Hello everyone please I’m in need of your advice on sharing equity.
I’m a developer and I am starting a digital agency with someone who is not a developer but he has connections that could always be bringing contracts for the company.
The problem is how do we divide the equity.
What I have:
- As a developer, I would be the one to do every project a clients brings
- I would also be training other people interested in learning programming and we could possibly employ the best once.
- Any other thing involving IT falls on me only.
- I also have some connection that can bring in big clients and contracts for our company.
What He has:
- The connection to bring in big clients and contracts for our company. Since he is a tax consultant for the government there is a big possibility of meeting top potential clients.
- He handles our finances (not funding the company) as he is an accountant. I mean he manages our money.
- He has an office he has already paid for that would now become our company’s office.
Please in a case like this how best should we share the equity? in terms of percentage.
There are somethings worth considering; like what if the contract are comming in from my end only or what if they are comming in from his end only. Do we share the equity the same in both cases.
Please give reasons for your answers if possible as I’m new to this whole equity thing and would really need to learn as much as possible asap. So as to avoid the many mistakes of startups I have read about following my research on this topic.
Thank you all in advance for your genius responses.