Equity is defined as the shareholder’s stake in a business. It’s often used to attract investors, especially if you can promise a safe ROI with as minimal risk as possible. However, not everyone should think about using equity as a first resort for building capital. So, what should you consider when using equity? When is the best time to use equity?
In this episode, I share my thoughts on equity, what it is, what it can do, and how to utilize it properly. I explain the purpose of equity in any business and describe how to structure equity in your company. I discuss why small businesses should forego equity and start with profit-sharing agreements first. I also share what I consider are the three big principles in using equity.
“Only if you can’t go any further on profit sharing, then look at equity.” – Adam Rundle
This week on the Expensive Advice Podcast:
- How do you think about structuring equity in your business
- Understanding the purpose of equity
- Using equity only to raise large amounts of capital
- Why small businesses should look at profit-sharing agreements first
- The three big principles in using equity
Turning Boring Money into FUN Money
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