WWYD Need –Commentary:
Al’s “Need it or No Way” Variables:
1. 35% ownership stake, with decision-making authority on tech issues, budgets an personnel.
2. Guarantee of salary package including severance package equal to 3 months gross compensation, with another 3 months of 1/2 pay if he still hasn’t found a job.
3. Invest $10,000 now, with another $15,000 in 90 days, assuming certain benchmarks are met.
Comment: Al’s priorities are financial security and flexible commitment. He’s willing to give up on control and some ownership rights in exchange for a secure income stream. Bob, who probably feels he’ll be able to run the business alone once the first product is finished, will probably be more than happy to go along with this approach.
Bob’s “Need it or No Way” Variables:
1. CEO with up to 35% board control
2. Each partner contributes $10,000 immediately, and undertakes to provide seed funding of $25,000 within 12 weeks of incorporating.
3. Airtight NDAs, non-competes for staff – but special licensing and copyright arrangements with Al to secure exclusive access to his IP for the company.
Comment: Bob really wants to run things, and is willing to compromise on just about everything else. The financial requirements are modest, as are the security requirements.