Play money

INC. THIS MORNING Play money Good morning, All too often, founders pass out equity to entice initial hires like it’s play money. And it makes sense: you don’t have a giant payroll and you want to encourage employees to work hard and increase the company’s value (and their share of equity). Handing out equity options in a brand-new, pre-revenue startup is a little like buying everyone on your team a lottery ticket with the same numbers. But what if those numbers hit--and you realize you’ve optioned and diluted your company so much that your personal share is meaningless? It’s a common dilemma, says Joe Procopio, Inc.com columnist and founder of Teachingstartup.com, a newsletter and web app for entrepreneurs. His advice: Don’t try and get the equity back, and if you do prepare for a fight. Better yet, learn how to value equity and options properly so you don’t make the mistake again. SPONSORED CONTENT Easy-to-use bookkeeping & it only takes 5 minutes to set up NeatBooks simplifies accounting challenges that small businesses face every day. Now you can spend more time generating ideas that connect you with your customers. Try for free! JOIN US: Join Jennifer Fleiss, co-founder of Rent the Runway, an 11 million-member startup that has transformed the fashion industry by making designer clothing rentals convenient and accessible. Fleiss will share how she created the service and what projects she’s worked on since. Hear her talk about how her experience incubating companies has helped her in her current VC position and what she looks for when investing in the next generation of brands. Discover ways to think differently about how you lead and grow your business. Are you ready for Your Next Move? Wednesday, November 17, 2021, 12:00 PM - 1:00 PM ET Register today Inc. Best Workplaces: Applications Now Open! Awarding excellence in company culture. Apply now to be recognized as a company people love to work for. Early-rate deadline: December 10, 2021. HERE'S WHAT ELSE I'M READING TODAY: Robots can help you streamline inefficient tasks and cope with a difficult labor market. You just need to sell them to your staff first. --Inc.  Still struggling to beef up your supply chain? Here are a few ideas to minimize disruptions. --Inc.  Several tried-and-true sales techniques that worked before the pandemic will not longer help you moving forward. --Inc.  If you’re pretending that inflation doesn’t exist, you’re not alone. --WSJ  People are starting to go back to the office, but for many the transition period is rather uncomfortable. --Inc.  ONE MORE THING: New pledges from COP26, the U.N. Climate Change Conference, could lead to increased demand for small businesses that help address the climate crisis. --Inc. --Brit Morse Assistant editor, Inc. How are we doing? Send me ideas and feedback at BMorse@inc.com and on Twitter at @britnmorse. Join the visionaries who choose Inc. as their trusted source for the most accurate reporting on business. Join Inc. Unlimited today. Click here to forward to a friend. This email was sent by: Mansueto Ventures 7 World Trade Center, 29th Floor New York, NY, 10007, Unsubscribe • Update Profile • View in Browser • Privacy Policy