Hello,
I’m interested in starting a business with two other partners and hoping to get sound advice on how to allocate equity.
I am in a highly specialized field and currently working for a company. I would like to stop working for the company and start my own business in the same field.
The idea to start the business and skill needed to carry out the business are my contributions. My role in the business is going to be day-to-day operations. My two partners are currently in business together. Partner A and Partner B are providing the physical location to see customers and they’ve already built an ecosystem that would make things easier for me, although it is not necessary for the business to flourish. Partner A has a track record of scaling similar businesses and selling them to private equity firms. Partner A is not in my field and would not be able to contribute much day to day. Partner B is in my field but is not specialized in the field and would require some mentorship from me.
My long-term goal is to be financially free in 10-15 years. I see value in both Partner A and B as they also share the same vision as me. My partners suggested an even split amongst the three of us. I told them I would think about it and get back to them. I don’t know what a fair amount for each of us is. I’m hoping someone with experience can provide insight.
Thanks in advance!
I’m interested in starting a business with two other partners and hoping to get sound advice on how to allocate equity.
I am in a highly specialized field and currently working for a company. I would like to stop working for the company and start my own business in the same field.
The idea to start the business and skill needed to carry out the business are my contributions. My role in the business is going to be day-to-day operations. My two partners are currently in business together. Partner A and Partner B are providing the physical location to see customers and they’ve already built an ecosystem that would make things easier for me, although it is not necessary for the business to flourish. Partner A has a track record of scaling similar businesses and selling them to private equity firms. Partner A is not in my field and would not be able to contribute much day to day. Partner B is in my field but is not specialized in the field and would require some mentorship from me.
My long-term goal is to be financially free in 10-15 years. I see value in both Partner A and B as they also share the same vision as me. My partners suggested an even split amongst the three of us. I told them I would think about it and get back to them. I don’t know what a fair amount for each of us is. I’m hoping someone with experience can provide insight.
Thanks in advance!
