How to make work for Equity work for you?
The start-up companies need more than investment capital in order to succeed in this disruptive environment. Investors can succeed when they involve themselves in the development of the company without restricting themselves to funding alone. One way to be more effective is to work for equity.Work for equity is better in the long term than accepting cash compensation. It is worth waiting since equity can be substantial as the company grows. The options that you receive as equity can be cashed in any time. However, it is advisable to assess each opportunity and see when you can exercise the option.
If you exercise too early, you may lose out on the growth and if you wait too long, you may be at risk when the company doesn’t perform well.When you have decided to work for the equity you should make sure that you go through the below work for equity checklist to ensure you don’t miss the benefits of working for equity.
1) At first, you ensure your organisation or start-up supports work for equity?
2) Make sure the organisation has transparent performance review process and equality in training, promotions and rewards.
3) You should check whether companies accounts are transparent and no manipulation in the accounts is taking place.
4) Check whether proper Audit process by reliable auditors is carried out.
5) Whether work for equity is incorporated in the business objectives and goals.
When you follow the above checklist and be aware of start-ups or organisations policies before taking up work for equity, it would be a rewarding experience.