equity, startup-costsI am the only person in my startup and I am at the point where I need some help because what I need to do exceeds my currently knowledge. I am a programmer creating an app and in order to get my app on the Appstore I need some more work done. I don’t have any money to give to developers because I am spending my money on startup costs and other essential purchases.
So my question is, where can I find talented developers that are willing to work for some equity in my company? Surely giving somebody a part of my company to help me finish a product that is more than 50% done can’t be to hard…can it?
Well you are offering to give someone essentially nothing (equity in your business which is really nothing without the product you want them to build you), in return for a (hopefully decent) MVP.
Time to become a recruiter my friend, and if you want to be a CEO you need to master this skill (I am a recruiter, and have been for years, and am also in process of creating my own company so I can help you here).
You need to share your idea with people that you develop relationships with. Don’t share too much too soon, but once given the opportunity and the relationship is forming, then go for it.
You need to inspire people. Give them a sense of purpose and a unified vision to work for. That’s all (LOL. Easier said then done).
Basic reality for you, is you are not even a startup yet. You have no business plan, no potential sales, no equity, etc. Sorry to sound cruel, but that’s the truth. What you have is an idea and some skills. My advice is to trade skills. An advanced programmer often has menial tasks which take time for which the advanced programmer would prefer not to have to do. You could offer to provide that service in exchange for help. Realize that such an arrangement will probably not be an even exchange. Also, there is a great risk that you will be abused, ie. do your work and have nothing done on your project. To find the right person will require your judgement. I would check the person out as well as possible (quietly) before making any agreement. I wish you the best of luck.
Hiring talented developers usually requires at least some salary, PLUS some equity. It sounds like what you are basically looking for is a co-founder. You are giving away part of your company to someone to join you, and they will not get any money until you make some profit. Your situation description begs the question that is your best choice, as it could be better to beg for some money (friends, family, angel investors) to pay someone to do the remaining work. Find a CS student at your local university, or you can contract bigger stuff out to Rumania, South Africa, numerous low-cost locations.
But your approach is also a totally valid strategy. The best place to find a co-founder is your local startup scene, google local accelerators, co-working places, angel networks, or go to angel.co and the like. Pitching your idea to such folks will also help you figure out if you really have a product that could make money.
If you do want to pay people with equity, an important thing for you to figure out is your business structure. Most tech startups incorporate as a C-corp, though LLCs are looking more and more interesting because of the beneficial tax treatment. If it will only be you and a couple of partners, go LLC first.
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