So you have a business idea and you know that this is something which can really run in the market. You are sure that your business idea has some potential in it but the issue is this that you do not have enough funds to hire employees and to pay them. This thing is troubling you a lot because your business idea needs few people to work for it because it is not a one man’s job and it needs few people to put efforts in the business idea of yours. There is only one thing which can help you in this scenario and that is vesting.
What Is Vesting
Now you must be thinking that what vesting actually is? The vesting is a process where a company gives a percent of share to the employees if they work for that company without any pay or they are promised to be given a percent of share in the company if they do a good amount of overtime and do not ask for the payment. This percent of share in the company is given to the employees after a period of time and that period of time is decided by the owners of the company itself.
Why Companies Has To Do Vesting
This might be a question which your mind will ask that why companies need to do vesting and the answer to your question is that most people who are starting up their business and do not have enough funds for their startup. They ask people to be part of their company and they will share the percent of share in their business with the employees after a promised time period.
The whole process of vesting is given the term vested subscription model where one can get the idea that how a vesting policy of a company works and what are the terms and conditions of it.