“Don’t Ask For Money, Asked For Equity Instead”

 

When you’re starting a business, you need money to get it off the ground. But there are other ways to get money besides asking for loans or investments. One way is to offer equity in your business.

Equity is a share of ownership in a company. When you give someone equity in your business, you’re giving them a piece of the pie. If your business is successful, they’ll make money when you do.

There are a few reasons why you might want to offer equity instead of money:Read More: Engagement Equity: Earn the Ask:https://amzn.to/3MXCUHE

* **It’s cheaper.** When you borrow money, you have to pay it back with interest. But when you give someone equity, you don’t have to pay them anything.

* **It’s more motivating.** When people have a stake in a company, they’re more likely to work hard to make it successful.

* **It’s a way to build relationships.** When you give someone equity in your business, you’re building a relationship with them. This can be helpful if you need their help in the future.

If you’re considering offering equity in your business, there are a few things you need to keep in mind:

* **How much equity should you give?** This depends on how much money you need and how much value the other person is bringing to the table.

* **What kind of equity should you give?** There are different types of equity, such as common stock and preferred stock. Each type has different rights and privileges.

* **How should you structure the equity agreement?** This is an important legal document that should be drafted by an attorney.

Offering equity in your business can be a great way to get the money you need to start your business. But it’s important to do your research and understand the risks involved.

Here are some additional tips for offering equity in your business:

* **Be clear about your expectations.** When you offer someone equity, be clear about what you expect from them. Do you want them to be involved in the day-to-day operations of the business? Or do you just want them to be a passive investor?

* **Set a timeline.** When will the equity vest? This means when will the other person have full ownership of the shares you’ve given them?

* **Get everything in writing.** It’s important to get everything in writing, including the terms of the equity agreement. This will help to avoid any misunderstandings down the road.