Up and Running

MARCH 7, 2018

On average, it costs nearly three times an employee’s salary to replace them. This cost includes recruitment, lost productivity, and lost opportunity. It is important to develop a retention plan right off the bat to keep employee turnover in your small business from becoming a very costly and aggravating expense.

Employee 91

Employee Startup Salary Hiring 91

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. COGS” represents the amount that each sale costs you. After all, they doubled their operating costs when they weren’t even profitable.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary.

Equity 60

Equity Employee Stock Options Vesting 60

The Startup Magazine

SEPTEMBER 28, 2021

Firstly, you need to make sure that your benefits are cost-effective and ultimately affordable for your organization. Also factor in the value of recruitment and employee retention as part of your calculations; if you can spend a little more on perks and in doing so increase loyalty, this might help you justify the expense.

Stock Options 121

Stock Options Retention Salary Employee 121

Both Sides of the Table

MAY 2, 2015

It’s such a tricky balance between being cost-focused & scrappy versus being impractical with how you spend your time. What if you are measuring CAC wrongly and you’re really not acquiring customers cost effectively? Stock option top-ups after a few years are vital retention mechanisms.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Gust

JULY 23, 2012

Donations of private company stock may be an effective and tax-efficient method of giving with significant benefits to the donor. These assets often have a relatively low cost basis (e.g. At a simple level, you can deduct up to 30% of your annual adjusted gross income for the value of a stock donation. The Tax Benefit.

Stock 114

Stock Capital Gains Warrant Stock Options 114

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. For example, plan to set aside 10-15% of the total ownership into an ESOP pool, and allocate the options over a 3 to 4-year vesting period. If an employee with an ESOP decides to leave a company, that company has to repurchase their shares.

Vesting 88

Vesting Stock Valuation Stock Options 88