Ask MetaFilter questions tagged with business and startup

How to split business ownership fairly?

Anonymous — Mon, 07 Dec 2009 07:11:30 -0800

How should my business partner and I split the ownership and income of our start up? A parter (let's call him Bob) and I (let's call me Alice) started a business with no formal agreement regarding ownership. Currently, the business has minimal income and users. We expect this to change very soon.

Alice: Alice created the project in August '08. Alice has spent $1200 out of pocket on expenses.
Bob: Bob joined the project in June '09. Bob has spent $700 out of pocket on expenses, but is fine with spending the next $500 to equal this out.

Bob and Alice have each spent an equal amount of time working on the project each month that they have been working on it. So, Alice has been working on the project for 16 months and Bob has been working on it for 6 months.

What we want to know:

How should we split ownership?
How should we split income? We're interested in splitting the income evenly until we're each making a decent/living wage.

Alice and Bob have a completely amiable relationship. We're both interested in doing what's fair.

Any $100k recession-proof business startup ideas?

schindyguy — Wed, 14 Oct 2009 22:50:20 -0800

My buddy just landed $100k and we both want to start a business...Any recession-proof business startup suggestions? He's got a little time to work, but I have a lot more time.

I work as a tech consultant for startups so you would think I would have a great idea for us to invest in. But I dont...I am good at starting businesses from an administrative standpoint (state filings, accounting, technical setup, websites, emails etc), but don't have actionable ideas with a lump sum of money.

I have considered buying established business (searching places like bizbuysell) as well as online businesses through flippa.com, but have a problem with the real valuation of a company. Plus from what I have seen on flippa, if a site is netting 10k/month, they want at least 120k/year...and its hard to judge the validity of their numbers and growth potential.

And we dont care about the stigma of the industry (ie adult).

How do you fund a startup with (virtually) no collateral?

ohyouknow — Thu, 08 Oct 2009 10:51:48 -0800

I need an SBA loan yesterday. My business is in startup mode, I'm already fielding new orders, but I need startup capital to get this thing off the ground. To keep this simple I won't go into great depth about my business model. The short version is that this is what I've been doing for the past 5 years very successfully, I was the one driving the business where I was at previously, and all of my former clients have been calling me for assistance. But in order to make this work I need about 35k in capital and I have no collateral. I do have excellent credit, about 30k in untapped credit, and of course my 401k... but I really don't want to touch any of these things. Each time I model out my plan I anticipate (worst case scenario) that I will be out of debt by month 4. But how do I get to month 4 without cash?

I live in San Francisco and have contacted the SBA here, but it's a long process. There is one organization that had me fill out a one page form online for an "instant SBA" and I was summarily rejected (because I don't have collateral, which I thought wasn't supposed to be an issue for an SBA, but I digress).

I know SBA applications are way up and banks are more hesitant than ever about granting them... so any guidance you could give about how to proceed would be much appreciated.

And feel free to MeMail me if you'd like to know more about the specifics. Thanks in advance!

What are the best books to read if I'm interested in incorporating a business?

christopherbdnk — Sun, 20 Sep 2009 09:07:21 -0800

What are the best books to read if I'm interested in incorporating a business? In this I'm interested in more legal-oriented books (taxes, finding a CPA), as well as general advice/best practices. Additionally, I'll ask for a small bit of advice here:

Is it worth hiring a CPA from the start, or is this something we should think about in the future? I'd like to handle as much of this on my own as possible, but I'm also mindful of my own limitations, both with hours and expertise. Also, around how much should I expect to pay a lawyer for an initial consultation?

How do a few friends without a lot of resources start a business?

[insert clever name here] — Fri, 14 Aug 2009 14:09:11 -0800

How do a few friends with a talent and a vague idea, but no plan and no money, start a business? Or is this a recipe to disaster and broken friendships? A few friends and I have been "joking" about starting our own web design firm. We're all designers and have done some freelance on the side and the conversation always goes something like. "Hey, wouldn't it be great if we could start our own company?" and a discussion of how we would do "better" ensues. In theory, I love this idea, I've wanted to strike out on my own for a long time and these people are talented and I've worked with them before, and we work well together. However we've got a bunch of things stacked against us:
1) No startup capital
2) Can't afford to leave our jobs to pursue full time (see 1)
3) No experience running a business
4) We all have the same talent pool i.e. we're all designers. Sure, we each have our areas of expertise, but we are missing developers, account managers, etc. . . Though at least so far in our own freelancing we've been able to make due.
5) Plan, there ain't no plan

So far, the only thing I've come up with is forming some kind of freelance cooperative where we work with out own clients with the goal of merging into a design firm once we have the client base and resources to become a single unit. But even that seems like a vague approach without a lot of definition that doesn't really benefit anyone any more than what we're doing by just being friends and talking about freelance work.

Is there something I'm missing? Some way of making a go of this? Or should I leave the idle talk as just idle talk.

What kinds of advertising options should a new internet startup offer its customers and how should they be priced?

tnoetz01 — Wed, 29 Jul 2009 15:46:06 -0800

What kinds of advertising options should a new internet startup offer its customers and how should they be priced? I'm starting an online service targeted at beer enthusiasts, and we're considering offering advertising to the industry.

I'm trying to build some revenue model scenarios based on advertising options and rates. Specifically, I'm looking for help deciding what advertising options to offer and how much to charge for each, likely on a CPM basis.

What advertising options are typical, and what are typical CPMs for a site targeted at a fairly niche audience like ours?

Startup my Startup

jasondigitized — Wed, 24 Jun 2009 10:47:04 -0800

I am thinking about incorporating my web-based software startup. First, I am not sure if it makes sense to incorporate. Second, if I do incorporate, I am not not sure where in the world ( not just the U.S. ) I should incorporate. I may soon be leaving my corporate gig for a while to spend some time developing web based software that I eventually hope to sell through licenses or subscription fees. I will ONLY be selling web-based software. There will not be a physical product. Some of this software would store confidential information. I will most likely be hosting the software on Amazon or Google's infrastructure.

Does it make sense to incorporate? I will be spending money to do this right ( home office, marketing, graphic designer, possible travel, etc. ). I would like to be viewed as credible by my customers. Because I will be storing confidential information, I assume there is some liability.

Secondly, if I do incorporate, where should I do so? Right now I am living in Bermuda with a permanent address in Michigan ( my parents ). I could be selling software to anyone in the world. My product will be hosted somewhere out in the cloud. Does it make sense to incorporate in my home state of Michigan, the good old standby of Delaware, another state, or another country all together, i.e. Cayman Islands, Costa Rica, Singapore, etc.

I am not too concerned about LLC vs. S-Corp vs. Partnership. Ultimately, I want to boost my credibility, maximize my profit, offset my losses, and stay out of jail.

Help me micro-fund my business, but not like, by YOU giving me money..

Jonsnews — Thu, 05 Feb 2009 00:51:34 -0800

I am looking to self fund starting a business, but I need to seek a small amount of additional capital. Ideally, I would like to do this through friends and family, through a more formalized agreement. So how can I "sell them" a piece of my business without selling them stock? Basically, I would like to sell some sort of piece of paper for X amount of dollars with the agreement to repay it with X amount of return within X amount of time, or allow them to redeem it at the business for a greater amount. I would like to do this in small amounts to raise the rest of my capital.

Yeah, I know I could go get a small business loan, but the thought of doing it in a cool, non-traditional manner appeals to me.

No, I am not hoping to skip the business plan portion of things. I actually have already completed it along with my market research.

Yes yes, you are not my lawyer, and I will be seeing one shortly. I am just looking for ideas before hand.

What are some other "fun" ways to raise money to start a business?

Bobs LLC dba FrankFurters

cavalier — Mon, 05 Jan 2009 10:56:45 -0800

LLC d/b/a BBQ. Let's say I incorporate as "cavalierisawesome lol LLC". I then make a business card that says "Bob's Consulting". When I do business, the bills are settled to "cavalierisawesome lol llc". Can I market or advertise my services in a name separate from my incorporated name? The webs fail me, so I turn to the Ask.Mefi gods. Let's set a few ground rules:

1) I'm assuming I need to file a d/b/a for any name I put on business cards, websites, etcetera. I'd just love to be a little more informed before I start soliciting esquires.

2) This is not a case of wanting to change the business name every month, but more rather; I don't know what the hell I want to call the business yet, but I'm getting bites to do work. So I'd like to incorporate now, and then later use a different name for more established collateral/branding.

3) I'm certainly not trying to co-opt or otherwise take someone's trademarked, lovable name. See #2.

New Business - Where Do I Start

shew — Wed, 17 Dec 2008 09:37:47 -0800

BusinessStartupFilter: I'm looking to get into the sports concession business but have idea where to start. I am specifically interested in the mobile/cart concessions (you see them at Basektball games in the aisleways of the arena). Mini-donuts. Nacho stands, etc. I have about $10k for this project and a willingness to do whatever it takes. But I have some basic questions:

1) How do I get started with equipment?
2) How does one get 'in' with the sports arenas.
3) Is this even a good business to be in?

I am in the Denver Metro area.

Help me become a web savvy mogul superstar! (on a budget) :)

miss lynnster — Sun, 02 Nov 2008 19:49:00 -0800

I'm about to start some new business ventures and my current web host has not been doing a very good job so I want to switch while things are still small. Helllp! By this time next year I plan to have four business websites up and running. (Right now I have one site and two domain names, so I'm planning on doing a lot of work this year.) Recommendations on how to keep this virtual growth as painless, smart and profitable as possible so that I can focus on the work itself, not on damage control with my host. (I've spent three hours on the phone with them this week alone because I haven't been getting my e-mail. They're just awful.)

Here are the sites I plan to set up:
1) I own the domain. My current design site features my resume, portfolio, and room to ftp client files. In the future I'd like to develop that ftp area to be a separate password-protected client area.
2) I own the domain. I need to redesign my old jazz vocalist website and launch that within the next two months. (I don't want MySpace to be where my main web presence is, so please don't suggest that. I need my own domain with MySpace as a minor supplement that points to it.) Although I don't plan for mine to be so Flash-heavy, the content of this site will be similar to this, and should eventually include an area to purchase CDs.
3) Domain needs registering. A new business site set to launch within 3 months, probably no more than ten main pages with one form questionaire page. There might be a variety of photo galleries added over time.
4) Domain needs registering. Probably utilizing a blog template, this site is an online community startup to launch in a year or so, the timing to be dependent upon how the new business progresses (they're tied together). This could end up being a huge and very successful project down the road with a great deal of income potential, but only time will tell. For at least four months, this domain will be a blank canvas waiting for paint while other things get accomplished first.

So here are my questions:
A) What host would you recommend for hosting these four sites (with room to grow)? I want to be sure that the prices are reasonable and don't become cost prohibitive as my businesses grows and traffic increases. I've heard dreamhost is good but when I tried to contact their customer service for an estimate they didn't e-mail me back. I figured that was a bad sign so I gave up on them.
B) My previous domains were registered with Network Solutions. I know I probably don't want to register the new names with them. Should I go through the new host or how do you recommend I register the names? (I already know what they're going to be so I need to snatch them up asap while they're still available.)

Okay... advise away!!!! Thank you in advance for your help. :)

3 guys, fresh out of college, looking for some financial advice on obtaining a developer for our startup

drkrdglo — Wed, 16 Jul 2008 12:25:54 -0800

Two college friends and myself are looking to put together a mobile application start-up. We have the business end of the startup covered, but we need to find a developer to help us out. We need some financial guidance on what to do and what not to do. Should we pay a freelance developer, or bring someone on board with us as a partner? My friends and I have finished college, have great full-time jobs, but we are still looking for something more. We share a passion for technology and innovation. In the current climate, mobile technology seems to be a huge growth area, and a huge area of opportunity for a new startup.

At the current time, we're looking at this startup as more of a serious project than anything. We're keeping our day jobs (in advertising and ecommerce) not only to continue being able to pay our student loans, but to continue learning how the industry works. Business wise -- we're set. Financially -- we can get by. We have a few thousand dollars to invest at the time being. We want to make sure we're making the right investment.

Our current dilemma is that we need a developer. We need to find out whether it's better to hire a freelance developer (which I've seen ads on Craigslist ranging from ~$60-$75/hr), or garner the interest of a fourth partner to join our team. Under the assumption of gaining a fourth partner, he/she would receive compensation, as the rest of us would --- after the applications are launched and sold.

Since this is more of a very serious project as opposed to a full blown business -- I would be more comfortable with a fourth partner, but hey, I could be totally off base about this whole thing.

In the end, we're doing this because 1) we love the industry/would love to be a part of a technological revolution 2) there's huge potential for future opportunities. In order to make our dreams a reality, we need to find a developer -- our missing link. Hopefully you guys have some insight how we can go about doing so in a financially responsible way.

(Side note: if there's a developer out there interested in this sort of endeavor -- send me a message!)

Trying to brainstorm for a one-person business idea.

pinkbungalow — Wed, 07 May 2008 15:41:30 -0800

Help me think of a new business or career that can be started by one person with a small start-up budget? The more portable the better, and I hope to be able to support myself (not extravagently) with income from the business within 2 years. I have done this before starting a massage therapy business in FL that is now quite successful. I don't need to change the world, I just need something interesting and challenging to support myself until I retire in about 15-20 years. I am more of an idea and big-picture creative type than a detail or numbers person, but I am not averse to hard work. I do enjoy flexibility, travel, and living in a temperate climate. Start-up budget of $50k +/- Thank you!

Payroll processor or part-time bookkeeper for startup? (US/SF)

Anonymous — Fri, 21 Mar 2008 21:13:11 -0800

StartupFilter: Payroll processing co or part-time bookkeeper for SF Bay Area co? My friend and I started a company. Until now, it's just been the two of us working for equity. We're about to hire our first full-time employee, and want to stay on the good side of the IRS and the labor department.

Should we: a) get a payroll company to handle payroll and tax compliance, and if so, which one?, b) hire a part-time bookkeeper to do this, and if so, is there a good one in the East Bay, c) man up and do this stuff ourselves in QuickBooks Pro, or d) just hire people as contractors to work on well-defined projects until we are larger?

Additional info: we have no income yet, no debt, and are a CA S-Corp. We're funding this out of our own pockets for now, and plan to do so for the next six months.

Both of us are smart enough to learn tax and labor law, but would prefer not to have to.

Best on-line account for a startup?

Anonymous — Tue, 18 Mar 2008 02:17:59 -0800

Startupfilter: best on-line account for a small US business? Looking for recommendations for an online bank for a small US (CA) corporation. Cutting to the chase, is the ING/Orange business account a good idea?

Background:

I recently started a small consultancy / software business (S-Corp incorporated in California). We're small and don't have much in the way of cash coming in or going out, we just need a place to put money when we invest it into the company or eventually receive funds from customers, and a place to take money from when we pay contractors (and eventually pay ourselves).

Key features I'm looking for:

- web accessible (duh). I want to do everything online.
- no annoying fees
- competency
- compatiblity with Quickbooks Pro

Tips from the hive mind appreciated, whether about ING/Orange or other web accessible small-business-friendly banks.

I've reviewed these previous AskMeFIs - looking for updated suggestions and web-only bank tips.

Help me appraise the intellectual property values of acquaintances, if I do all the work bringing their ideas to market.

Redruin — Sun, 14 Oct 2007 12:34:21 -0800

Need help appraising the intellectual property values of acquaintances, if I do all the work bringing their ideas to market. I seem to have interested a number of people/friends in entrepreneurial endeavors. People whose ideas I think have good value and high potential, but people who are utterly clueless about how to turn it into money, and who are completely unmotivated to make things happen. In other words, their ideas will stagnate, and eventually be exploited by someone else if not for my effort and time investment.

Since I find inherent value in their ideas, I am considering lending myself to a few of their projects; but if I decide to "partner" with them I will be doing nearly all the work, using my own ingenuity and creativity to turn the ideas into products, marketing them, etc.

In cases like these, where the final product would consist mostly of MY intellectual property and effort, which is however, completely built around the initial kernel of THEIR intellectual property, how should I determine the profit split?

It seems that people's opinions of what they deserve for their ideas varies, but most expect a high percentage of the profits, with minimal involvement, (one facet of The American Dream). I would like to be able to present clear guidelines that would explain to them what is fair.

Where should I register my company?

mateuslee — Tue, 09 Oct 2007 03:57:08 -0800

I'm going to register my company as an LLC. My next question is where? Which US state is the best for this?
I posted a Q here a few weeks ago, and you guys really helped me out (thanks!)

http://ask.metafilter.com/70013/A-new-business

I'm now curious about where you think I will be taxed the least and deal with minimal hassles. I heard good things about WY, NV, and AL - but a google search reveals only adverts and little data.

I think I can register in any state I choose to and the process of becoming an LLC seems like something I can do myself just via a state's website. If you have any experience with this, please share it. I'm really a newbie. Bonus points if you can indicate a trustworthy accountant in the state who can file taxes for the company once formed and do any legwork that I can't do myself. Cronyism/nepotism ok.

Thanks a lot!

I know we need income distribution rules in writing. What does the writing say?

andifsohow — Thu, 27 Sep 2007 17:32:25 -0800

How to divide up a company amongst 3 people when 2 people will be doing most of the work for the first 6-12 months. A small consulting firm, built from scratch. We've had almost no expenses thus far and are about to land our first client. Everyone is fine with 1/3 ownership and we all want all 3 on board, but partner C will be able to do considerably less work over the next year or so due to a full-time gig he's committed to during that time.

I know we solve part of this by how we distribute income - i.e., we track hours put into project and pay out accordingly. Problem is, we also want to invest as much into the company as possible, because expenses are on the near horizon. So if we land a 10,000 project and the work is divided 45-45-10 amongst A, B, & C, but A & B want to invest 2000 of their respective 4500 into the company, how are the 1/3 splits best maintained? Is it customary for C to match that contribution out of pocket, for example, or do we need to break it down to represent contributions more accurately?

how to divide ownership shares in a side-project startup?

scarabic — Wed, 05 Sep 2007 18:38:01 -0800

I have an idea for a web project. It may have some commercial potential eventually but will basically be a night project for me and the other folks involved. Think of how MetaFilter got its start... hand-rolled / bootstrapped, whatever. My question is: how do you agree on who gets what share of any proceeds down the road? In particular, the design work will be heavy up front but tapering off after launch. Is it insulting to offer a designer a 5% share for a few days work? Does everyone brought in need to be made an equal partner? I'm sure the answer to that is no, but I'm not sure what the alternatives are. Paying people cash for work is not an option. There is no cash, and everyone involved is willing to invest some time and wait for results. The only thing is that some of us will be investing more time than others... so what to do?

Help me prepare to prepare my web project.

croutonsupafreak — Mon, 23 Jul 2007 15:56:16 -0800

I'm in the very early phases of putting together a special-interest web site, which will begin as a blog but could eventually add other features. For at least the first year or two, I expect to lose money on this. Eventually, I hope to cover my costs or maybe even make a small (very small) profit with advertising. What business, tax and technology considerations should I keep in mind as I get going? For example, should I incorporate a business before I register the domain name and launch? Are there books I should read on sideline businesses? On building online community?

Feasible? Or cuckoo? Where to begin?

jennyjenny — Wed, 11 Jul 2007 10:12:28 -0800

My business idea...brilliant, or a waste of time? Have you, or your business, ever needed a service like this? Has any company you worked for ever employed anybody to do this? I am about to graduate from Physical Therapy school with a master's degree. By the time I graduate, I will also have earned an ergonomics assessment specialist certification.

I would like to start a small business. I would provide assessment of the working conditions at offices, factories, etc. My services should reduce the incidence of workplace injury, repetitive stress injury, and workman's comp claims.

I would also like to run seminars for businesses -- teaching people who lift a lot of heavy stuff in their jobs to do it in a way that won't lead to injury. This could be applied to baggage handlers, postal and UPS-type companies, home health attendants, nurses, etc.

My questions:

-- Does this seem like a feasible plan?
-- How on earth does one begin something like this? Do I need a business plan, an accountant, a financial advisor? Do I need to become an LLC, or can I do this under my own name?
-- A silly question: Is this "consulting"? Do I call it consulting, or something else? I thought I knew what consulting meant, but people seem to be using that word to mean something different from what I understand it to mean.
-- Are there any books/websites/forums you would recommend that would give me a place to begin?

how to make the next big site

sacho — Sun, 11 Mar 2007 16:39:59 -0800

my friends and i have an idea for an awesome website - the next youtube or myspace. we know what we want it to look like, how we want it to work, the features we want it to have. but (and this is a big but) none of us have the skills to actually make it - or even know if it's possible with current technologies. is the idea worth anything without the technology or code that would bring the idea to fruition? how do we take our ideas to the next level? how to we protect our idea while trying to do this? hoping you can help a few english majors with a dream make it with an internet startup...thanks!

How do we split profits for our startup?

xyberspam — Wed, 20 Dec 2006 20:01:48 -0800

SmallBusiness Filter: I need help with how my business partners and I get paid. My partners and I have formed an startup LLC to do one line of work. Partner A has expanded into another line of work. While this is a good thing, since he does a majority of the work, he wants 80% of the profits. Partners B and C just provide the tech support and money to run the operations, so they get 20%. A needs the money to live, while B and C are taking their cut and reinvesting it into the company. How do we make this situation work for the company? We had planned on not taking any pay from the company until at least 6 mos. out, now we have to give a significant portion away, leaving us to wonder how to ensure that the business can grow. I hope I have related this clearly, and if not please ask me more questions so I can explain more. Help me hive mind, your my only hope.

Any resources for working with other partners in a startup?

Anonymous — Sat, 11 Nov 2006 11:47:35 -0800

How much should I expect out of partners from a startup, in regards to time and commitment? I am the type who will spend every waking hour researching, working, making contacts, etc. I do not believe my partners are making the same time commitment. Any advice, books or resources on dealing with interpersonal relationships when a startup is in the early phases? I am the de facto leader of the partnership. It was my idea and I seem to be guiding 90% of where things are going. This is fine, I acknowledge this. As I'm currently working (as are my partners) at a separate, unrelated job, the only time we have to work is after hours and on the weekend. I have not been going out, partying or keeping up with the once vibrant social life I had. This is fine, I can stay home on a the weekends and work until midnight.

My partners do not share this philosophy and if it were not for their extensive contacts (this is in a creative industry) and high intelligence I would dump them for someone else. This is not to say they don't have a work ethic but don't seem to have that same drive I do. They're a bit more of an artistic disposition and see work as, well work. This is not to say that I am a workaholic, once the startup gets going I do plan to take up my going out, shopping and cavorting like I used to. If I had my way I'd lock all of us in a hotel room for two weeks until we hammered out all the financing, the business structure and all the other details I learned in business school.

Any general advice? I guess my main problem is that I expected them to work and give up their social lives (that is social activities which do not at least tangentially relate to what we are doing) until the startup got to a point where money is being generated. I have all these business skills but not the ability to communicate the importance that they work with me ("Oh we can do that later in the week," they will say to something I do not know how to stress is important they all be there).

If I went to them and told them that I'm working about twice as much as both of them combined it would be condescending and patronizing. I'm more familiar with i-banker types who would skip Christmas to work. I'm not that crazy, but it is aggravating when I want to go over things on a Friday night and they'd rather go to whatever they deem important (dinners with friends they only see once a year are okay, until you realize they have 365 friends).

We are sitting down with a lawyer and I do not want ownership and control issues to become a big issue. They have acquiesced to all demands about amount each holds in a partnership without really questioning it, this disturbs me as I do not want there to be conflict later on if I make a deal I think is fair but they see as lopsided. I want a frank and open discussion. How do I go about this? With other businessmen I have dealt with this is always very impersonal and dealt with in a very professional manner. From my conversations I believe they have a very "money is a taboo topic" (which is why I am doing most of the financing and managerial work).

I am also very used to working with other sharks and instinctively am operating under a veil of paranoia and backstabbing (which is why, to be honest, I am wanting to leave that world). I am afraid that I will do something and it will come off as such, even though I'm very self-aware generally and try to prevent such instances from happening.

So finance type and artists working together on a startup. How do I not make it a cluster fuck? I should mention that none of us have contributed any appreciable capital (nothing over $1000), and we are seeking outside financing -- no one is a rich kid that is financing this. I need to not come off as an asshole and I need them to take things a bit more seriously. Any resources at all would be magnificent. Please excuse any details left out as me wanting to retain a bit of anonymity and instead look at the larger picture.

business development and the developer

peptide — Tue, 10 Oct 2006 12:19:18 -0800

When to bring a business development person into a startup? I am in the process of starting a software business with three other people. Currently we are two developers, a graphic and ui designer, and a project manager. We have identified the product that we want to create and sell/license, and have begun designing it. We have already been approached by several potential customers who are really psyched about it. We have a lawyer who is helping us write the operating agreement for our LLC. Things are moving along.

We've been approached by a couple of business-types who have said that they think it's a great idea, and that they would like to be in charge of raising money, marketing the product and growing the business. The first one was a total jerk who we promptly told to buzz off. The new guy seems nice and fairly capable, and he has started several businesses in his time that he has grown and sold to pretty major corporations (Aldus being the biggest, yes this was back in the day). In short, he seems like a pretty good match.

As none of us has experience beyond our sole-props and small LLCs (we're all just freelancers, not really entrepreneurs), we fully acknowledge the need to find someone to do biz dev and to be in charge of the marketing and so forth at some point, but my question is: when is the proper time to do this? As we are currently drafting the operating agreement, my assumption is that this guy is looking for a 1/5th equity stake. But it seems to me that we would be in a much better position to grow the business as much as we can ourselves before bringing someone else in - i.e., build the product, make the sales to the already interested customers, and then hire someone to "take it to the next level" as they say. And then we wouldn't have to sacrifice such a large portion of the company. But I'm not sure about this, either - maybe having someone with the company from the ground up is the proper way to go.

What do you all think?