Business Thoughts

This week has been one of the "plaque tournante" for the Jazar business. We have started defining the business plan ... basically how we will make money!
 
Here is the plan for all the new internet projects we will develop in the future:

1. 30% go to Jazar (20% for charges, 5% for administration, 5% to R&D)
   
2. 10% do to Olivier as royalties for the system he has built from scratch, the current Jazar's flagship!
   
3. The rest (65%) go to the different players having a role to play in the project : Sales,  Webdesigners, Web architects, Designers, Testers, etc ...

You'll tell me : and the profit - well, no profit this year : we just make sure that we are profitable from day 1, and that the cost we agree with the client covers the resources cost.
 
The funny point is that our salary then depends on how much sales can make out of the deal + how much time each has spent on the project - kinda communist way to distribute revenue :
 
X = amount paid by the client
Y = total number of hours spent on the project
 
=> hourly rate = X/Y - commission on sale
 
x = number of hours I have worked => I then get x * (X/Y - commission on sale).
 
Now just think about it - most of you will tell me - this doesn't work, people don't work well if they don't receive an incentive on what they do. What prevents me to say that have worked 20 hours instead of 10? Sales may sell something too cheap, which would give an hourly rate to low?
 
Well, the answer to the first question is: you don't work for Jazar, we recruit only genuine people and make sure they don't think this way - the moto at Jazar is: we make money with others, not against others.
 
The answer to the question is that if you trust your people in a first place, everything is then down to the process. And to improve the process, you need first to test it. It will improve by itself, as long as you make sure that you measure everything from the beginning => project management, testing, etc ... is as important as the developement itself since it is the only way to enhance the production process. 
 
This is not more complicated than that. As long as you keep the right people, and an eye on your process, all you need is then ... to sell.