Hello, I'm planning to start a video production company for which I found a managing partner who will manage the day to day operations of the company. I am looking for advice on the equity split for both of us. Basically all the funding will come from my side. I will also contribute to content development and use my existing connections. My partner will be the day-to-day manager as he has know-how of the industry. He will be managing the team, looking after clients and also using his connection. He is coming from another company so he will also bring in some clients. The equity percentage that we are talking about is 40% to 60% plus a salary for him. I am thinking of making this 30% for him and 70% for me especially since I will be handling the funding. I need advice on how to approach the situation.
First, I answer a lot of "what can go wrong' here:
Second, make sure someone has the right to remove someone else at a pre-negotiated fee and term.
Also, reach out - happy to talk.