How To Be Moderately Successful.
Building a business is hard.
Maintaining healthy relationships with those that you care about is hard.
Staying fit and healthy in your body, your mind and your emotions is hard.
This podcast is about finding and sharing tools, strategies and experiences that may help you to achieve and maintain moderate success in your life, whatever that means to you.
There is a ton of content created by the billionaires, the ultra successful athletes, and by people that are at a level that the vast majority of us will just never get to. And if you're anything like me, you're totally okay with that.
This is a place where we talk about how to build a great business, but not necessarily a massive one. A place to talk about how we build a life that is balanced and integrated, but not necessarily optimised to levels that are not realistic for most of us.
In short, it's a place where we explore how to be moderately successful.
The work will always remain yours, and for the most part, it's simple, but not easy.
I sincerely hope it's valuable to you.
-Mike
If you want to talk about working with me get in touch on mike@smbmastery.com.au or https://www.linkedin.com/in/mikeadamscott/
How To Be Moderately Successful.
EP38 - Why Equal Equity Splits Often Fail, And How to Do It Right
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. mike@smbmastery.com.au or https://www.linkedin.com/in/mikeadamscott/