Slicing Pie

            Pie Settings

            The Pie settings screen is where you set the parameters used in the calculations for your Pie. Below is a description of the impact the settings will make on your Pie. Changes to any of the settings will only affect future contributions, it will not affect past contributions. 

            Currency

             

            Use the primary currency that your company operates under. When calculating a buyout a slice will be converted into that currency on a 1:1 basis. The Pie Slicer will not consider exchange rates. Please note that buyout price is not the same thing as value. It is simply the fair price to pay someone to get their slices back when they leave.

             

            Non-Cash Multiplier

             

            This is the multiplier for non-cash contributions including pre-owned equipment and supplies. The default setting is 2. I don’t recommend changing this for reasons described earlier.

             

            Cash Multiplier

             

            This is the multiplier for cash contributions including equipment and supplies purchased for the company, unreimbursed expenses and cash. The default setting is 4. I don’t recommend changing this for reasons described earlier.

             

            Commission Rate

             

            This is the rate (%) used to calculate commission on revenue generated by commissioned sales people.

             

            Not everyone will be entitled to a commission. Set the rate based on fair market rates for your industry. This can vary dramatically so you’ll need to do a little research to get the right number. The default is 10%

             

            Royalty Rate

             

            This is the rate (%) used to calculate royalty payable to the owners of intellectual property behind the ideas that generate revenue. Royalty payments in slices will last as long as you use the model. When you outgrow the model you may decide to discontinue royalties. Investors will cringe at a perpetual royalty.

             

            Set the rate based on fair market rates for your industry. This can vary dramatically so you’ll need to do a little research to get the right number. The default is 5%

             

            Finder’s Fee

             

            If your company wants to award a finder’s fee to people who bring in investments (not common) you can set two rates. One for the first X amount of cash and one for the rest of the cash.

             

            Personal Car

             

            Your company can decide how it wants to calculate Slices when people use their own cars for work.

             

            Projects

             

            Projects are used to see how time and resources are being spent. You can add or subtract projects.

             

            Reset Pie

             

            Resetting the Pie will erase all transactions so you can start over.

             

             

            Be sure to click “Save Changes” when you make changes!

            Updated: 04 Apr 2016 11:21 AM
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