Then don't rip him off. Cut him a deal of 10% of "the company" for doing nothing - just for his idea. Explain how this will be worth hundreds of thousands of dollars if the idea actually matures... and that you wont be making anywhere near 95% of the rest of the money since you will probably have investors/other costs to think about.
Need Advice. Tricky Business Situation...
- Thread starter scottspfd82
- Start date
He isnt really one of your best friends, that or he obviously values your friendship more than you do, if you are trying to find a way to run his idea without him. No matter how you sugarcoat that..it is clear where your priorities lie.
Money is nothing without having friends and family to enjoy it with. Real friends and family that came long before the money did.
If the idea is as big and profitable as you think it is, then there should be no reason you want to cut him out. Run it WITH him, teach him, split the profits...and you will have a hell of a lot more fun not only making the money...but also spending it down the road.
Private plane, big money, bitches and blow all sounds well and good.
But wouldnt having your best friend right beside you and along for the ride be that much better?
Money is nothing without having friends and family to enjoy it with. Real friends and family that came long before the money did.
If the idea is as big and profitable as you think it is, then there should be no reason you want to cut him out. Run it WITH him, teach him, split the profits...and you will have a hell of a lot more fun not only making the money...but also spending it down the road.
Private plane, big money, bitches and blow all sounds well and good.
But wouldnt having your best friend right beside you and along for the ride be that much better?
Your assuming all risk so, your calling the shots. I think the first one to it wins. Run with it, and pay him.
I could never cheat a friend, which probably makes me an idiot at business.
I'd make him a partner, and try to give him a useful job in the company to earn his percentage. If that won't work, buy him out and let him suggest the amount. He can't complain he was back-stabbed if you pay him what he asks for.
Anything and everything should be spelled out on a contract, making the deal iron-clad. Also bear in mind he may have other brilliant ideas in the future.
I'd make him a partner, and try to give him a useful job in the company to earn his percentage. If that won't work, buy him out and let him suggest the amount. He can't complain he was back-stabbed if you pay him what he asks for.
Anything and everything should be spelled out on a contract, making the deal iron-clad. Also bear in mind he may have other brilliant ideas in the future.
Fuck him, you don't get royalties for saying "what if". It's not like he hired you to do the work and you're stealing it.
Tell him thanks and good luck.
There are 7 billion people, you can always buy more friends
Exhibit A:
Tell him thanks and good luck.
Spoken like someone who's never chartered a jet with an escort or two.
There are 7 billion people, you can always buy more friends
Exhibit A:
WTF? I didn't say anything about cutting him out. I asked what you guys thought would be fair.
And I replied above saying I'm splitting it with him, putting up the cash, and teaching him how to launch an online business along the way.
I don't see how you twisted that into I'm fucking a friend over, or that I'm not a real friend or whatever.
Fucking people.
Really appreciate the other replies though, thanks.
Wasnt aimed directly at you Scott.
Its a general statement based on the many replies in the thread.....and IFFFFFFFFFFFFFFFF you are looking for a way to cut him out as I stated.
IFFFFF you are searching for ways to cut him out...which you have now noted you are not....it is then clear where your priorities might be.
Goes for anyone and everything in this stages of a start up.
Apologies if it came off the wrong way, and you took it personally.
Just a hell of a lot of e-penis measuring goes on around here, and a lot of people that would clearly screw over their own mother if it meant they could get some free adwords coupons.
My argument against this is the delay involved in getting him to actualize the idea when you can start on it right now. Don't wait. Get moving on this ASAP and start making it happen regardless of what you decide to do. He'd probably thank you for not sleeping on it if you do indeed get it out there before anyone else.
If it was me I would not tell him a damn thing and go forward myself. Once it started making money I would put xx% of the revenue aside indefinitely and after however many months or years of the project maturing surprise him with a fat sack of cash. If you're true friends you should have no problem staying faithful.
Sometimes its just not worth the hassle that would come in this particular situation where close friends are involved.
Theres way to many variables (all the above comments) where this situation could play out bad.
ideas are a dime a dozen, theres plenty of opportunity out there.
Maybe explain to him whats all involved with getting this off the ground, cash, time, and all the other stuff. Ask him how he thinks the ownership should be setup. If he is really your friend he should have no problem giving you a controlling interest in the project. And also make sure its explained that he doesn't see a nickle until the initial start-up costs are covered. Make it clear if you don't have controlling interests your not interested in making this work.
He also should be reminded that if this is not acceptable that your not interested in doing the project. You both need to be realistic, odds are its probably not going to be a multi-million dollar idea and you could just as easily lose everything you put into it. But if it is a hit your both going to have more than you started with. If he wants more he is going to have to pony up some cash to make it 50/50 there is way more risk involved with this than he probably realizes. If he isnt willing to put more than just an idea into it he doesn't really believe in it. If he really believes in it he will beg borrow and steal like every other entrepreneur to make it happen.
He also should be reminded that if this is not acceptable that your not interested in doing the project. You both need to be realistic, odds are its probably not going to be a multi-million dollar idea and you could just as easily lose everything you put into it. But if it is a hit your both going to have more than you started with. If he wants more he is going to have to pony up some cash to make it 50/50 there is way more risk involved with this than he probably realizes. If he isnt willing to put more than just an idea into it he doesn't really believe in it. If he really believes in it he will beg borrow and steal like every other entrepreneur to make it happen.
