[ale] Business opportunity...

[Tony Carter]

On Wednesday 27 October 2004 11:10, Christopher Fowler wrote:
> Many startups do not have the cash to pay salaries or consulting fees.
> In my company I do take a salary but at less than what I was previously
> making. The difference it made up in equity.  When someone has equity in
> a company they value that company more.  I see it in the way I behave vs
> the way our 100% salaried employees behave.
>
> There is nothing wrong with sweat equity.  Just make sure that documents
> are drawn up in the beginning that describes your percentage of
> ownership in that company.  You do not want your equity to be lost due
> to someone there that has control that is not capable of making the
> business last.  If you are going to get sweat equity then you basically
> become a director and you have a vote in what goes on. You are a part
> owner.
>
> On Wed, 2004-10-27 at 10:16, George Carless wrote:
> > Deary me.  And if anyone else would like to do all of the real work in
> > setting up a money-making enterprise for me, in exchange for a percentage
> > of my profits, please do let ME know, too... :P
> >
> > Is your partner an MBA graduate, perchance, Scott?
> >
> > --George
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>
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Be very careful about this whole "percentage of the company" thing. You really 
are getting a percentage of currently allocated stock. If you go for VC 
money, They'll change this for sure.
-Tony