Contact Us
Name:
Email Address:
Phone Number (optional):
Subject:
Message:
 
 
Contact Us Contact us
Sign in
Email Address
Password
small business login arrow  Forgot Password?
 
 
Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
Finding Talent Willing to Work for Equity
Author: Wil Schroter
Thursday, March 29, 2007

WANTED: Young, smart, ambitious talent willing to put in 16-hour days, utilize untapped skills in programming, marketing, and/or grunt work, and get excited about risking everything.  Compensation - no cash, just equity in my company.

Sound familiar?

That's probably because it's one of the most requested resources entrepreneurs have.  Not a day goes by where I don't hear from an entrepreneur that is looking for a "young, smart .NET developer willing to build my site out in exchange for equity."

Yes, they exist, but they are extremely hard to find, and when you do find them, you need to have the right offer in hand.

Opportunity is King

Anyone can pay a cash salary.  The real trick is to offer an opportunity that someone can't get elsewhere. 

That doesn't mean "a ground floor opportunity in a startup company" - anyone that pays $80 to incorporate their company can offer that.  You need to be able to prove that your opportunity will provide much more of a payback than any cash compensation ever could.

Think about specifically how you are going to make good on your promise of "opportunity."  How quickly will you become profitable?  Who would potentially buy your company?  When will the employee see dividends or any cash return on their time?

These are all points that you need to think through and articulate in your offer. The more concrete your plan is, the more opportunity you can offer.  If you want to find talent willing to work for equity, you need to create a currency that people can understand and value.




Trackbacks to this story
There are no trackbacks...

Comments About this story

Getting people to work for equity is an art. It is probably one of the most difficult things to do when it comes to startups. One important thing to consider is that there is a difference between finding a business partner (or relatively equal equity) and getting someone to work for equity (much small stakes). Finding a business partner is not easy. I run a consulting company & incubator for start-ups. We get requests all the time from people looking for partners and turn most of them away because you really don't know who you are getting into bed with unless the person comes from a personal source.

In the case of executives for equity, since you are giving away a smaller stake, it doesn't hurt as much but it is MUCH harder to find people. Over the last 8 months of running BootStrapper.com, I have been able to do it successfully. So much so, that I have executives (our BootStrappers) looking for places to work and not enough companies to place them in. I was able to do it because I have built a little brand around my organization and further google'ing of me turns up good results, press mentions and my zany yet addictive personal site, RichHecker.com. Additionally, I own bootstrapper.com (which I actually bought for $1200) and owning the right domain with the right content = gives me credibility. I could be an idiot but I have the right branding and people come to me.

So in conclusion if you're looking to find people to work for equity, make sure you have a brand around your company and/or yourself because cold calling execs and saying "how about your build me a business for 5% aint gonna cut it"

Richie Hecker
Chief BootStrapper
www.BootStrapper.com        

Posted by: Richard H. 3/30/2007 at 9:25 PM



Add a Comment (Not logged in)  Register / Login

Name:
 
Email Address:
 
Homepage:
  (ex. http://www.gobignetwork.com)

 

Enter the Text in the Image Below (to confirm you're not a robot)

 


(Wil is immediately notified of your comment)

 

Recent Updates
Archive O' Knowledge
The Book
GoBig or GoHome Thumbnail

Go BIG or Go Home

Learn how the next generation of startup companies grow BIGGER and FASTER than anyone else. Real insights and actual strategies to grow your startup company like crazy. Required reading for anyone who loves startup companies and wants to get an edge.

 Buy the Book (e-book or paperback)
Blogroll
Premium Sponsors
Advertisement
© Copyright 2009 Go Big Media, LLC. All Rights Reserved
*Each investor listed in GoBigNetwork as a potential funding resource for members must be an “Accredited Investor” as that term is used in federal and state securities laws. To be listed, every investor must supply qualifying information, and certify that it meets all criteria for Accredited Investor status. GoBigNetwork provides a platform through which members and Accredited Investors may identify each other, but makes no actual or implied representations concerning the availability of any potential funding or funding resource GoBigNetwork neither effects nor attempts to effect any funding or business relationship between members and any listed investor, and nothing contained in this website should be construed as an offer to sell or the solicitation of an offer to purchase a security. Members and accredited investors listed in GoBigNetwork are solely responsible for compliance such federal, state or local laws which may apply between them in any funding transaction. GoBigNetwork is compensated solely by membership fees and fees paid by Accredited Investors for the opportunity to be listed as potential funding resources.

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 
DE  OH
Crunch Profiles  Crunch Companies