Posts Tagged "Risk Premium"

The Magic of Mutipliers

Posted by on Oct 31, 2014 in Blog | 0 comments

For the Slicing Pie model, I recommend a non-cash multiplier of two (2) and a cash multiplier of four (4). Non-cash contributions include time, ideas, relationships and anything else that can be contributed without spending actual cash. Cash contributions include cash (when spent) and un-reimbursed expenses. These numbers are set based on my personal experience with the model and they are important. There is no science or special math behind them, but I encourage you to resist the urge to change them! The multipliers make the model work. Without them, you will be less successful in achieving...

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Paying Consultant Grunts with Pie

Posted by on Sep 21, 2012 in Blog | 0 comments

In Slicing Pie I recommend providing a sliding scale buyout to freelancers and consultants who provide services to the company.  In this scenario the consultant can earn up to 200% of their base rate in pie if you are unable to pay them. The risk premium goes up a little each month so the earlier you are able to pay the less you will pay. So, if you pay your bill on time you will pay the 100% of their fee, if you pay them in six months you will owe them 145% of their fee, if you pay them in a year you owe them 200% of their fee and after that they are entitled to a slice of the pie (less...

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