(Free SaaS Resource) The SaaS Metrics Dashboard: Is Your Company Growing The Way It Should Be?

How To Divide Ownership Fairly When Forming A Startup

Share on facebook
Share on twitter
Share on linkedin
Share on email

How does Richard Branson manage 400+ companies?

He doesn’t.

Over the years he’s learned how to build teams and split ownership in a way that drives everything forward.

In 2004, after 2 failed companies, I finally learnt this lesson.

When I started my company Spheric Technologies I started it with partners.

Why? I realized if I wanted to go far – and get there faster – I needed other people on the team that had a piece of the business.

One of the strategies I teach my high-end coaching clients ($5M+ / year in revenue) is how to build and structure teams to take on new initiatives outside their businesses.

I’m all about focus, but it doesn’t mean you can’t bring other ideas to life…

… what it does take is the right structure amongst a team to ensure it’s win-win for everyone involved.

It’s what Richard Branson does, and so can you.

In this week’s video I share how to think about ownership splits when building a new company in a way that reduces the downside when things get tough.

When I think about ownership splits, I always break it down into a few key areas:

  1. What’s the current value today? (investor valuation, or market)
  2. What would the caliber of the people be worth in the open market?
  3. Who else would be critical to bring on to make this a huge success?
  4. How much more capital would be required to get to break even?
  5. How do we test the relationships / collaboration of everyone coming together?

One of my favourite quotes by Seth Godin is “I can’t work with you, until I work with you.”

When you bring a bunch of people together that haven’t worked together, you need to quickly test their working relationships.

That’s why I always start there, even before we get into the equity splits.

Over the years I’ve been involved in starting, investing or mentoring hundreds of new businesses, so I’ve seen this play out many times.

What people fail to do is plan for SUCCESS!

When this takes off, how are people going to feel?

Most people never do that and it’s a mistake.

So, what about you? Have you done anything creative when working with partners on a new project, or business idea?

I’d love to hear your ideas below in the comments.

Hope this video finds you well!


MRR Over $10k?

You might be few pricing tweaks away from adding 21% ARR…

A.C.E Growth Engine

3 Proven Strategies To Scale Any SaaS to $10k MRR And Beyond

Book A Growth Session Call with my Scale Specialist.

Need a coach to help you scale your SaaS business?
Then let's chat.

Free SaaS
Training Reveals…

How To Go From $1K To $10K MRR In Just 3 Months With The A.C.E Growth Engine™


The SaaS Metrics Dashboard: Is Your Company Growing The Way It Should Be?