Decision: Equity Model

A major decision branch in the Decision Driven® Enterprise Strategy pattern begins with Equity Model. I have framed this decision as “What is our equity model? Who are the shareholders of our organization? What do they own, contribute and receive?”

The Equity Model branch is particularly relevant to entrepreneurs, spinouts, joint-ventures and startups (or the business incubators who assist them).

Equity Model Decision Pattern - Tree view

Equity Model Decision Pattern – Tree view

The decisions below Equity Model elaborate the startup strategy (incorporation, funding), end-game (shareholder exit strategy) and organization (governance, org design, leadership, relationships).

Many entrepreneurs are technologists who have limited experience with these broader and somewhat “fuzzier” decisions.  This demonstrates the value of a decision pattern; by stating each of these fundamental questions as a “bite-sized” and well-framed decision and providing ~10 criteria to consider, we can dramatically reduce the fuzziness of these decisions and highlight the most important data to gather to accomplish due diligence.

The Equity Model decisions can be applied to non-profit organizations as well.

If you are an entrepreneur (or consult with them), leverage the decision patterns in the Decision Driven® Solutions Framework (DDSF) to guide you through the choices that will make or break your future. Please contact the Decision Driven® Solutions team at trial@decisiondriven.com or solutions@decisiondriven.com to start your free trial of DDSF.

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