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Startup Structure With Part-Time Workers
gvjohn
subscriber Posts: 1
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!
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!
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Comments
I am very interested in responses to this question. In a similar situation myself with a small team comprised of family and friends. We all have day jobs and I am struggling to come up with a fair business and equity structure.
Thanks
HG
Send me a PM if you want to discuss your specific situation