How much do you think your company is worth? If you're considering making him a co-founder, then estimate the value of the additional equity he's asking for, and ask if he'd like to give up an equivalent amount in salary over his vesting period.
Co-founder or employee?
11–20 of 30 posts
Re: Co-founder or employee?
#12You should give him 100% of your company on the condition that he thinks about giving you a job for $2 an hour plus all the fruit snacks you can eat.
That way you'll never be accused of being a capitalist oppressing the working class!
Re: Co-founder or employee?
#13In my opinion, don't hire your friends unless they complement perfectly. Even then, have a backup ready in case that person wants to move on.
I've had your experience, I lost both money and a friend. People tend to over-value their contribution. If things are already working well and you're making profit, then you need to quantify how and when this guy is actually going to add value any offer should discount such a projection with an incentive component to reward over-performance.
If you need emotional support, then either book a series of sessions with a shrink or get a puppy. Long-term personal success is a function of your emotional resilience. So wanting to get your friend involved at any cost is a warning sign. For some people a mentor might be a good alternative.
Re: Co-founder or employee?
#14this post is the reason programmers shouldn't be business guys. There is no dilemma here, the guy is offering to rape you over a barrel and you are actually thinking about pulling down your pants and bending over. Anyone who takes advantage like that is no friend to you. Want some real numbers? At this point there are two choices: a) Full Salary + 1-2% equity. or b) 8-10% equity vested over 4 years and minimum wage s…
I upvoted you, but i think you underestimate many programmers.
Re: Co-founder or employee?
#15If you can edit your original post so that he wouldn't be offended if he read it, it might be worth pointing him to this thread to see the "consensus" view among other startup founders.
This could make it less emotional -- "you know, this is the done thing".
Alternatively you can assemble a short case with several links/references to show that what he's asking for is a lot.
Re: Co-founder or employee?
#16this post is the reason programmers shouldn't be business guys. There is no dilemma here, the guy is offering to rape you over a barrel and you are actually thinking about pulling down your pants and bending over. Anyone who takes advantage like that is no friend to you. Want some real numbers? At this point there are two choices: a) Full Salary + 1-2% equity. or b) 8-10% equity vested over 4 years and minimum wage s…
You are right, but you're not explaining where you're getting your numbers from, nor are you suggesting how they can find an agreed way to proceed. Maybe his friend really just doesn't have a clue and simply needs to be educated.
I think your rhetoric is unhelpful, even if the arrangements you suggest are right. Try explaining why, otherwise it seems like more unjustified advice from someone random.
Re: Co-founder or employee?
#17this post is the reason programmers shouldn't be business guys. There is no dilemma here, the guy is offering to rape you over a barrel and you are actually thinking about pulling down your pants and bending over. Anyone who takes advantage like that is no friend to you. Want some real numbers? At this point there are two choices: a) Full Salary + 1-2% equity. or b) 8-10% equity vested over 4 years and minimum wage s…
You are right, I am not very business savvy, but I am learning along the way.
>Want some real numbers? At this point there are two choices: >a) Full Salary + 1-2% equity. or b) 8-10% equity vested over >4 years and minimum wage salary.
I have actually offered something roughly similar to option a) to several other promising candidates, but nobody was interested. I really need to hire another engineer, and I have already been searching for several months, and the search itself is a distraction, so I want to get it over with.
The other thing is that I have known and worked with this guy for several years, so I can be confident about his technical abilities to a greater degree than I can be about some random guy that I interview. Unless you have worked with somebody, you never really can tell how good they are, at least I can't. That's why I am willing to offer my friend a generous package with full salary and 5-10% equity. The way I figure, with him on board, the overall pie should increase by more than enough to compensate for the 5-10% equity that I would give him.
Re: Co-founder or employee?
#18this post is the reason programmers shouldn't be business guys. There is no dilemma here, the guy is offering to rape you over a barrel and you are actually thinking about pulling down your pants and bending over. Anyone who takes advantage like that is no friend to you. Want some real numbers? At this point there are two choices: a) Full Salary + 1-2% equity. or b) 8-10% equity vested over 4 years and minimum wage s…
You are right, but you're not explaining where you're getting your numbers from, nor are you suggesting how they can find an agreed way to proceed. Maybe his friend really just doesn't have a clue and simply needs to be educated. I think your rhetoric is unhelpful, even if the arrangements you suggest are right. Try explaining why, otherwise it seems like more unjustified advice from someone random.
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Re: Co-founder or employee?
#19What's the product?
Re: Co-founder or employee?
#20Don't hire him yet. Hire him at the earliest employee 5. At that point he'll understand he's just not the only chick in a sausage fest, instead he's getting paid for his value.
Or don't hire him at all. There are a lot of quality engineers out there right now.