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Tarun Suthar

CA Inter | CS Execut... • 21d

Imagine you're 20, just started your first startup. You have no funds. But you’ve got big vision.🚀 You can’t pay a fancy salary. So what do you do? 💡 You offer Equity or ESOPs 2%, 5%, maybe even 10% to early team members, designers, techies, marketers. Because they aren’t just employees they’re your co-builders. 📦 What is Equity? It’s skin in the game. It means: “Hey, I can’t pay you now, but when we make it, you win too.” It turns a job into ownership. Suddenly, it's not just your startup, it’s our startup, it builds teams motivation. That’s why people work nights, weekends, pour their soul into building something meaningful because they own a piece of it. 💰 So What’s a Buyback of Shares? Fast-forward 2-3 years. Your startup is doing well. Revenue’s up. Team’s bigger. Now, some of the early folks want to move on or maybe you just raised funds and want to clean the cap table. That’s when you buy back their shares. 🛍️ Think of it like this: You gave your friend 5% of your startup when it was worth ₹0. Now it's worth ₹10 Cr. You offer to buy that 5% back for ₹50 lakhs. 🎯 They win. 🎯 You regain more ownership. 🎯 It builds trust in your startup culture. 🔁 Why This Matters as a Young Founder You retain talent when you give equity. You reward loyalty through ESOPs. You regain control through buybacks. You build a team that feels like co-founders, not just employees. Building a startup isn’t just about code, decks, or GTM. It’s about trust, ownership, and long-term thinking. So even if you have ₹0 today, you can still make people feel like owners of a ₹100 Cr vision tomorrow.

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