Wednesday, July 22, 2015

The One Thing To Know Before Starting A Business

Here is the secret to becoming successful before even opening your business.. Pay talent in equity if you can’t afford to pay them right away. It’s very hard to attract talent w to help you grow your business when you’re strapped for cash. I learned, early on that is, that if you pay individuals with a percentage of ownership of the company then they will be actually invested in your company and not simply invested in a paycheck – plus you’re saving money.

Some people like to hire interns. This action could be a win-win for both parties but it also comes with a risk. At some point the intern is going to leave for a paying job or -worst yet- will start his or her own company. You have to be aware that if this happens that the intern can take anything you may have taught him or her… including clients… can move forward with a bigger, better plan and possibly more money than you have. If you are considering getting an intern, understand that you should also have an NDA and other legal documents in place to protect you and your ideas.

Paying talent in equity is one of the best and most affordable options for people seeking to start-up any type of business. They get to buy into a business without coming up with cash and you gain someone who truly cares about the growth of your company without having to pay cash. Sure, you’re giving away a percentage of equity, but isn’t this a good thing if they can make your company grow?

That’s my food for thought tonight!

Twyla Garrett

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