Employee-owned companies - any knowledge/experience?

[BrewTech]

A friend of mine is looking to start a new business in the field he is currently in. His goal is to have the business transformed to an employee-owned shop after the initial investment is paid (or as a means to return investor capital). He has a general idea of how EOC's work, but set me on the task of collecting usable, workable info. I've been poking around online, and will continue to do so.

That being said, some of the best info I've received on nearly any subject has been from the GIM1/GSUS crowd... and I mean that sincerely. I'm hoping that some folks here have had some personal experience with employee-owned companies, and wouldn't mind passing on some wisdom.

I'm hoping to join up into this endeavor - if I can generate some info that will get us ahead in this goal, I may not be destined for destitution after all! :D

TIA for the input.

[Book]

ESCA Members Share Their Stories in New StoryLine Project

Over the years of meetings with Members of Congress and Congressional staff, ESCA employee-owners have told many poignant personal stories about how employee-ownership has changed their lives and the lives of their colleagues. At the 2009 ESCA Federal Policy Conference, ESCA launched a program to capture some of these personal stories of employee-ownership.

ESCA (http://www.esca.us/)

:)

[bonaparte]

I'm setting up a company right now, and I don't see why anybody would ever want to give that hard work away to employees. I mean if your risking your own time, capital and livelyhood to set up a company, don't you think you deserve ALL the profits?

[BrewTech]

I'm setting up a company right now, and I don't see why anybody would ever want to give that hard work away to employees. I mean if your risking your own time, capital and livelyhood to set up a company, don't you think you deserve ALL the profits?




Yes, but he isn't you, and doesn't think that way. He's not risking all of his capital, he is risking other's to get started, and then wants to convert to employee ownership, where the risk and responsibility lies with the people actually responsible for generating those profits (or losses).

How motivated is an employee to exceed expectation and work for the success that you want if they see ALL their hard work and effort go right into your pocket? Honest question.

http://www.youtube.com/watch?v=GOJzpeCMJzs

[BrewTech]

ESCA Members Share Their Stories in New StoryLine Project

Over the years of meetings with Members of Congress and Congressional staff, ESCA employee-owners have told many poignant personal stories about how employee-ownership has changed their lives and the lives of their colleagues. At the 2009 ESCA Federal Policy Conference, ESCA launched a program to capture some of these personal stories of employee-ownership.

ESCA (http://www.esca.us/)

:)




Heh... read that, or, part of it anyway. Comes across like propaganda, rather than information. Thanks for the link though, Book, and I'm glad to see you posting again!

[BabushkaLady]

A friend of mine is looking to start a new business in the field he is currently in. His goal is to have the business transformed to an employee-owned shop after the initial investment is paid (or as a means to return investor capital). He has a general idea of how EOC's work, but set me on the task of collecting usable, workable info. I've been poking around online, and will continue to do so.


Your friend has a noble idea, but it could be a longer term project then he thinks. Depending on the industry and the return on investment, it could be many many years. I would keep that idea to myself and start the business as if it is for his own profit. Then when the time came, he could evaluate the situation and sell outright or sell to the employees. Leave the options open.

When I sold a business, I never considered selling it to the employees. They were great, they made the business successful! Interestingly though, as you go through all phases on a long term business, the employees that would have wanted to buy-in were the very ones that couldn't transition to the peak. The remaining managers were good at their jobs, but wouldn't have liked the sacrifices that come with "ownership".

The employee owned company that comes to mind is Avis. They used to wear buttons that said "we try harder". I liked doing business with them. I don't rent cars much anymore, so I don't know their current status in the industry.

Best of luck to your friend.

[Saul Mine]

The biggest problem is that if the employees weren't able to start the company they probably are not competent to keep it going either. So they have to turn it over to a competent manager and then it's the same as if they didn't own it.

[BrewTech]

The biggest problem is that if the employees weren't able to start the company they probably are not competent to keep it going either. So they have to turn it over to a competent manager and then it's the same as if they didn't own it.


Maybe, but that doesn't really explain the multitude of successful companies around the world that are employee-owned... for example:

http://www.newbelgium.com/our-story

Which brings us to ownership

As this tasty amber named Fat Tire grew in popularity, Jeff and Kim knew they’d need help. Enter Brian Callahan, an aspiring brewer and New Belgium’s first employee-owner. By giving Brian a vested interest in the company, Jeff and Kim did, “what seemed like the right thing to do.”

And all the employee owners today thank them for doing what came naturally.

Ownership is now awarded at one year of employment. And just when you think it can’t get any better, they roll in your very own one-year anniversary cruiser bike. It’s pure bliss.

It’s my company


If it were your company, what would you do? Look for ways to be less wasteful, be more efficient, recycle and reuse? Yep. It’s infectious. Once you start thinking of ways to make your company better, you can’t stop.

In 1998, a unanimous vote by employee owners switched New Belgium to wind power. The first wind powered brewery in the United States, thank you very much.

And, like all responsible business owners, it’s important to know your bottomline, barrels, and books. Meet New Belgium’s practice of open-book management: a policy of fiscal transparency throughout the company that encourages a community of trust and mutual responsibility.

It’s something good. All agreed.