Project by project to salary?

Someone asked recently “how do we shift from a project-by-project cash flow mentality and process to being able to pay a recurring salary”?

That’s a common occurrence for many small firms. Here are two things that immediately came to mind:

#1 – One thing to think about, if you want to switch your mentality – is to imagine what your future looks like, and then create the mindset to develop that. If you want to move from project based business (where the focus is on what you need now) to a salary basis, then the focus shifts to what you want to create your business to be in the future (long-term) in addition to what it is now in the short-term.

The question of salary basis or project basis is simply a means to an end. Find the end and then work backward to the means.

Salaries by and large were created as a means to stabilize and guarantee employment, but that was only done so as to maximize the contribution an individual could make to the organization. To take money off of the table so the focus can be on the future of the organization.

#2 – Another way to frame this, start with a list of reasons why you want to hire an employee. You’ll quickly find employment is an alternative. Much like the subway in NYC is an alternative. But so are taxis, Uber, bikes, and even helicopters. Your objectives will help dictate which alternative is best and even if it is employment, what that employment looks like.