I’ve never had an equity partner, and honestly I’ve considered, but never seriously considered it.
In our industry (cleaning), profitability changes significantly once you reach a certain scale. As we’ve grown, we’ve been able to promote from within, develop leaders, and fill management roles with people who already understand our culture. Those promotions are meaningful for our team while still making financial sense for the business.
Because of that, I’d rather invest in building leaders than giving up equity. Ownership is forever. Great employees can be rewarded with promotions, bonuses, profit sharing, or other incentives without permanently giving away part of the company.
I think equity makes sense when someone brings something you simply can’t build yourself or when you’re entering a completely different phase of business. Otherwise, I’d focus on building the right team and systems first.
