Tl;DR: How much equity is fair to ask for if you do minimal work, and had the idea + brief business plan that led to the business being created, and also outlined future directions with the company. This isn't like a retail store, it's an online service business.Hey all, hope you are well, first post on this sub, so I'm excited to get your take on this.So I'm a creative individual who comes up with unique solutions that are not normal (i.e., creativity is a greater strength than execution [although I bring a lot of hustle])Long story short, after starting various things (e-commerce, affiliate marketing, start-ups, etc.,) I finally landed on something good, at a good time for it, and have the skills to do it well on my own.Talked with a friend/mentor about it (a couple years older) and they were always willing to help with the idea. Anyways, one thing leads to another and they wanted to partner in on the company. After analyzing my schedule I realize that I can't commit to the business due to other obligations at this time in my life, but it was something that I was hoping to pick up in future years after these obligations pass. I let my potential partner know about this, and apologize for the inconvenience.They messaged me after asking if I would be angry if they took the idea and ran with it (I did a brief analysis of competition, costs, work that would go in, future direction with different layers that could be added into it, and handed this to them when we were discussing this business as potential partners before evaluating my ability to handle it with schedule?). Initially I was a bit disappointed because yes execution is what leads the business to get to success but a good idea + business plan increases the odds of that tremendously. Told them that I would be a bit angered if they just ripped off the idea and ran with it (especially due to the dynamic we have as unofficial mentor/mentee).They now want to start with it and ask for what I want so we don't get off on bad terms. What is a fair equity proposal I should suggest working only a couple of hours a week (haven't discussed specifics). They don't have much time either, but they have connections and more of an understanding on the business side for how to get shit run (he's connected with some big names, won't disclose though).There's talks on bringing on a third partner who would take on the majority of the labour work or just keeping it between us and outsourcing the additional work needed to be done.Also another thing they mentioned was that it's not the same idea, but it is [slight pivot, but the main idea is the same thing, so is the expansion] not sure if this was said now to remove leverage of me mentioning that my idea has value, should I bring this up, or just leave it as is?What are your thoughts on this? see hubwealthy.com/wealthy
0 comments:
Post a Comment