After a mutual friend spoke to me about one of his projects, I decided to reach out because we have a lot in common and we talked about his current business.
* it started a few months ago * it's already generating substantial revenues * there's not much structure in place
He has quickly reached a point where he needs help or he won't be able to expand. In our first discussion we quickly got to the topic of maybe contracting me for help or otherwise if I'd be more interested in a partnership and becoming a co-founder.
I spent about a week in the evenings and on the weekend (for free) helping out because of my personal interest in the field he's working in and to see if we'd get along further.
I helped automate part of his process, saving him manual work and I've started building out a new backend as well since his code was hastily written and is just a bunch of isolated scripts.
In addition I've started putting structure into place to organize work better.
He has asked me to join him full time but I currently work a full time job (making low six figures) but don't have kids so I've got time in the evenings and weekends.
After thinking about a proposal, I came back to him and asked for 20% of the business, for which I would join and commit ~20 hours per week.
Reverse vesting quarterly over a year (not the standard four) because despite its current success, there are risks in the field.
He's very focused on sales but is dropping a lot of them due to lack of time. My thinking was that with my help he could focus on sales and marketing, while I take over development and automation, as well as organizing work, which would ensure an increase in sales and a better foundation for the business.
My experience is in software development and product management so I think I can bring value despite the part time position.
I can't see myself leaving my current role right away as I'd like to see how the business evolves first and I have a good career. Over time I can see myself joining him full time.
He accepted the offer verbally with enthusiasm and we are about to draw up a contract. However, with the 20% I would make more part time with him than I do full time at my job.
If it was only about the money, I'd go full time with him, but it's not. The 20% ask was also a number which would make me feel valued considering my contribution and would show his commitment to me.
The 20% would basically be ownership but also 20% of profit, paid out weekly. Now that we got close to the date to make it official, he's sort of soft-backtracked on his initial enthusiasm.
In the sense that he says he would "feel weird" paying me large sums for part time work (on the order of 2.5k-10k per day).
I realize it's a large sum but I don't find it strange. If by my contribution we increase productivity and sales, a part of the profits doesn't seem unusual. And I think he needs a co-founder and not and employee.
Sorry for the long post but essentially, what are your thoughts? Is it wrong to ask for this percentage of a business which already makes money? With the reverse vesting i feel like there are plenty of opportunities for the partnership to end without too much risk for him. And I'd contribute to the long term success of the business.
Thanks!