What's the difference between business ownership and business control?

In SMEs, the owner of the business normally operates (controls) the business, so the difference between ownership of the project and business control is small.

However, it is almost impossible for the owner (shareholder) of the company to operate (manage) the company in large companies, companies and listed companies. This is due to a large number of shareholders who often do not have the specific management skills necessary to successfully manage large companies.

Therefore, the business owner (shareholder) will appoint the board of directors to carry out the work for himself. When appointing a board of directors, shareholders manage and manage the operations of the board of directors.

The ownership of the business represented by the shareholders is the owner of the company. If the performance of the company is good, they may make a profit, and if the company's performance is not good, you may lose money.

The management control represented by the Board of Directors is a management entity nominated by shareholders to manage the interests of shareholders. Since these are the company's ultimate decision-making power, we will manage business policy, direction, dividends and appointment of management team

The business owner (shareholder) hands over the management to the board of directors, and the board of directors hires specialized managerial positions for business management and returning profits to shareholders.

Fairness - Value of business ownership. Usually, this is the stock, stock, or ownership of the business. In accounting, capital is treated as the difference between assets and liabilities. However, in the market, your assets are worth only the value that others are willing to pay. In a shark's aquarium, entrepreneurs usually sell shares of the company in exchange for cash and partnerships. If you succeed in selling 20% ​​of your business to Mark Cuban for $ 200,000, your company's total share capital value is $ 1 million. If your sales grow and you are growing fast, your company's capital is likely to be more valuable.

Ownership and control are often controversies that appear before the employer's eyes. There is no correct answer, but it is important to understand the two aspects of the conversation. If the retirement plan of the company is clear and appealing it is still very powerful to give ownership without control. However, if teams are driven by various interests, sharing management can realize true initiatives and goals. The feeling of shaping the future is part of them. What happened in Silicon Valley is quite different from that in Britain. It is a different market with different constraints. However, there are some ideas to form places where British business owners want to imitate. But when they ask professionals about the use of these proposals, it is usually "Oh, it is different in America". One key to these ideas is the vesting period.

I am currently talking with a SaaS employer working on her team's EMI sharing plan. Sharing ownership is very important to her. By bringing true ownership and business owned by employees to dominate over competitors in the same industry, you can gain great business benefits. She wants to develop a term for a stock plan consistent with her beliefs. This is not my first time that I used this kind of conversation. In this case I would like to capture and share it in preparation for other business owners to make similar decisions. There are four important areas and the expert advice she received is inconsistent with her values.