Salary vs. Equity

[Nate-NewVenture]

Looking back, I posted a question to the wrong group. Oops! Can I love the entire thread? Anyways....

Here's my dilemma. I have no capital. I have the promise of equity and stock options.

Question: do I start looking for investors so I can afford salaries or can I promise equity (no more than 5% per with a no greater loss of 20% between all)?

 

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[ilrein]

Nate, how could I, as a regular lad with absolutely no information about your business, be able to offer you good advice?

Do you NEED employees/partners to advance? What exactly would they bring to the table? If you ABSOLUTELY need them, why did you pick a business where you knew you would have no money to pay people you would HAVE to have to succeed?

"If you want my advice, Peter, you've made a mistake already. By asking me. By asking anyone. Never ask people. Not about your work. Don't you know what you want? How can you stand it, not to know?"

 

[Nate-NewVenture]

Nate, how could I, as a regular lad with absolutely no information about your business, be able to offer you good advice?

Do you NEED employees/partners to advance? What exactly would they bring to the table? If you ABSOLUTELY need them, why did you pick a business where you knew you would have no money to pay people you would HAVE to have to succeed?

Those are great questions. To answer the first, my objective was opinion. You are right that without specifics, specific answers are impossible. But with general questions, are general answers not possible? You did give me a general question as a response.

To answer your question, I can learn to code. I want to learn to code. Those things are mutually exclusive. I know people who code well so I guess the real question is should be: invest in self-knowledge or not re-invent the wheel? The benefits for self-knowledge would be long term gain and self-sufficiency. The downside is time. The benefits to finding someone is time but the downside is long term financial loss.

Thoughts?

 

[The-J]

Outsource it.

 

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[Nate-NewVenture]

Outsource it.

Thanks for the opinion. I'm leaning that way too. The original question still stands.

Salary: short term gain, little risk.
Equity: long term loss, no risk.

That's my train of thought.

Anyone else care to add their 2 cents?

 

[Gale4rc]

http://thisweekinstartups.com/do-you-need-a-cofounder/

It's going to take you a long time to learn how to code from what it looks like nothing... And then build a product people love that actually works without breaking? See ya in a year... Then you'll probably fail unless you get lucky.

If you legitamently like coding, learn it. It's a very valuable skill to have. Either way whatever you bring to the table, you should be trying to be the best at.

 

[Nate-NewVenture]

http://thisweekinstartups.com/do-you-need-a-cofounder/

It's going to take you a long time to learn how to code from what it looks like nothing... And then build a product people love that actually works without breaking? See ya in a year... Then you'll probably fail unless you get lucky.

If you legitamently like coding, learn it. It's a very valuable skill to have. Either way whatever you bring to the table, you should be trying to be the best at.

A bit of sarcasm in there but I get your point.

I want to the best at business, not coding. I would love to learn it when I retire in 3 years though!

-Edit

Thanks for the link. Great info!

 

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