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I'm surprised a "sales guy" is asking for equity instead of asking for more commission. I'm possibly _more_ surprised you aren't sure how to respond. What is t
by ttymck 5y ago
I'm surprised a "sales guy" is asking for equity instead of asking for more commission. I'm possibly _more_ surprised you aren't sure how to respond.
What is the value of equity in a lifestyle business? You, as the business owner, are the only one who can answer that. Does equity mean profit sharing? Or are you planning to sell the business or IPO someday? ("lifestyle", to me, suggests the answer is "no")
Did you ask why he wants equity?
- URSpider94 5y agoThis. What’s your long-term business plan? If you plan to keep this business as a privately held enterprise in the long term, equity is basically useless and worthless. Are you planning to hand out equity to investors or employees? If not, this person would be one of a handful of shareholders. Unless you have a plan to sell the company or go public, then I would advise that you explain the situation to the salesperson and explain to them why they wouldn’t want equity.