So I have a startup business (which I’m devoted to full time) which is currently already quite profitable, but the main constraint to expansion right now is manpower. That manpower needs to have several qualities:
- Be trustworthy (as my business involves IP)
- Have the necessary skills and/or knowledge to contribute to the business. (E.g. be able to code sufficiently well)
- Be available to work full-time on it (quit their current job if need be)
I know a person who has a similar business (also profitable) and who fulfills the above criteria HOWEVER he is working on this business with his brothers and has stated he would not abandon them.
With regards to his brothers, they do have some skills that would be useful to the business but I would say me and the other guy would be contributing more (In terms of direct profit generation, split would be 40/40/10/10, but in terms of labor closer to even).
One brother has recently quit his daytime job to work on the business, and the other brother is thinking of quitting.
– A partnership would definitely benefit all of us as a whole
– Equity contributions are not a problem (everybody can fork out the same amount of cash)
Looking for suggestions on equity/incentive structure (e.g. equity vs salary split? options?)
Bonus points: My own brother is also potentially going to quit his job and join the business down the track. His contribution would be similar to my potential partner’s brothers.