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  • Best way to attract employee #1 (and possibly #2) when cash is tight

    updated 2 years, 7 months ago 0 Member · 1 Post
  • Katie

    Member
    February 12, 2020 at 4:47 am

    Hi All So I’m starting a brick and mortar discount retailer (similar to Dollar Tree / Dollar General type stores). Note this is not in the US and there’s a clear opportunity where I’m located, but this post isn’t about the viability of the business… In this sort of business it’s essential to have a broad range of sku’s, and long term you’re going to need a good portion of your sku’s to be private label because that’s where the money is (attractive PL brands can also protect you against ecommerce competition). So product design/strategy/buying staff are key. I have some experience as a buyer, but as the founder I’m also focussing on literally every other element of getting things up and running. Selecting and sourcing several hundred+ SKU’s is unrealistic for me to accomplish myself. So, I’d really like to bring on 1 or possibly 2 people with retail product design and buying experience/existing connections to help me build out the full portfolio of product lines we will have available for purchase on day 1. I have the liquidity to fund the store (the lease, store buildout, fixtures/equipment, products, etc), but it doesn’t leave me with enough to even think about paying these first two employees a salary initially. It would therefore make sense to offer them equity. I was considering something like 5% each with the option to only perform the role part time pre-store launch. Is this way too stingy? Most of the equity related material I can find online assumes that employees are also getting paid some sort of salary in which case equity offered seems to range between 0.5-2% I’d greatly appreciate any ideas/advice. – by /hq/g3orgeLuc4s – –

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