Forums: Discussions for entrepreneurs and small business.

Hello!

I am starting a website.  I have been working on the development of the concept of the site for approximately 3 months.  I shared this information with 2 friends about 1 month ago.  So far, I have done all the work as to how the site will look and done countless hours of research with regard to the information that will also go on the site.  Everything is ready to go and I am about to hire my web developer.  I mentioned this to one of the 2 friends and she asked what I need b/c she is willing to invest.  I did not ask her for any investment, but it would be helpful.  She is under the assumption that she will partner in this with me.  While I am not against this, I did not agree to this either.  I am just not sure yet.  I think she would add a great value to the company b/c she has connections and some sales experience that I will need in order to get sponsors/advertisers.  My first question is, if I bring her on, how do I determine what ownership she will have? Then, there is the other friend. I feel that she is not a good fit for the company and will not really add value that i could not do myself or get any joe schmoe off the street to do later down the road.  I don't want to just add her in the equation b/c she is a part of our circle (we are all 3 best friends).  I don't know how to deal with this part.  To exclude her will reak havoc on our relationship.  What should I do about the 2nd friend?  Btw, she has a lot of personal issues and is super stubborn and doesn't know when to censor herself.  These are the reasons I do not want to partner with her.

never add a friend just for the sake of being 'loyal' to friends. as the saying goes, friends make the worst biz partners. its true lol

You have enough red flags to know. Don't ad this second friend. Perhaps you can say that you have everything you need and perhaps there will be something you can do together in the future (or not) but not on this business venture.

Also, since you've done most of the work, retain at least 51% ownership. Be clear on the expectations from the 1st "friend" in you need anything at all. Put it in writing. Perhaps 15% or so depending on the extent of the contact, sales and marketing, and financial investment.

Good Luck.

Lee

http://lulu.com/SoRichIam

If you are already having a difficult time deciding what to do, when you know its not the best decision for your business, then imagine how much more difficult it will be for you to implement things in your business if you bring her in. As far as the first one whom you would like to bring on board, make sure you clearly define all your goals beforehand, and sign a contract stating clearly what her job description will be, so that you don't run into problems later on.