Blog – Page 12 – Slicing Pie
2

The Idea Premium

It is quite common for founders who originated the idea to fret over their ability to “get a little extra” for coming up with the idea for the business.

Continue reading
2

Take Cash Out without Cashing Out

From time to time you may want to take money out of your business. You may not want to reinvest in growth or you may need some money for personal bills. For instance, let’s say you and a friend start a T-shirt company and, according to your Grunt Fund, you both have 50% of the pie […]

Continue reading
1

Offer Letter

When hiring a Grunt for a company using a Grunt Fund care must be taken to set expectations about compensation. It’s important that they understand how a Grunt Fund works and that they are not entitled to cash compensation. Click below to download a sample offer letter for a company using a Grunt Fund.

Continue reading
4

Grunt Fund (Non) Cheat Sheet

In the book I provide a table of summary calculations. This is a PDF of those summary calculations that you can use as a quick-reference for calculating relative values. You can use it along with the Grunt Fund Calculator or Pie Slicer tool to create your very own awesome Grunt Fund and watch it grow into a behemoth. Click Here […]

Continue reading

Investor Repellent

There are many things that can repel an investor. Most of them have to do with a faulty business model or lack of a competitive advantage. However, sometimes your business will have real potential but the investor will flee when they take a look under the covers and see how the business is organized or financed during the formation stage.

Continue reading
2

The JOBS Act: Is it a Wolf in Sheep’s Clothing?

If entrepreneurs are successful, they will have to issue actual equity to a bunch of absentee owners in small lots. These shareholders will now have to sign off on shareholders agreements, operating agreements, and a variety of other things that can make life pretty complicated and scare off real investors.

Continue reading

No Free Ride for Free Riders

Although a dynamic equity model is intrinsically fairer to participants, fixed equity splits will continue to be the norm because 1) dynamic models are a relatively new concept and 2) fixed models allow experienced entrepreneurs to take advantage of less experience entrepreneurs.

Continue reading
>