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16
votes
3answers
2k views

Are we about to be shafted by a Corporate Shark?

My husband went into business with a gentleman who seemed to be very clued up (he's an accountant). He has numerous other businesses and was able to open doors that we would never have had access to ...
14
votes
5answers
946 views

When to drop a co-founder?

There are some excellent posts on how to select a co-founder and what qualities you should look for. I firmly believe in 'try it out', and have been for about 5 months. In that time I've also come ...
11
votes
5answers
535 views

Started with 4 partners, equal financial investment. I've done 90% of the work, startup is now doing well and they now want a say. Please advise

I started a site with 4 friends about a year and a half ago, I'm the only technical person of the lot, we all put in an equal amount of $$$, we spent most of the first year in discussions and sending ...
10
votes
1answer
3k views

49/51 vs 50/50 Equity Split

What are the advantages and disadvantages of dividing equity 49/51 vs 50/50 between partners? Edit: 51/49 feels wrong, but there may be some startup cases where it is good if you are the majority ...
9
votes
6answers
416 views

How to find potential co-founders for a startup?

I've been working on a bootstrapped startup for about 2 years now. I've been working on it solo to this point, but I feel I'm starting to run out of gas. I need fresh ideas, money and assistance in ...
8
votes
3answers
518 views

“One Man Startup” - Should a add people before going out looking for funding?

i've been working on a project for the last year or so and during that time 4 out of 5 partners have left, leaving only me. I've turned the project into a modest success and have now received some ...
8
votes
8answers
594 views

Would you go into business with someone without an agreement in place?

Would you go into business with someone who has asked you to come on board and help to get things launched, but has not yet decided how to compensate you, or whether to give you part ownership of the ...
7
votes
2answers
392 views

Partner (he's a Friend) Wishes to Resign from Startup Prematurely

I am seeking help in how to handle an underperforming partner / friend that is resigning from an early phase of a startup. Two friends and I began an equal partnership startup with the following ...
7
votes
3answers
230 views

Role of Business Partner While Developer is Developing

So... in a startup... im the techie/developer of the business, my partner is the business side. While, I'm developing this elaborate application... what should he be doing? What do business people do ...
6
votes
9answers
564 views

Sharing workload between partners when I am the only developer?

I have been dipping my toes into a web-based startup idea with two others. They approached me with the original seed of an idea, but neither are developers. So I would be building the (fairly large ...
6
votes
1answer
233 views

Profit sharing in a startup: offered 20% of profit

I've been offered 20% of the profit of a new startup if I build the website (which is essential to the business). What types of things should I look for in the agreement that is to be drawn up?
6
votes
3answers
212 views

Is a 50/50 equity split without 50/50 control a doable and wise thing?

I've found a great partner for my second tech startup, and want to structure this one better than the first, which made money but eventually got ugly due to poor choices my younger self made along the ...
5
votes
4answers
653 views

What percentage should a programming partner get?

I have a web app idea and am considering offering to partner with someone who would code the app. I have most of the intricacies of the idea figured out, it's pretty simple but I am not a hacker so I ...
5
votes
9answers
744 views

Start up needs advice on getting customer B2B

I am founder of an online mobile marketing company that sends text coupons and promotions to cell phones. Our customers are local small businesses who wants to send their coupons and promotion to ...
5
votes
8answers
328 views

Making partnerships successful

Who can offer some insight into what makes a successful partner? It seams easy to get into the right conversation but difficult to get the right activities initiated.
5
votes
11answers
422 views

What if your partner seems to be a bad person?

Greetings. Currently I work for a bunch of companies as the CIO and recently I've been offered a partnership at a startup company. I decided to take it as a part-time, for the start, and then move on ...
5
votes
5answers
336 views

Partner leaving at an idea-stage start up

This question might sound dumb, but I'm at a complete loss of what to do. My friend and I discussed starting a web site business years ago. For about a year and a half, we met every other weekend ...
4
votes
5answers
331 views

How to handle partners asking to renegotiate old partnership agreements

In The beginning Around one year ago we build a software company, we needed to quit our jobs, get financing, a product, legal work, accounting work, clients and partnerships with providers. we ...
4
votes
3answers
156 views

A special kind of merger

I am negotiating a deal and I really need some advice on the pros and cons of the deal that has been suggested to me. I have a startup company with radically innovative technology. I want to merge ...
4
votes
2answers
229 views

How do I prove that its all my IP

I'm involved in a deal where an industry organization is attempting to white label my software. Their Chairperson is a lawyer, so they are cautious on the legal stuff. They want to be absolutely sure ...
4
votes
1answer
132 views

First equity what questions should I ask and how?

Last month I was offered for an equity on a startup venture. It's an online store focus on selling customized toys. Their business models looks good and promising. But I just have few doubts and ...
4
votes
2answers
346 views

Is a 10% referral fee very popular in many trades?

Is a 10% referral fee very popular in many trades?
4
votes
3answers
247 views

Brainstorming the idea of Strategic Alliances

I'm reflecting on the ideas of businesses partnering with other businesses who are targeting the same audience. The idea would be to "partner together" and help promote one another. eg. Business A ...
4
votes
4answers
397 views

STARTUP: partnership or hire?

Ok I invested in my business and built the software, now got to run it! If I hire my friend, to do all this business, and I do all things technical. How should I pay him? 1) salary 2) with ...
4
votes
2answers
136 views

What is My Business Worth?

I have recently approached my business partner with a request to buy out his membership in our LLC. His involvement as of late is declining and a buy out was something we had planned on from day 1. I ...
4
votes
2answers
627 views

Allocating equity - equal cash investment - unequal time investment

I am getting involved in a small start up - we have been discussing (3 partners) this for a few months and now is time to get everything settled. We originally discussed a certain time allocation 4 ...
4
votes
3answers
287 views

Getting an idea off the ground, and protecting it at the same time

This is my first question on here, so please excuse me if I haven't got used to any cultural norms this stack site has. I have an idea, a great idea. An idea that I truly believe, with maybe a little ...
4
votes
3answers
3k views

Multi-Member LLC - question setting up my EIN

Thanks in advance for any help answering this question. I have already set up a multi-member LLC in New York State. I attempted to register for an EIN as an LLC but was told by the IRS that I would ...
4
votes
2answers
189 views

Co-Founder of Company wants to quit

I have a unique problem that I was hoping to get some clarity on. The Co-Founder of our business (in Canada) wants to end the business and get out. The company has been operating for 3 years and has ...
4
votes
3answers
214 views

Outside work while in a startup

I am currently in a startup with a partner, and we have 50/50 ownership. Things are going fine, but like all startups it is taking some time to get everything going. We don't have any revenue now, ...
4
votes
1answer
361 views

Irrevocable Proxy! how can it go wrong?

I have been a co-founder of a start-up that is beginning to take off and make some noise and hopefully is on the right path :) The question arises because until now the 3 co-founders (me & a ...
3
votes
9answers
2k views

What makes a great business partner?

So the question is pretty basic, what are good qualities in a business partner? As a young freelancer I want to expand my business into a much larger company and I know I will likely need to partner ...
3
votes
4answers
287 views

To the Coders…what would you consider acceptable terms to join a new start up?

If you were approached by an idea guy (one with not much money), and lets say that the idea itself was an 8 to 10...what would you consider acceptable terms to join the start up? If you could give 2 ...
3
votes
5answers
252 views

Problems with partner

A little background: A few months ago, I approached a good friend of mine with a nice offer:To make apps for a specific platform along with marketing and distributing them. He knew very little about ...
3
votes
6answers
196 views

Being part of the game while being an outsider

Any recommendations on being part of the game while you are an outsider, living far away from any startup hub*? I try to keep myself up to date with what's going on by watching podcasts, reading news, ...
3
votes
4answers
284 views

What are the pitfalls of incorporating *after* launching a new website with partner(s)?

A friend and I are working on a website which we hope to launch before the end of the year. We would like to put off the actual incorporation for as long as possible (legal, accounting, & other ...
3
votes
5answers
674 views

How do I find good developers to join a start-up on a low-budget

Im located in Minneapolis,Mn. Im starting up an online business here in U.S with market focus in Africa.Im building an e-commerce (auction) site for the growing African savvy internet users. I am ...
3
votes
3answers
288 views

How to protect myself from uncommitted co-founders

Two of us came together to work on an idea for a web startup. We end up killing the initial product and a third person joined. A new product is built and launched. It happens that I'm the technical ...
3
votes
3answers
106 views

When/How Often Do Startups Join Together?

I asked this on my blog, but then realized this would be a good forum for discussions so am asking here as well: How Often Do Startups Join Together? In talking to and mentoring dozens of startups ...
3
votes
5answers
419 views

Possible dangers in specific startup percentage scheme

first of all I need to tell you about my background. I am an Internet/Software engineer, came up with a great idea and little knowledge do I have about business. Fulfilling the need for a partner in ...
3
votes
3answers
175 views

When to ditch a partnership

I have been working on a project for a little over a year. This project was my partners idea, and we agreed to a percentage of the stake when it gets done. (he gets the majority) Originally, the ...
3
votes
3answers
135 views

Is it legal or even common to require business partners to sign a prenup in the event they get married?

I'm considering starting a company with a few friends. Each of us are single guys. We're wondering, is it legal or common for a company to require other owners to sign a prenup in the event they ...
3
votes
1answer
359 views

Fair to ask for anti-dilution when I have a lot less equity than my partners?

I'm leaving an extremely well paying job, one that I'm even fairly happy with, for a startup that I think will do really well. It's been a difficult choice because I have a family and a mortgage. ...
3
votes
2answers
115 views

How do I go from 100% ownership to partnership?

My question is not about tax and legal procedures (I'll let my CPA and lawyer handle those), but rather about TRUST. Trust or... CHECKS & BALANCES. I am a programmer who owns a small Internet ...
3
votes
4answers
300 views

Why don't companies collaborate on innovative projects?

I am doing research about collaboration in projects. If a company has an innovative idea that they want to put on the market, but they don't have the knowledge to develop the idea, then they are ...
3
votes
3answers
117 views

Approaching big corps for partnerships

I've created a series of mobile games that could be effectively re-branded with products of large corporations. I'm an independent developer and already have a generic one being sold and can use it as ...
3
votes
5answers
189 views

Having a schedule for our startup?

I'm in a partnership with my brother, we decides to do a partnership together since we live in the same house and had the same schedule. We are running our business from home right now, making mobile ...
3
votes
4answers
238 views

Can I list Bizspark as a partner?

I'm forming a software/web development company where we develop products and also help other business develop theirs. Microsoft offered us BizSpark membership. Is Microsoft now a partner to us or just ...
3
votes
1answer
159 views

How to best make use of large corporate “partnership”?

Let's say a small software company has a product which can help several very large key players within the industry sell far more of their products. Let us also assume that these corporate giants have ...
3
votes
2answers
531 views

Need advice on how to structure a partnership

I have recently been approached by a person, who is both an investor and the project idea originator. We are talking about a tech start up, where I am the software developer, project manager, and ...

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