The concept of start-up business has gained an increased attention since the development of technology. Business and technologies go hand in hand, but while in the process to start a startup business, an entrepreneur must be equipped with all the necessary factors and elements of the business, that will result in sustaining the business in market for a longer period of time. Factors of business revolve around several technical and legal elements. To have a clear understanding of these factors, an entrepreneur must always take an expert by his/her side in order to effectively develop a strategy that will increase the business potential in the market. While we talk about experts, IBS Singapore makes the best choice for entrepreneurs to walk to, wherein business is provided with wide range of services like Incorporation services in Singapore, Compliance advisory services in Singapore and several other services related to financial reporting in Singapore and information security management services in Singapore. Start-ups also have to consider certain important areas of business, one of which ESOP is elaborated as below.

ESOPs – This became the catchphrase when IT companies like Infosys turned employees into millionaires overnight post IPO and a with a series of annual ESOP offerings. An acronym for Employee Stock Option scheme, ESOPs refer to plans that give employees the right to purchase a certain number of company’s shares in lieu of salary.

The startup ecosystem has witnessed various companies like Flipkart, Skype, Facebook, and Amazon offering ESOPs to its employees and has seen an increasing number of Indian startups following suit.

In this edition, we will look at the ESOPs and discuss the pros and cons of the gamble for a Startup.

ESOP trend in Start ups

2016 saw some successful startup acquisitions where the employees made huge gains and become crorepatis with ESOPs – most notable being the buyout of Citrus Pay by online service provider PayU. The $130 million acquisition made 15 employees crorepatis, that included even an office boy who took home Rs.50 lakhs. The Citrus Pay crorepatis encashed their ESOPs and hit the jackpot. The second half of 2016 especially saw an increase in the mergers & acquisitions of startups.

The startup ecosystem is currently marked by mergers & acquisitions and buyouts. The trend is likely to continue as funding gets increasingly difficult. Startups have two ways to encash their ESOPs – through listing or when it is bought. The latter is a more realistic option, since listing looks a bleak possibility for any Indian start up. ESOPs are more of a lottery and as startups move towards consolidation, the chances of winning this lottery brighten considerably.

ESOPs were made popular by IT legends couple of decades ago but the trend got revived by the startups with a vengeance. The ESOP case helps founders to attract talent, instill a feeling of ownership in their employees and also ease the monthly cash flow in the name of compensation in the initial bootstrap days.

The Flip side…

For every great story of exit of ESOP holders, there are a dozen others where companies have folded. In US too, there have been cases when a lot of paper millionaires ended up with nothing in their wallet when their stock options turned out to be worthless. Many a times, ESOPs don’t materialize. Startup employees will have to assess and understand the risks while opting for ESOPs. While it is ok to take risks, it is necessary for an employee to ensure that he/she is not trading one’s basic necessities for ESOPs.

Part of the problem lies in the misleading or unclear communication about potential value by the prospective employer who wants to pitch it as pot of gold. Unless the investor or public actually pays for the value that the startup is commanding, all gains are notional.

Also, employees have inadequate understanding of the risks with ESOPs, payouts, and other issues like exercise price and fair value. Misleading information of this nature tends to give ESOPs a bad name, but one can’t really blame the vehicle for these ambiguities.

How Startups can use ESOPs?

For a Startup, ESOPs are a useful tool to not just attract but also retain high talent individuals who can participate in its journey. We are currently witnessing new shifts in the Indian job market, where enterprising individuals are opting to work for a passionate idea and are ready to take salary cuts in lieu of high rewards later. The onus is therefore on the founders to be able to communicate their vision and retain the right candidates through appropriate ESOPs. Besides enlisting employees as stakeholders, Startups can also aim for better working capital management in the initial years.

The ESOP agreement should clearly lay down all the governing terms & conditions. Startups may either create trusts or create an ESOP pool to manage the functioning. All the details of an employee’s grant should be correctly captured, right from the vesting period to even shut down – to avoid any discrepancies. While the ESOPs should take care of employee rights, Startups should safeguard their objectives and accordingly devise appropriate vesting periods and other terms for its employees. ESOPs provide a great opportunity to create wealth and the excitement and scope that it offers in a startup makes it worth the effort.

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In your every real estate venture, Phil Devin Real Estate promises to stay beside you and help you in each process involved. You can trust Phil Devin because he is a professional that has a good background on real estate industry. His service is often trusted by people in need of real estate assistance and his previous clients proved his good standing with their positive reviews and feedbacks.

It’s no wonder a lot of individuals continue to support and trust Phil Devin Consultants, showing its unfading strong reputation. Phil is equipped with skills necessary to deliver a responsive, comprehensive and personalized service.

Phil conducts property management very well to ensure that his clients won’t feel any disappointment in their endeavor. His effectiveness in doing his work attracts a lot of clients, thus it’s not surprising that he is chosen by some individuals to handle their real estate concern than other agents.

Your every thought and decision is crucial for Phil Devin so he puts them into careful consideration. He then prepares a thorough solution to give more foundation to your decision. Your plan to buy or sell a real estate won’t also be a problem to Phil because of his detailed and professional management.

If you’re currently having a hard time making a decision, Phil will help you come up with the decision you won’t even regret by giving you all the necessary information since his target is your satisfaction for a long period of time.

When he said that there are things that can be done, expect him to work on those after. He puts all effort to his work to not dissatisfy his clients. Honesty is also one of the building principles of Phil Devin Real Estate, thus there won’t be any kind of information hidden from you.

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About Us

Speak to anyone who has experienced the PROCESS of buying or selling Real Estate and often their findings are a combination of stress, disappointment and ultimately compromise! One of my many goals is to ensure your next move is a positive one.

I started Phil Devin Real Estate with one simple mission: "To deliver RESULTS that exceed our clients EXPECTATIONS".

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Ultimately when you buy or sell with me, it comes down to your decision, what's right for you. My goal is to make sure you have enough information to make a decision you can be happy with down the track. When you choose me to help you buy or sell your home you can count on responsive, quality, comprehensive and personalized service.

"Disappointment is the difference between what a client EXPECTS and what the Agent DELIVERS"

I know that my clients are craving to deal with a 'professional' who can 'listen' to their individual wants and needs and provide solutions for them!

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Crookedproviders, lien setup bleed comp system

If you need more proof the workers-comp system in California is a mess, look no furtherthan the report this week that indicted and convicted medical providers filedmore than $600 million in liens against workers-comp claims.

The lien system in the state continues to be fertile groundfor fraud. Designed as a safety net to ensure injured workers get treated, it’snow a slush fund for crooked medical providers and lawyers.

Fraud and abuse are rife in Southern California, wheremedical rings are targeting just-retired workers, says one insurance exec whowrote us this week. Runners hang out at Social Security offices and othervenues frequented by retirees. They entice the retirees to file claims byoffering free medical care and a windfall to supplement retirement income. Theretirees are brought to lawyers’ offices, signed up and then shuttled off to medical offices for“treatment.”

The number of worker “injuries” occurring on the last day ofthe job is rising, this exec says.

Legislation to help weed some of these abusive providers outof the system is cruising through the California legislature. The bill wouldban providers who’ve been kicked out of Medicare and Medicaid for over-billing.The bill sponsor says there’s evidence that crooked docs banned from governmenthealth plans have turned to workers comp to ply their trade.

The sponsor also says his legislation will target lawyers whosign up comp clients, but never actually interview them, then file claims forthem in distant cities and ultimately settle the cases for their fees — oftenwithout the workers’ knowledge.

The legislation is a good idea, but much more needs to bedone. Workers compensation in California is a huge, complex multi-facetedprogram. There are no easy answers on how insurers, employers, policymakers andothers can hit that sweet spot of minimizing fraud while making sure injuredworkers get the treatment they deserve. But finding a better way than the liensystem might be a good start.

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There’san apocryphal story that has been bandied about for years, about an interviewwhere the interviewer asked a candidate: “Do something to surprise me”. Theinterviewee got out his lighter and set fire to the interviewer’s newspaper.It’s not an action we would advise emulating, but very definitely comes underthe heading of utterly incomprehensible interview questions.

Why do these questionsget asked?

"Whydo these questions get asked" is a tricky question to answer, but as itappears to have started in Silicon Valley during the tech boom its roots arelikely to be found in the free-thinking, mould-breaking philosophy that many ofthe tech pioneers applied to their businesses. Ultimately for some interviewerit’s about unearthing someone who offers more than just “can you do the job”.Wall Street soon followed suit and the practice has become more commonplace.The question for most of us is not why are they asked but how do I answer them?

Firstand foremost you should remember there isn’t a right answer, depending on thenature of the question, which these questions are about your thought processes,your coolness under pressure, your personality and your approach to problemsolving. What you don’t do is say, “I don’t know”, or “that’s a good question”and stare off into space. Let’s take the question: “How many cricket bats arethere in the world?” You could either pluck an answer out of thin air: “Threemillion?”, or go about figuring out how to work it out. “Well, if thepopulation of the sporting public in the UK is X, and a tenth of them playcricket, then that’s XX for the UK, plus another X for the cricketingpopulation in India…” etc. This is the sort of approach the employer would belooking for.

Five types of questionsyou might encounter

1.Lots of these questions fall along the lines of if you were a colour/ananimal/a garden gnome/a car/a food/a computer application (yes, really) whatone would you be and why? Try to think of the qualities of the object and howthey might relate to your skills or character.

2.What are all the different uses you can think of for a lemon? Apparently askedduring an interview for an airline pilot, this type of question is designed tofind out how much of a creative thinker you are.

3.Who would you invite to a dinner party/what superhero/movie character would yoube/who is your role model? In other words, what character traits do you mostadmire in other people and why? Think about what specific things they haveachieved and what it is about those achievements that you admire so much.

4.How many people will be on Facebook in New York on a Friday afternoon? Thereare a raft of questions that are much more technical in nature and much morealigned to the role you are seeking. This question was aimed at a marketingexecutive, and was probing how well they understand the use of social mediaaround the world.

5.Tell me a story. This is a firm favourite, and represents a golden opportunityfor you to tell a work-related anecdote that is also relevant to the role inquestion and also illustrates how you see other people and the world aroundyou.

Preparation,preparation, preparation

Thisis the key to a good interview. However, thesequestions are not something that you can easily prepare for. If your job is atechnical one, brush up on your technical knowledge. If it’s a creative role,keep a clear head and try to analyse how you would approach some of these typesof questions. Above all, expect the unexpected!

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Important softwareefficiency criterion

Below is a list of the top 20 essential criterion forreliability, efficiency and ease of use for business software.If you are about to select new business software such as Accounting, BI, CRM,Payroll o

System reliability - good software should:

1. Be totallyreliable and consistently perform the required software functions

2. Provideinternal system controls to ensure accuracy, integrity and completeness eg datainput and accuracy checks, validation, authorization

3. Maintain fullrecords eg to:

· trace any transaction item

· provide a full audit trail

· provide a full record of all balances andtransactions

4. Support manualcontrol procedures eg control reports

5. Provide systemsecurity via multiple, configurable passwords / levels of security

6. Provide backupand restore facilities for programs and data

7. Support yourorganization, by running over your (chosen) network, database and hardwareplatform(s)

Operationalefficiency - good software should:

8. Provideconfigurable automation of system and businessworkflow processes

9. Require data tobe entered only once, with no re-keying

10. Have configurable parameter / table facilities

11. Provide easily configurable data import programs

12. Operate quickly and efficiently, with acceptablesystem performance

13. Enable real time and / or batch processing

14. Support the number of concurrent system users yourequire, at peak processing / enquiry times, with no degradation of systemperformance

15. Support your chosen operational set up eg whetherusing SaaS, running a Shared Service Centre, single or multiple sites

16. Have a vendor warranty as to the softwarespecification and performance

17. Run on industry standard hardware

18. Run with hardware independent operating system

Ease of use - goodsoftware should be:

19. Easy to learn, with:

· standard system commands

· colour coding

· on-screen help facilities

· clearly written user / system documentation

20. Easy to use, with:

· full access to all system functions, subject toindividual user security profile(s)

· straight forward system navigation

· short cut keys, pull down menus, scrollbackwards and forwards

· tailorable menus, screens, reports

· multi-tasking ie multiple applications / windowsopen at a time

· on-screen prompts and messages that are clearand helpful eg requesting input, identifying input validation errors orprocessing errors

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