Work Equity And Shares In A Business

When one starts a business be it alone or with ‘partners’, the handling of money is a huge factor. So many questions.  Who handles the finances? Who gets paid what?  How do we judge the amount someone gets?  Who gets shares in the business?  It is vital to initiate a clause of work equity where a person is only entitled to a certain amount of shares over a period of time WORKING with the business. So for example, you can say that your partner has a 20% share in the company once they have dedicated 2 years to the business. That’s an example. Morale of the story is that this guarantees work ethic amongst business partners and also shows you who’s in the business for the long run. However, being in the business is not all. Effective impact on the business is what you’re looking for. No use for someone who comes and works one month then does nothing for 3 months and all of a sudden wants their shares. Keep track of who’s putting in work and how it benefits the business or not.

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