Search a title or topic

Over 20 million podcasts, powered by 

Player FM logo
Artwork

Content provided by Mike Scott. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike Scott or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Player FM - Podcast App
Go offline with the Player FM app!

EP38 - Why Equal Equity Splits Often Fail, And How to Do It Right

16:11
 
Share
 

Manage episode 472085115 series 2878353
Content provided by Mike Scott. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike Scott or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

In this conversation, Mike discusses the critical importance of having open and honest discussions about equity distribution among co-founders when starting a business. He emphasises that while many assume a 50-50 split, this often leads to complications later on. Drawing inspiration from the book 'Slicing the Pie', he outlines a structured approach to fairly allocate equity based on contributions such as cash, time, resources, and intellectual property. By tracking these contributions and applying multipliers based on scarcity, co-founders can engage in meaningful discussions about equity that foster trust and transparency, ultimately leading to healthier business relationships.

Takeaways

  • Equity discussions should happen early to avoid complications later.
  • Assuming a 50-50 split can lead to resentment and conflict.
  • Using a structured approach helps in fair equity distribution.
  • Tracking contributions is essential for transparent discussions.
  • Multipliers can reflect the scarcity of contributions.
  • Difficult conversations are necessary for building trust.
  • A Google sheet can simplify tracking contributions.
  • Equity discussions should be based on data, not emotions.
  • Building a high-trust relationship involves open communication.
  • Avoiding difficult conversations can harm future partnerships.

Chapters

00:00
The Importance of Equity Discussions

02:11
Mechanisms for Fair Equity Distribution

06:46
Tracking Contributions and Future Discussions

11:03
Building Trust Through Transparency

Here is the book reference: https://slicingpie.com/book/

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

  continue reading

43 episodes

Artwork
iconShare
 
Manage episode 472085115 series 2878353
Content provided by Mike Scott. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike Scott or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

In this conversation, Mike discusses the critical importance of having open and honest discussions about equity distribution among co-founders when starting a business. He emphasises that while many assume a 50-50 split, this often leads to complications later on. Drawing inspiration from the book 'Slicing the Pie', he outlines a structured approach to fairly allocate equity based on contributions such as cash, time, resources, and intellectual property. By tracking these contributions and applying multipliers based on scarcity, co-founders can engage in meaningful discussions about equity that foster trust and transparency, ultimately leading to healthier business relationships.

Takeaways

  • Equity discussions should happen early to avoid complications later.
  • Assuming a 50-50 split can lead to resentment and conflict.
  • Using a structured approach helps in fair equity distribution.
  • Tracking contributions is essential for transparent discussions.
  • Multipliers can reflect the scarcity of contributions.
  • Difficult conversations are necessary for building trust.
  • A Google sheet can simplify tracking contributions.
  • Equity discussions should be based on data, not emotions.
  • Building a high-trust relationship involves open communication.
  • Avoiding difficult conversations can harm future partnerships.

Chapters

00:00
The Importance of Equity Discussions

02:11
Mechanisms for Fair Equity Distribution

06:46
Tracking Contributions and Future Discussions

11:03
Building Trust Through Transparency

Here is the book reference: https://slicingpie.com/book/

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

  continue reading

43 episodes

همه قسمت ها

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Listen to this show while you explore
Play