Work For Equity Questions and Answers – What it exactly is?
In modern business working for equity is becoming far popular than working for cash. With so many startup organizations propping up, employers are shifting to offering equities to partners rather than paychecks. The upcoming trend prompts one to look at some Work For Equity Questions and Answers.
Is Work For Equity suited for all?
Working for Equity may sound cool for startup fanatics, but it’s a tad risky for those who want a steady income to pay bills. Founders and top brass people in the organization have their reasons to survive in dire conditions without any concrete pay. But employees with families might face quite a tough time without constant flow of cash from work with just equities as payment.
Value of equity
The value of the equities you own might decrease with time. You are at the mercy of investors and directors as they have the right to decrease valuation of stakes in future.
Is it beneficial for employers?
Work for Equity option of payment to partners in an organization can be a good idea to cut on regular payments in cash and secure investors’ money. With this option employers can balance out their investment in different areas of the organization. Employers however need to think on how soon they should release stakes for public ownership and the amount of stakes they should release to employees.
People usually look for delayed gratification while opting for Work for Equity as they wait for the organization to receive huge investments or huge profits. People intend to cash in on the profits or sell out stakes in times of profit.
Hope now the concept of Work For Equity Questions and Answers is clear now!