Is this a red flag?

[StartupsRFun]

Ive had my fair share of red flags pop up through out my start-up days in which I should have looked into more, but Im always amazed at how I still seem to miss obvious ones that I should have addressed.

Let me know if this sounds like a red flag. So the guy I have been working with also has a consulting firm. Well the consulting firm just landed a big contract and he is now taking a lot of time doing that, which he has been upfront with me about. Well yesterday I put together a presentation for the project we are working on, and he went back and changed it to all about his consulting firm, which he has now broadened into a full IT company. The project we are working on has basically just become a feature that he added to his IT company, but he is using things that myself and others who started this project created for his "other" company. I asked him why this was and he said it would help sell the product we are creating by bundling with his company, but he just seems to be using our resources to expand his other company.

How would you handle this situation?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

Is this a red flag?

Yes.

How would you handle this situation?

Dump him. His priorities is his consulting business-- not your project. If you can't, you need to get a written understanding between him, you, and his consulting gig, and get it done pronto.

I'm curious as to what understanding you had prior to engaging this guy in a partnership. If my partner isn't 100% vested, I don't want him. Or is this something other than a partnership?

 

[AmyQ]

This sounds like an operational problem. I am assuming that you sent this to the consultant for input, and he presumed to make changes without your consent.

In our organization, the PM of a project gets to decide the direction unless the CEO intervenes. How is the chain of command/operations handled in your organization?

If it were me, I would thank him for his input, present the project in the way that I thought was best for my company, and explain that to him in cordial terms. I would also create a plan for how projects are managed in the future to avoid this sort of confusion. I don't intend to sound holier than now. Even in an organization where everyone is working towards the same goals, we all have different visions. Sometimes this means I have to shut my mouth and follow the direction of others. Sometimes it means that they have to suck it up and follow my vision. Having a clear operational plan makes it clear who gets to lead and who has to follow.

 

[DeletedUser2]

Run

Bad Deals Dont Get Better With Time.


your headed in a bad direction. EVERY day you waste with him, you will regret later. Don't stack up to many days of regret on this one.

Z

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[ricktx]

Run

Bad Deals Dont Get Better With Time.

Agreed! It is not a golden rule, but it should be... it goes along with "bad deals only get worse".

 

[exige]

Do you have a contract? Do you have equity in his consulting firm?

 

[StartupsRFun]

Thanks everyone for the helpful advice. I have no equity or contract, right now we are in the "dating" stage of the start-up and were beginning the process of putting together an LLC. I talked with him today and bluntly said, either you bring me on as a member of your existing LLC (his IT company) or Im walking. It was a good conversation to have and we are going to go over it with everyone tomorrow. Good lesson you guys showed me was just to be honest and upfront.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[exige]

Do you really want to be brought on as a member of HIS company? And take on potential liability with someone who would repurpose what you built? I'd slow down and think it through.

 

[liquidglass]

Get a non-compete and non-disclosure signed by him and break ties. Just my two cents.

 

[StartupsRFun]

Broke ties and moved on, feels much better

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

Broke ties and moved on

Was it amicable? Or did he piss a fit?

 

[johnp]

yes. Red flag.

I'm dumping my partner tomorrow after spending two years trying work with him. YOU SHOULD take the first step and do something to protect yourself tomorrow. Whether that's setting up a contract or flat out removing him from the company.

Don't sit on your a$$ after posting on this forum about this potential red flag. Do something.

Good luck

 

[johnp]

Broke ties and moved on, feels much better

Oh I see that you did that. Goodjob :eusa_clap:

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[StartupsRFun]

Was it amicable? Or did he piss a fit?

The guy has a real ego so he thinks he can do it on his own. He gave this act like hes going to do big things, so I just let me talk and hung up. Was a learning lesson and I took a lot away from it. The only bummer is feeling like you are back at square one, but Im just glad this happened now and not 6 months down the road.

 

[StartupsRFun]

I'm dumping my partner tomorrow after spending two years trying work with him

How did he take it?

 

[QuickLanceFirms]

Congratulations on cutting ties with him.

Beware and prepared against other predators from the past, the present, and the future.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.