Question
I'm hiring two new Vice Presidents, and I'd like to offer them some stock, but I'm really not sure how much to offer. The company is already profitable, and it looks like it's going to be around for quite some time. Revenue growth is strong.
We're bootstrapping and following a model similar to Balsamiq. Honestly, I don't see us ever accepting investors or even going over 10 employees. Right now, I'm paying a bit below market rate salaries, but should be able to rectify that within the next 6-12 months if revenue growth stays strong.
Answer
Good question and congratulations on your achievements with bootstrapping. I've been advocating for bootstrapping and/or MVF (Min. Viable Funding) for quite a while now. More here: RMentrepreneur.fyi.to/Bootstrap . As for your question, I'd offer them as little as possible, but enough to get them to join you. The entrepreneurial battle is not without its surprises, thus you want to keep your arsenal of weaponry as resourceful as possible. How to find the perfect number? I've hired hundreds of employees in my businesses and made a handful millionaires. Tony Reis' testimonial is on my profile. You can find more here: RMentrepreneur.fyi.to/LinkedIn Happy to take your call (reduced rates during the festive season btw).
