Getting Buy-In

If you have already launched your business chances are good that you have already implemented a fixed split that is causing some angst among the founders. You now need to unwind your fixed split so you can get on the right track with your equity.

The first thing you will need to do is get everyone on board with the program by helping them see the benefit of a dynamic equity split program. To do this, just invite them to this guide.

The people on your team will fall into two categories:

  1. "Skinny Grunts" are those who have less than they deserve
  2. "Fat Grunts" are those who have more than they deserve (It is unlikely that anyone will have exactly what they deserve.)

The Skinny Grunts will be easy to convince. They already feel cheated by the Fat Grunts and, as much as they might like the business and believe in the vision, their motivation is probably waning because they feel like they are working for someone else's benefit.

The Fat Grunts may be harder to convince because the retrofitting of the Grunt Fund will not only re-calibrate their share into a smaller portion, but also they will have to start working to maintain their position in the company. This, of course, is completely fair.

You need to work with people that you can trust. You can't trust people who aren't willing to treat you and the other members of the team fairly. A greedy Fat Grunt is someone who is comfortable benefiting at the expense of others. There is a word for people like this; the word is "Asshole." It's is best not to do business with Assholes. You can probably find someone else to do that Grunt's job.

Once you've got buy in to use the Grunt Fund - or switch to the Grunt Fund - go ahead and follow the rest of the tasks in order to create yours (keeping in mind the time contributed).