際際滷

際際滷Share a Scribd company logo
How to Divide the Pie? - Ed Kuiters
A brilliantbrilliant
business Idea!
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
But.. I have no money to hire..
..YET..
Equity
?
50/50
60/40
80/20
50/50
50/50
50/50
50/50
What if
50/50
50/50
You do all the work?
50/50
50/50
You bring in another guy?
50/50
50/50
Your partner wants to quit?
50/50
50/50
You want to quit?
50/50
50/50
1,000,000 other things?
穡買鐚穡買鐚
Wait!..
What if there was
a fair & effective
way to divide the pie?
Dynamic Equity Split
Mike Moyer  'Slicing Pie'
Fair & effective?
 rewards for actual contributions
 accommodates for changes
 flexible in the face of rapid change
 motivates to contribute
Work hard now
Get what you deserve.. later
Fair
Your Share
Reflects What You
Actually Contribute
You Contribute 50%
=
You Should Get 50%
You Contribute 10%
=
You Should Get 10%
You Contribute 69.2%
=
You Should Get 69.2%
How it works
1. Assign a leader you can trust
2. Assign a theoretical value to the various
inputs provided by each participant
3. Individual Value 歎 Total Value= Shares %
1. Get a Trustworthy Leader
 Holds all equity
 Manages your equity fund
 Deals with people who are departing
2. Assign Theoretical Values
Time
Negotiated Base Salary
-
Cash Compensation
X
Two
歎
2,000
=
Hourly Rate
Time
促10 million
-
促4m salary (促6m at risk)
X
Two (促12m)
歎
2,000
=
Hourly Rate:
促6,000/hr
Small Money
促
X
Four
Everything Has a Theoretical
Value
 Unpaid Commission x 2
 Cost or resale value
 Unreimbursed Expense (4x)
People Contribute Different
Things
Person 2Person 1
Person 3
Jr. Developer Founder Rich Uncle
Theoretical Total Value
Person 1s Share
歎
Person 2s Share
歎
Person 3s Share
歎
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
Sales Guy
Person 4
A new guy..?
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
Person 1s Share*
歎
*If the Person Does Nothing Else
Person 2s Share*
歎
*If the Person Does Nothing Else
Person 3s Share*
歎
*If the Person Does Nothing Else
Person 4s Share
歎
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
How to Divide the Pie? Dynamic Equity Share by Mike Moyer
What You Get
 Fair
 Rewards for contributions
 Motivation to contribute
 Accommodates changes in the team
Outgrowing Dynamic Equity
 Real revenues
 Positive cash flow
 Organization gets too big (diminishing returns)
 Significant investment
.. or ed@kuiters.net
Mike Moyer
Slicing Pie
($8 at Amazon)

More Related Content

Viewers also liked (13)

Employee equity incentives
Employee equity incentivesEmployee equity incentives
Employee equity incentives
Bart Greenberg
Common Entrepreneur Mistakes
Common Entrepreneur MistakesCommon Entrepreneur Mistakes
Common Entrepreneur Mistakes
Bart Greenberg
Kaplowitch equity dos and donts
Kaplowitch equity dos and dontsKaplowitch equity dos and donts
Kaplowitch equity dos and donts
BFBootcamp
Succession Planning using Equity Incentive Plan and ESOPs
Succession Planning using Equity Incentive Plan and ESOPsSuccession Planning using Equity Incentive Plan and ESOPs
Succession Planning using Equity Incentive Plan and ESOPs
wifilawgroup
Guaranteed vs Incentive Pay - What's the Right Balance?
Guaranteed vs Incentive Pay - What's the Right Balance?Guaranteed vs Incentive Pay - What's the Right Balance?
Guaranteed vs Incentive Pay - What's the Right Balance?
The VisionLink Advisory Group
10 Movies Every Entrepreneur Should Watch
10 Movies Every Entrepreneur Should Watch10 Movies Every Entrepreneur Should Watch
10 Movies Every Entrepreneur Should Watch
LawTrades
Negotiating as Consultant
Negotiating as ConsultantNegotiating as Consultant
Negotiating as Consultant
Jamie Lee
Converting Employees to Owners: Employee Share Purchase Plans
Converting Employees to Owners: Employee Share Purchase PlansConverting Employees to Owners: Employee Share Purchase Plans
Converting Employees to Owners: Employee Share Purchase Plans
Now Dentons
ESOPs LEGAL & PROCEDURAL ASPECTS
ESOPs LEGAL & PROCEDURAL ASPECTSESOPs LEGAL & PROCEDURAL ASPECTS
ESOPs LEGAL & PROCEDURAL ASPECTS
Corporate Professionals
Raising Your Seed Round Financing: Should You Use Convertible Notes or Prefe...
Raising Your Seed Round Financing:  Should You Use Convertible Notes or Prefe...Raising Your Seed Round Financing:  Should You Use Convertible Notes or Prefe...
Raising Your Seed Round Financing: Should You Use Convertible Notes or Prefe...
Bart Greenberg
Startup MBA 3.1 - Funding, equity, valuations
Startup MBA 3.1 - Funding, equity, valuationsStartup MBA 3.1 - Funding, equity, valuations
Startup MBA 3.1 - Funding, equity, valuations
Founder-Centric
Avoiding Common Business Plan Mistakes
Avoiding Common Business Plan MistakesAvoiding Common Business Plan Mistakes
Avoiding Common Business Plan Mistakes
Bart Greenberg
Equity Incentives and Bonus Plans for Employees, Consultants & Advisors
Equity Incentives and Bonus Plans for Employees, Consultants & AdvisorsEquity Incentives and Bonus Plans for Employees, Consultants & Advisors
Equity Incentives and Bonus Plans for Employees, Consultants & Advisors
Chirag Charlie Patel, PMP
Employee equity incentives
Employee equity incentivesEmployee equity incentives
Employee equity incentives
Bart Greenberg
Common Entrepreneur Mistakes
Common Entrepreneur MistakesCommon Entrepreneur Mistakes
Common Entrepreneur Mistakes
Bart Greenberg
Kaplowitch equity dos and donts
Kaplowitch equity dos and dontsKaplowitch equity dos and donts
Kaplowitch equity dos and donts
BFBootcamp
Succession Planning using Equity Incentive Plan and ESOPs
Succession Planning using Equity Incentive Plan and ESOPsSuccession Planning using Equity Incentive Plan and ESOPs
Succession Planning using Equity Incentive Plan and ESOPs
wifilawgroup
Guaranteed vs Incentive Pay - What's the Right Balance?
Guaranteed vs Incentive Pay - What's the Right Balance?Guaranteed vs Incentive Pay - What's the Right Balance?
Guaranteed vs Incentive Pay - What's the Right Balance?
The VisionLink Advisory Group
10 Movies Every Entrepreneur Should Watch
10 Movies Every Entrepreneur Should Watch10 Movies Every Entrepreneur Should Watch
10 Movies Every Entrepreneur Should Watch
LawTrades
Negotiating as Consultant
Negotiating as ConsultantNegotiating as Consultant
Negotiating as Consultant
Jamie Lee
Converting Employees to Owners: Employee Share Purchase Plans
Converting Employees to Owners: Employee Share Purchase PlansConverting Employees to Owners: Employee Share Purchase Plans
Converting Employees to Owners: Employee Share Purchase Plans
Now Dentons
Raising Your Seed Round Financing: Should You Use Convertible Notes or Prefe...
Raising Your Seed Round Financing:  Should You Use Convertible Notes or Prefe...Raising Your Seed Round Financing:  Should You Use Convertible Notes or Prefe...
Raising Your Seed Round Financing: Should You Use Convertible Notes or Prefe...
Bart Greenberg
Startup MBA 3.1 - Funding, equity, valuations
Startup MBA 3.1 - Funding, equity, valuationsStartup MBA 3.1 - Funding, equity, valuations
Startup MBA 3.1 - Funding, equity, valuations
Founder-Centric
Avoiding Common Business Plan Mistakes
Avoiding Common Business Plan MistakesAvoiding Common Business Plan Mistakes
Avoiding Common Business Plan Mistakes
Bart Greenberg
Equity Incentives and Bonus Plans for Employees, Consultants & Advisors
Equity Incentives and Bonus Plans for Employees, Consultants & AdvisorsEquity Incentives and Bonus Plans for Employees, Consultants & Advisors
Equity Incentives and Bonus Plans for Employees, Consultants & Advisors
Chirag Charlie Patel, PMP

Similar to How to Divide the Pie? Dynamic Equity Share by Mike Moyer (7)

How to split equity among founders
How to split equity among foundersHow to split equity among founders
How to split equity among founders
pankajg05
Presentation1 on 01-12-14
Presentation1 on 01-12-14Presentation1 on 01-12-14
Presentation1 on 01-12-14
George Masih
MEMSI June 2018: Building a company: Equity, Fundraising and more
MEMSI June 2018: Building a company: Equity, Fundraising and moreMEMSI June 2018: Building a company: Equity, Fundraising and more
MEMSI June 2018: Building a company: Equity, Fundraising and more
Elaine Chen
Presentation1 on 13 03-141
Presentation1 on 13 03-141Presentation1 on 13 03-141
Presentation1 on 13 03-141
George Masih
How I Quit My Job, Started a Small Firm and Built a Life I Love
How I Quit My Job, Started a Small Firm and Built a Life I LoveHow I Quit My Job, Started a Small Firm and Built a Life I Love
How I Quit My Job, Started a Small Firm and Built a Life I Love
Accountingfly
Salary
SalarySalary
Salary
AvisekBera1
What does entrepreneurship after 50 entail (2)
What does entrepreneurship after 50 entail (2)What does entrepreneurship after 50 entail (2)
What does entrepreneurship after 50 entail (2)
AtheethBelagode
How to split equity among founders
How to split equity among foundersHow to split equity among founders
How to split equity among founders
pankajg05
Presentation1 on 01-12-14
Presentation1 on 01-12-14Presentation1 on 01-12-14
Presentation1 on 01-12-14
George Masih
MEMSI June 2018: Building a company: Equity, Fundraising and more
MEMSI June 2018: Building a company: Equity, Fundraising and moreMEMSI June 2018: Building a company: Equity, Fundraising and more
MEMSI June 2018: Building a company: Equity, Fundraising and more
Elaine Chen
Presentation1 on 13 03-141
Presentation1 on 13 03-141Presentation1 on 13 03-141
Presentation1 on 13 03-141
George Masih
How I Quit My Job, Started a Small Firm and Built a Life I Love
How I Quit My Job, Started a Small Firm and Built a Life I LoveHow I Quit My Job, Started a Small Firm and Built a Life I Love
How I Quit My Job, Started a Small Firm and Built a Life I Love
Accountingfly
What does entrepreneurship after 50 entail (2)
What does entrepreneurship after 50 entail (2)What does entrepreneurship after 50 entail (2)
What does entrepreneurship after 50 entail (2)
AtheethBelagode

More from Ed Kuiters (10)

District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
Ed Kuiters
141207 pioneer debate
141207 pioneer debate141207 pioneer debate
141207 pioneer debate
Ed Kuiters
Evaluation workshop pioneer_tmc
Evaluation workshop pioneer_tmcEvaluation workshop pioneer_tmc
Evaluation workshop pioneer_tmc
Ed Kuiters
Impression SeaNect software
Impression SeaNect softwareImpression SeaNect software
Impression SeaNect software
Ed Kuiters
SeaNect Impression
SeaNect ImpressionSeaNect Impression
SeaNect Impression
Ed Kuiters
SeaNect
SeaNectSeaNect
SeaNect
Ed Kuiters
090725 Eng School Sugiyama
090725 Eng School Sugiyama090725 Eng School Sugiyama
090725 Eng School Sugiyama
Ed Kuiters
090318 Progressive Laws Nl
090318 Progressive Laws Nl090318 Progressive Laws Nl
090318 Progressive Laws Nl
Ed Kuiters
090227 Credit Crisis
090227 Credit Crisis090227 Credit Crisis
090227 Credit Crisis
Ed Kuiters
090214 Fail Software Development
090214 Fail Software Development090214 Fail Software Development
090214 Fail Software Development
Ed Kuiters
District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
District76 Spring Conference 2015 - Evaluation Workshop - Ed Kuiters 2015
Ed Kuiters
141207 pioneer debate
141207 pioneer debate141207 pioneer debate
141207 pioneer debate
Ed Kuiters
Evaluation workshop pioneer_tmc
Evaluation workshop pioneer_tmcEvaluation workshop pioneer_tmc
Evaluation workshop pioneer_tmc
Ed Kuiters
Impression SeaNect software
Impression SeaNect softwareImpression SeaNect software
Impression SeaNect software
Ed Kuiters
SeaNect Impression
SeaNect ImpressionSeaNect Impression
SeaNect Impression
Ed Kuiters
090725 Eng School Sugiyama
090725 Eng School Sugiyama090725 Eng School Sugiyama
090725 Eng School Sugiyama
Ed Kuiters
090318 Progressive Laws Nl
090318 Progressive Laws Nl090318 Progressive Laws Nl
090318 Progressive Laws Nl
Ed Kuiters
090227 Credit Crisis
090227 Credit Crisis090227 Credit Crisis
090227 Credit Crisis
Ed Kuiters
090214 Fail Software Development
090214 Fail Software Development090214 Fail Software Development
090214 Fail Software Development
Ed Kuiters

Recently uploaded (20)

Carousel - Five Key FinTech Trends in 2025
Carousel - Five Key FinTech Trends in 2025Carousel - Five Key FinTech Trends in 2025
Carousel - Five Key FinTech Trends in 2025
Anadea
SponsorPitch.pdf........................
SponsorPitch.pdf........................SponsorPitch.pdf........................
SponsorPitch.pdf........................
mekhilivingston
Holden Melia - An Accomplished Executive
Holden Melia - An Accomplished ExecutiveHolden Melia - An Accomplished Executive
Holden Melia - An Accomplished Executive
Holden Melia
SWOT Analysis: Boutique Consulting Firms in 2025
 SWOT Analysis: Boutique Consulting Firms in 2025  SWOT Analysis: Boutique Consulting Firms in 2025
SWOT Analysis: Boutique Consulting Firms in 2025
Alexander Simon
Portfolio - Example Project 2025 by Gina
Portfolio - Example Project 2025 by GinaPortfolio - Example Project 2025 by Gina
Portfolio - Example Project 2025 by Gina
esouveninteriordesig
Exploring the creativity problem- mind maps.pdf
Exploring the creativity problem- mind maps.pdfExploring the creativity problem- mind maps.pdf
Exploring the creativity problem- mind maps.pdf
P&CO
Digital Marketing Roadmap - PPT Template and Guide
Digital Marketing Roadmap - PPT Template and GuideDigital Marketing Roadmap - PPT Template and Guide
Digital Marketing Roadmap - PPT Template and Guide
Aurelien Domont, MBA
Transfer API | Transfer Booking Engine | Transfer API Integration
Transfer API | Transfer Booking Engine | Transfer API IntegrationTransfer API | Transfer Booking Engine | Transfer API Integration
Transfer API | Transfer Booking Engine | Transfer API Integration
chethanaraj81
Dunlop Model Class Lecture one for mid.pptx
Dunlop Model Class Lecture one for mid.pptxDunlop Model Class Lecture one for mid.pptx
Dunlop Model Class Lecture one for mid.pptx
NazrulIslamJewel1
Will-Skill Matrix PowerPoint Template and Guide
Will-Skill Matrix PowerPoint Template and GuideWill-Skill Matrix PowerPoint Template and Guide
Will-Skill Matrix PowerPoint Template and Guide
Aurelien Domont, MBA
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Lviv Startup Club
Taylor Swift The Man Music Video Production
Taylor Swift The Man Music Video ProductionTaylor Swift The Man Music Video Production
Taylor Swift The Man Music Video Production
eclark941
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
dominionglobalanalyt
Illuminati brotherhood in Uganda call +256789951901/0701593598
Illuminati brotherhood in Uganda call +256789951901/0701593598Illuminati brotherhood in Uganda call +256789951901/0701593598
Illuminati brotherhood in Uganda call +256789951901/0701593598
removed_43fc2846aef7ee8f2a43e6bb3648f7c3
Smart Logistics Integrating Freight, Trucking & Warehousing Prospect Logis...
Smart Logistics  Integrating Freight, Trucking & Warehousing  Prospect Logis...Smart Logistics  Integrating Freight, Trucking & Warehousing  Prospect Logis...
Smart Logistics Integrating Freight, Trucking & Warehousing Prospect Logis...
prospectsingapore
Project Status Report - Powerpoint Template
Project Status Report - Powerpoint TemplateProject Status Report - Powerpoint Template
Project Status Report - Powerpoint Template
Aurelien Domont, MBA
BusinessGPT - Privacy first AI Platform.pptx
BusinessGPT  - Privacy first AI Platform.pptxBusinessGPT  - Privacy first AI Platform.pptx
BusinessGPT - Privacy first AI Platform.pptx
AGATSoftware
CCleaner Pro 6.33 Crack + Key Free Download 2025
CCleaner Pro 6.33 Crack + Key Free Download 2025CCleaner Pro 6.33 Crack + Key Free Download 2025
CCleaner Pro 6.33 Crack + Key Free Download 2025
kortez3
Top Social Media Marketing Trends in 2025
Top Social Media Marketing Trends in 2025Top Social Media Marketing Trends in 2025
Top Social Media Marketing Trends in 2025
bulbulkanwar7070
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCYREACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
leooscar735
Carousel - Five Key FinTech Trends in 2025
Carousel - Five Key FinTech Trends in 2025Carousel - Five Key FinTech Trends in 2025
Carousel - Five Key FinTech Trends in 2025
Anadea
SponsorPitch.pdf........................
SponsorPitch.pdf........................SponsorPitch.pdf........................
SponsorPitch.pdf........................
mekhilivingston
Holden Melia - An Accomplished Executive
Holden Melia - An Accomplished ExecutiveHolden Melia - An Accomplished Executive
Holden Melia - An Accomplished Executive
Holden Melia
SWOT Analysis: Boutique Consulting Firms in 2025
 SWOT Analysis: Boutique Consulting Firms in 2025  SWOT Analysis: Boutique Consulting Firms in 2025
SWOT Analysis: Boutique Consulting Firms in 2025
Alexander Simon
Portfolio - Example Project 2025 by Gina
Portfolio - Example Project 2025 by GinaPortfolio - Example Project 2025 by Gina
Portfolio - Example Project 2025 by Gina
esouveninteriordesig
Exploring the creativity problem- mind maps.pdf
Exploring the creativity problem- mind maps.pdfExploring the creativity problem- mind maps.pdf
Exploring the creativity problem- mind maps.pdf
P&CO
Digital Marketing Roadmap - PPT Template and Guide
Digital Marketing Roadmap - PPT Template and GuideDigital Marketing Roadmap - PPT Template and Guide
Digital Marketing Roadmap - PPT Template and Guide
Aurelien Domont, MBA
Transfer API | Transfer Booking Engine | Transfer API Integration
Transfer API | Transfer Booking Engine | Transfer API IntegrationTransfer API | Transfer Booking Engine | Transfer API Integration
Transfer API | Transfer Booking Engine | Transfer API Integration
chethanaraj81
Dunlop Model Class Lecture one for mid.pptx
Dunlop Model Class Lecture one for mid.pptxDunlop Model Class Lecture one for mid.pptx
Dunlop Model Class Lecture one for mid.pptx
NazrulIslamJewel1
Will-Skill Matrix PowerPoint Template and Guide
Will-Skill Matrix PowerPoint Template and GuideWill-Skill Matrix PowerPoint Template and Guide
Will-Skill Matrix PowerPoint Template and Guide
Aurelien Domont, MBA
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Rostyslav Chayka: 丕仗舒于仍仆仆 从仂仄舒仆亟仂 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Lviv Startup Club
Taylor Swift The Man Music Video Production
Taylor Swift The Man Music Video ProductionTaylor Swift The Man Music Video Production
Taylor Swift The Man Music Video Production
eclark941
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
2025_Dominion Presentaci坦n_Corporativa_Larga (ENG)_web.pdf
dominionglobalanalyt
Smart Logistics Integrating Freight, Trucking & Warehousing Prospect Logis...
Smart Logistics  Integrating Freight, Trucking & Warehousing  Prospect Logis...Smart Logistics  Integrating Freight, Trucking & Warehousing  Prospect Logis...
Smart Logistics Integrating Freight, Trucking & Warehousing Prospect Logis...
prospectsingapore
Project Status Report - Powerpoint Template
Project Status Report - Powerpoint TemplateProject Status Report - Powerpoint Template
Project Status Report - Powerpoint Template
Aurelien Domont, MBA
BusinessGPT - Privacy first AI Platform.pptx
BusinessGPT  - Privacy first AI Platform.pptxBusinessGPT  - Privacy first AI Platform.pptx
BusinessGPT - Privacy first AI Platform.pptx
AGATSoftware
CCleaner Pro 6.33 Crack + Key Free Download 2025
CCleaner Pro 6.33 Crack + Key Free Download 2025CCleaner Pro 6.33 Crack + Key Free Download 2025
CCleaner Pro 6.33 Crack + Key Free Download 2025
kortez3
Top Social Media Marketing Trends in 2025
Top Social Media Marketing Trends in 2025Top Social Media Marketing Trends in 2025
Top Social Media Marketing Trends in 2025
bulbulkanwar7070
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCYREACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
REACH OUT TO SALVAGE ASSET RECOVERY TO RECOVER SCAM OR STOLEN CRYPTOCURRENCY
leooscar735

How to Divide the Pie? Dynamic Equity Share by Mike Moyer

Editor's Notes

  • #2: Ed Kuiters Netherlands Software company Collaborate with a Russian software company Maritime maintenance, Meteorological Institutes Latest project; easy to use accounting software for small business. How to divide the pie? How give all participants in a start-up a fair share .
  • #3: I have new business ideas all the time. Everywhere I look I see opportunities for better products, improved services.. and I bet there are many people like me here tonight. People who are running or are considering to run there own business?
  • #4: So what happens if you get a new idea? Quick business plan.. Huge growth potential? Hostile takeover Google?
  • #5: Talk with friends, experts & you discover that your sales skills may not be enough to get your business going, or that you will need a programmer for a prototype or someone who knows the industry you are targeting inside out.. You need partners
  • #6: But you did not make any money yet.. you need people who are willing to work for free? Is that possible? Yes; equity.. allow people who believe in your idea & are willing to contribute to share in future revenues.. What do you need is: Persuade people about your idea Make clear how you are going to share profits with them..
  • #7: OK, your plan is brilliant.. so your business will generate a lot of pie (profit).. but how are you going to share it with them?
  • #8: Well.. 50/50 is fair..
  • #9: But it was my idea..
  • #10: Hey, but I have much more experience than you. Also, I know this market. You only had the idea. Without me you will have nothing. Hmm..
  • #11: Let's assume we agree that we both get 50% of the shares
  • #17: Basically you are STUCK.. you agreed on the division of shares.. no way to get out of this.. This is a very complex problem. Both parties will have arguments why their share should be bigger.. And we don't have a Crystal ball.. I saw this go wrong in my own business and in the businesses of friends. This is so difficult..
  • #18: Perhaps it is better to do it myself.. ?? NOT a good idea. There is a rather big chance that you are NOT superman; not the best sales man, marketing man, software developer, people manager in the world.. Collaboration is good to compensate for your weaker points, make use of connections, get advise from experienced business men, etc, etc.. BUT, I cannot pay them & I don't know how many shares I should give them..
  • #19: Today I will show you a fair and effective way to divide the pie. Why is this so VERY important? Because it will stimulate you to engage in partnerships, seek help from others and create synergy.. like Jobs & Wozniak at Apple, Allen & Gates at Microsoft, Page & Brin at Google Don't be discouraged, dividing the pie in a fair & effective way is much easier than you may think.
  • #20: I had the same problem in my latest project. Four people; 2 accountants & 2 IT people want to start a new business.. but we first need a prototype and test our ideas & our market before we are going to make any money.. OK, we need equity.. but HOW are we going to divide the pie later on?? This is how & when I found a book from Mike Moyer. He is a serial entrepreneur and found a great way to split equity among start-up members..
  • #28: This does not have to be the leader of your new business or the founder.. this is just a person who you all trust.
  • #29: There are many things a start up needs, for example .. time, work captital, relations, office space, make expenses, capital, etc.. These contributions needed for your start-up or project need to be assigned a value as early as possible..
  • #30: Annual salary => you do not get a salary.. but you hope to be compensated later.. This is a risk, that's why you need to put a markup on your salary => * 2
  • #31: Example
  • #39: Total Theoretical Value: sum of all contributions Mr A: hours Mr B: hours (at a higher rate) & equipment Mr C: investment Contribution of Mr A is 2 mln on a total theoretical contribution to the company of 34 mln = 6%
  • #48: Mr D has a 4 million sales * 10% * 2
  • #52: If you have a brilliant idea & decide you are going to pursue it.. unless your dream is to become a street musician there is a fairly big chance that finding 1 or more partners who can bring something extra to the table is be a good idea. Even if you do not make money to pay them yet, you may be able to a) convince them of the brilliance of your idea & b) explain to them how their efforts will be rewarded.. If you need any help with b).. go out and buy this book. You may also contact me and ask about my experiences with the methods described in here. Before you know it, you might be targeting Google for a hostile take over...