50/50

>>1876330
I didn't really care about the split til he wanted to crowdfund for money to invest into the business. How the fuck is that fair when I do all of the work? His only job is to fund the business. He has a fat net worth and its not like hes strapped for cash, he just has no faith in the business so he wont invest and i'm not gonna badger him to do it constantly.

I just had this conversation with an old partner
Tell him he isn't matching your work and investment and therefore needs to be limited to the percentage of investment he has made either in work or in capital. If he has worked enough he gets 3%

>>1876440
It's a tech startup and he can literally bring nothing to the table as far as work goes. We are putting up a indiegogo for money to put towards the company. He was suppose to fund everything. I was thinking of telling him I am keeping anything that is beyond our goal of funding because he was suppose to fund the company to begin with.

>>1876462
Say this
But DON'T make the mistake of what I did:
Don't make any part of this personal
No ad hominem
Just the facts without any emotion
Especially because it's your family member

For future reference
people usually discourage
- 50/50 splits
- family member ventures

for these very reasons
[I also made the mistake of a 50/50 split]

>>1876467
Was thinking something along the lines of

"Anything past our goal will go to me because your main role was to fund the company, since you are getting your initial investment back then I think its only fair." Hows that? It's going to make me fucking livid when we start making good money and he didn't even do his basic role of funding. I'm pretty much settling by doing this anyways. I could crowdfund and cut him out totally.

Are you able to buy his share and he is willing to sell and you think the company will succeed, then buy him out. If any of those are false, you're gonna have a struggle to succeed or you'll have to get out now.

>>1876330

To know more, we need to know what kind of business is it. That effects the question.

But anyway, you made a mistake, did a split deal business with an unfit partner.

You shouldn't bother bringing down his split, that won't solve much. You should buy him out entirely. Whatever is fair, cut him a deal and get him out. He's useless and the business IS you.

What's funny about split deals is this. As humans we are fearful of change and fearful of big ideas. But we still want to live the good life and have power. SO in keeping with these 2 things, people go, "I want to start a business, but I'm unsure about things...so....um...er I guess I need to start the company with someone else."

And that's it right there. There is the fuckup. Start a business alone. Partners in small businesses is like multiple people trying to drive a car at once. Fuckin stupid, and there's dead weight.

Coming from someone who has started 3 small businesses. Partners are a mistake 90% of the time. Start alone. Hire employees if you need help.

>>1876478
If he doesn't like responsibility you can say "Oh dad I'll take some work from you, I'll just run most of the company. But you will have to give some shares so I can manage it myself though." or something like that.

>>1876525
Can't go into the details but I am thinking of just buying him out down the road for his initial investment + 400% or more. This business has succeeded before without him, he knows that so buying him out will probably be hard. Hes family so its hard to approach everything

>>1876590
Make a deal now for an option. That way you can set the price now based on where you are currently. He is less likely to agree in the future where you make enough money from the company to buy him out.

>>1876618
Is there no better way to approach this? I don't want my dad to be salty when the company goes on to make six figs