Joining a startup

**stek** · 10 May 2016, 15:01

Originally posted by diseasex View Post

I was offered today to join a startup by my former collegue. And thats all I know and will have a meeting with them in few days.
Because i want to be prepared on the meeting, any idea on what terms should i agree or might be offered? I have no idea even if they are thinking of hiring me on permie basis, but most likely to participate in the business somehow and deliver some product.
Whats common in such scenario, share in business?

Thanks

Should be a sticky - Never join a start up.....

**WTFH** · 10 May 2016, 15:02

Originally posted by diseasex View Post

I was offered today to join a startup by my former collegue. And thats all I know and will have a meeting with them in few days.
Because i want to be prepared on the meeting, any idea on what terms should i agree or might be offered? I have no idea even if they are thinking of hiring me on permie basis, but most likely to participate in the business somehow and deliver some product.
Whats common in such scenario, share in business?

even if that was no-go, its worth to know

Thanks

What do you/they mean by "joining a startup"?
Are they looking for you to invest?
Are they looking for you to work for them?

The description is so vague it could mean anything, so our advice is worthless/pointless.

**diseasex** · 10 May 2016, 15:04

Originally posted by stek View Post

Should be a sticky - Never join a start up.....

That depends. I remember this guy as quite entrepreneur, so I will consider joining their ranks. Not sure what the terms should i be asking though

**diseasex** · 10 May 2016, 15:05

Originally posted by WTFH View Post

What do you/they mean by "joining a startup"?
Are they looking for you to invest?
Are they looking for you to work for them?

The description is so vague it could mean anything, so our advice is worthless/pointless.

yeah i appreciate that.
Lets say you were approached by a "startup", which is running for less than a year and they want you to deliver another product to their portfolio. Thats all i know. They do have clients and 1 product and apparently they are doing well.

**LondonManc** · 10 May 2016, 15:13

Originally posted by diseasex View Post

yeah i appreciate that.
Lets say you were approached by a "startup", which is running for less than a year and they want you to deliver another product to their portfolio. Thats all i know. They do have clients and 1 product and apparently they are doing well.

Remuneration may take a hit - engage in a B2B capacity perhaps, with yourco having dibs on IPR on products you create and yourco having an x% share in the company (see your accountant about that though as to whether it's better yourco or you personally having the shares).

**missinggreenfields** · 10 May 2016, 15:16

Originally posted by diseasex View Post

yeah i appreciate that.
Lets say you were approached by a "startup", which is running for less than a year and they want you to deliver another product to their portfolio. Thats all i know. They do have clients and 1 product and apparently they are doing well.

If it's a contract, then I'd want my normal rate (with some flexibility) and short payment terms so that there's reduced exposure when they go bust.

If it's a permanent offer, then I'd probably want a reasonable equity stake, but find out in detail what the business plan looks like, projected revenues, plan B, projected profit margin, exit plan, commitment from other backers, current reserves and burn rate etc. I'd also check the details of any NDA, anything that prevents me from working with others, details of the IP involved for anything that I produce.

It's not something that you're going to resolve in one meeting (unless it's really awful), so take your time and don't rush the negotiations until you have more information about what you're expected to do and for what.

**diseasex** · 10 May 2016, 15:17

Originally posted by LondonManc View Post

Remuneration may take a hit - engage in a B2B capacity perhaps, with yourco having dibs on IPR on products you create and yourco having an x% share in the company (see your accountant about that though as to whether it's better yourco or you personally having the shares).

Sound advice! thanks

**WTFH** · 10 May 2016, 15:37

Offer a contract of a few hours per week, if they can't afford to pay much. Getting a % would be good if you like a gamble.

Put it this way, if it was me and I was contracting away from home on another ClientCo, I'd treat it as a hobby, do the work in the evening at a hotel a couple of evenings per week and see how it goes for a few weeks.

**diseasex** · 10 May 2016, 15:39

Originally posted by WTFH View Post

Offer a contract of a few hours per week, if they can't afford to pay much. Getting a % would be good if you like a gamble.

Put it this way, if it was me and I was contracting away from home on another ClientCo, I'd treat it as a hobby, do the work in the evening at a hotel a couple of evenings per week and see how it goes for a few weeks.

Well I'm all up for new inventions, I will see what kind of guys i'm dealing with and what will they offer.

Joining a startup