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Saturday, July 20, 2019

Do not pay with you share of stock, nor give away needlessly

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 20, 2019

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In my conversation with a Tycoon wannabee, I overheard her say pay with share of stock the suppliers or give stock options to employee.  For me that is a big no no.  If we want to be generous, other options are available:

     1. Pay off supplier with x deals (of your products)  Develop products which can have high price
         support.

     2. Rewarding employees:  give bonuses or profit sharing but not shares of stock

It is not being selfish, but later on you will regret it that because of the numbers you can be kicked out of the company  you founded.  It has happened to  Steve Jobs,  it has happened to me.

You went into business as entrepreneur to have locus of control.  Gusto mo gawin ang gusto mo.  When you give away stocks you are giving up your control


Read my latest blog: Wisdom from Small Stuff

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