@rightway2truth How about this...spend 20 minutes...and write down a situation that would not upset you. That you feel is fair for the risk/sacrifices you make...then vary it by at most 10% and that should be the offer.
If this thing upsets you so much now...any other surprise that happens in the situation/relationship is not going to help.
But remember this...logic may make sense to others and yourself....but if you want illogical results...like major traction...you may need to create illogical situations. The question is...is this arrangement the right illogical situation. I'm not sure about that.
Or how about this...just pay him $2500 to advise things over the 6 months...with the understanding that if things gain traction, he'll have some potential equity.
@saltysplash That's an interesting approach, I will give it a shot, thank you.
$2500 in 6 months won't be interesting for him. He makes triple that by developing code for an agency, and he thinks quite highly of himself. I could try though.
@rightway2truth I was thinking about this issue some more...and here is another concern I have...this issue...might be a symptom of a worse habit you might have...the habit of putting up with broken well-known situations instead of finding new uncertain ones that could work better.
I feel I've made this mistake before too. When people are asked...who would you trust to finish up a software project...they would normally reference someone they knew from their past....and yet, sometimes the best answer is to say...probably anyone except all the people I know.
From all the answers here, it seems relatively clear that forcing people in your life to change for your new life goals may not be the way go.
This is just a thought and not a criticism. I just want to make sure the approach with the potential CTO is not a habit that could negatively impact other things you do for your startup.
@rightway2truth So you take 100% of the risk and, “if it pays off”, your buddy gets 1/2 the company. He waits in the sidelines and provides guidance while you actually make it happen and he gets 50% for your efforts.
That is a shit deal. Counter at 10%. If he wants to jump in feet first with you, that’s another story.
I got into business with someone I didn't know well because of my naivety and I'm paying for it.
He doesn't give a rats ass about the business while I try to keep it afloat. This is one of the biggest mistakes of my life plus one of my biggest learnings.
You'll save a lot of mental trouble by not getting into this.
@rightway2truth You don't get 50% equity without taking any of the risk. If your lead dev manages to get you to a place with good traction, give him the equity to stay long term. You obviously don't need this "CTO adviser" if you can get to traction without him
@rightway2truth I’m going to beat a dead horse and if I lived near you, I’d drive to your house and literally BEG YOU to cut this guy loose now. He’s going to create SO MUCH PAIN for you no matter the arrangement, dude. If he wants a “lifestyle” and you’re planing growth, he’s going to hold you back. His unwillingness to accept risk until “it gets traction” is the biggest red flag I’ve ever seen.
@rightway2truth So you left a 6-figure job to pursue this. That’s effort. Lots of it. But he’d be leaving a 6-figure job to break his back on something that might not even work. You got no choice because this is your idea but he’s got plenty of options. He’s comfy. If you want to get engineers involved you’re going to have to play the game. It’s not like starting an insurance company or real estate gig. These engineers are the most sought after asset in the world. You should be trying to make it work, that’s your job as ceo. To organize or make sure things make it to the finish line. Not to sit in front of an org chart deciding if it might turn into a fairytale or not. I’ll tell you what, it’s guaranteed not going to turn into anything if you don’t attract the right engineer.
@rightway2truth I think your post proves that YOU dont give a shit. You've made some of the stupidest business decisions I have ever seen and STILL you refuse to take the advice others are giving
@rightway2truth If he wants 50% he needs to bring 50% of the value of the company and shoulder 50% of the risk. Unless he's bringing in close to 100% of the value, you need to challenge his numbers.
