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I’m in the very early stages of a social media startup and have designed mock-up images of the MVP of the app. I’m working on finalizing the business plan myself and looking to bring some people on-board.
A trusted friend web developer and a patent lawyer have expressed interest in working with me. My guess is that they’d be great to help things get off the ground, to get the mvp out into the world, but if the organization and development proceed to greater levels of technicality, I would most likely need more specialized help. I would make sure they’re aware of this up-front.My question is, if I were to give them equity how much would be a reasonable (or min/max) amount to offer.I realize that that’s a vague question, but any direction in tackling it with more specificity would be greatly appreciated.
Welcome to the Forums Tim!
Congratulations on getting your business plan in line and starting something! What I can say going into business with friends is to lay out clear expectations, roles, and responsibilities.
What you don’t want is going into business with your partners and then not knowing exactly which items or roles they are going to play.
The easiest way to do this is to do an organizational chart, then to break down types of tasks, activities, and responsibilities under those roles. Of course, as you grow, you’ll be able to add people and give other accountabilities to other people.
My next question is what amount of work are they going to put into it? Is it going to be as much as you?
Also how well do you know them? Things will get tense sometimes and “fights” might happen. You have to be able to work through that.
I would start off with maybe 5 – 10% range until they have done as much as you have done or you can see they will be good partners.
Just some things to think about is all. I’m not saying don’t do it. Just maybe don’t give the house away too early!
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