The Serial Entrepreneurial Journey

Ralph M. RiveraEntrepreneurshipLeave a Comment

The Serial Entrepreneurial Journey. You want to build a business where each partner brings something unique and valuable to the table that no other partner either wants to or can do.

Today I incorporated a new business venture with 4 partners. The start of a new business is an exciting and stressful time.

I’m going to write about this over the next few days, but today I want to focus on equity distribution.

What’s the right amount of equity to give a partner? Sometimes startups make the mistake of skewing the percentages so disproportionately that some partners don’t have the incentive to grow the business on a long term basis. If you’re getting 90% and you give two other partners 5% each, you may be doing yourself more harm than good. Their short term excitement will decay once they see you taking flights to your Hawaiian chalet while they work themselves to the bone.

In this new venture I want to maintain a majority interest in the business, but give each partner equity that will make the venture attractive, but long term growth even more attractive. No partner wants to put in sweat equity to watch you get filthy rich. Consider that when you’re contemplating your riches. I’ve found that many people pull the rip cord and bail out because they feel under appreciated and under compensated.

You want to build a business where each partner brings something unique and valuable to the table that no other partner either wants to or can do. This is probably the most essential part of building a team. If you can foster an alliance that makes each team member equally valuable or indispensable, you increase the morale of the team.

At the end of the day, starting a business is about money. There are few people who can build and grow a sustainable business alone. Helping others become wealthy beyond their dreams may be the best way to make yourself wealthy beyond your dreams.

These are my 300 words for the day. I am Ralph M. Rivera.

[line]

Pinterest, Yo

Here is a Pinterest friendly graphic for you to pin. Check out my Pinterest boards here and check out my board of prior articles here.

The Serial Entrepreneurial Journey. You want to build a business where each partner brings something unique and valuable to the table that no other partner either wants to or can do.

The following two tabs change content below.
Hi, I'm Ralph! I'm a web developer and founder of Rahvalor Interactive, a creative marketing services company based in Holmdel, New Jersey. I founded Rahvalor in 1999 with my wife and business partner Carol Lynn, and in January 2012 we created Web.Search.Social as a branded service offering that brings enterprise-level services to small businesses in an affordable way. My primary role is programming and development, and with 25 solid years of marketing experience behind me, I write, consult and develop strategy for our customers. I'm also the CTO of Triberr and I teach web development at Manhattan College in New York City. Carol Lynn and I live near the coast in central New Jersey, less than an hour from the place of my birth – the island of Manhattan. We are at the constant beck and call of Ash, our 17-year-old American Shorthair cat. I'm also trying to build a flux capacitor, but that's not going as well as the other stuff I do.