How should I engage?

Microsoft bKFl33
Jun 14 21 Comments

So I met this guy (through a trusted connection) who has an interesting idea of an app in a domain that I know really well. The guy is non technical, knows market well and has great connections in the early adopter market. He's currently got quite a bit of cash and is playing angel investor, not working at the moment.

I know the technology really well and know how to apply it to the problem. I'm also good at making things happen when it comes to shipping, launching, setting up partnerships, getting marketing materials, etc.

This can grow into $1m/y business within 3 years, with investment of $100k or so (can probably start seeing revenue after $20k). Not great, but not terrible.

I'm currently working FTE and have no intention (ability) to quit. Also, I don't have a lot of my own money to invest in this (barely have any).

This isn't something that I will quit my job over, but can be bringing in nice income eventually, if not too diluted.

Can't decide how to approach it. At this point he needs engineers to build the thing basically, and validate it w users. I can bring in my expertise to help find engineers that can get mvp done, write some code myself, set up all the cloud accounts/ml pipelines, etc.

Should I ask for partnership and go 60/40 assuming that the guy brings in cash/investors?

Shall I just treat this as consultancy and ask for hourly fee (how much?)

Are there any other options?

TC 220k

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TOP 21 Comments
  • UnitedHealthcare / IT 6f5ff9
    Get down on one knee in a romantic setting and just say what’s in your heart.
    Jun 14 2
    • Microsoft bKFl33
      OP
      He's married and has kids, that train has left the station 😭
      Jun 14
    • Oracle / IT
      l00tb0x

      Oracle IT

      PRE
      Ericsson, National Instruments
      l00tb0xmore
      Be a side chick then
      Jun 14
  • Oracle not_larry
    Go for equity.
    Jun 14 2
    • Microsoft bKFl33
      OP
      How to frame it properly? Should we incorporate on day 1 and write down shares? Seems a bit too fast. What do people do typically?
      Jun 14
    • New / Consultant
      PinkJacket

      New Consultant

      PRE
      Google, Techstars, Mozilla, Barracuda, Duo Security
      BIO
      I'm me.
      PinkJacketmore
      Yes, basically that. But don't think you have to wait to file some government template documents. Literally just write "Company is a partnership owned 50/50 by the undersigned" and then both sign two copies in front a notary public. One for each of you. Done. The rest can be worked out later by your respective lawyers. (Don't have the same lawyer as your partner.)
      Jun 16
  • Rackspace racklife
    Have you ever read a book called Slicing Pie? It gives you some tips on how to do this. Seems like a good use case, he has money, you have time, decide your hourly rate and track your time to create an equal investment.
    Jun 14 2
    • Microsoft bKFl33
      OP
      One by Mike Moyer? Nope, thanks
      Jun 14
    • New eeert
      slicing pie is too much mental overhead, partner 50/50 on vesting schedule or gfto
      Jun 14
  • New eeert
    how can I invest? I like your enthusiasm! I’m entrepreneurial dev w full stack exp also not planning to quit my job w TC 260k but have flexibility. what are we building?
    Jun 14 4
    • Microsoft bKFl33
      OP
      IOS app with cloud backend and an ML service. But devs I'd use will charge $30/hour and will be happy with it :)
      Jun 14
    • New eeert
      mmhmm hiring in bangladesh?
      Jun 14
    • Microsoft bKFl33
      OP
      Nope, but outside US. Something I've got a lot of experience with and know how to do right
      Jun 14
    • New eeert
      which country? I know ppl in argentina but their rates are ~45
      Jun 15
  • Salesforce / Product hahaSFDC
    Consulting would make you unhappy and will hold you back in the long run....
    Jun 14 2
    • How normally ceos come from consulting
      Jun 14
    • New / Consultant
      PinkJacket

      New Consultant

      PRE
      Google, Techstars, Mozilla, Barracuda, Duo Security
      BIO
      I'm me.
      PinkJacketmore
      lol. $400K TC and always growing, 10YOE, consultant, 12 weeks of vacation a year, and zero commute since I work from home. Consulting is the best thing I've ever done. Not for sheep though. You have to be your own boss.
      Jun 16
  • Amazon / Eng qjow15
    How do you have barely any money at 220K TC? Not trying to be mean but genuinely curious
    Jun 14 2
    • Microsoft bKFl33
      OP
      I have a family to feed and just started making this money when I moved here a few years ago. Have a mortgage and $40k in 401k
      Jun 14
    • Amazon / Eng qjow15
      That makes sense. I tend to assume it's mostly younger single people on blind.
      Jun 14
  • Microsoft JsonBrne
    What kind of gross margins do you expect on that $1M of revenue?
    Jun 15 0

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