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by riklomas 3423 days ago
Hey everyone, I wrote this guide, if anyone has any questions about it, I'm happy to answer and I'd love to hear your thoughts on the article!
5 comments

No questions, but thanks for writing it and sharing that knowledge.
Thank you :)
opposite question as the other poster: what do you do if you have a great idea (naturally everyone thinks their own ideas are great) but don't have the entrepreneurial spirit ? I've been working on a project for a couple years, still have about 25% of the work to go for it to be MVP, but I'd really like to find a business partner/investor. I'm afraid to reach out though because I dont know how to protect myself from being screwed.
Sometimes you just gotta give it a go. I'm not saying quit your job and do it full time, but if someone is going to steal your idea, then they're going to steal your idea tomorrow or in a years time.

Everything is a risk, but you don't want to get to 90 and think "damn it, I should have done that business".

The worst thing that might happen is you might run out of cash, give it up and get another job. Or someone will rip you off (be it a biz partner, investor or rival) and you give it up and get another job. It's stressful and not fun, but you're not going to die if your startup fails.

> if someone is going to steal your idea

Just to clarify, I (gladly) fell out of love with my idea and dont so much worry about people "stealing" it. I'm more worried about a business partner building an "escape hatch" in the partnership contract and screwing me out of ownership/stake. Not sure if that changes your answer or not.

I recently bought on a partner for my business. It was definitely the best thing I could have done. He's an absolute champ and has the same hunger for success as me. Our skills are complimentary and our little business is slowly but surely growing.

Of course protect yourself. Have a contract. Never go with a vague contract and then hope for the best. Have everything in writing. Ownership stake, expectations an escape hatch for either of you in case of a falling out etc. For us there was a clause stating that the contract could be nullified by either party within the first 90 days for any reason.

I had worked on my side business for 3.5 years at the point I partnered up. My partner first spent 2 months working away and we didn't formalise the agreement. We were making sure that we were going to work well together.

I finally said that we can't go on like this and we really need to formalise his ownership etc. We discussed figures and arrived at an arrangement that worked for us both.

In the end, for me it came down to this: own 100% of 0 or X% of a real business.

Once that clicked for me, bringing on and trusting a partner was an easy choice.

Yes I agree with this. I think if you're going to offer equity too, offer equity that vests over a longer period of time (3-4 years) might help keep them connected and give them a reason to stay with the business too. Make them work for ownership of the business.
This is why you have an attorney.
I have experience with startup marketing and definitely have the "entrepreneurial spirit". I can offer guidance+actual work help on the business side (as long as it can all be performed remotely), expecting no equity or even payment from the start. When I prove my value, i.e. earn you real money, we discuss compensation (most probable payment in cash, not equity).

I assume the risk of not succeeding to grow your business and the risk of succeeding but you deciding to dismiss my work and not compensating me. No contracts, only verbal agreements to start off.

I've done this kind of deal twice before with moderate success in both. If you are interested, email me (on my profile) with more details about your product.

Not OP but I found that pursuit of a Patent can be a protection avenue that opens up opportunities for business partnership/investment long-term. Granted it does take personal capital in the US, as it's not exactly cheap, but it's a functional approach in some avenues. Hope this helps.
What would you say to those who have an entrepreneurial spirit but struggle with idea generation?
Also, don't call yourself an "entrepreneur" - it's a bit like being calling yourself "hilarious" or "handsome" - it's what other people call you, rather than a job title.
Interesting! I like this logic.

However... what should one call oneself?

Depends! CEO is fine, business development is good too.
Is it even legal to call yourself CEO if you aren't a C-Corp? A basement LLC with a CEO always makes me laugh. How about Owner or Founder?
Of course it's legal, but the "C" stands for "Chief" which has a pretty strong implication that there are non-Chief Executives in the company.

If you're not at a position to have full-time employees whose sole job is to manager managers, it's unlikely "CEO" really fits.

CEO of a LLC is legal if you're in sole control of the company but yeh, owner/founder is fine too. I used to call myself Founder when the company was just me.
Look for problems. It's hard to sit and think of ideas, even if you do, most of the ideas will change on contact with potential customers.

Look at what you're strong at and what you enjoy. If you're seeing customers struggle with other businesses solutions, then there might be a way to solve that problem in a better way.

Being a good listener helps - get the feedback loop going as quickly as possible. Don't take anything personally if a customer doesn't like what you're doing. They could be right. Iterate on the initial idea. Don't spend too long building the first version of anything as it'll probably look different in a year.

I think this is good advice. It's better to see first-hand pain points that businesses experience as opposed to looking for an "idea" i.e. dreaming of a solution and then trying to find a matching problem that it solves.

If you start up with an "Uber for X"-tier idea, you may spend half your time educating people that they could use your solution.

On the other hand, it is difficult to watch a non-techie business worker perform their daily tasks for a few hours without seeing something that could be improved. A macro here, some workflow automation there, etc. Find a theme and you may be able to build something that solves a lot of problems.

As an entrepreneur you should look for gaps or things that could be improved first.
Team up with someone who has a good idea but struggles with implementation.
This, but make sure they have enough skills to be useful in the long term!
Just, well done. Good article. :)
Yeah, thanks for sharing!