How Dave Ramsey Pays Upper Management
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- Опубліковано 25 кві 2024
- How Dave Ramsey Pays Upper Management
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This is awesome. I'm a portable building manufacturer myself. Listen and learn baby!
they are paid in beans and rice, rice and beans
that's all they need, right? 😂
😂
8% of profits plus 60k with sliding scale for certain profit and volume margin hurdles hit thru growth. That way it gives incentive to work hard as an owner would.
Is that 8% for each upper management? Or total split between them
This guy sounds like a Canadian character on South Park I can just see his mouth moving throughout the call
Yup. I'm also Canadian. But from ontario. We sound like american. Same accent as American tv.
I’m a very ambitious individual who is a salaried employee. I always wonder what these type of companies make. I’m often surprised with revenue of a few million that the owners take home $60K. It’s a respectable salary but makes me wonder if it’s all worth it if you’re already making six figures in a regular job?… I guess once they sell their company the big payday comes in.
60k salary, plus half of a 300k profit.
@@Novascrub they need those profits to reinvest into the company. 10% off the top to their top employee… they typically won’t touch that profit.
You said it: when they sell it the big payday comes in
liquidation day babydoll !!!!!
Most people that pay themselves a salary from their own business will also give themselves a dividend at will or on a scheduled basis.
Excellent Dave!
Great ideas but as for the profit sharing bonus it would be better to do it quarterly. Firstly it's easier for a small business to do a full financial review 4 times a year instead of 12. Secondly it encourages longer term thinking and when the bonus comes in it will feel like a good amount, more rewarding in that way.
Simon's approach to making his operations manager feel like an owner through profit sharing is a smart strategy for long-term engagement and success. 🌟 Ensuring that key team members are invested in the company's profits not only boosts morale but also aligns their goals with the overall growth of the business.
Chat gpt wrote this comment ⭐️
@@andrekazadayev Haha lol
My first thought when he said he was looking to get into something different was why not get into lumber production
As for the pay structure, the 10% is fine, but that goes to all upper management. If there's only one, guy, he gets it. If there's 10 people, they split the pot.
I don't love the comp plan because if they invest alot into growing then bottom line profit and the comp won't be that good fir a year or two and the sacrificed comp won't be later rewarded because when the revenue jumps from the invested amount then his comp plan percentage will be lowered. He will be pushing for not investing into the company while maximizing immediate profits. It seems to me that an equity compensation is the fairest way to incentive a person. Also with a guarantee we will buy back your equity and a guaranteed 6 p/e
So very well said. But the owners need to remember to pay themselves too.
dave is so fair
Many business owners pay key employees as much or more than they pay themselves. Don’t forget, the business owners get paid last when cash flow is tight.
They could do a 10 % profit bonus with a cap of his annual salary so max bonus plus salary would be 200% salary total. This would protect them from being crushed during a period of exponential growth as was as an easy contract point of changing salary every 1 dollar raise is a possible 2 dollar change. 60-120k window of pay.
How are they getting crushed? It's still 90/10 no matter how you slice it. As the company grows and there is a need to promote and reward new 10:08 people you put them on a bonus plan that is Tied to their job skill. That's all going come out before net profit anyway. Just saying they seem to think highly of this guy why not give him the 10% have him sig ln the non compete and get busy making more buildings.
What a smart business operator -
*This guy sounds just like review brah! I kept expecting him to talk about the flavor on a Little Caesar’s crust*
No he doesnt
@@nickrod7627 uhhhh….. yes. He does.
@@Kaktus965 no he doesn’t
@@nickrod7627 You know, I heard about u. You’re the one who secretly likes the smell of your grandma’s beef farts. Especially after meatloaf from cracker barrel. And yes….. he does.
@@nickrod7627 I’ve heard about u. Ur the one who secretly likes the smell of your grandma’s beef farts. Especially after meatloaf from cracker barrel. Oh, and yes. He does.
Paying a top-level manager $60K (which is $44K in USD) or even, say, $100K with bonus or profit sharing, should be offensive to the employee. He can and should go earn more money elsewhere.
If he is treated well by his employer that can mean more than the pay
You want me to help you grow. I will need to share in the winings. Partner or no deal. Some business owners only see their best performers as employees only. They want more value than they are willing to pay for. I'll help you grow to 10x with a base salary plus equity in the business.
What I don't like about this is that the guy who hypothetically helms growing the business to $30 million gets his share cut down because he did a good job. There should be some legacy/longevity component there where the guy who did all that work gets more than the version of him who gets brought in at the finish line.
At that point there would be 4-5 of him also working doing the same job with 30-40 more employees… he would be doing less work as a percentage of the company so in turn the percentage of the profit also should follow it.
So I guess you could say employee that I trust very much. Your position is going to get a bonus of10% period, but if we grow to a point where I have to have 2 of you. You guys are sharing that 10% pool. If there's 3 of you. You're still sharing that 10% pool. But 3 of you each getting 3.3% out of a 100 million dollar pie. It's better than you getting 10% out of a 2 million dollar pot.
Caller speaks like an AI.
Caller is smart and articulate
I think it's an AI. With ChatGPT 4 + voice emulator, you can do that today.
Is this Woody Allen?
Imagine how much money businesses would save if they could use AI for CEOs
Until someone understands that compensation is a very small part of how someone feels, and also how it relates to productivity…impacts that even less.
You can double each one of yearly incomes. Means nothing. You’re not going to work harder. You’re not going to be smarter. Anyone that thinks otherwise, you will always think like an employee. Never like an employer.
And as long as employers treat their employees like shit you can't blame employees for thinking the way you claim they think then. Because in the end employers can talk all the positive on the hill car salesman nonsense they want but money talks and bullshit walks
Throwing a pizza party for the office type of guy are you?
@@David_Bang_ Well I don’t mind a little wood fired pizza lol. And yeah. A business expense write off as well. If the economy ever gets REALLY sideways…2008, 1980, 1939……
Everyone thinks this is pain? Ha.
Everyone thinks they can take the pain..until the pain starts.
Totally agree, compensation is a very small consideration for employees /s
This is a ridiculous take. It's also absurd that Caller is paying a manager only $60K per year. That is an offensively-low salary.
@@mike2959 I think you failed to pick up on @David_Bang_ 's sarcasm.
All that work and u only bringing home $80k and ur the owner and carry all the stress, makes me feel more grateful for my corporate America job, gosh can anyone win on their own anymore?
You realize that the owners own the company and the company has an (hopefuly) increasing value, right?
So that's usually the main gain for the business owner
Depends on how hard the job is.
Yeah, 80k sounds measly for that amount of responsibility. I guess it isn't bad if it isn't stressful, but I doubt it. I'd think it would be closer to 100k base plus 10%.
80K plus the 300k profit for the company that is split between the two brothers
Upper management and 60k. 🤣 that’s what I hire interns at.
Canadian accents are brutal.
Personally I think he should just raise his salary to say $45 an hour. Profit shares are good but what if they say actually we are going to take our profits of 25k this month and buy equipment for business so the business made no profits.
Yes this is where it gets you sharing profits that you have no say in how the profits are spent. The boss spends 100,000 redoing the show room because his wife thinks it needs an upgrade. It is dated she thinks but that money spent does not increase income to the company but it makes you bonus a lot less. Or all the conventions the boss attends in Florida or Hawaii and takes his family to Taylor Swift concerts at the same time but the employee just gets less of a bonus. Not to mention the brand new pickup the boss drives While you drive around the 20 year old shop truck regular cab with manual windows with no A/C. The employee starts looking at all the un necessary expenses as a devaluing of his bonus because that is what it really is.
This guy screwed up when he mentioned "tiny house" to Dave. Dave is a tiny house hater.
No he isn't.
@@IceMan0003: That would be news to me.
@@danieljohnson4418 he is against the idea of it as an investment. As they legally are classified was mobile homes at best. Which means they do not appreciate. If you want a tiny home on a vacation property that's fine. But people try to use then as a 'life hack'...which he his against
The only thing Dave said in reply to it was how much time it would take up.
Is he using a voice changer app? lol
3 mil company.. and the owner made 60k?? Think it's time to rethink being an owner of anything
I'm sure they are reinvesting the 300k to grow the company. They could keep it, but they want long term gains.
@@IamR3D88 🤣
@@IamR3D88facts always put all your profit into the business so it grows into a longtime business then start collecting straight profit
@@IamR3D88yeah, and that's not bad. 12-15% consistently is pretty good, especially when it has room to grow, especially when that doesn't include another 60k
Is he taking Canadian Dollars? This business needs some help
They’re being taxed into oblivion
$60k/yr to run a factory?!? Not even six figures?!
In Manitoba though 60k would be like 150k in California
@@chefjamesmacinnis dang. So how much does a worker get then? Like a welder or something. Also, is that Canadian or US$?
@@michaelludvik2173 no idea. But you can buy a 3 bedroom house for 325k canadian in Winnipeg, the capital of Manitoba.
I'm in Ontario. Houses on my street go for 600k 5 bedroom 3 bath
In this plan 90k. Based on profitability. Thats not a bad number for running 6 guys and a 2.5 million dollar business.
Haha 30 an hour you can make that almost at Starbucks
I learned a while back you can’t make someone “feel” like a partner. They either are or they are not. It’s unfair and disrespectful to ask someone for partner level contributions but not actually make them a partner.
Well in Ramsey’s company there is no base pay for his leadership. It’s all variable compensation. I’m not sure how much more partner you can get than that.
It’s the base pay (safety net) that most people use as the crutch.
Wouldn't it be funny if this dude works for BlackRock. Building tiny homes for Gen z while buying up all the real houses. Would be f@cking brilliant.
The fact the owner is making $60k CAD/yr speaks volumes to me that these guys really have no idea how to actually make money/profit.
Couldve made this a lot more simple - Pay the manager $60000 a year.
If you're paying someone in Upper management to motivate them to do the right thing, you have a problem
He shouldn't have more than a few employees at 2.7 in sales.
He's Amish. So you probably. Confused him some.
7:27 NDA illegal now
no it's not, that's non-compete. NDA is VERY important
NDA is a Non Disclosure Agreement. They are not illegal Non Compete are illegal now.
This guy is in Canada. So, no US laws apply to him
Non compete ban will be overturned
In the UK non competes are only allowed in very restrictive circumstances, e.g. only within a 3 mile radius of the business for 18 months.