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knighthacker | 11 years ago
You said that you are doing well financially and aren't starting these projects because of money. Then who cares if you "only" get 50% of the company? Your goal and intention is to solve a big problem. Get focused on that. The world is gonna pay you back in so many other ways than your 50%.
The other piece of advice is try to be really picky with your co-founders. Find ones that you trust and have worked with before or can get amazing references about. That way you know that he'd do his job the best way possible regardless of how many hours he puts in.
I hope this helps.
rsp1984|11 years ago
>Having a co-founder is very important and necessary to achieve this goal because your business will run into a number of roadblocks that you need a partner to help you go through it.
The most likely issue and road block for an early stage startup, especially one where founders are already doing well financially, is actually co-founder trouble.
> However, whether or not your co-founder works as hard as you is really irrelevant.
I cringe when I hear advice like this. I have been there. It has been one of the most demoralizing and depressing experiences of my entire life. Working your ass off for something while seeing your co-founder not really giving a shit simply doesn't work unless you intend to make a complete idiot out of yourself. Startups aren't socialist communities. Anyone who signs up should be aware of that.
> Then who cares if you "only" get 50% of the company?
Well then why not give up all of the company and give all of the shares to your co-founder slacking off? Company stake isn't only about the money. It is equally about control and about capital. Imagine having 50% for the "main" founder, 20% for the co-founder and 30% owned by angels / VCs who actually put assets into the company. Sounds like a better deal to me...
> The world is gonna pay you back in so many other ways than your 50%.
I am not sure how to express utmost disagreement with this. In the case of success you will get paid back exactly what has been agreed to in writing. Nobody will ever consider you the "spiritual" owner or founder of the company just because you say you worked harder. But everybody will consider you the real founder if your equity stake is higher. Simple as that.
> The other piece of advice is try to be really picky with your co-founders. Find ones that you trust and have worked with before or can get amazing references about.
Yes, this is good advice. However a startup can bring out really bad aspects of one's personality. Sometimes aspects you didn't know existed before you started the startup. Make sure you pick someone you know is loyal and handles stress well. These are the most important aspects of co-founder picking.
danelectro|11 years ago
I have thought for a long time that a good choice for a 50/50 business arrangement is where both parties feel perfectly comfortable each doing 60% of the actual needed work indefinitely.
With the right pair, the trust, confidence, and respect for each other is there, regardless of lopsided contributions from time to time (not forever).
If each is always focused on doing more than 50%, actually each FEELING like they are always doing more than 50%, and feeling good about it, even though that would be in excess of their compensation by definition, this eliminates some of the biggest doubts you have suffered from.
Plus on those occasions where more than a nominal 100% needs to be accomplished, you will not only be capable and prepared, but it will not even be a stretch.
As others have said, this emphasizes how carefully you need to align with your partner.
Envec83|11 years ago