

Ask HN: Effort prior to agreement - tamersalama

The product that I've been working on (off/on partime for more than a year) is almost there.<p>I'm still in confusion on what agreement should I make with my friend (idea owner and potential partner).<p>He's consulted an accountant and the following were his suggestions:<p>a) $K my work in development to be taken out of the equation (structured as loan from me to the company).<p>b) Service-agreement/contract to be signed between the company and myself.<p>c) Based on the value that I bring to the table, my shares would be determined.<p>While taking the dev work amount out of the equation reduces my risk. It treats all the time I spent into mere $ value.<p>Does this sound common? If so - should I negotiate based on an assumed CTO role, VP (this would still be parttime effort)?<p>Background:<p>a) Idea originally his, I was initially contracted for execution then I proposed a partnership.<p>b) My friend has very good lead channels (VPs).<p>c) First client would be the Company he's working for.<p>EDIT: formatting lists
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The loan approach is not a bad one as you stated because it reduces your risk,
which may be why they offered it to you. The figure you would like to get
paid. The fact that you did the work at risk and have already taken risk, I
would want ask for some above a hours * salary as the value of your
contribution.

Do they know you are willing to use the hours you have already worked as an
investment into the company? They may be thinking that you would not like this
offer. Another spin is to do what they are offering, and determine the value
each one brings to the table, but allow you the option to make an investment
into the company using the loan you have already given the company.

