I've gone out and read articles on the subject and seen the formulas for placing "value" on time vs money etc etc. I've come up with a plan and I am going to approach my partner with it next week. Thought I'd open it up to the firing squad first :smash:
Business: Software and services as a package for other businesses, the software is easily copyable but worthless without proper execution and is greatly enhanced by the services
Background: Known the guy for 10 years - were roommates in college, we're young (same age) corporate IT employees at different companies both trying to get out and do our own thing, in my initial excitement and planning I told him all of the possibilities of what I had in mind, oops.
Me: I bring the process, direction, experience, execution plan, software requirements, marketing, potential first clients, etc.
Him: He is one of the best software developers I know and could handle future work on the business side
I tried to just hire him for $$ but he wants equity after getting caught up in my excitement. So rather than push the subject without a plan I decided to back up and make sure my ducks were in a row.
Equity Split: 75 me / 25 him
Why: Initially our workload will be about equal as he builds the software and I execute all of the business side, marketing, etc. I've spent the past 2 years (albeit by accident at first) growing my knowledge, practicing my execution, and building contacts around this very service.
My main point with him is while he is very good, I could hire a different developer and own 100% since I bring everything else. I know a few developers.
His main point is after initial development and if growing he wants to move into the business side as an equal and we hire developers if necessary.
Am I missing anything? Should I offer equal annual compensation despite equity split? Should I just bite the bullet get funded and hire a developer?
TIA
Business: Software and services as a package for other businesses, the software is easily copyable but worthless without proper execution and is greatly enhanced by the services
Background: Known the guy for 10 years - were roommates in college, we're young (same age) corporate IT employees at different companies both trying to get out and do our own thing, in my initial excitement and planning I told him all of the possibilities of what I had in mind, oops.
Me: I bring the process, direction, experience, execution plan, software requirements, marketing, potential first clients, etc.
Him: He is one of the best software developers I know and could handle future work on the business side
I tried to just hire him for $$ but he wants equity after getting caught up in my excitement. So rather than push the subject without a plan I decided to back up and make sure my ducks were in a row.
Equity Split: 75 me / 25 him
Why: Initially our workload will be about equal as he builds the software and I execute all of the business side, marketing, etc. I've spent the past 2 years (albeit by accident at first) growing my knowledge, practicing my execution, and building contacts around this very service.
My main point with him is while he is very good, I could hire a different developer and own 100% since I bring everything else. I know a few developers.
His main point is after initial development and if growing he wants to move into the business side as an equal and we hire developers if necessary.
Am I missing anything? Should I offer equal annual compensation despite equity split? Should I just bite the bullet get funded and hire a developer?
TIA
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