I was asked an exciting question. I personally would not agree to delegate building Unicorn Platform to someone else because I'm too bad at delegating tasks and management. Curious what others think π
I think it really depends on the level of expertise that you bring. If someone is able to build it but you have overall commercial skillsets to help bring it to life than I think are entitled to more equity.
@alexanderisora haha yeah I think there is not a time when we don't need help π , but by the time you find the right person and delegate the tasks , you can make it.........the trap lol
It's tough. I once saw a quote: Don't outsource your dream.
Right now, I'm building my dream, and I wouldn't outsource it because I enjoy the process of building it.
However, I would give 50% to someone with the skills I don't have if it came to it at some point.
@phillipstemann you are at a risk of not building anything at all. Motivation is an exhaustible resource. The joy may go away if you do not see any results for too long.
I'm sorry for sounding pessimistic. I'm trying to be realistic π
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@phillipstemann If the person is skilled enough to make a build for you, then 50% sounds fine. It will be a one time investment for you.
@jesse_ezell you also need to market the product and lead the project. That is a lot of work too.
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Absolutely!
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Ideas are a-plenty. It's who can do the grind to make them happen that takes the cake. If I can't put the execution down, I don't think I can retain equity (unless I'm paying adequate salaries, which is also a way of getting things done). IMO, what separates founders from thinkers is the ability to get shit done.
It all depends on the person who is building it. If they don't contribute to the product past the initial build out, they should not be an owner. If they don't share the vision for the startup and if you don't have a clear understanding of roles and responsibilities + a buy out clause, then they should not be owners.
If you don't execute on the idea you have 100% of nothing vs 50% of something, but in these cases you should really exchange something else (money, services, lending them your car on weekends, etc.) for the build out of your product initially instead of giving ownership to the best coder/builder. Just because they are good at building doesn't necessarily mean they will be good at leading.
You can still give them equity if you want, but not 50% from the very beginning. "If you build it, they may not come", you will also need to market this, which takes money, so would that be another 20/30% equity? What about customer support? Sourcing? Sales? Would you be giving out equity for each one of these later? What if you need to raise money and the builder doesn't agree to give some of his equity up for the investors?
Think long term and if you are going to give away 50%, make sure it is because that person is the best partner in the long run.
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