Join Rudolph Rosenberg for an in-depth discussion in this video Creating the link using equity, part of Entrepreneurship: Bootstrapping Your Business.
- One of the ways to make it affordable…for startups to get the competencies they need…is through giving equity to employees.…Giving equity means giving them shares of the company…so that even if they get a smaller salary,…they have the potential of making up for it big time…if the company is successful,…and the value of their shares increases significantly.…When you get shares from a company…you're entitled to two things.…
First, you can get a share of the profits of the company.…In the early life of the company…you might not get much of that, since the company,…even if it is profitable, will most likely reinvest…most of its profits to grow faster.…The second thing you will get is that…the shares of the company have a value,…and during the first years of a business…the value of the shares increase at a very fast pace,…and a few shares can quickly amount to a lot of money.…
There are many stories of employees of Microsoft or Google…or other large corporations that have received shares…when the company was small,…
He shows why beginning with the end is important: framing the venture by anticipating your exit strategy. He explores key resource-planning factors as well as the competencies and considerations required to fund and grow a bootstrapped business. The course then details how to manage the startup and evaluate it realistically to determine whether to stay the course or pull the plug. Finally, viewers will learn how to validate the business-plan assumptions effectively to determine viability and growth trajectory.
- Summarize the five pillars of bootstrapping.
- Determine which type of office space would be most beneficial for a given business.
- Explain the concept of linearizing expenditures.
- Identify the reason why making sales quickly is important to bootstrapping.
- Recall strategies for attracting new customers.
- Recognize the advantages of working in short cycles.
- Explain the importance of having a work-life balance.