EP 104: When is the Right Time To Give Equity in Your Business?

In this episode of Properties to Profits, I dive deep into one of the most common and complicated questions I get asked: When is the right time to give up equity in your business? Whether you’re a young entrepreneur eager for ownership or a seasoned player who believes they’ve earned a stake, the decision to share equity isn’t one I take lightly—and neither should you.

 

I break down the types of individuals who typically request equity, what makes a person truly deserving, and the criteria I personally use to decide when it’s worth the trade. From young go-getters with time but little experience to veteran salespeople with a track record of performance, I share real talk on what it really takes to earn a piece of the pie—and how giving equity can either catapult or complicate your business.

 

Timeline Summary

[0:00] - What inspired this episode: tough questions about giving up equity

[1:16] - Why the wealthiest people often don’t own the majority of their businesses

[2:15] - Challenges with giving equity to inexperienced but ambitious young professionals

[3:25] - What it takes to truly earn equity: proving value before receiving it

[5:38] - Advice to young people looking to earn ownership through hard work and sacrifice

[7:17] - Evaluating partners with experience: the $2M operator vs. $50M visionary

[8:35] - When past sales success just isn’t enough without sustained elite performance

[10:05] - Real stories: Who I’ve actually given equity to—and why it worked

[12:08] - The difference A-players make, and why most people won’t qualify (and that’s okay)

 

3 Key Takeaways

1. Equity must be earned, not expected – Whether through financial investment, long-term commitment, or exceptional performance, equity should go to those who prove they can move the needle.

2. Experience alone isn’t enough – Past results must be significant, recent, and relevant to your business’s goals to justify an ownership stake.

3. Start small, grow with impact – Offering tiered or gradual equity can help mitigate risk while motivating team members to grow the business over time.

 

Links & Resources

• Connect on Instagram: @realestatemike02

 

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