I recently came up with an idea for some protective equipment for pro athletes. Discussed it with 2 friends (one is an engineer with lots of experience in developing products and the other has some key contacts that would help us in the near future) and we have decided to proceed with the idea. After discussions about the development of the product and marketing, one of the friends mentioned the protective equipment idea to a professional athlete friend of his and we have received keen interest from this athlete and an offer from him to finance our venture and to help market it.
Needless to say, we are moving a little faster than we had expected and we haven't discussed dividing shares yet.
I think we will have to make a decision on the shares before we get to the stage of financing and I would like to make it fair between all parties involved (the initial 3). We will need to put up some money initially for legal fee's, etc. and to build a workable prototype.
Due to recent events, I am a little short financially and will find it very difficult to come up with something significant in the near future... I am obviously trying and there is a good possibility I can get it but there is also a chance I may come up empty.
Please keep in mind:
- I will be running the business and putting 100% of my time and effort into it
- One of the partners can access financing through a colleague (amount needed for legal fees and to make a workable prototype) but, he may only need financing for his share (he had mentioned financing for myself but nothing about the shares divided or what he would expect)
- Other partners will be involved but to a minimal extent (they have other careers)
- the potential for this product is very high considering the popularity of the sport and the number of players playing recreationally or at the higher levels.
What would be the best method to divide shares now considering we are at the earliest stage for this venture?