My partner and I founded a start-up personal service business. We own A shares (voting) and are working full-time on the business. We have procured investors, who own B shares (non-voting). The minimum investment is $25K. In lieu of paying a graphic artist, space designer, and other consultants up front, my partner wants to offer sweat equity in the company. I do not think we need $25K worth of their services, and am hesitant to offer an ownership stake for work done at the front end. Thoughts?
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Yeah. Get real ;)
Why? Seriously. Money is money. If you use shares as money, then what do you care WHERE The work is done, as long as you get a fair exchange. Basically you tell me right now the hourly rate of a frond end developer is - dollar per dollar - less worth than the one of the database guy. Sure the designer may get less USD Per hour - but a USD is a USD, so he gets a smaller share, but still... either you pay money, or shares, and I totally fail to understand the "for work done at the front end" side of the argument here. |
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Sell them your vision and valuate your company share by your vision. Give them as much as they deserve and non-voting share. |
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