How much equity do I have to give? Okay, so you`ve found an advisor, you`re willing to sign a deal and you`re willing to give some equity. How much should you give? The amount generally ranges from .2 to 1 percent, and it`s a good idea to take into account the size and growth of your business and the consultant`s experience (both as a professional and as a consultant). 9.2. No request. For the duration of this agreement and for a period of twelve (12) months after the termination of this agreement for any reason, Advisor agrees not to attempt to redirect or alter the evolution of the company`s business by requesting, hiring, hiring, engaging, contacting an employee of the company. Two months ago, we expanded FounderDating – a network of entrepreneurs — to network entrepreneurs and consultants. My biggest shock as we pay clients was the number of entrepreneurs and consultants who work together “informally.” This is frankly the biggest mistake you can make in a consultant-consultant relationship. Once in a blue moon, everything might be fine, but most of the time, your relationship will disappear or, at best, be inconsistent if you don`t have a consultant`s agreement. If you got away with it without establishing formal relationships, you were lucky.
But here`s how to do it right: with a single signature and a box to coerc on the FAST agreement, entrepreneurs and consultants can agree in a few minutes on how to work together, what to accomplish and the correct amount of equity compensation. 13.2. Exclusive agreement. This agreement, including exhibitions, constitutes the exclusive consent of the parties and replaces all oral proceedings and prior writings relating to the purpose of this agreement. Wait, what is “formalizing”? As a general rule, after a few meetings and working meetings, you want to formalize your consulting relationship. This means signing a consultant agreement: a legal document that briefly describes the consultant`s commitment to your company and gives it a small amount of equity. It is a short document, and there are several models on the web. (Here is one we created with the blessing of the two main law firms Orrick and Gunderson Dettmer). Don`t try to recreate the wheel with this chord. I would suggest our proposal or another one that has been blessed. You don`t need to find a lawyer to make another one for you. The founder/consultants default model (“FAST”) was developed by the founding institute to assist future entrepreneurs in the start-up programs we implement and implement around the world and in contact with the mentors with whom they interact throughout the program.