Employee Stock Ownership Plan ESOPS

Employee Stock Ownership from The Startup Garage
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Offering an Employee Stock Ownership Plan (ESOP) is a means of raising financing (or saving costs) by offering shares of company stock to employees.  These plans are typically considered a contribution to the employee and are offered for many different reasons.

In terms of financing, benefits of offering an ESOP to employees is that it allows business owners to offer equity in the company in exchange for, in most cases, reduced salary.  Generally full time employees, over 21 years of age, with 1 year or more of service are included in these plans.  In some cases, employees can buy stock directly.

Other than monetary advantages for the business owner, offering ESOPs to employees has the added benefit of promoting employees to take a vested interest in the company and its success.  This can have positive effects on employee motivation and performance.


Whether you have a question about Employee Stock Ownership Plans (ESOPS), or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.