We recently discussed EBO Group in Using Innovation and Employee Ownership to Achieve Continuous Success, Diversify Lines of Business, Retain Employees, and Address Succession Planning Objectives. "Why would you want to turn your employee-owners into venture capitalists?" is from this year's Ohio Employee Ownership Center's (OEOC) annual conference and tells the story of EBO Group from the Chairman's perspective:
So why would you want to turn your employee-owners into venture capitalists?
Faster growth—if you're not happy with the growth that you have, maybe you should be looking at doing something like this.
Greater profits—we have definitely seen greater profits focusing on growth markets and doing some reinvention.
Job creation.
Excitement—there is definitely a lot of excitement when you start something new within your organization.
Diversification—if you are stuck on one market and riding the cycle of that market, diversifying can definitely help. It can especially help out in the shop where peoples' jobs are dependent on a steady flow of work. By stretching, by diversifying, you can switch the shop employment from one side of the business to the other side, and we have seen a real benefit in doing that.
But the number one reason, the thing we all love, is to watch our stock grow, and it is a great way to grow your stock value.
These are all good reasons for thinking about starting a new venture within your ESOP.
It also discusses the natural advantages ESOP companies have over other companies, where you can find ideas for new ventures, and funding.
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