The only rule is that there are no rules…
I have outlined several factors that must be taken into consideration. However, this is not a complete list. Life is complicated, and so is business.
In discussing the equity of a new company, as in most of life, I suggest you listen to the other person or people in the conversation and think about what they are asking for and why.
RULE 14:
Put yourself in the other persons’ shoes.
If all else fails, before walking away, try flipping around the conversation, with each person negotiating on behalf of someone other than themselves. This can be a very valuable exercise, regardless the outcome, for fostering the mutual trust and understanding necessary to work as a team. When you put yourself in someone else’s shoes, it can become easier to see exactly what they contribute and how valuable their contributions are.
If that doesn’t work, then remember this is expected to be a difficult discussion, and, sometimes, there is no solution that is acceptable to everyone around the table. Sometimes, people do walk away.
