You’ve just started a new business with your friend and it’s time to talk equity. Who owns what percentage.
Is it a 90-10 Split? or 51-49 because that guy just has to feel like he has the slight upper hand.
I’m lucky to be in business with my new work wife Dave. We have embarked on a project called Nesk and in doing so the only fair way for us to start was as equal partners 50-50.
But your project or business idea might be more complex. You may have come up with the idea yourself and you feel you own a bigger stake in the company. Maybe you have early stage investors who are willing to kick in a bit of upfront cash to get you moving.
Thanks to Chris Peter’s from Annex Products for pointing out a really neat little book by Mike Moyer called Slicing Pie www.slicingpie.com This is a great resource for people in the early stages of business and helps you with a great bunch of tools from the book, spreadsheets and even an app to help you and your team keep track of how much real effort people are putting into the business.