It was well past midnight, and I was on the phone with my co-founder and a potential “company-making” hire who we wanted to join our team. Very badly. An acclaimed systems engineer, this individual would enable us to take our business to the next level.

“If you look at the pay today, yes, it’s low, but we know that you will make up more than your fair share of return with the sizable ownership and equity package we are giving you,” said my co-founder to the potential hire.

The potential hire immediately responded back, “Yes, I get that. But I also like cash in my pocket now, and I am getting offers from other firms that, while not as generous on ownership, give me more of a sense of security today.”

I immediately chimed in: “Totally get you on that, but you also have to look at the downside risk. You can always, given your talents, go work for a larger company. This is the time where you have the opportunity to take a big swing at it and not be a corporate drone.”

After some pronounced silence, the potential hire immediately responded, “That actually makes a lot of sense. Send me the paperwork.”

In the earliest stages of a new company, entrepreneurs are often faced with two diametrically opposing forces: the need to grow and the need to... read more>>>https://www.successdigestonline.com/how-to-recruit-employees-with-equity/