SHARE SUCCESS, NOT EQUITY
I had the chance to meet Michelle Flasaquier, a 70-years-old entrepreneur, who practiced Holacracy in her company for more than 30 years. I'd like to come back on one of her advice: share success, not equity.
When it comes to welcoming a new employee, the question of sharing a part of capital is often difficult to solve. Even if shares' value may increase, 100% of your company will remain 100%. And there is actually so much to do with it, including raising money and keeping some for you, entrepreneur – at the end of the day, you took the risk, you are responsible for everything if things turn wrong.
After decades hiring and rewarding, Flasaquier learnt that sharing success through bonuses is often more appropriate than distributing stocks to anyone joining the project. Be generous, be fair, share with your employees the success of the organization. But equity is mostly for founders and investors.
Equity is a resource, not a result.