Need advice. A few of my former colleagues started a successful business that needs investment capital to scale. Founders have no business background (it shows) & for past 2 years have gotten clients 100% by word of mouth. They asked me to write biz plan, review financials, and create materials to pitch to investors. They want to pay me but don’t have a ton of cash. If they get investment (~$5 M) want me to be COO. Should I ask for commission and/or ownership to help with this? Feel like yes.

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Ownership if you believe the business will grow. Just make sure you can cash out at will. Use your time as sweat equity. If you think the business is unlikely to grow enough to give you a decent ROI on your sweat, don't take commission, charge a fee.
Commission has the same risk but will cap your return.

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Commission no - that would be a major turnoff or red flag to investors. Equity perhaps - could work out an advisor agreement?

You can look up the FAST agreement

Commission for mere introduction (be careful of broker dealer rule) to investors if they invest — 2-4%

Equity commensurate to the number of hours put in making all the stuff for them/reviewing, done at a pre-agreed hourly rate (e.g. you put in 10 hours at 100/hr, you get equity equivalent of $1000 in the company that is X% based on whatever valuation the company is at).

Agree on potential salary/comp package once COO if you decide to take the position after the raise is done. Could be salary and options (the classic mix) or something else.

DM if you want to discuss.

What kind of business?

Yes, meant revenue not profit! Fingers crossed

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