[robocat]

You are just doubting yourself: you will learn to trust your instincts and make hard decisions because if you don't then your business will suffer.

Better to pull the pin early and be 100% clear and don't gift them any equity. Delay and dilly-dally will just create a crappy situation in the future. Future-you will appreciate problem prevention and that you didn't punt the problem for later.

A co-founder MUST be strongly self-motivated. Motivating is what you do for employees and you would soon feel resentful if you follow your current path. If they are not motivated then you can't do it for them.

Also beware of anything that demotivates you: it is dangerous and I have seen that play out badly. Carefully feed your own motivation - self-motivation is an extremely precious resource that is easy to fuck up.

Keep your friend and don't mix business with your friendship. If they are a good friend they will still be a sounding board, and a good friend will understand your reasoning and won't be a bitch about you going it alone.

Equity is not a gift to just freely give away - husband it carefully.

Disclaimer: not an area I'm an expert in - just an engineer.

Trust in yourself.