Motivating employees with shares and epecially options is a very complex area. There are many things that can go wrong at different stages and not just when they are offered. The areas that often get in the way are when vesting or when the tax has to be paid if indeed it should. Then there are the other shareholders or potential investors such as businesses angel or venture capital funders. So here are some tips from start up founders and seasoned professionals from my favourite business magazine Inc.
1. Do educate your employees
2. Don’t do it yourself
3. Do draft in a multiyear plan.
4. Don’t attempt the impossible
Of course there are a number of benefits that should not be forgotten such as providing compensation when you are short of cash and using them as a retention tool until the profits comes in or whilst a company is being purchased.
This is just one area that I touch on in my roundtable for business owners that want to sell their company. It is focused and delivered in a practical style so that you can make immediate improvements to build the value that will be attractive to a buyer. If you are thinking of selling your business in the next one to five years come to my talk with Henry Campbell-Jones, the business broker and the London Chamber of Commerce on 19th October. More information here, let me know if you want to come and I will send you booking instructions.