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[Calderc]

Recently, I had an idea for a business that I approached 3 friends about (I know, I know, you shouldn't go into business with friends - starting to understand why) and they were in on the idea. The start up costs were low so we all chipped in. We're getting ready to probably kick into gear soon, we haven't really started yet and are just at the foundation stages. That's where we stand.

The thing is, I'm recently unemployed after a temp contract ending, making me want to double down on getting this thing up, running and a success sooner rather than later. The other 3 are employed full time. I have absolutely no problem working on this full time, i'm not expecting not would I want any of the other 3 to quit their jobs on something that very well be a failure, and they're willing to do what's needed in their spare time.

Here's my question; is it wrong or selfish of me to want a little bit more of the business as a result of this? Or even to take enough out to cover bills etc? I think what will need done during the week will be be enough to where it would require at least one person there full time, and I would be the only one around to do it as the other 3 are at work.

I'm really torn on it. I feek like a dick even thinking it, but then I'll be the one taking the risk by putting all my time and energy in at the expense of a full time job, for the other 3 to reap the potential benefits of me working for nothing to get the business of the ground. I partly feel like I shoukd be compensated for that and partly feel like I'll come across like a selfish prick.

And I am still currently looking for work btw, I just think it'll be a hard decision shoukd I get offered one. I, alone, have already put in so much work, from the initial idea, to the name/logo and a shit load of back and forth with councils/regulators etc that was hair pullingly frustrating at times and I've also already got customers willing to buy the product so to me it really makes sense to jump in with both feet right now. But it still is a risk on my part.

Awaiting tbe potential thread backfire but honestly, what's your thoughts GAF?

 

[Mediking]

If you're putting in the most input... you deserve the biggest share.

They're your friends and should be understanding.

Hopefully this works out for you and you starting making money.

 

[Niceguydan8]

Talk to them about how they want to deal with compensation.

Frankly, I think this should have been discussed before any money was chipped in for the startup.

I don't think it's unreasonable for you to want more if you put in all of the work, but I also do think it's not entirely reasonable to bring that up after everyone has pitched in their share of capital.

Talk to them in a reasonable manner about it and be open-minded with what they say. That's your best bet.

 

[Calderc]

Talk to them about how they want to deal with compensation.

Frankly, I think this should have been discussed before any money was chipped in for the startup.

I don't think it's unreasonable for you to want more if you put in all of the work, but I also do think it's not entirely reasonable to bring that up after everyone has pitched in their share of capital.

Yeah I totally see that. It was all started on a whim really, I had through happenstance gotten to know a supplier with a specific product who mentioned a deal, i got in touch with them quickly saying 'we can get this and do this' and they were in. I bought it and we split the cost. There were no real discussions beforehand, they all happened after we got the initial supply. Not the best way to do things granted, but we could still use the product ourselves even if we didn't start the business so it would never have been a loss, it would have just been a very large bulk discount.

 

[WhatNXt]

I would talk about remuneration for working on it (when they can't) as soon as you can really.

If they don't like it they can take the share of the product that they bought in on.

 

[One Eyed Willy]

I wouldn't let you make more money if we had already agreed on terms. If you want to change the terms, do that first. Don't assume you deserve more than what you're contractually obligated.

 

[Calderc]

I wouldn't let you make more money if we had already agreed on terms. If you want to change the terms, do that first. Don't assume you deserve more than what you're contractually obligated.

No discussions like that have taken place at this point. Certainly nothing contractual.

 

[badjab326]

Talk to them about it, see if they feel comfortable with that. If not, you have 2 options.

1. Compensate them for a part of the startup costs to make up for the pay difference.

2. Get a job to cover personal stuff, and only work on the business when you're all together.

 

[Randolph Freelander]

Get together with your business partners and discuss hiring someone to do this work and how much you would be willing to pay that person.

After you agree upon this, then you be that person.

 

[Angry Grimace]

You're asking for sweat equity after the fact. You're not entitled to more compensation than was agreed on in terms of profit sharing.

You certainly negotiate yourself some kind of salary for actually running the business assuming it makes money.

 

[Brakke]

You need to get things formal and defined yesterday. This situation is tailor-made to breed resentment.

I’d be wary of taking pay, if I were you. Don’t want your friends in a position where they feel like they’re subsidizing your unemployment. Lines between charity and investment could get real messy real fast.

 

[Aselith]

How are you risking more? You don't have a job, it's not like you quit yours to work there. You could talk to them about drawing some kind of salary once it starts to reap profits though.

 

[weemadarthur]

Get a proper contract drawn up before you start taking in money.

This is not a tenable situation.

You can be compensated via draw, or as an employee. But you need to understand the tax implications of either one. Also, what is the business structure? Did you incorporate? Who is doing the books? My advice is tailored for the USA so if you're in another country i can't help really.

 

[FUME5]

You need to see a lawyer and have a contract drawn up before you kick things off or your are going to lose friends, time and money over this.

If any of your friends is offended by this, they are not going to be a good business partner.

 

[Calderc]

Get a proper contract drawn up before you start taking in money.

This is not a tenable situation.

You can be compensated via draw, or as an employee. But you need to understand the tax implications of either one. Also, what is the business structure? Did you incorporate? Who is doing the books? My advice is tailored for the USA so if you're in another country i can't help really.

We're setting up as a partnership initially. Gonna get everyine together on Friday night and hash this out.