Business Opportunities Weblog

September 28, 2005 by Dane Carlson | 0 Comments

Frank Demmler:

Several weeks ago, we took a look at the founders’ pie. I noted that frequently the founding team divides 100% by the number of founders.

I also cautioned that this is the WRONG WAY!

I then went on to identify the factors that should be considered when making these decisions.

Since then, I have had several people tell me that while what I wrote certainly made sense, it wasn’t very helpful. They said that when it came to “rug cutting time,� absent an alternative method, equal shares was the only method that seemed to be “fair.�

As a public service, I have “invented� a Founders’ Pie Calculator. As you will soon see, this calculator is not particularly profound. In fact, I’m sure I haven’t “invented� it, but, at the same time, I have never seen it before. [Caution: perhaps there’s a fatal flaw that I haven’t considered.]

Its primary benefits are that it provides a way to quantify the elements of the decision making process, and that it appears to be logical and fair.

via Rob Hyndman.

In Business Structures, Financing, Operations, Planning | 0 Comments