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Why would he not be a cofounder? At the moment, I have an idea and an MVP. I have three advisers who I brought on in a semi-formal capacity. Two are senior inv

Why would he not be a cofounder? At the moment, I have an idea and an MVP. I have three advisers who I brought on in a semi-formal capacity. Two are senior investment managers and one is a serial entrepreneur having started companies in the same area. I speak to them maybe 1-2 a month to get advice and they are listed on my website. In reality I have zero revenue and it will take 5+ to build this company. I've barely started. I also read this article on YC: https://blog.ycombinator.com/splitting-equity-among-founders/ https://blog.ycombinator.com/splitting-equity-among-founders...

wtvanhest 9y ago
I have a similar backround as you with less coding experience (asset management blk). I also programmed my site at night and quit my job. When I started selling I resalized that I hadnt thought the product through properly. You need to learn whether you have by having direct conversations with customers. If you rely on a salesman you will blame him/her instead of figuring it out and making adjustments. After you get your first few sales, then hire your sales guy/women. YOU DO NOT NEED MANAGEMENT. There is nothing to manage.
- Blackstone4 9y ago
  This was my original plan. The idea would be I sell the product myself. Win 2-4 clients and work closely alongside them to improve the product. Upon achieving product-market fit, I would hire a sales person using my savings. Possibly raising venture funding if need be.
  - the-dude 9y ago
    Do this (and keep your friend)
jdileo 9y ago
In the U.S. & around the world sales pro's earn multi-six & 7-figure incomes (Read: more than most physicians, attorneys, engineers, etc.), yet most founders fail to recognize their import. For example, startups regularly task a co-founder or, gulp, initial admin hire to engage a prospect list or subset thereof. It is an enormous mistake that yields suboptimal adherence to best-practice and crucially, a flawed data set that a founder may clumsily use to forecast growth, churn etc. The sales talent required to build processes, identify most promising inbound/outbound prospect funnels, execute script/price-point analysis & closing ratio's, etc. to bring a v1 to market is immense. Respectfully, your friend is woefully unqualified to serve your startup well. A B2B with pricing model you've suggested requires a 10x pro. Where are you located? Website?
- goatherders 9y ago
  This x 10000. A salesperson is not a task where mediocrity is acceptable. Without sales nothing else you do matters. A great salesperson and crummy product have a chance at success. A great product and a crummy salesperson are doomed to fail. No product or service can outrun bad sales. Your friend isn't a salesperson. If his pedigree and smarts can help then fine. But he isn't a salesperson. Candidly, you are the salesperson until you have 7 figures of revenue. I'm serious. No one knows the product like you. Find other people to do the other things and dive into selling.
- Blackstone4 9y ago
  I completely agree that an excellent sales person is worth their weight in gold. Right now I don't know any. I would love to meet some. I'm based in London but I was in the US for the last 4 years. Moved back because of with the visa situation it was just easier.
  - osullivj 9y ago
    B2B enterprise sales is all about networks and contacts. A late 20s MBA will have none of these. You need someone who can work their existing extensive network as well as cold call, and get you in the door in front of real budget holding decision makers. I've worked on rates & FX trading systems in London for 20 years and know several guys like that who all do commission and equity points comp deals. PM me via contact details if you want to connect.
    - Blackstone4 9y ago
      Thank you for the offer. Do you know anyone in the alternatives space? with domain knowledge of private equity?
  - markfer 9y ago
    For what it's worth, I do weekly consulting and coaching with founders who don't have sales experience. If you're interested, we can talk a bit further.
mchannon 9y ago
Never forget Guy Kawasaki's method (paraphrased here) for how to value a startup. For every engineer, add $1 million. For every MBA, subtract $250k. What's -$250k in startup valuation worth in terms of shares? My offer to cofound your venture is still a far better deal because I pledge I will not lend my name nor contribute any work. That makes my contribution to your startup $250k greater than the other guy, so I should get $250k more worth of equity. Just my nickel's worth of free advice.

wtvanhest 9y ago

I have a similar backround as you with less coding experience (asset management blk). I also programmed my site at night and quit my job. When I started selling I resalized that I hadnt thought the product through properly. You need to learn whether you have by having direct conversations with customers. If you rely on a salesman you will blame him/her instead of figuring it out and making adjustments. After you get your first few sales, then hire your sales guy/women. YOU DO NOT NEED MANAGEMENT. There is nothing to manage.

Blackstone4 9y ago
This was my original plan. The idea would be I sell the product myself. Win 2-4 clients and work closely alongside them to improve the product. Upon achieving product-market fit, I would hire a sales person using my savings. Possibly raising venture funding if need be.
- the-dude 9y ago
  Do this (and keep your friend)

jdileo 9y ago

In the U.S. & around the world sales pro's earn multi-six & 7-figure incomes (Read: more than most physicians, attorneys, engineers, etc.), yet most founders fail to recognize their import. For example, startups regularly task a co-founder or, gulp, initial admin hire to engage a prospect list or subset thereof. It is an enormous mistake that yields suboptimal adherence to best-practice and crucially, a flawed data set that a founder may clumsily use to forecast growth, churn etc. The sales talent required to build processes, identify most promising inbound/outbound prospect funnels, execute script/price-point analysis & closing ratio's, etc. to bring a v1 to market is immense. Respectfully, your friend is woefully unqualified to serve your startup well. A B2B with pricing model you've suggested requires a 10x pro. Where are you located? Website?

goatherders 9y ago
This x 10000. A salesperson is not a task where mediocrity is acceptable. Without sales nothing else you do matters. A great salesperson and crummy product have a chance at success. A great product and a crummy salesperson are doomed to fail. No product or service can outrun bad sales. Your friend isn't a salesperson. If his pedigree and smarts can help then fine. But he isn't a salesperson. Candidly, you are the salesperson until you have 7 figures of revenue. I'm serious. No one knows the product like you. Find other people to do the other things and dive into selling.
Blackstone4 9y ago
I completely agree that an excellent sales person is worth their weight in gold. Right now I don't know any. I would love to meet some. I'm based in London but I was in the US for the last 4 years. Moved back because of with the visa situation it was just easier.
- osullivj 9y ago
  B2B enterprise sales is all about networks and contacts. A late 20s MBA will have none of these. You need someone who can work their existing extensive network as well as cold call, and get you in the door in front of real budget holding decision makers. I've worked on rates & FX trading systems in London for 20 years and know several guys like that who all do commission and equity points comp deals. PM me via contact details if you want to connect.
  - Blackstone4 9y ago
    Thank you for the offer. Do you know anyone in the alternatives space? with domain knowledge of private equity?
- markfer 9y ago
  For what it's worth, I do weekly consulting and coaching with founders who don't have sales experience. If you're interested, we can talk a bit further.

mchannon 9y ago

Never forget Guy Kawasaki's method (paraphrased here) for how to value a startup. For every engineer, add $1 million. For every MBA, subtract $250k. What's -$250k in startup valuation worth in terms of shares? My offer to cofound your venture is still a far better deal because I pledge I will not lend my name nor contribute any work. That makes my contribution to your startup $250k greater than the other guy, so I should get $250k more worth of equity. Just my nickel's worth of free advice.