Despite the abundance of information on the Internet about the cap table, business owners may fail to get the most out of the Cap Table Software without adopting best practices. If you’re new to cap tables or you’re still struggling to adapt to its interface, here are three business practices that will put you on the right path:
Understand the Basics
Do not skip the tutorials and the important concepts outlined in the cap table. Initially, the interface may seem simple but you will realize that the cap table software has lots of advanced functions allowing you to outline important ownership details in a streamlined manner. Once you have grasped the basics, it’s easier to use advanced features and view the equity ownership structure of the company irrespective of the company’s size.
Use It to Make Decisions
The software is designed to help you solve problems, which means that you should collaborate with other executives to make important decisions based on the information provided by the software. For instance, it can help you and the HR department to decide talent recruitment and retention packages for new hires. You can decide how many shares or equity you should allocate to a new team member based on the information presented in the cap table.
Delegate Ownership of the Cap Table
As your business grows, you can delegate the task to your lawyer or a legal counsel. By transferring responsibilities, it will allow you to concentrate on decision-making while leaving the administrative task to others.
If you require assistance in implementing cap table, contact EquityTrack at https://www.equitytrack.co.