NC Aerial Imaging Services would split the equity 9 ways among staff and advisors. This is a “chief” level position, vice president, or advisor. The CEO/Founder remains majority owner with a 51% split. Advisors would receive 12%, and VP’s would receive 4% each. The split is among the 5,000,000 initial shares at $1.00 each. There are 10,000,000 total shares. The additional 5,000,000 will be additional diluted shares used to attract new talent and board members. At least two board members would be financial investors and the third would be an industry expert.
The vice president staff can earn up to and no more than 2% equity by remaining in their position and becoming vested through 3 consecutive years of employment.
References:
The ABC’s of VC Funding and Building Your Board, David Roth, Entrepreneurs, 8/22/12
Why an Army of Clones Can’t Win, David Roth, Entrepreneurs, 5/17/12
Equity:Dividing the Pie, Mike Volker
5 Huge Mistakes Startups Make When Choosing Board Members, E. Laniado, February 10,2013
What Does A Board of Directors Do? Ask Jay (Youtube) October 4,2011
Today I am going to discuss my personnel and management plan for my hypothetical business, NC Aerial Imaging. Before we go into the management plan, I would like to talk a little about our service. The drone market is anticipated to grow from a $14.1 Billion industry in 2018 to $43 Billion in 2024. There is undoubtedly multiple uses for unmanned aerial systems (UAS) and the list keeps growing. For this business we are focusing on two primary markets, agriculture and real estate. Drone surveys for agriculture offer a relatively inexpensive method of collecting crop data to create better efficiency for a farmer. Our drones can be used for real estate marketing as well. Many homes can be better appreciated by a prospective buyer by having the pictures of the home with the surrounding neighborhood in view. In addition to these two markets, drones are widely used for construction surveys, search and rescue, surveying disaster areas, as well the insurance industry. The drone industry is still in its infancy and we want to get in on the exponential market growth that it will experience in the next 10 years and beyond.
NC Aerial Images Service will have an Advisory Board. It will be made of members that have industry expertise and investors interested in equity of the company. The three board members will meet quarterly with the founder/CEO to discuss company performance in the previous quarter as well as future growth strategies.
Below is a brief description of the executive staff and why they are important to the organization.
The company will also have 3 Chief level positions, Chief Executive Officer, Chief Financial Officer, and Chief Technology Officer. The CEO will be responsible for overall growth strategy. I, as the founder, will serve as the CEO. I will be aware of market trends and changes. As well, I will as also make myself knowledgeable on markets outside of our normal service area for additional opportunities. I will work in tandem with the Chief Financial Officer and Chief Technology Officer. The company will be structured in a way that I will have three direct reports, the Vice President of Marketing, Vice President of Human Resources, and Vice President of Sales. Meetings will be conducted monthly discuss sales and marketing efforts and as well human resource issues and recruitment.
The Chief Technology Officer will be responsible for quality assurance of the software and equipment. As drone technology rapidly advances, he will be required to stay ahead of the advances and understand how new technology could better serve our existing and prospective customers. Two repair technicians will report to the CFO. At least 5 years previous financial experience is required. It is preferable that the experience be in a startup organization. CPA certificate is preferred.
The Chief Financial Officer will be in charge of budgetary concerns. This person will be create a budget based on revenue and work with the sales, marketing, and human resource departments work within the budget. Financial revenue goals will be created with the collaboration of the CEO/Founder. Budgetary needs change as the business grows so a high level of communication will need to be made with other managers. At least 5 years previous financial experience is required. It is preferable that the experience be in a startup organization. CPA certificate is preferred. The CFO will have two accountants reporting to them.
NC Aerial Imaging Services will be comprised of three executive level positions that will all report to the CEO. They are detailed below.
The Vice President of Sales will be responsible for overall sales strategies with the input of the CEO/Founder. He will have 3 sales managers that will directly report to him. Sales targets will decided in collaboration with the CEO and CFO.
The Vice President of Human Resources will be responsible for ensuring the company is in complete compliance with state and federal employment law. They will have one recruiter reporting directly to them. The VP of HR will work closely with the recruiter to ensure that we are hiring quality individuals.
Now that we have an understanding of the roles within upper management, I will go into the discussion of the equity split within management. There are
total of 10,000,000 shares available at $1 each. 5,000,000 will be split among the 3 advisors and 6 upper level managers. The CEO/Founder will initially have the majority control of the company with 52% of the shares (2,6000,000) shares. Each advisor will maintain 12% (6000,000) at initial offering. Executive staff would receive 4% (200,000) after 3 years of continual employment. There will be 5,000,000 remaining shares of equity available for offering to additional board members available.
Now we can move into the discussion of employee pay. I worked with national averages for each category of employment.
Recruiting and hiring qualified candidates will be a priority for the company. Although it is the main responsibility of the Human Resources department, it will be a culture to be constantly looking for qualified individuals to either brought on board or have available for when a position becomes available.
Sourcing
Potential sales candidates will be found on college campuses, recruited from sales related positions, and online advertising. This position will be attractive to college students because it will provide them will valuable sales experience and allowing them to work during the summer months when there is the highest demand for the service.
Onboarding
Onboarding will include completing the Part 7 training and certification online. It will also include basic customer service and sales training that will lead to success in the role. Onboarding material will be created by the Vice President of Human Resources.
Sales
Job Requirements
The most important position is the sales position. In my pay scale analysis this would ideally be a full time position, however it does work well as a part time position or summer job for students. The position would require flexibility around the client’s schedule. Leads will be provided through the customer service representatives, but the candidate should be proficient at cold calling. A driver’s license would be required to travel to and from client’s locations. Mileage would be reimbursed at $.55 per mile. In addition a FAA UAS (Part 107) license would required to be completed with our assistance. The individual would need to be a self starter. He or she would be required to follow up with clients that requested service. The sales representative would make a presentation based on options and packages available to the client as well as pricing. When the package is agreed upon, the sales representative also performs the photographic service. Bonus is available after goals are achieved. Base salary is between $43,000 and $46,000 annually depending on experience
Non Sales/Management Positions
Regional Sales Manager
Job Requirements
Experience supervising multiple sales employees is required. The position will require ongoing feedback and training of sales representatives. Previous territory sales experience is required. Previous supervision of at least 3 sales personnel is required. The ideal candidate will be organized, self directed, and being able to think “out of the box.” The regional sales managers will be required develop sales strategies with their team. Sales managers may be asked to take on the responsibilities of the outside rep team as needed. Pay is between $65,000 and $70,000 annually depending on experience.
Recruiter
This position will require a person that is well connected in the industry. It is preferable that they will be involved in trade organizations. Previous hiring experience is also required. The ideal candidate will be organized and have a good understanding of all roles within the company. The recruiter’s role will be properly source qualified candidates for the Vice President of Human Resources to interview and subsequently make a job offer or decline the interviewee. The recruiter will have an excellent understanding of the the company mission and values so as to screen candidates properly. Careful attention needs to be made to the recruitment budget by the recruiter. Salary is between $42,000 and $47,000 annually depending on experience.
Repair Technician
Requires mechanical ability and self direction. The ideal candidate will have a good understanding of the most up to date software available and how to use it. Our repair technicians will stay up to date on new technologies and keep other staff members aware of new developments during staff meetings. Salary is between $35 and $39,000 annually depending on experience.
Accounting
The accounting department will have two employees. One employee will be in charge of payroll. Previously payroll experience will be required. The second employee will be in charge of accounts receivable and payables. Previous bookkeeping experience is required. Salary for each position is between $39,000 and $44,000 annually depending on experience.
Customer Service
This position requires a good understanding of all packages available. Calls from current and potential clients will be taken from our customer service representatives. Excellent communication ability is required including on the phone, in person, and written communication. Ability to trouble shoot and think on your feet is necessary. Previous experience in a customer service role is required. Examples of experience that I am looking for is waiter/waitress, hotel front desk clerk, etc. Salary is between $35,000 and $39,000 annually depending on experience.
Executive Team
The executive team will be developed throughout the life of the business based on new investors and meeting people that meet the functional needs of the business. Executive are the following positions: Chief Executive Officer, Chief Technology Officer, Vice Presidents.
Chief Technology Officer
Salary is between $100,000-$125,000 annually. Equity package will be offered.
Chief Financial Officer
Salary is between $1000,000 – $125,000 annually depending on experience. Equity package will be offered.
Vice President of Marketing
The VP of Marketing will be required to have a high level of customer service and marketing experience. At least 5 years in a previous marketing role is required. It is preferable that the candidate have previously created web based marketing campaigns including social media. Salary will be between $80,000 and $100,000 depending on experience. Equity package will be offered.
Vice President of Sales
The VP of Sales will be required to have at 5 years of sales management experience supervising multiple sales personnel over a specific geographic area. Previous experience developing sales strategy plans will be required. Salary will be between $80,000 and $1000,000 depending on experience. Equity package will be offered.
Vice President of Human Resources
At least 5 years of previous human resource management experience will be required. The candidate must familiar with employment law in the state of North Carolina. The VP of Human Resources will develop a strategy to recruit and hire top employees. This will include participating in recruiting events at local college campuses and developing methods of recruitment online and through social media. Salary will be between $80,000 and $1000,000 depending on experience.
Thank you for your attention. NC Aerial Imaging Services has a value to provide to its clients. We need your help in getting there. Please let
The following positions are required in NC Aerial Imaging Services. This is a hypothetical startup and the purpose is to understand the potential of the company in order to gain social and human capital.
Advisory Board (3)
Chief Executive Officer (1)
Chief Financial Officer (1)
Chief Technology Officer (1)
Vice President of Marketing (1)
Vice President of Sales (1)
Vice President of Human Resources (1)
Recruiter (1)
Repair Technician (2)
Customer Service Representative (2)
Regional Sales Manager (3)
Sales Representative (12)
Accounting (2)
Advisory Board Member
The advisory board member is a part owner position that serves in an advisory capacity. No less than two advisors are financial investors in the organization. At least one expert in the drone industry is required to oversee operations. Advisory board members do not oversee the day to day operations, but have input in the long term strategy. Selection is based on interest in investors and additional equity is available to those that stay the specified length of time.
Chief Executive Officer
The C.E.O. is the founder of the company unless agreed upon by advisory board members and “Chief” level positions. In the case that the original founder be removed from the position or there is a negotiated exit due to the sale of the firm, the following requirements will be made.
Previous startup experience required
FAA UAS Certified (Part 107)
Required to purchase agreed upon equity shares
Sourcing
Potential sales candidates will be found on college campuses, recruited from sales related positions, and online advertising. This position will be attractive to college students because it will provide them will valuable sales experience and allowing them to work during the summer months when there is the highest demand for the service.
Onboarding
Onboarding will include completing the Part 7 training and certification online. It will also include basic customer service and sales training that will lead to success in the role. Onboarding material will be created by the Vice President of Human Resources.
Sales
Job Requirements
The most important position is the sales position. In my pay scale analysis this would ideally be a full time position, however it does work well as a part time position or summer job for students. The position would require flexibility around the client’s schedule. Leads will be provided through the customer service representatives, but the candidate should be proficient at cold calling. A driver’s license would be required to travel to and from client’s locations. Mileage would be reimbursed at $.55 per mile. In addition a FAA UAS (Part 107) license would required to be completed with our assistance. The individual would need to be a self starter. He or she would be required to follow up with clients that requested service. The sales representative would make a presentation based on options and packages available to the client as well as pricing. When the package is agreed upon, the sales representative also performs the photographic service. Bonus is available after goals are achieved. Base salary is between $43,000 and $46,000 annually depending on experience.
Non Sales/Management Positions
Regional Sales Manager
Job Requirements
Experience supervising multiple sales employees is required. The position will require ongoing feedback and training of sales representatives. Previous territory sales experience is required. Previous supervision of at least 3 sales personnel is required. The ideal candidate will be organized, self directed, and being able to think “out of the box.” The regional sales managers will be required develop sales strategies with their team. Sales managers may be asked to take on the responsibilities of the outside rep team as needed. Pay is between $65,000 and $70,000 annually depending on experience.
Recruiter
This position will require a person that is well connected in the industry. It is preferable that they will be involved in trade organizations. Previous hiring experience is also required. The ideal candidate will be organized and have a good understanding of all roles within the company. The recruiter’s role will be properly source qualified candidates for the Vice President of Human Resources to interview and subsequently make a job offer or decline the interviewee. The recruiter will have an excellent understanding of the the company mission and values so as to screen candidates properly. Careful attention needs to be made to the recruitment budget by the recruiter. Salary is between $42,000 and $47,000 annually depending on experience.
Repair Technician
Requires mechanical ability and self direction. The ideal candidate will have a good understanding of the most up to date software available and how to use it. Our repair technicians will stay up to date on new technologies and keep other staff members aware of new developments during staff meetings. Salary is between $35 and $39,000 annually depending on experience.
Accounting
The accounting department will have two employees. One employee will be in charge of payroll. Previously payroll experience will be required. The second employee will be in charge of accounts receivable and payables. Previous bookkeeping experience is required. Salary for each position is between $39,000 and $44,000 annually depending on experience.
Customer Service
This position requires a good understanding of all packages available. Calls from current and potential clients will be taken from our customer service representatives. Excellent communication ability is required including on the phone, in person, and written communication. Ability to trouble shoot and think on your feet is necessary. Previous experience in a customer service role is required. Examples of experience that I am looking for is waiter/waitress, hotel front desk clerk, etc. Salary is between $35,000 and $39,000 annually depending on experience.
Executive Team
The executive team will be developed throughout the life of the business based on new investors and meeting people that meet the functional needs of the business. Executive are the following positions: Chief Executive Officer, Chief Technology Officer, Vice Presidents.
Chief Technology Officer
The CTO will be required to develop a strategy that leverages leverages technology to grow the business. The successful CTO will have an understanding of the current technology and software being used. They also will be required to research and understand new technology. The drone industry is constantly changing. The person in this role will be required to have a detailed understand of the newest innovations and how they relate to our customers. Close collaboration will occur with the marketing and sales departments in order to properly use new technology to increase the level of service to our existing customers as well as gain new customers. The CTO will be required to have a good working knowledge of all markets served. The CTO will have two repair technicians report to them. Salary is between $100,000-$125,000 annually. Equity package will be offered.
Chief Financial Officer
The CFO will be required to create a budget and work with technology, marketing, sales, and human resource leaders in order to achieve the budget. Budgetary needs change as the business grows so a high level of communication will need to be made with other managers. At least 5 years previous financial experience is required. It is preferable that the experience be in a startup organization. CPA certificate is preferred. The CFO will have two accountants reporting to them. Salary is between $1000,000 – $125,000 annually depending on experience. Equity package will be offered.
Vice President of Marketing
The VP of Marketing will be required to have a high level of customer service and marketing experience. At least 5 years in a previous marketing role is required. It is preferable that the candidate have previously created web based marketing campaigns including social media. Salary will be between $80,000 and $100,000 depending on experience. Equity package will be offered.
Vice President of Sales
The VP of Sales will be required to have at 5 years of sales management experience supervising multiple sales personnel over a specific geographic area. Previous experience developing sales strategy plans will be required. Salary will be between $80,000 and $1000,000 depending on experience. Equity package will be offered.
Vice President of Human Resources
At least 5 years of previous human resource management experience will be required. The candidate must familiar with employment law in the state of North Carolina. The VP of Human Resources will develop a strategy to recruit and hire top employees. This will include participating in recruiting events at local college campuses and developing methods of recruitment online and through social media. Salary will be between $80,000 and $1000,000 depending on experience.
Summary:
Positions will be filled as a qualified “A Player” candidate is recruited. These are the positions that the company will require at maturity.
References:
How to Hire A-Players, Eric Herrenkohl, 2010
The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup, Noam Wasserman, 2012
Build Your Management Team, Entrepreneur, Steve Robbins
What is a CTO, Business News Daily, Matt D’Angelo, November 1, 2018
“The Risks and Rewards of Adding Investors to Your Startup and Scaling Issues”
Many startups begin their operation by the founder self funding the company. This will work well if you have unlimited resources and are an expert in every business function including marketing, sales, human resources, and finance. A founder should be honest with themselves in order allow the company they created flourish into the most profitable company that it can be. Although many founders may believe they can do it all, most cannot. They had a great idea, but now they are at the point that they need others to make the idea marketable and profitable.
Bringing on investors to the business adds complications that need to be carefully considered by the founder. Usually it requires the founder to give up some control of the company. Venture capitalists and many angel investors have experience with the startup companies and have seen what works to make a startup successful. They may bring social and human capital to the company. Adding additional roles to the startup can help grow the company beyond what the founder ever imagined. VC’s typically will bring in board members that take control of some of the decision making. This can cause tension between the founder and investors.
One risk that a founder incurs when relinquishing control is the possibility of being fired. The founder of Men’s Wearhouse, George Zimmer, was fired by his board after founding the company in 1973 and leading the company to be a market leading in mens clothing after 40 years. There were tensions and disagreements within the company that lead to Zimmer being fired. Being fired after 40 years is rare. It is more likely to occur within the first few months or years of the existence of an enterprise. George Zimmer has proven himself as a great leader in the industry. This is not necessarily true of all C.E.O.s. “Getting the right C.E.O. into the business just as it has figured out its niche and is ready to scale ignites the thrusters on the rocket ship.” (How to Find the Right CEO to Scale Your Company, Inc., Bruce Eckfeldt, Jan. 25,2019) The founder might be the right person to run the company at inception of the idea, but they may produce mediocre results unless they understand how to take the company to the next level.
C.E.O. Bruce Linton was fired as co-C.E.O. of Canopy Growth which is a cannabis company in Canada. Linton took the company from nothing to $20 Billion dollar corporation during a time when the industry was brand new to legal enterprises. At one point during his control, he gave equity to Constellation Brands in exchange for $5 Billion. Constellation Brands brought on new board members who eventually fired Linton after the company experienced poor financial performance. In this example, Linton was the right person for the job of C.E.O. when the market was in its infancy. However, once the company reached a mature level, and additional competitors entered the market, he could not manage. When Linton was offered a huge amount of money in exchange for equity, he did not consider the long term ramifications of losing control.
A C.E.O. that is ready to scale a company needs to have excellent leadership skills. They must be able to analyze and understand the markets they serve. Opportunities and threats need to be identified within those markets. The appropriate personnel and management structure has to be put into place. Not all founders have the skills necessary to initiate a strategy that accelerates growth exponentially.
When changes are made to the new startup such as including investors, variables are added to dynamic of the company which should be carefully considered by those involved.
References:
Founder of Men’s Wearhouse Fired by Company’s Board, David Schaper, NPR News, 6/20/2013
How to Find the Right CEO to Scale Your Company, Inc., Bruce Eckfeldt, Jan. 25,2019
Bruce Linton out as co-CEO of Canopy Growth cannabis company, Andrew Chang, CBC Television, 7/3/2019
The Founder’s Dilemmas: Anticipating and Avoiding Pitfalls That Can Sink a Startup, Noam Wasserman, 2012
Master of Entrepreneurship Website for Mike Weimar 