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Sweat Equity or what?!
Chandler221
subscriber Posts: 2
I launched a company into the market place 6 months ago by myself.
After a month of working, my gf started helping me out.
From there we grew together under the assumption of us being 50/50 partners.
We had the discussion that that will not be the case and we agreed but never came to a number of how it would be split.
3 months ago, we needed spreadsheets built and a website developed.
we asked for help from a friend/ascquantance and he helped.
A month later he asked if he could be more involved and I agree'd to it because I saw the value of what he brought to the table
Being "More Involved" was he wanted to partner up and have ownership within the company but numbers was never talked about.
I have been since building a sales team, he has been allocating the finances and picking up slack in area's it is needed (About 6 weeks now)
my g/f takes care of about 15% of the operations (Background work/paper work)
The conversation is quickly approaching where we need to discuss ownership and how much percentages should go to who.
The more and more I think about it and the more people I talk to, everyone says DO NOT give up any equity as hard as it might seem to be.
The problem I am having is, how do i properly compensate or give these individuals of what they are deserving.
I am not holding onto equity for selfish reasons but for the companies best interest.
Do they deserve equity?
Under what circumstances should they receive equity?
Is sweat equity a option?
What other options are there?
After a month of working, my gf started helping me out.
From there we grew together under the assumption of us being 50/50 partners.
We had the discussion that that will not be the case and we agreed but never came to a number of how it would be split.
3 months ago, we needed spreadsheets built and a website developed.
we asked for help from a friend/ascquantance and he helped.
A month later he asked if he could be more involved and I agree'd to it because I saw the value of what he brought to the table
Being "More Involved" was he wanted to partner up and have ownership within the company but numbers was never talked about.
I have been since building a sales team, he has been allocating the finances and picking up slack in area's it is needed (About 6 weeks now)
my g/f takes care of about 15% of the operations (Background work/paper work)
The conversation is quickly approaching where we need to discuss ownership and how much percentages should go to who.
The more and more I think about it and the more people I talk to, everyone says DO NOT give up any equity as hard as it might seem to be.
The problem I am having is, how do i properly compensate or give these individuals of what they are deserving.
I am not holding onto equity for selfish reasons but for the companies best interest.
Do they deserve equity?
Under what circumstances should they receive equity?
Is sweat equity a option?
What other options are there?
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