Establishing A Successful Business Enterprise: The Pay Structure Essay Example

Establishing a successful business enterprise requires a clear plan for its operations, setup, and running personnel. The Human resource sector plays a crucial role in managing employees in recruitment, training, supervision, and payment. The base pay structure is an essential component that must be set up with proper considerations. The payment framework of a business should be created in a manner that complies with all legal requirements of the country and ethical standards (Michael, 2019). Such conditions include determining the minimum wage for each person. The business should assess the amount of work one does and adjust the payment to a reciprocating level that appreciates them for the work done.

The pay structure should be developed in a fair and equal way. All workers in the business should receive payments in a justice manner regardless of age, gender, race, or any other discriminatory factor (Michael, 2019). Pay per performance should be observed to promote equity as the persons will receive compensatory payment for their advanced skills in the business. A standard compensation philosophy should be established in each company. Employees working overtime or those performing tasks that are out of their scope of practice legally deserve compensation that reflects the same efforts they used in performing extra duties. The business pay structure should put into consideration the aspect of child labor. Legal requirements dictate that no child should be included in waged work despite paying them.

Of all the legal requirements that a business should meet when setting up the pay structure, determining the minimum wage per person is the most challenging for small business operators. This is due to poor profits and also fluctuating earnings (Michael, 2019). Once I worked for a local bakery in my hometown. On some occasions, if each team member could have earned as per agreed, it was noted that the business could collapse as the profits made for the sales during that period were low.

The pay of an accountant in a manufacturing firm should be entirely a base pay, and they should be paid a fixed amount of money within a specific period, such as monthly. This is because the scope of their work is well established, and roles are clearly defined (Michael, 2019). During my attachment period as a student, the accountants in the firm collected their payslips at the end of the month, and the system worked perfectly.

For this category of work, the pay should be based on incentive pay that emphasizes performance. This method is efficient as it ensures that the pay structure meets both the employees and the company’s needs. The workers are also motivated as they will earn more if they work harder. My classmate worked in retail promoting a new brand of tea, and each day he made as per the sachets sold.

A company is managed by a CEO whose role is to run the firm and ensure that each objective is achieved. For such a kind of job, the pay should emphasize base pay. However, the payment structure should consider the work hours and the extent of the business operations (Michael, 2019). Most companies today have employed CEOs, and each of them is paid a fixed salary, and they are the top earners in each business.

A hospital is not a profitable enterprise, and all physicians’ pay should be base pay. However, they should be paid as per the job grade, skills, and knowledge. They should also be compensated for extra duties. In state hospitals, the hospital pays all medical workers a base pay that has fixed.

The incentives, including bonuses, commissions, and stocks as critical motivators, are key motivators. The company’s sales and profit margins will increase as the workers strive to improve their pay, contributing to the growth and extension of the business. Incentives also tend to build a bond between the customers, the salespersons, and the industry, and this provides a stable marker where the company sells its services and products (Michael, 2019). The set targets are achieved easily as incentives direct everyone towards the same goal.

Though incentives play a crucial role, they can negatively affect an individual. They include increased pressure and stress as one tries to earn more sales. Long-term stress can lower a person’s quality of productivity. In some cases, the incentives are not based on fairness, as others could earn more. This can result in workers resenting their colleagues and discouraging teamwork. Incentives also lead to employees undermining others rather than supporting each other for better results.

In the effort to earn more, the workforce may disregard the moral and ethical standards of the business and society by using uncouth ways to increase their sales and, in some cases, fake sales. The company should develop a good pay structure and appropriate incentives to resolve such issues. Each team member’s sales should be monitored to ensure that they are achieved legally and morally. Each person should be given a fairground, and teamwork should be enhanced to promote individual growth.

Continuum experiment with pay performance concerning incentive pay links perfectly to performance measures. The scheme boosts the aspect of employee performance and also rewards hard work as nurses and doctors who work more and produce deserved outcomes earn more. For instance, the program plays a crucial role in encouraging physicians and nurses to improve the quality of care provided in healthcare facilities. This will lead to a high care rate, protecting and maintaining life.

The gain-sharing program is designed to reduce the various costs in the hospital, including nursing room costs, supplies, implants, and operations. This program, therefore, is not beneficial to the non-medical support staff of the company. This is so because the program is entirely directed toward making health care affordable to the patient (Gupta, et al., 2021). Therefore, it is only beneficial to the sick, and their families as the medical bills will be reduced. The support staff employed to perform other subordinative duties will not gain anything from the program.

If I were to create a balanced scorecard for the continuum’s top executives, a critical aspect of performance measurement I could include is the measures of healthcare providers not taking into consideration the work done. Such an initiative will redirect the focus of the care workforce from considering the incentives available to what matters in healthcare: offering standardized care to improve lives and better patient prognosis (Aagaard et al., 2021). To handle resentment, I will formulate an evaluation of the incentives. Such a program will help the top executives to assess if their adopted incentive by performance strategy is working or not.


Aagaard, A., Saari, U. A., & Mäkinen, S. J. (2021). Mapping the types of business experimentation in creating sustainable value: A case study of cleantech start-ups. Journal of Cleaner Production, 279, 123182. Web.

Gupta, D., Mehrotra, M., & Tang, X. (2021). Gainsharing Contracts for CMS’Episode‐Based Payment Models. Production and Operations Management, 30(5), 1290-1312. Web.

Michael, A. (2019). A handbook of human resource management practice. bookboon. com.

Business Plan For Landscaping Business OneEarth


OneEarth will operate as a sole proprietorship offering landscaping services to suburban communities in Oregon. The sales strategy will entail initial personal selling to create brand awareness and elicit referrals. Later, media advertisements will be used to market the business beyond Oregon. OneEarth will achieve a strong competitive position by offering quality and professional services. Its personnel will include two full-time employees (management team) and five part-time staff. The business is projected to break even in year 3 of operation.

Business Objectives & Mission

This business plan is for OneEarth Services, a startup business that will offer landscaping services to residential and commercial customers. The three-year objectives for this enterprise include acquiring at least 30 residential clients that use OneEarth’s services regularly, increasing commercial customers by 20% annually, and attaining sustainable cash flow within this period through superior services. The organizational mission is to offer professional landscaping services that meet customer expectations and exceed industry standards.

Company Description

OneEarth, a sole proprietorship, will provide landscaping services to residential units and businesses. The business will be located in Eugene city, Oregon. The range of services offered by the start-up will include lawn cutting and maintenance, landscape edging and cutting, new sod installation in lawns, weeding, and landscape design and architectural services. Additionally, irrigation installation, tree planting, and spring cleanup would be provided on a need basis. These services will be provided once a week but this rate can be increased depending on specific client needs.

Service Plan

OneEarth will offer a range of landscaping services, including lawn cutting and maintenance. To differentiate its services from those offered by other small companies, this company will focus on quality and professionalism. Initially, an experienced supervisor will oversee all landscaping work done by employees to ensure they meet customer standards and expectations. All interactions with residential customers will be professional and involve respect for privacy. Quality and professionalism will yield competitive advantages for OneEarth and help attract and maintain a loyal base of residential and commercial clients.

Start-up Summary

The main start-up requirements for OneEarth comprise assets, rental space, and insurance. The business will need office equipment, including furniture and a computer system with a printer. Additionally, a pickup truck will be required to facilitate movements to and from client locations. Three commercial lawnmowers, a trimmer, and an edger will be purchased for cutting grass near bushes and trimming lawns. Rakes and blower machines will be needed to remove litter on pavements. Safety equipment, such as gumboots, goggles, and gloves, will be needed when working.

Market Analysis

Landscaping is among the fastest-growing industries in the United States. The key growth drivers include high demand for outdoor landscaping services, the establishment of household vegetable and fruit gardens, and a shortage of skilled lawn care providers. Suburban middle-income families requiring backyard cookouts are increasing in the US (IBISWorld, 2021). Households without children are key target clients because they are more likely to require these services than those with preschoolers. In addition, this market is characterized by growth in commercial complexes and increasing penetration of green roofs that need lawn beautification and care.

Competitor Analysis

Competition in this industry is not intense; large landscaping companies such as GrassRoots Landscape Company primarily target big clients, while small lawn care service providers focus on residential customers. Therefore, an opportunity exists for a new entrant into this industry. Additional competition may come from robotic lawnmowers that can be used by individual customers. Competition in this industry is driven by quality and professionalism. Residential customers use referrals when looking for service providers. The low entry costs and labor-intensive nature of this industry mean that most competitors are not large companies.

Customer Analysis

The target customers in this industry can be categorized into two: residential homes and businesses. They include middle-aged homeowners who are less likely than youthful individuals to do their lawns, suburban middle-class families, and commercial establishments. OneEarth will first target middle-income homeowners that are expected to use landscaping services. A secondary customer group will include local commercial establishments, such as schools and office complexes. Advertisements will be placed in local newspapers and social media to enhance OneEarth’s visibility in this market.

Marketing Plan: Targeting & Positioning

Initially, OneEarth will target residential customers in Eugine, Oregon. Personal selling will be used as the marketing strategy for this neighborhood. This approach will leverage employee relationships with the suburban community to create brand awareness and persuade residents to try our services. The goal is to inform potential clients through face-to-face selling by a salesperson. A list of regular residential clients using our services will be compiled. The next step will entail running ads in local newspapers and social media pages to increase the visibility of the OneEarth brand.

Market Segmentation

The primary target segment for OneEarth Services will be suburban middle-income households. The key characteristics of this subset of the market include the absence of children or teenagers to mow the lawn, median income ranging between $50,000 and $100,000, large lawn sizes (3,000 to 7,000 square feet) that need regular care and maintenance, and white-collar occupations. The secondary target market for OneEarth will be commercial complexes in Eugene, Oregon, including business premises, schools, and parks.

Market Penetration

To penetrate the market, OneEarth will use face-to-face communications to market its services in the Oregon community and identify prospective leads. It will initially leverage employee relationships with relatives to enter this market. In addition, superior quality and professionalism will be promoted as OneEarth’s unique selling points. Further, lawn mowing and landscaping services will be offered free of charge to a select group of customers. OneEarth’s services will be competitively priced to attract residential clients. Advertisements in local media and social media will be used to sell this brand to the Oregon community and promote referrals.

Pricing Strategy

OneEarth’s services will be competitively priced to attract and maintain customers. Lawn cutting, which usually costs $45, will be offered for $40. Landscaping companies are paid $20-$25 per square foot for edging. OneEarth will demand $22 from clients for the same quantity of work. Sod installation and weeding, which cost an average of $0.35-$0.80 per square foot and $65-$120, will be priced at $0.35 and $67. Other services, including landscape design and trimming, will also be priced competitively.

Marketing Mix

OneEarth’s marketing mix will include specific products, prices, places, and promotional strategies. Besides landscaping services, such as trimming and lawn cutting, OneEarth will offer weeding and insect control to clients. Regarding price, a low-cost strategy will be pursued with discounts offered to loyal customers. Eugene, Oregon, is a strategic location for the landscaping business. The suburban community in this city includes middle-class families with large lawns that need maintenance. The promotional strategies that will be used include advertisements in local papers, social media marketing, ads in local radio stations, flyers, and the use of bloggers.

Marketing Phases

The sales strategy for OneEarth will be implemented in phases. In year 1, face-to-face communications with prospective clients will be conducted. This approach will involve marketing to family members and leveraging referrals by relatives of OneEarth employees. The staff will communicate the unique selling points of this business – quality and professionalism. Year 2 will involve personal selling and ads in local media outlets. Advertisements will feature testimonials from previous customers to elicit interest in the brand. In year 3, as the business expands, bloggers will be engaged to market OneEarth’s landscaping services beyond Eugene.

Operations Plan

The operations plan for OneEarth is aligned with the three-year objectives of the landscaping business. Short-term processes or routine tasks that will be completed in the day-to-day running of OneEarth include receiving and processing customer orders, purchasing supplies such as weedicides and insecticides, and routine equipment maintenance and repairs. Engine oil and filters will be inspected to ensure that machines are in good working condition. Long-term goals for the landscaping business including serving 100 customers and reaching $90,000 in revenue by the third year. Additionally, OneEarth will be launched in two other cities besides Eugene by the fifth year of operation.

Management Team

OneEarth is owned by Jake Milton who is also the founder. Jake was first introduced to landscaping as an undergraduate student. He holds a bachelor’s degree in business administration and has previously worked for a large reputable landscaping company. OneEarth’s general manager is Zack Williams, an experienced loan mower operator, and business leader. The landscaping business also has a board of advisors that includes Rick O’Connor (a successful entrepreneur) and Hull Kim (a startup management consultant).

Personnel Plan

OneEarth’s personnel will consist of full-time (FTEs) and part-time employees (PTEs). FTEs will include Jack Milton who will be responsible for signing up new clients and handling customer orders and Zack Williams whose role will entail new staff recruitment, training, and supervision. PTEs will be employed in two phases, as the business expands. In year 1, the initial three PTEs will be hired to do lawn mowing, trimming, and other landscaping services. An additional two employees will be recruited in year 2. This staff population will be increased steadily to reflect the seasonal demand for landscaping services.

Personnel Costs

Personnel costs will vary between year 1 and year 2, as an additional part-time staff is recruited. The annual gross salary for two full-time employees (the founder and general manager) will be $22,500 and $12,800 respectively. In year 1, the estimated personnel costs will be $67,700, which includes salaries for three part-time staff. This amount will increase to $89,300 in years 2 and 3, as more employees are hired to cater to an increase in demand for OneEarth’s services.

Financial Plan

The three-year financial plan for OneEarth is based on two main assumptions. First, the approximate interest rate will remain constant for three years, at 10%. Second, the estimated tax rate (25.42%) will not change during this period. The business is expected to break even after three years, assuming a monthly revenue of $3,900. After this period, OneEarth will be self-sustaining in terms of cash flow.

Income Statement

The three-year income statement for OneEarth is based on some assumptions, including sales will increase by 50% between year 1 and year 2. In addition, depreciation is expected to rise during this period. As stated above, OneEarth will break even in year three (a profit of $5,500). In years 1 and 2, the business will incur a loss of $15,200 and $13,100, respectively.

Balance Sheets

The projected total assets for OneEarth will be $10,700, $20,700, and $22,700 in years 1, 2, and 3, respectively. The liabilities will decrease from $17,300 in year 1 to $15,900 in year 2, as the business begins to pay back its loans.

Cash Flow Statement

The net cash flow is projected to increase from $1,200 in year 1 to $22,200 in year 2. The sources of cash will include sales and account receivables during this period. Expenditures for the business will comprise purchases of supplies and bill payments.


IBISWorld. (2021). Landscaping services industry in the US – Market research report. Web.

We Did Better This Time: Lessons Learned From Katrina Prepared Louisiana For Ida

When Ida reached the coast of the United States, it became the fifth most powerful hurricane in American history. It was rated the fourth degree out of five on the Saffir-Simpson Hurricane Scale, and its speed was 230 kilometers per hour. Ida hit the American coast precisely 16 years after Hurricane Katrina in 2005, killing more than 1,800 people. A new hurricane in the United States began 72 kilometers from the place where Katrina first hit. This is the strongest hurricane since 2005; Louisiana Governor John Bell Edwards considers it one of the strongest hurricanes since the 1850s (MD161, 2012). It did not surpass Katrina in destructiveness only because the experience of the last hurricane was not forgotten and helped prepare for a new natural disaster.

The most severe damage from Katrina was received by New Orleans, where about 80% of the city’s area was underwater, and about 700 thousand people lost their homes. The natural disaster was accompanied by technogenic catastrophes, oil spills, and an increase in crime. Their total consequences killed 1,836 residents, and economic losses reached $125 billion (MD161, 2012). Ida also passed through most of the oil production sites, which again posed a danger to the refineries in New Orleans. Floods and power outages could hamper large oil pipelines that supply fuel to the east of the country. Based on the experience gained during Katrina, mining companies closed wells in advance that provided about 91% of oil production in the Gulf of Mexico. The companies have mobilized more than 10,000 workers across the state to eliminate power outages. These timely measures helped to avoid such damage that Katrina brought.

The destructive power of Ida was reduced by more than 400 kilometers of dams, pumps, and gates; about $14.5 billion was spent on the construction (MD161, 2012). They were built as additional flood protection after Hurricane Katrina in 2005. Also, based on the experience with Katrina, hospitals were prepared: generators were checked in them, supplies of drinking water, oxygen, and personal protective equipment were replenished before the storm. The wind caused the Mississippi River to flow in the opposite direction at a speed of about one and a half meters per second. However, the city’s massive flood protection system did an excellent job dealing with the Mississippi flood, making the consequences less devastating. Thanks to the protective structures, the maximum water rise resulting from the storm surge were one and a half times less than it was during Katrina. Citizens living outside the dam were evacuated beforehand; that saved many lives. In addition, the National Guard has prepared personnel and equipment in advance, including cars and inflatable boats, to help in the aftermath of the storm.

Ida had every chance of becoming more destructive than Katrina: the hurricane uprooted trees, tore roofs from houses, and even managed to turn back the Mississippi. However, despite the frightening power of the storm, the measures taken against the force of nature based on the experience of Katrina proved to be effective. Careful preliminary preparation of hospitals and rescuers, timely evacuation of residents, and the construction of protective structures significantly reduced the number of victims. Government representatives who have survived through Hurricane Katrina have compiled a checklist of actions to reduce Ida’s destructiveness. This became possible due to previous experience, which exposed the most vulnerable places when facing the hurricane.


MD161. (2012). Hurricane Katrina: The storm that drowned a city [Video file]. Web.