Is This Something That Would Work?
Okay I hate long post so bear with me.
I am looking at different ideas for a employee. We all know good help is hard to find and I want to create space for a ambitious person to help me, while making it so he doesn't leave me next year when he thinks he knows it all. So my thought is I find a part-time person (maybe still in school or college) that I can bring into the office to do office work (I want things done a certain way so i want to train them) and help with general work. Once I find a hard working person, I talk to them about more hours and money, in which they begin to help me on deals. They would get a salary, and I would have a budget for Overhead expenses so we would then split all profit (minus salary and overhead) 75/25 (at first) then like 50/50 between our company and a new company I would form. The new company would be 90/10 first year 80/20 second and eventually after 10 years would be his. I would hold preferred stock and be able to buy back his stock at anytime if he quit before 10 years, but after 10 years I would give him the preferred stock . The idea is he is with me for ten years but I am kind a building a retirement for him to, and I also want to pay well, so this would throw off cash flow as we invested the cash into cash flow. Thus every month he would see the cash generated and hopefully be more eager and hungry to do more deals. The idea is in 10 years I will be doing something else, but this keeps him around a building a nice portfolio for me, while also giving back to him slowly and making him appreciate what I am doing. I want everyone thoughts and if this is a good or bad idea. Thanks in advance and please don't ask why I would do this, I want to keep this on subject but bottom line is I believe that if one is working hard for you they should be rewarded (but if you give a 20 yr old 50k from a deal you may never hear from him again).