Author Topic: Tell a Business Owner how to structure a new company to attract your Mustache.  (Read 994 times)

heybro

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If a group of investors with a lot of money were starting a new company and asked you how to structure it so that you would want to work there, what would you tell them?

If they asked you to start working at age 22, how many hours would you want to work a week?

Would you consider starting at age 22 (at any amount of hours per week) or would you want to reach FIRE before working there?  If you needed to wait until you had FIRE, how many hours would you want to work there then?

Instead of working full time, reaching FIRE, and then not working, wouldn't it be awesome if we could start changing the system so a 20 hour work week was standard right out of college.  If working 3 days a week was standard, would you consider working forever?  Whichever your ideal structure, can't a group of us Mustaches create it?  Imagine working at a place with 20,000 other Mustaches.  Think of the efficiency....we probably would't need much salary and we probably wouldn't need to work much.  We could compete with the 40 hour a week companies and come out ahead.  We'd attract the top talent.  Or, is such a plan too at odds with the bigger system?  If the world eventually does change, what does an ideal company look like for you (which also has the ability to thrive despite or because of you working less)?  Are there any industries that would lend themselves to our new creation which would also qualify as meaningful work to you?

Malcat

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3 years out of university I switched to a job that was 2-3 days a week, working on my own terms, where I set my own goals.

Yeah, it's pretty awesome.

DadJokes

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If it were a job I enjoyed doing, I would happily do that for a long period, instead of doing a job I dislike to reach FI sooner. I'd be happy to work 20-25 hours per week, or more if I could also telecommute for some of it.

I am guessing that there are a lot of systemic issues in place that prevent widespread use of a system like that. It sure would be nice though.

ericrugiero

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How well this could work depends highly on what type of business you are in.  In my industry, a company is expected to be available AT LEAST during normal business hours. 

If you were in a business that was structured differently and had less required interaction with other businesses then you might have a better shot. 

Another down side is that a company has a certain amount of fixed costs and overhead (accounting, payroll, taxes, benefits, etc.).  So, it's less efficient to pay more people to do the same work. 

On the bright side, you would have very little competition for the top employees who wanted something like this so you could potentially have very good retention and morale. 

Malcat

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How well this could work depends highly on what type of business you are in.  In my industry, a company is expected to be available AT LEAST during normal business hours. 

If you were in a business that was structured differently and had less required interaction with other businesses then you might have a better shot. 

Another down side is that a company has a certain amount of fixed costs and overhead (accounting, payroll, taxes, benefits, etc.).  So, it's less efficient to pay more people to do the same work. 

On the bright side, you would have very little competition for the top employees who wanted something like this so you could potentially have very good retention and morale.

At my office, this is how all of the top people work, and we're all self employed independent contractors, so there is no payroll, benefits, or taxes to worry about. We all handle that for ourselves.

We share the workload, cover each other's vacations, and balance out the responsibilities among multiple part time professionals.

There are many many organizations out there utilizing a contractor situation where staff work flexible hours and organizational overhead gets minimized.

The problem is that there are so many protections and benefits for employees and virtually none for contractors.

As the gig economy grows, the system will have to adapt in order to accommodate this kind of organizational evolution.

It's not likely going to be that the current employer/employee structure adapts to part time professionals, it's that the part time independent professionals will become so ubiquitous as to require their own system of benefits and protections, and the employer/employee structure may then change.