In case you haven’t noticed, there have been a lot of conversations surrounding politics and economics lately.
Especially with an election season where every point of the economy is being debated and a pandemic still impacting the way businesses of every size… well… do business, the conversation about different economic systems seems to come to the forefront.
The question still remains, what system allows businesses to thrive? Is it capitalism? Is it Socialism?
…or is it something different?
In our opinion, the best way for a business to thrive has nothing to do with the system going on around it, but more about the system that is operating within it. That is why businesses, big and small, can soar much higher when they implement a system made to be pleasing to everyone, regardless of what side they fall.
We call it, “ESOP.ism”
What is an ESOP?
ESOP stands for Employee Stock Ownership Plan and is a type of business structure that allows employees to earn stock over the time they work for the company. As the company gains value, your employees share in the success.
The Reasons Why Everyone Can Agree With “ESOPism”
ESOPs are great because they are one of the organizational structures where truly every person involved is a winner.
One of the biggest complaints about capitalism is the 1%. That there is a group of people that seem to control all the wealth while the people who do all the work don’t get anything to show for it. ESOPs solve that problem! With an ESOP, employees take ownership of part of the business so they are able to thrive when the company they work for also thrives. This connection between hard-work and reward makes everyone know they are valued and feel that they are a part of something greater.
And who doesn’t love to be a part of something bigger than themselves!
On the other side of that coin, ESOPs are not just a great socialist idea where everyone is equal, it also embodies the very strengths of what capitalism gives us here in the U.S. and allows you, as a business owner to see successes in your business that you didn’t know were possible! Even better, you can stay in your current position if you wish and stay in control of your company with an ESOP.
ESOPs have been linked to faster business growth.
This means that companies like yours are able to innovate faster, grow bigger, and see their bottom line jump! There are also many tax benefits for ESOP organizations that many business owners like yourself are always looking to help them continue growing.
Now this thought that ESOPism is something that can be liked by everyone isn’t just our opinion, it has also been proven. In fact, recent data has shown that “74% of Democrats, 72% of Republicans, and 67% of Independents voicing a preference for employee ownership.” I don’t think you are going to find anything more agreeable by either side of the aisle anywhere else!
And not only do ESOPs cross party lines, but they also cross generational lines. Many business owners in this country continue to get older and are considering the next steps for their business. Do they sell it off to a third party, pass it down to the next generation, or maybe they do something that benefits everyone… Sell the company to its employees with an ESOP.