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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