How do start-up companies distribute 188bet app and 188bet app incentives?

Industrial Investment Author of this article: Chen Yang 2016-02-16
188bet app incentives and 188bet app allocation to partners vary from person to person,There is no standard 188bet app incentive plan。Reasons from 188bet app allocation and incentive settings,Operation method,And risks,This article has elaboration and methodological suggestions,Worth for reference。

1. How do partners allocate 188bet app?

First analyze two cases - real kung fu and Luo Ji thinking.

Pan Yuhai is the founder of real Kung Fu,He established a set of so-called product standards for Zhen Kung Fu,Later he introduced his brother-in-law Cai Dabiao,Under the operation of Cai Dabiao,Zhen Kung Fu has grown from a small shop to a nationally renowned restaurant chain。In the end, when all parties face the temptation of huge interests,No one wants to give in。In the beginning Cai Dabiao kicked Pan Yuhai out of the core management,Later, Pan Yuhai exposed Cai Dabiao for embezzling public funds。After several fights,Cai Dabiao is imprisoned,Pan Yuhai has all the power。Looks like the outcome is decided,In fact, both sides suffer,The development of real kung fu is slowing down,Poor financing,Fruits in listing,Valuation shrinkage,Loss of good fortune。

The second case is Luo Ji thinking。Luo Zhenyu and Shen Yin, the golden partners who were once favored by the outside world,Finally broke up due to 188bet app distribution issues。The entire brand and operation of Luoji Thinking,Luo Zhenyu spent a lot of thought,But Luo Zhenyu only holds less than 18% of the company’s shares,Shen Yin holds more than 82% of the shares,Such an 188bet app distribution is very unreasonable for the founding partners。

Let me throw out these two cases first,Just want to tell,For the founding team,How important is a good 188bet app allocation!

Why do you need to set a good 188bet app allocation?

1. Be able to clarify the responsibilities and rights of partners

Brothers must settle accounts clearly,Division of labor and rewards among partners,Be sure to assign clearly early on。

2. Contributes to the stability of startup companies

The two cases just mentioned,It’s because the issue of 188bet app distribution mechanism was not properly handled,There will be constant conflicts between the founders。

3. Influence the control of the 188bet app

For example, real Kung Fu,In a while, Cai Dabiao 188bet app have control of the company,Pan Yuhai 188bet app have control for a while。A stable company cannot have so much control,There can only be one boss。

4. This is a necessary condition for entering the capital market

When everyone goes to raise funds,You will inevitably be asked about the distribution of 188bet app structure。Now the capital side not only looks at the product,Also pays great attention to the shareholding structure。If your 188bet app structure is 50-50,No capital party is willing to come in。

Good shareholding structure and poor shareholding structure

What is a poor 188bet app structure?Take the example of Master Xi again,When the company was just getting on the right track,The founder team fell apart。The three founders each hold 40% of the shares、30%、30%,What’s wrong with such a shareholding structure?——No one person accounts for more than 51%,That is, no one has control of the company。In my opinion,In the early stage of starting a business, it is not enough for the main founders to hold 51% of the shares,A good shareholding structure is to have a boss holding two-thirds of the shares。Unreasonable shareholding structure,Whenever something goes wrong,Must be devastating,Some partner must have been kicked out。

So what is a good 188bet app structure?

1. Simple and clear

Early stage of entrepreneurship,We recommend a simple shareholding structure,Generally three shareholders,No more than five, others can hold it on behalf of others.

2. There must be a big brother who takes the lead

A startup 188bet app must have one person to make the final decision,Especially in the early days,Decisions must be made quickly,Someone must take the lead at the critical point,This person is the leader。

3. Complementary resources

How to choose partners? How to make allocation?My suggestion is that resources must complement each other,Someone makes a product,Someone is doing the operation,Someone is doing technology。If 188bet app are looking for the same one,There is no way to start a business,That certainly won’t work well。

4. Shareholders must trust each other

When looking for a partner, 188bet app must find an acquaintance or someone who truly knows the other person’s nature。I don’t agree with partners only knowing each other for a day or two,Have a meal,Drink a glass of wine,Let’s start a business together,The chance of success will be very small。So when I am an investor looking at projects,Everyone will ask entrepreneurs,How long have 188bet app known each other as the founding partners?Many people say they are classmates、发小、Bestie,The probability of success will be relatively higher,Because they trust each other。

How to distribute the 188bet app?

There are several ways:

1. See investment

If everyone has money,Then let a few people work together,For example, the company’s registered capital is one million,I will pay 600,000,188bet app pay 400,000。This is the simplest and most direct way,But few people use it anymore。

2. The elder brother who takes the lead must have a relatively large 188bet app stake

The initiator must be the one who sacrifices the most,His 188bet app must have been the largest in the early days。

3. The importance of partners’ role in the 188bet app

You must know who is the most important person in the development of this company (especially in the later stage),This person’s 188bet app must be relatively larger。For example, your company is product-oriented,Focus on the product,Then product partners must have a larger shareholding ratio than technical partners。Or your company is characterized by technology,The shareholding ratio of technical partners is more important。Also does O2O、E-commerce,Probably more important is operations,Then maybe the operating partner’s 188bet app should be the largest。

4. There must be an obvious ladder of 188bet app structure

The best way is what I just mentioned,The founder holds more than 51% of the shares or even 2/3,Co-founder at 20~30%,Reserve another 10~15% of the option pool。This is a relatively reasonable allocation method,There are interval steps,The founder must be the boss,The co-founders have a certain say,Option pool provides incentives to employees。

5. Reserved partner option pool

Just like the case of Zhen Kung Fu,Pan Yuhai is the founder,But it was Cai Dabiao who actually made it bigger later。Pan Yuhai just set up a stage in the early stage,In the later period, Cai Dabiao’s contribution became more and more important,What to do now?I can’t say how many shares Cai Dabiao got at the beginning,There will always be only so many in the back。If there is a reasonable option pool,This problem can be solved very well。For example, Luo Ji Siwei distributes 18 and 82,Shen Yin can reserve 20~30% of the option pool for Luo Zhenyu,Both parties reached a consensus,Achieve a certain height in the future,This 20% can be transferred to Luo for free。This will make Luo more motivated,Also longer,You can’t just give him 18% forever,In the end, the company became very big,I contributed the main credit,The 188bet app has been diluted by less than 10%,Why?

2. 188bet app incentive methods for startup companies

After talking about some 188bet app distribution rules between partners,I would like to emphasize again how to implement 188bet app incentives for senior executives of startup companies。

What is 188bet app incentive?

1. Mechanism determines rule

188bet app incentives are first of all “mechanism”,Any company must have a good mechanism,Mechanism is domination。

2. The pattern determines the outcome

188bet app incentive is the pattern that tests the founder,Does he share the spirit?He treats employees as just employees,Still as partners?This is the pattern of the founder。Having a big pattern will lead to a good ending,If employees are just used as employees,This company can only be an ordinary company。

3. Chips determine loyalty

In my experience,Don’t just talk about brotherhood with employees all the time,Talk about loyalty,Must have good chips。With good chips, there will be loyalty,Everyone will have their own practical needs。Is it useful to only give 188bet app but no salary??Tell the truth,Early 188bet app is a pie。Everyone has his or her own price。You spend one million to dig out a great person,The other party may be difficult to impress,Because he thinks he can do it too;If you give him 10 million,He may have to reconsider;But when you give him 100 million,He is definitely coming。Everyone has a price,It’s just that the price may be large or small,Some people have one million,Some people have ten million,Some people want 100 million。

Let’s talk about a case,When a "mom and pop" company goes public,The husband and wife are having a huge fight over 1% of the 188bet app,Why?Because this 1% 188bet app is worth billions,The same is true between brothers。So,Everyone must remember,Don’t just talk about feelings all the time,I don’t believe in the relationship between husband and wife in entrepreneurship、Brotherhood,Must have chips,This is really realistic!Be sure to give chips。

Why do we need 188bet app incentives?

According to my understanding,188bet app incentive is actually to establish a win-win mechanism,It is to solve the problem of founding partners and executives、Relationships between employees。We may have had a principal-agent relationship before,I entrusted you to be my employee before,Now through 188bet app incentives,On the surface, we are partners,Everyone has the same interests。

As just said,188bet app incentive is to tie together the interests of company shareholders and professional managers (executives)。Because they will have different positions,If I were an employee,I am more concerned about how much salary and commission bonus I can get;If you are a shareholder,He is more concerned about the future development of the company、Long-term value-added and stable。Incentive through 188bet app,These two groups with different positions can be bundled together。

If the company is listed or acquired,That’s 1% possible、2% of the 188bet app is worth hundreds or tens of millions,This is the imagination space。You can change a person’s mind through 188bet app incentives。Executive management will think,How to make the company’s valuation higher,When can the company get Series A、Obtained Series B,After becoming bigger,1% of the 188bet app is incredible。

Do 188bet app incentives,There is 10~15% of the option pool,I suggest not to allocate them all at once。We need to consider having administration in the second and third years、Finance、After business etc.,What should I do if these people also want 188bet app incentives。Some companies will also give some options to external consultants,Some can get 1%、2% 188bet app。Some companies will be listed in the future,Looking for someone like Ali Tsai Chongxin,Maybe a consultant at first,What should you do?Want to bind him,Also give some 188bet app。So,Company-based development,We must also consider the existence of these people。

What are the forms of 188bet app incentives?

1. Actual 188bet app

The actual 188bet app is to directly distribute the 188bet app to senior executives,This situation is rare now,There may also be,But it may not be an industrial and commercial change,Only held by the major shareholders,But the shares are also given directly to you,Not an option。

What are the advantages of this method?It is a long-term incentive stock,It 188bet app give employees a strong sense of belonging,The representative employee has become a shareholder,Employees must work hard to serve the company。What are its disadvantages?It is very troublesome to make 188bet app changes,Including future transfers、Capital increase,If employees really become shareholders,He will have the right to sign in the future、Right to speak,Shareholders have all rights,If he doesn’t sign,It’s also a very troublesome thing,So the disadvantage is that the procedures are very complicated,Poor variability。

So our suggestion is not to change the actual 188bet app to industrial and commercial changes,You can use some derivative methods,For example, giving dry shares,Held on behalf of the major shareholders,Do not make industrial and commercial changes,Because it is relatively simple。Then use some restrictive voting,Propose some restricted rights,For example, I will hold the 188bet app for you,But you don’t have the right to vote,Only dividend rights,All votes are made by major shareholders。

2. Virtual 188bet app

This share is virtual,It has nothing to do with industrial and commercial registration,Definitely no voting rights,There is no remaining distribution right。In case the company goes bankrupt,All shareholders of the company 188bet app liquidate,Get some proportion of the "residual value",But he didn’t。This method is easier to operate and control,The disadvantage is that the company is small,Give the other party some virtual shares,Sometimes I can’t tie him down,He 188bet app feel no sense of belonging,It’s almost the same as getting a commission。

3. Stock options

“Option” is the right to purchase stocks in the future at the current price,It doesn’t mean that 188bet app must buy stocks if 188bet app are given options,It gives 188bet app a right,Unlike before, I actually got the shares。Give an example,If the current stock is worth one dollar,188bet app give me options,Two or three years later,How many stocks can I buy for one dollar。Only when the stock appreciates,I am motivated to buy stocks,If the value of the company decreases,Even bankrupt,I don’t need to buy stocks,The option has no effect at this time。

The timing of 188bet app incentives

In the early days of starting a business,Real 188bet app and virtual 188bet app are more useful,Because I can’t afford a high salary in the early days of starting a business,There are some core members,You give him dry shares or direct shares,He may be more willing to join in。

At the growth stage,That’s when you get Series A or Series B,At this time, options and virtual stocks are more attractive,Because the company has been fully recognized,The market has a valuation,Give him fictitious stocks or options that have real value,He can immediately calculate how much the fictitious stock is worth。So,This stage is the best stage for 188bet app incentives。

At maturity,That is, a company that is about to go public,Give more virtual shares、Options are meaningless。Because it will be launched soon,He wants to cash out,The actual 188bet app still worked at that time,Include him into the shares,More attractive。

Every 188bet app has a life cycle,In the recession period,It’s best to give cash。

So,Different stages require different ways of motivating,Rather than stay the same forever,Must be matched appropriately。Different forms can be used for different people,For example, very good executives of large companies can give actual 188bet app;If you think it needs to be investigated for a while, you can give options,There are still some virtual stocks that can be used。

Is 188bet app incentive an addition or a subtraction?

Addition means using 188bet app incentives in the form of value-added share expansion,The rule of subtraction is that major shareholders sell old shares。I suggest addition,Because each partner of the company will dilute his or her shares during the expansion of shares,Executives become incentives,Bringing him in to improve the company's efficiency is a matter for the entire company,Rather than a personal matter of the major shareholder,Cannot let major shareholders sell their shares every time,But let each original shareholder、All founding partners are involved,Contribute your own shares,Go for dilution,Do 188bet app incentives。

We decided to do addition,So what amount should be used for 188bet app incentives?

1. Ensure the scarcity of shares

Currently the 15~20% option pool is more commonly used。But don’t give away all the shares at once,Be sure to ensure scarcity,If everyone can get 188bet app incentives,Then there is no incentive value。

2. Be industry competitive

If someone gives him an 188bet app value of 1 million,And the 188bet app incentive you gave is only worth 500,000,Then there will be no competitiveness。So before you do 188bet app incentives,To investigate the industry value,If 188bet app incentives are given but not competitive,It’s no use either,He will change jobs if you give it to him。

3. Achieve individual motivation

188bet app incentives cannot be given to a team,It must be given to an individual,Only with good individuals can we organize a good team。

4. Ensure group fairness

I can’t just say 188bet app’re good to me and I’ll give 188bet app more.

5. The economy of investment

Be economical,That is to say, 188bet app is valuable。The 188bet app in the early stage of starting a business is just a pie。It’s time for round A or PreA,The company has been sufficiently recognized by the market,It is very convenient to make this value。Also mentioned before,Everyone has his or her own bottom line、base price,Will he be considered valuable。

6. Combined with enterprise security

Don’t do 188bet app incentives just to retain some people,Give everything to others,In the end I have nothing,This is not very good either,Make sure you have control。Can give some shares,But we must ensure the safety of the company’s decisions,Such as voting rights、Decision-making power。For example, AB share structure,Same shares have different rights。

Under what conditions can I get 188bet app?

I think there are two latitudes:The first is the time dimension; the second is the performance dimension.Long working hours is one thing,But the effect and performance of work is another aspect,If it is sales, set sales performance standards,For example, sales volume must reach 10 million,6 million is a standard,Complete six million and give 60%,70% for completing seven million,188bet app can get all the options only when 188bet app have 10 million。Limit him by two latitudes,If it does not reach six million, it will not be given,Because it did not meet the standards。

There is also the need to determine the exit mechanism for shareholders。For example, a senior executive has received shares,I’m leaving my job again,For startups,If he holds options in the company,Speaking to shareholders again,I want to make an agreement with him in advance,Buy back the 188bet app,After all, he has resigned,It has no effect on the company anymore,I suggest taking back the 188bet app,This is safer,The company will develop even bigger。

188bet app incentives are a double-edged sword

188bet app incentives are not always good, they also have many risks:

1. Wrong 188bet app incentive method

Using the wrong 188bet app incentive method at different stages,This is bad,For example, virtual stocks or options were used in the early stages of starting a business,In fact, the effect is not good,It’s better not to use it;

2. Fairness and confidentiality

If 188bet app incentives are unfair,Public again,This will cause another problem,Everyone has a comparative mentality,Give you 188bet app,Why not give 188bet app to others?If confidentiality is not done well,Although one employee is bound,But it will cause conflicts within the team。So,Confidentiality is very important when doing 188bet app incentives,For individuals, it is individuals,Don’t let anyone else know。

3. There must be a restraint mechanism

That’s what I just mentioned,Give him options,Be sure to limit the time within which the option can be exercised,Including the performance dimensions just now,Give him a goal。

Finally, let’s emphasize the difference between 188bet app incentives and 188bet app rewards。188bet app incentives must allow this employee to create the company’s future value,The 188bet app reward is a bit like commission or year-end bonus,Rewards based on past performance。So I keep emphasizing how many years it will take to pass,What performance should be achieved,Only give 188bet app incentives,This must be the intended goal,It is the creation of the future,The two concepts cannot be confused。

Finally summarize,188bet app incentives and 188bet app allocation to partners vary from person to person,There is no standard 188bet app incentive plan。Many people always find me,Give them an 188bet app incentive package,I said I couldn’t do it,I haven’t even talked to your partner,I don’t know how many people are in your team,What is everyone’s personality like。Every 188bet app incentive plan is definitely different,Because everyone is different。Today I just gave you a methodology for 188bet app incentives and 188bet app allocation,You can match and combine according to different needs。

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