My Library and Courses
Last Update: Thursday September 23, 2021

Employee-Stock Ownership Changes All the Dynamics

Employees Participate on the Bottomline

SAN DIEGO: Ray Smilor is an expert on Employee Stock Ownership Plans. In this special episode, he is joined by entrepreneurs where we will learn the benefits of using an ESOP to grow your business and even to exit it.

To understand ownership, we have to understand something about the value of what is owned. It is a lot more than your current ratio (current assets divided by the current liabilities). Business valuation involves multiples, which are unique in every industry, and intangibles, that is your goodwill and so much more. There are several episodes of the show that focus on BUSINESS VALUATION.   More...

Once you start that process, you'll discover a range of value for the equity in the business. So, if you need some liquidity or you want to move to STEP 8 and make your business sustainable, you do have choices. If you find the people in this episode compelling and you have employees, you might begin thinking the equity contribution that each employee is making.

We meet Rick Valencia, founder of ProfitLine, recognized as one of the best places in San Diego in which to work. You might ask yourself, "How did he get employees to think about the profit line of his business?" The simple answer is, "He vested them." And he does it within 90 days of their start date! Sharing equity for Rick is a means to have them care about the business.
Once a person is actively participating in the bottom line or the profit line of the business, once they are vested, don't you think they'd act differently? Care more? Ray Smilor says that typical productivity increases 4-5% per year.

What would that do to your profit line?  

Go to all the video clips from this episode...

An entrepreneur always has these four options in life:

(Note: There are over 300 episodes -- over 2000 video clips -- about starting, running and growing a business within this website.)

SCHELL.JPG Start a Business

Do you have an idea for a business? 
Meet Jim Schell, our resident entrepreneur.
He has sold several businesses that he started, plus he has coached hundreds to start and grow their business.  In another episode of the show he discusses Staying Power.

Key Question: How do I get started in business?

Sohrab Vossoughi, founder, Ziba Design, Porltand, Oregon

Grow a Business

Meet Sohrab Vossoughi, founder, Ziba Design
Portland, Oregon: One of the most successful industrial design firms in the world, everyone here constantly strives for a higher perfection.  Their hearts, minds and pocketbooks are vested in this business.  (All the video)

Key Question: How can I grow this business faster?


Buy a Business
Meet Ebby Halliday, an American icon in DallasShe grew up with nothing.  Today her business does over $6B in transactions. To grow she bought many businesses along the way.  It is a growth strategy.

Key Question: How do I buy a business?

Sell a Business
Meet Bob Orenstein better known as BobO.
He was flirting with burn out. He decided to sell his business so he engaged professionals to help.  His company was sold to a publicly-traded company for maximum return on his many years of investment.  You can do it, too.  And, once you do, you can reinvent yourself! (All the video)

Key Question: How do I find buyers for my business?

Prior homepage...