HACKER Q&A
📣 brazed_blotch

How should I split equity between my partner and I?


The business revolves around refurbishing vintage electronics, which I've been doing for the last couple years.

My contribution to the business:

   - Funding (around 10-20k in the first three months. Most likely more after)

   - Sales channel from my other business (will provide enough orders for my partner to work full time, and most likely onboard an employee or two).

   - Managing and training my partner on how to run the business (essentially treating him as an unskilled employee) - Hosting all the software needed (inventory management, storefront, task management, email etc)

   - Technical knowledge. I am an electrical engineer, and some parts of the job require some engineering. This is however a small portion and mostly only relevant with certain refurbishments and repairs. It can be taught.
His contribution to the business:

   - I expect he will work full time on the business

   - He will be managing everything on the ground, looking into new products, etc.
My expectation is to have little stress related to this business - I don't want to be harassed about operational issues once it's up and running, and of course my equity should reflect that. I will not be working full time on it. However I also want to be able to develop and implement strategies for the business, and also control over pricing for my sales channel, so I would ideally like over 50 percent ownership. Is this fair? How would you split it based on the above?

Another option I have is to hire him. I will be able to do this financially in 2-3 months. Should I wait until then? I want him to be motivated to cut costs and grow the business though, so I am not sure if this is appropriate.


  👤 dylanhassinger Accepted Answer ✓
Business doesn't sound scalable so equity doesn't really matter. Simpler the better

But really I'd encourage making your plan around what lifestyle you and your spouse want, and trying to come to consensus and compromise