The Carrot and The Stick
As your business grows and you add professionals to your team, it will become increasingly important for you to protect your business and valuation. The most effective solution isn’t what most advisors think of first – putting a non-compete agreement in place.
The best solution, that produces the best outcome, is having enforceable employment agreements in place with the right restrictive covenants (the “stick”), plus having an equity sharing plan to ensure your team members are thinking and acting like owners, even if your plan is simply leveraging some form of phantom equity (the “carrot”). We’ll share the “secret sauce” that has worked for hundreds of other advisors, giving you specific recommendations and equity sharing strategies.