Question
My software startup will be launching in the next month or so. Thus far, I've been self funding and have 100% of the equity. However, I'm thinking about giving my main developer/project some skin in the game - in some way/shape/form. A big part of this is to alleviate dev costs for now and after the launch. Also to give him a more vested interest in the companies success for the upcoming year. He's been a valuable asset and is interested in talking through a potential agreement. Any advice for a possible type of agreement for the next year or so we could create?
Answer
Talking to customers is one of the most important rules of business. However, if you do not have a product, chances are, you do not have customers. This higher level can save hundreds of hours of work and help founders build the right product. Also notice how at this stage you still have not invested time or money in product development. In fact, you should have made money through presales before investing in the product. It may cost six figures to build a scalable and solid first version but can cost you less than ten thousand dollars to design the product. Share the designs with your customer advisory board and make the necessary changes accordingly. Take at least two rounds of adjustments before you move into product development. Passive advisors and ambassadors may be willing to spread the word and share their feedback over a phone call or email every now and then but do not wish to be actively involved in product development and design.
You can read more here: https://www.forbes.com/sites/abdoriani/2019/09/10/how-to-reduce-startup-app-development-costs/?sh=6e31fc06c818
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
