

Ask HN: Diplomacy Tips - TallGuyShort

Dear Abby (ha ha - I'm such a comedian),<p>I'm a programmer, and I recognize I don't have a very good mind for business. I was recently approached by an old friend of mine about participating in a startup. He already had a business plan, had several investors that were interested, and seemed to know his stuff - so we seemed like a good match to work together. I agreed to work without pay until there was more money, but I was promised 33% equity, maybe 30% since our most promising investor at the time wanted 10%. I began doing the site, but quickly informed them that I would need more details of what they wanted before I could go further, and that I really needed my role to be on paper - I was told that they trusted my ideas, and I should do what I think is best. Within a couple of weeks I found out that there was yet another 'partner', and my share was down to 20%, and even more frustrating - I kept being told conflicting things about what they wanted in the web-app, and being told that what I had done wasn't what they wanted. As politely as I could, informed them that I was happy to work with them, but would be unable to do any further work until my role was on paper, and my compensation/ownership was satisfactorily defined. I left it for a couple of weeks, understanding that they've been busy finishing school, etc... I was told that when this semester was over, we would sit down one day, incorporate, and I could ask for all the specifications I wanted. In the mean time, I specifically told them that until we had an agreement, the code was mine, and it would be wise for them to assume they had no code until I had specifications and owned something. I even sent them a contract and said if this is what you want, sign it, if not, I need to know what you want.<p>I got an email last night informing me that an incubator they applied to had asked for a demo, and they had said, "Yes, we'll upload it!" It's become apparent that 2 of the other partners have done absolutely nothing, no one has put anything paper other than my constant requests to do so, and they have ignored all my messages regarding what needs to happen before we can have a decent demo.<p>I realize I shouldn't have even worked this long, and I plan on absolute refusal to do anything until this is resolved, but any tips? I'd really like the project to go forward, if nothing else so I have my name on a really cool project with no NDA attached. But I no longer feel comfortable doing business with this group, however they don't seem to understand that if I leave, the code goes with me, no matter how bluntly I say it. Incidentally, they have no physical access to the code - my main problem is how to resolve this diplomatically, and how to do it in a way that the business might have a chance.
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hga
Actually, it seems to me that you have a very good mind for business, in that
you understand enough about it to do the right things for your domain of
programming. I.e. you:

Got concrete details on the proposed setup and insisted on getting them locked
down on paper.

Didn't do very much work (a couple of weeks) before failure to do the above
and an unnegotiated adverse revision of your position plus other warning signs
prompted you to cease work.

Kept total control of the work you've done.

Anyway, at this point, it doesn't seem like the startup is viable unless and
until the "founders" are pared down to a smaller set who grok reality (like
the importance of what you or any technical people are doing and the fact that
they have nothing without that) and who are actually willing to put work into
the venture.

If there aren't any who do, then it's time to cut your losses; make your
excuses and offer them the code for a suitable price (not that this will get
them funded by anyone who has a clue, the latter will of course want to talk
to you etc.).

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seven
As already mentioned, you tried diplomacy and it failed.

Do you trust this guys? I mean, do they act like they do because of malice or
stupidity?

In case it is not much additional work, give them the demo without access to
the source. This way you are still in the game and they are under pressure to
work _with_ you in case the investor likes your stuff.

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sfdhgdg
Looks to me like you've already tried diplomacy, and it's failed.

