Selling A Share of Your Business to an Employee

Selling A Share of Your Business to an Employee

Owning a small business has many benefits such as the freedom to run it in your own way, and the ability to set your own hours. However, as you grow and have shubhodeep prasanta das more employees, these benefits often start to disappear. When you have a small business and all of the time and effort that goes into it, you may feel detached from your work and ultimately lose control. You may yearn for the excitement of running your own business, but also have a desire to have more time with your family or friends.

What is employee ownership?

In the early days of small business, the majority of people who owned their own business were self-employed. The possibility of owning a small business without an outside boss was unheard of. It became a goal to be able to start your own company with no one telling you what you could or couldn’t do. A true “do it yourself” experience.

Today that is still possible, with small businesses such as micro-entrepreneurs and consultants, who set up the business with their own finances and have little or no outside help in running it, although there are now more options available for small business owners who choose not to run their own business.

Benefits of employee ownership

One of the biggest benefits that comes from employee ownership is that you get to keep control of your business. If you are self-employed then you are in control of your own destiny and when things go well, you take all the credit, but when times are bad, it’s all on your shoulders. This can become frustrating after a while and as your business grows, it becomes harder to keep everyone happy.

Sharing the profits

When you sell a share of your business to your employees, you can make sure that everyone shares in the rewards as well as the risks. This way, if profits are high, everyone gets a piece of the action. When there are problems, it is easier to deal with when everyone is on the same team. However, it’s not just about maintaining control and rewarding your employees because they deserve it; employee ownership can also be a useful tax-planning tool in growing your business.