How do I offer stock options for the employees in my (small) consulting business?

Question

I have been amazed by the way venture capital firms attract 'more than neccessary' dedication of their employees by offering them stock options. I am interested to know what kind of terms and conditions generally form part of such an offer?

I own a small HRD consulting business. How can I offer a similar incentive to my employees?

Answer 1

Unless you have stock, you can't really offer stock options. What you can do is form a profit sharing corporation which gives each employee certain ownership of the company, so when he company makes a profit, they get a certain portion.