Founders equity when one works 3x more?
Me and my co-founder own a business that's growing quite rapidly. We've been working on it alongside full-time jobs for about 2 years (for an average of 12 hours a week), and in the past 6 months revenue grew from ±$2k to ±$15k MR (not recurring).
Now, one co-founder(1) considers going full-time on our business to grow it faster. The other(2) would prefer to keep working alongside his full-time job for the foreseeable future, working 12 hours/week on our business.
What would be a good way to compensate the founder for going full-time? There are risks, but we expect to double the revenue in 6 months to $30k MR. By that time founder 1 will have worked 2700 hours and founder 2 will have worked 1800 hours on the business. Should founder 1 get compensated in more shares, or would getting paid a normal salary suffice?
Love to hear your feedback!
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Very interesting problematic and quite challenging. I don't have really have an advice apart from making an agreement between the two founders BEFORE the amount of contribution changes....
Thanks Julien, that's definitely something we have to do. We are currently very communicative about it, but contribution is slowly changing already. There's some haste behind it!