The equity that cannot be turned into cash is garbage

There are many start -up enterprises who want to use equity to retain people, because the company really can't get extra salary to support these people.

Perhaps these entrepreneurs are very sincere. Maybe these entrepreneurs are to simply retain talents. Regardless of what the entrepreneur's heart, in the eyes of employees, the boss's behavior is drawing big cakes.

Because the current employees are not the same as before, they may have changed jobs several times a year. They have also seen a variety of bosses. There are not a few bosses who are willing to retain employees with options. But for a long time, they will find that even if they really get the company's equity, they have no effect because there is no way to monetize.

No matter how big a company does, as long as the equity cannot be realized, it is garbage.

I have been doing business consulting business for many years. When I first started, I especially liked to use consulting fees in exchange for a certain equity of the other party, because as long as a company can go public, I can earn an unexpected money.

But the time has passed for at least 5 years. The company I have taught is only better performance, and there is no real listed company. Therefore, the equity of dozens of companies I hold is still worthless.

After reflection, the reason why I found that the equity is not worth the logic of the entrepreneurial thinking, because most of the entrepreneurs only pay attention to what is now. For example, assuming the company made 10 million last year and 5 million this year. At this time, they would be very anxious. Only considering how to make 15 million or more people next year.

As for whether it can be listed, it mainly depends on the timing of development. When the time is mature, it will naturally go public. Due to the lack of clear goals, companies may not have achieved very obvious progress for many years, and listing is far away. The equity in the hands of all shareholders is just a waste paper.

So the question is, how can we turn the company's equity into cash? How to make employees who have been fighting with you for a long time to achieve freedom of wealth?

The answer is listing. For example, assuming the company made 20 million yuan this year, 80%of the founders, 1%per person for senior executives, and 10%of the employee holding platform. Assuming the company's dividend of all net profit, the founder can only receive 16 million yuan, and then deduct 20%of personal income tax, only 12.8 million yuan. Each person can be divided into 200,000 yuan (160,000 yuan after tax), and less employees have been divided.

In fact, many companies will only come up with a small part, or even dividends. Then the equity of the company's shareholders is basically meaningless, and it is impossible for the founders and executives to achieve wealth freedom together.

Assuming that the company has successfully listed after meeting a series of standards, as long as the concept is good, the market may give you a 100 -fold price -earnings ratio, which means that the company's market value is 2 billion yuan. The founder's equity instantly became 1.6 billion yuan, and the equity in the hands of the executives was worth 20 million yuan. Does it allow a group of people to achieve wealth freedom?

This is the magic of listing, which can make a worthless equity into a voucher for wealth and freedom.

How can we make the company go public?

This requires us to formulate the date of listing when starting a business. If we want to go public in the next three years, which market can we be listed in, what conditions do we need, and what do we have to do within these 3 years? These things must be done in advance, so that it is easier to get close to success.

After establishing the goal of listing, a business plan must be formulated.

Many people think that the most important thing after preparing to start a business should be to do it and land on the ground. In fact, this is not the case. We must study the entire industry, study the benchmarking company, and create a more bullish business model. The competition between enterprises in the future is the competition of business models. A good business model contains insights on human nature and the perspective of the industry, making everyone who watch the model think it is feasible.

A good business model and a template for business planning have completed a perfect business plan.

After the business plan is completed, it is still not in a hurry to do it, but to financing through the relationship. If you can get a round of angel investment, then the probability of your success is a bit higher. Even if we do not integrate the capital, we can find the disadvantages of business models through capital. Then correct it until perfect.

After the financing is in place, entrepreneurs can let go of their hands and feet. Just follow the steps of the business plan. It involves the positioning, strategy, products, teams, users, budgets, channels and other details of the positioning of corporate operations. The strongest company in the standard industry is the strongest company. It is expected to be a listed company.

Even if the final listing time is a few years later than expected, it is okay. After all, "good meal is not afraid of late."

This is the best era and the worst era. With capital thinking and innovation models, the world is your stage!

In the new business world, there are no eliminated industries. Only the eliminated products and outdated business models will focus on product innovation and model innovation in the future.

If a company or a boss, if the shortage of innovation ability is destined to be defeated in advance, please remember that there is no innovation, how can you have imagination!

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