

 

[pb4uski]

If I understand your post correctly, you think that her current compensation arrangement is unfair to her given her contributions to the company.

If that is so, I would suggest that you sit down with her tell her that you are happy with her contributions to the company and that you would like to negotiate a different deal so she is better compensated. If she is agreeable, then try to figure out something that compensates her for both her overall contributions to the company as well as her personal performance/sales.

It sounds like you have good instincts about treating employees fairly so just follow your gut.

 

[bigcmagor]

It sounds to me like you are trying to make a salesperson out of an operations oriented individual. Not everyone is cut out to be a closer. Is she in the wrong position? Are you leveraging her true talents and abilities? If she is willing to do administrative work for nothing, I think that is what she longs to do.

 

[xmanz3]

If I understand your post correctly, you think that her current compensation arrangement is unfair to her given her contributions to the company.

If that is so, I would suggest that you sit down with her tell her that you are happy with her contributions to the company and that you would like to negotiate a different deal so she is better compensated. If she is agreeable, then try to figure out something that compensates her for both her overall contributions to the company as well as her personal performance/sales.

It sounds like you have good instincts about treating employees fairly so just follow your gut.

pba4uski, I greatly appreciate your feedback and I'm definitely planning come up with some type of compensation for her other contributions.

 

[sheehs1]

It sounds like you hired her to close deals and make money yet she slid into another role that while appreciated is not the reason you hired her on. But you also gave her the title of VP of Business Development and it sounds like she has functioned somewhat in that capacity by developing additional services.

If she were truly a salesperson and out to make money for herself and you, then she would not be spending her time on the administrative side and that would worry me a bit if that was the primary reason she was hired. I would have to ask myself why. Except there is that title of VP of Business Development. Perhaps she prefers the operation side of things. Or perhaps there was confusion regarding her role from the start

So..which is it you want her to be? VP of Business Development, a SalesPerson or some hybrid of both? I see the two as distinctly different positions. Do you need an office manager/service developer because it sounds like she is functioning more in that capacity.

I would reassess her strengths and skills and determine what you want/need. I would then have an honest talk with her regarding same, her compensation, etc. I would not give her your contacts to close until you have cleared up what her role really is unless, of course, you need the help.

 

[xmanz3]

bigcmagor,

Actually, she has not work on a sales position role within this industry but she is also a business owner. This woman knows how to sell, she has the right skills and desire, it is just a matter of time for the contracts to start coming in. I just think she needs some type of incentive since she has a lot to offer to my organization.

 

[Car-Guy]

bigcmagor,

I just think she needs some type of incentive since she has a lot to offer to my organization.

Sounds like you have made your decision.

 

[Del Q]

I'm also a small business owner and my employees wear many different hats. If someone is making me more dollars I'll gladly increase their pay & responsibility. We both end up with more, nothing wrong with that.