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You start at 50/50 But you don't give out all the shares. You create a company with 1M shares. You give him 10k and you 5k for the work you've done, and 5k ove
by drakaal 13y ago
You start at 50/50 But you don't give out all the shares.
You create a company with 1M shares. You give him 10k and you 5k for the work you've done, and 5k over the course of how much time you negotiate it should take to get going. Then you say, "I would earn $50k a year" (or what ever number) so I get 25 shares an hour. If he puts in Dollars he gets shares at $1 a piece.
Tweak the math, but you should get the idea. You invest sweat, he invests money. You have pre-negotiated each, and left room for other investors to buy in.
- shestar 13y agohmm i don´t know...to give 50% i think you must bring something seriously substantial to the table (not 10k!!), no matter how tweek the numbers the investment still needs to stack up...i think equity you give should be related to the level of investment, but also value of the business. However in early stages, my key question is, how do you value the business to then have more or less decent number to work with?
- drakaal 13y agoYou didn't understand. You start at "equal" not 50%. That's why in my explanation not all the shares are given out. The reserve lets you both work to add equity, you can work together and stay equal, or one of you can do more to change the ratio.