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Tarun Suthar

CA Inter | CS Execut...ย โ€ขย 10h

Imagine you're 20, just started your first startup. You have no funds. But youโ€™ve got big vision.๐Ÿš€ You canโ€™t pay a fancy salary. So what do you do? ๐Ÿ’ก You offer Equity or ESOPs 2%, 5%, maybe even 10% to early team members, designers, techies, marketers. Because they arenโ€™t just employees theyโ€™re your co-builders. ๐Ÿ“ฆ What is Equity? Itโ€™s skin in the game. It means: โ€œHey, I canโ€™t pay you now, but when we make it, you win too.โ€ It turns a job into ownership. Suddenly, it's not just your startup, itโ€™s our startup, it builds teams motivation. Thatโ€™s why people work nights, weekends, pour their soul into building something meaningful because they own a piece of it. ๐Ÿ’ฐ So Whatโ€™s a Buyback of Shares? Fast-forward 2-3 years. Your startup is doing well. Revenueโ€™s up. Teamโ€™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. Thatโ€™s when you buy back their shares. ๐Ÿ›๏ธ Think of it like this: You gave your friend 5% of your startup when it was worth โ‚น0. Now it's worth โ‚น10 Cr. You offer to buy that 5% back for โ‚น50 lakhs. ๐ŸŽฏ They win. ๐ŸŽฏ You regain more ownership. ๐ŸŽฏ It builds trust in your startup culture. ๐Ÿ” 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 isnโ€™t just about code, decks, or GTM. Itโ€™s about trust, ownership, and long-term thinking. So even if you have โ‚น0 today, you can still make people feel like owners of a โ‚น100 Cr vision tomorrow.

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