Start small. As in, hand him small assignments to do in exchange for cash.
Working with him, you'll quickly learn whether or not you want him on your team. If not, it's better to make a clean break (rather than him owning 1.2% of your company, etc.) than keep equity-based ties.
If you have the cash now, work on a contracting basis. Pay him his asking rate; do not promise "future equity" in exchange for a lower rate. (Hint: that's a HUGE warning sign to good programmers to RUN... everyone wants to promise future value for coding, and few good coders are willing to do so).
After a month or two of working with him, you'll get a feel for how he operates. Is he getting the work done? On time? Of high quality? Is his communication excellent? Do you feel like you can work with him?
Those evaluations will be clear to you after a month or so, working with him on a regular basis. I'm a firm believer in having a trial period before hiring.
Very nice advice. I do think its good to test out a person before you offer any thing considerable big, especially when you don't have a lot of history with him.
Moreover, you also have to consider his ability to keep contributing to the company in the long run too, especially if he is going to be a co-founder.
If you are not sure, a minority stake with a slightly discounted (or not) rate should do.
If he shows himself to be very capable for the long run too and you guys hit it off, you can always offer more later.
this is excellent advice. a co-founder is a partnership, if you are not willing to give him half of the equity you own.. then he is not a co founder. A technical founder will do a lot more in the beginning of your tech startup more than you probably will. I'm saying this assuming you have no users, or traction and have just some random website. Provide a vesting schedule of course and treat it as a partnership.
Comments
Start small. As in, hand him small assignments to do in exchange for cash.
Working with him, you'll quickly learn whether or not you want him on your team. If not, it's better to make a clean break (rather than him owning 1.2% of your company, etc.) than keep equity-based ties.
If you have the cash now, work on a contracting basis. Pay him his asking rate; do not promise "future equity" in exchange for a lower rate. (Hint: that's a HUGE warning sign to good programmers to RUN... everyone wants to promise future value for coding, and few good coders are willing to do so).
After a month or two of working with him, you'll get a feel for how he operates. Is he getting the work done? On time? Of high quality? Is his communication excellent? Do you feel like you can work with him?
Those evaluations will be clear to you after a month or so, working with him on a regular basis. I'm a firm believer in having a trial period before hiring.
Very nice advice. I do think its good to test out a person before you offer any thing considerable big, especially when you don't have a lot of history with him.
Moreover, you also have to consider his ability to keep contributing to the company in the long run too, especially if he is going to be a co-founder.
If you are not sure, a minority stake with a slightly discounted (or not) rate should do.
If he shows himself to be very capable for the long run too and you guys hit it off, you can always offer more later.
Agreed 100%. I was more suggesting that the first month or two be a more trial-like basis; thus the exclusion of equity from that period.
this is excellent advice. a co-founder is a partnership, if you are not willing to give him half of the equity you own.. then he is not a co founder. A technical founder will do a lot more in the beginning of your tech startup more than you probably will. I'm saying this assuming you have no users, or traction and have just some random website. Provide a vesting schedule of course and treat it as a partnership.