Loading...
Answers
MenuWhich innovative business models are out there to give staff a stake in the outcome of the organization?
I'm a cocoa farmer/chocolate maker, launching a chocolate business soon. I purchase some cocoa from the local farmers too, but would like to increase this number in the future but would like to put a model in place to build my business but also give the farmers a level of ownership instead of building a typical co-operative.
Answers
Hi, giving farmers ownership, such as shares, in your business would only invite confusion as the level of business awareness is likely to vary among all the different parties.
Instead, create a relationship whereby the farmers have a direct benefit tied to their sales to you such that they will always want to sell to you over others and they will want to direct potential customers to you.
Essentially, some kind of volume bonus to the farmers akin to the volume rebate schemes often seen in B2B sales.
If you hit certain goals, they get something extra. It gives them a stake in your business without all the complications of actually making them owners.
Good luck and arrange a call if you'd like to discuss your situation further.
Dave
It sounds like you are talking about an ESOP (Employee Stock Option Program). Some notable companies to offer such incentives include GoDaddy, Nordstrom, Intuit, and Whole Foods Market.
Because the farmers you want to reward are not your employees, it may be tricky to structure an ESOP.
I am interested in knowing more about why you are opposed to a "traditional co-op" or profit sharing.
Hi - I've worked with a chocolatier who provided a stake in the outcome to origin farmers and can share a simple method with you for how this works best (it does not involve an ESOP or giving them shares of your company). I'm happy to jump on a call and walk you through and share some resources that can also help!
Related Questions
-
What companies have successfully implemented both B2B and B2C products or services? Which should I start with for the non-profit sector?
I would suggest the first question to ask is "what problem do I solve?" And of those people I solve problems for "who do I create the most value for?" In the non-profit world you need to add "How does my business help the non-profit run better and/or help the group the non-profit focuses on?" For example, if you've created a platform that drives donations, your company "has created a platform that helps you reach fundraising goals faster." What you don't want to do is market and sell to B2B and B2C audiences simultaneously. They have different ways of buying - a B2B audience needs to have their benefits quantified (using your thing makes me x amount more) - and it's extremely hard for a startup to be able to do both well. Better to start with one, execute really well and move into the other. Feel free to give me a call and we can dig into who your most valuable audience is.AV
-
I have an idea for a start up, but I don't know how to code, whats the next step?
Hello, If you have time, I suggest that you learn coding yourself. That saves you money but takes a great amount of time to do. And if your interested, I'm a coder myself. You can give me a call and we'll discuss the details of your idea.GS
-
Is changing my personal name (or use another name) good for business?
I lived in the US for 28 years before returning to Russia. My name is not easy for Americans to pronounce (anything outside of the Anglo-Saxon standard names seems to fit that category). Short version of Stanislov is Stas, so I went with that for them, but I never would change my name. Take pride in the name you were given and the culture you came from. Your parents gave you that name and you have it for a reason. Just because others don't pronounce it just right is no reason to throw away your culture. Oh and Misha is the short Russian version of Michael, if you americanized it, it would have to be Mike.SK
-
What advice do you give to a 16 year old entrepreneur with a start up idea?
First, hat tip to you for being a young entrepreneur. Keep it up! If you have the funds to build out your MVP, hire a developer and possibly a mentor. If your idea is marketable, you don't need to give up equity by bringing in a co-founder. If this is your entrepreneurial venture, I would recommend you do retain a coach to help you see all the things you may not know. Have you already done your SWOT analysis? Have you identified your target market? What is your marketing plan? What will be your operating expenses? There are lots of questions to ask. If you would a free call, I'd be happy to help you in more detail. Just use this link to schedule your free call... https://clarity.fm/kevinmccarthy/FreeConsult Best regards, Kevin McCarthy Www.kevinmccarthy.comKM
-
If I have a business idea for a large company, how can I give it to them and mutually profit, without them just taking the idea and squashing me?
Probably not the answer you're looking for, but companies have so many unimplemented ideas that the likelihood of partnering to implement someone else's idea is really low. And besides which, the idea is not something that has much value in and of itself. If you're passionate in the idea, build it yourself. That's the only way you can have leverage.TW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.