Someone I know if starting a business, how can I get involved?

Question

I know someone who is thinking of starting up their own little company, and I am really interested in the business they want to start. I want to help them get their plan started, and with initial research and marketing, but don't want them to steal my ideas, run off with my work- and for me to put in all these hours for nothing but someone else's to profit. Should I have them hire me now? Should I invest in the company? Should I tell them to pay me when it takes off? What's the best way to make some money out of this experience, when I don't have money to put down? Or should I just stay away and let them figure it out for themselves?

Answer 1

You have real concerns and should be vigilant. Someone could steal your ideas, take credit for them and profit from them. Depending on what kind of business, could you get a copyright or a patent for your ideas maybe. Are they going to incorporate? Maybe they could pay you in a mixture of stock options and salary. If you invest in the company, you will become a member/partner/ shareholder of the company and it will be extrememly difficult for anyone to steal your ideas. Investing might be the way to go. You mention that you don't have money to put down. You can still work for them and introduce your ideas gradually to see if you are getting the recognition. If you're not getting the credit you feel you deserve for your ideas then you know that the you cannot tell them the rest of your ideas suggestions.

Answer 2

It's a tough situation if you have nothing to invest money wise, but consider you knowledge your investment and how they will benefit from it and then get something in writing as to how in the future you will be compensated for that.
It is true - start ups are cash strapped. My husband and I just started our company and he still maintains his "real" job because it will be quite a while before we are making anything above overhead.
We also have had people who love our idea of what we are doing and want to get involved but I will have to be honest with you and say that from the perspective as the owner, since we are the ones putting everything on the line money wise, we aren't interested in bringing partners/investors in at this point. Our business though may be a little more complicated then the average startup and you really didn't say what this person's start up is. That can make a difference.
You definately need to protect yourself, but your first step should really be sitting down with them and seeing if they are even interested in the help.
Hope this helps!

Answer 3

well if u think u could use this opporturnity to make a quick buck, i would say go for it. however to ensure that they dont steal ur ideas, its better to enter into a pre-incorporation agreement where you agree well before the company is launched what role you will be playing and how you will share the profit. you could also include a no-competition, or non-disclosure clause demanding them not to use the same idea to compete against you should you chose to leave the company and start your own. this is to ensure that credit is attributed to you for your skills.
if you want to become a partner or a shareholder for that matter and yet you dont have any contributions to make, its better you formulate an agreement whereby the shares you will be allotted is on a buy-back agreement, that is they first allot you the shares, you work for them for the value of the shares and then you could leave or should you chose to continue doing business with them, then you buy back your shares and become a shareholder.

Answer 4

Start ups are almost always cash strapped. The person starting it up might not even be able to pay themselves a salary, much less you. If you want to be involved, go tell them and work together to figure out how and when you would be compensated. But, before you speak with them, be aware that they might not want or need your help.

Answer 5

I would talk to them about being a partner. Don't screw yourself!