Paula Tomlinson from On the Spot Tax has written a guest blog post for the Joy of Business, following on from my post about whether to give share options or just shares in your company. Here are Paula’s clever thoughts:
Do you intend to introduce a new senior executive or director to your company?
I get a lot of calls from people looking for advice on how to give away shares in their company. Often people ask about giving share options, so I wanted to talk briefly about the difference between share options and shares, and why share options are not such a good idea for small businesses.
This is the next instalment of a series of blog posts I’m writing about how and why you need to get some extra cash into your business, so that it can grow and flourish as a grown up business. [...]
I’ve been doing quite a lot of work recently for clients who want to get some investment into their companies, and the question of EIS (Enterprise Investment Scheme) has come up with a couple of people, so I thought I’d share some practical advice with you. [...]
You might want to give someone shares in your business because they’re going to invest money. You might want to give someone equity because you want them to work in your business, or to motivate someone who already works there. Getting an equity investment is a great way to get money into your business, because it helps cash flow. [...]