Continuing from our last post, Pitfalls of Giving Up Equity in a Business Venture, Ownership of your business is key. It is the symbol of your own hard work and passion, and security for the success of your future decisions. The more ownership you give up, the more you assume the responsibilities to other parties who can hold up your progress, especially if they have selfish or malicious intentions.
Don’t make life more complicated. It at all possible, avoid giving away ownership. To help you in this key strategy, here are some basic tips:
- Work with you attorney to develop a rock solid Buy-Sell Agreement that protects your interests and decision making capabilities.
- Include stock option plans, profit participation programs, bonuses, and incentive-based programs to mitigate equity grants.
- Evaluate key man insurance, disability policies, and other strategies that emphasize employee benefits without giving away ownership.
The California Legal Blog 