So, if you are smart, you will achieve great success.
In the process of starting a business, factors such as business model, products, execution and equity design are essential. The influence of equity design of entrepreneurial team should not be underestimated. Good equity design can help entrepreneurial teams go further.
As far as share control is concerned, the entrepreneurial team needs a leader, that is, the core controller, who generally controls the company mainly through the shareholders' meeting.
In the above picture, there are two designs: control right and dividend right. Companies cooperate with people of different types of resources, and the distribution principle of control rights and dividend rights needs entrepreneurs to master. Start-ups, especially when there are not many people, must pay attention to grasping the control right and keeping the equity not dispersed. Non-dispersion of equity is also more conducive to later financing. According to the provisions of the Company Law on limited liability companies, "the shareholders shall exercise their voting rights at the shareholders' meeting in proportion to their capital contribution, unless otherwise stipulated in the articles of association". In other words, a limited liability company can have different rights to the same share. Simply put, it is necessary for the major shareholder to control the shares, but he can distribute more profits to other partners. According to the above figure, the major shareholder can have 75% control right, but the dividend right can be less to balance other personnel.
In the daily operation and management of the company, there needs to be a soul figure. This leader needs to have strong appeal and decision-making power, that is, a leader who is psychologically accepted by all partners.
In addition to internal founders, a company's stakeholders also involve five categories: internal employees, external investors, external consumers, industry competitors and external service providers. Therefore, in addition to considering the interests of internal stakeholders, we should also consider the interests of external stakeholders and strive to achieve dynamic balance.
The inflection point of the equity design of start-up companies lies in various agreements, such as financing agreement, concerted action agreement, employee incentive agreement, articles of association, investment agreement and so on. As shown in the figure below, some specific terms in several agreements.
1, corporate architectural design.
Based on the company's business model, how should the company's hierarchical structure be established, which is more conducive to enterprise expansion? Is it to establish headquarters and branches? Or set up a subsidiary? Or are molecular companies coexisting? Or set up a limited partnership? Based on different human nature, different values, different purposes and different situations, how should entrepreneurs or expanding enterprises choose organizations? Let's give the following example.
The above picture not only shows the types of companies, but also designs them from the perspective of organizational management, including headquarters, branches, subsidiaries and limited partnerships in the future. When we design the company structure, we should not only consider it from the legal point of view, but also design it from the management, finance and the whole. Teacher Chang reminds everyone that management should not only consider risks, but also pay attention to flexibility Without flexibility, management will die. How can we make a profit?
2. The design of the company's equity structure.
It can be explained by two-person ownership structure, three-person ownership structure and multi-person ownership structure, in which multi-person ownership structure is based on talents, resources, performance orientation, crowdfunding and molecular companies. As shown in the figure below:
3. Equity proportion design. On the basis of corporate governance, we are based on three levels: the shareholders' meeting, the board of directors and the manager's meeting, and each level has tools to gain control.
4. Equity withdrawal. According to different types of people, the withdrawal clause is designed. As shown below.
5. Company valuation and financing. Company valuation method and financial treatment of financing.
About the author: Chang Beiqing (Beijing) Management Consulting Co., Ltd., a graduate of Peking University, has strong theoretical and practical experience in equity design, corporate culture and human resources system. In the daily management of enterprises, rigor and flexibility are equally important. With regard to equity design, I think it is necessary to learn the basic knowledge of management such as strategy, marketing, human resources, finance and so on before studying law. We should not only pay attention to shareholder control, but also pay attention to employee motivation itself.