From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers.
It’s a logical solution. After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. Seen in this light, it seems harmless enough to dole out some paper shares or options to get critical services that will take your business to the next level. And giving equity as compensation can help build loyalty among contractors and consultants, as they now have a truly vested interest in your company’s success.
To read the full, original article click on this link: How to Pay for Services Using Equity
