Engaging and incentivising employees through employee share ownership is becoming an increasingly popular model. It generally results in improved levels of profitability, and it doesn't have to be complicated or involve giving up control of your business.
Take some time to consider the questions below. If the answer to any of them is "Yes", some form of employee ownership or incentivisation may provide the answer.
- Do you have a plan for realising the value of your business?
- Do you want to pass on your business when you retire?
- Have you thought about what a trade sale might do to your business and its employees?
- Does your business need to recruit someone to take it to the next level?
- Does your business need to hold on to any key employees?
- Do you want to reward any of your employees for a job well done, but cash flow is limited?
- Do you want to reward any of your employees for a job well done, even on a trade sale?
- Do you want to encourage any of your employees to grow your business?
- Do you want your employees to be positive ambassadors for your business?
The range of alternatives and structures is wide and there may be a tax-advantaged model that suits you.