We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Startup Structure With Part-Time Workers

gvjohngvjohn subscriber Posts: 1
edited August 2008 in Business Planning
I`m having some trouble coming up with a share structure that will work for my startup company.  There are two founders (myself and another) and three additional members.  The five of us will be the core members for the time being, and we`ll hopefully add others down the road.  The problem is, we are all working on this part-time.  Anyone else that we will add would be doing the same, and possibly in an even more reduced or varying capacity.  How do I setup the share structure to be fair to everyone? 
My thoughts at this point are to have the original five members vest their shares (say, 20% each) over a two-year period, with a 6-month cliff.  Any shares for additional members would just dilute existing shares.  How can I control for variances in contributions among members?  What if the average (of the original five) number of hours worked per week is 10, but one of us consistently works 20 hours or 5 hours?  Would a combination self-eval/peer-eval system work?
Does anyone have any experience setting up businesses where the members are not working full-time?
Any help is much appreciated!


Sign In or Register to comment.