3 ms·
Lot of very valid advice on achieving product market fit and ticking through the early stages of the business in the comments here. Your questions seems to be m
by rimeice 7y ago
Lot of very valid advice on achieving product market fit and ticking through the early stages of the business in the comments here. Your questions seems to be more focussed on ”assume I have pmf, would a profit sharing structure be a valid way to incentivise developers / early employees”.
What your suggesting does sound a bit like dividends. Give early employees shares directly and pay them pro-rata on the percentage of shares they own via dividends from the profit. Perfectly valid, possible tax implications and maybe not a long term solution if the company grows to more than a handful of people. Giving people shares directly also removes the long term incentive to hang around.
In truth getting to profit with enterprise software will likely take years. I’ve been running an enterprise software business for almost 3 years and we’re absolutely no where near profitability.