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Any ab circuit recommendations?
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Yup. I do it often. Half cash. Half equity. Always
Have not, but if you do this, be really sure about the company/product idea. Most startups fail in the first few years.
True true. This company has been around for a few years, isn’t super profitable but the new owners have a business plan to cut operation costs, and bring the net income up
If you’re going to do it, make sure to get whatever need you’d need for cash if lower than you’d ordinarily take. But also ask for equity.
What do you mean for cash if lower than I’d normally take?
My thought is, I don’t want to invest the amount of money they’re needing from me, but if I can contribute that in my marketing design and advertising services, it’s a trade off. I need to look into how to do that process more
This approach rarely succeeds—in fact, I’ve never heard of it working. What you’re describing is sweat equity, which does have value, but it doesn’t carry the same weight as actual ownership. The challenges and commitments of someone with true equity are far greater.
Additionally, the value you place on your contributions likely won’t align with what the owners believe they’re receiving.
Ask them to formally grant you “X” percentage of ownership upfront. Their response will tell you everything you need to know.
Good to keep in mind, thanks