Hosted by Jay Adelson.
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips, and answering questions. Ask Jay how to turn any business idea into reality: askjay@revision3.com, @jayadelson, or http://youtube.com/askjayadelson Read More
Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today he discusses what a co-founder really means, and whether or not you should have one.
Jay's Chalkboard Notes:
1. A Founder is a person who comes up with an idea/concept, who initiates the process of building the business, who takes on the risk, and is the first person to quit their job to launch the company
2. Companies typically have ONE founder
3. Avoid co-founders if possible because it can lead to problems later
4. If you decide you have a co-founder, then make sure to clearly lay out the terms up front
5. You have a co-founder if two people collaborated on the idea, and both are working for the company
6. If you have co-founders, equity should be split 50/50
7. 1-2 points of equity is not a co-founder, rather a first hire or VP
8. Only give a co-founder title if expectations are defined up front
9. Get all expectations in writing
10. Only do it if it advances company
11. Avoid this if possible
Your takeaway assignment based on today's question is to decide if someone is a co-founder before you raise $$. First define the next big milestone, then decide if they're going to give 50% of the effort and risk towards accomplishing it. Be clear up front that they collaborated equally, map it out on paper. If they disagree now, they will disagree later. Discuss, conclude, map it out, THEN assign titles.
Have a question about launching a business that you want answered? Submit them to askjay@revision3.com, or upload a video question on our YouTube page. And make sure and follow Jay via Twitter.
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