Send us a textIn this conversation, Mike discusses the critical importance of having open and honest discussions about equity distribution among co-founders when starting a business. He emphasises that while many assume a 50-50 split, this often leads to complications later on. Drawing inspiration from the book 'Slicing the Pie', he outlines a structured approach to fairly allocate equity based on contributions such as cash, time, resources, and intellectual property. By tracking these contributions and applying multipliers based on scarcity, co-founders can engage in meaningful discussions about equity that foster trust and transparency, ultimately leading to healthier business relationships.TakeawaysEquity discussions should happen early to avoid complications later.Assuming a 50-50 split can lead to resentment and conflict.Using a structured approach helps in fair equity distribution.Tracking contributions is essential for transparent discussions.Multipliers can reflect the scarcity of contributions.Difficult conversations are necessary for building trust.A Google sheet can simplify tracking contributions.Equity discussions should be based on data, not emotions.Building a high-trust relationship involves open communication.Avoiding difficult conversations can harm future partnerships.Chapters00:00The Importance of Equity Discussions02:11Mechanisms for Fair Equity Distribution06:46Tracking Contributions and Future Discussions11:03Building Trust Through TransparencyHere is the book reference: https://slicingpie.com/book/Find out more about working with me or about applying to join the ILN. [email protected] https://www.linkedin.com/in/mikeadamscott/ https://theintentionalleaders.com/

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