Startups Anonymous Est. 2013 · Read-only archive
Questions

Politely refusing a friend to be a partner

I’ve built a product over the last eight months toiling by really hard. I have a few customers who are interested in the product, but I have not closed the deal with any of those customers yet.

I feel that I’m stretched too thin. I have a couple of friends who are willing to join. However, at this point, I want to scale up the sales efforts. For that reason, I need someone with a strong background in sales. None of my friends have sales experience or any experience related to my current platform on which the product is built.

How should I politely tell them that I don’t want to work with them or, if they want to join, they won’t get a large equity share in the company?

6 answers from the community

AAnonymous· Jan 18, 2015

You don't have an opening at this time. Duh!

Or Have your friends join so you can focus on sales?

Vest their any equity over time. They should understand it's not half upfront.

If your product is done, why haven't you sold it yet?

AAnonymous· Jan 18, 2015

Seriously, why have them join if there is no job for them to do?

I want to be your friend so if you ever win the lotto I can spot a 5 million or so. Lol!

If your friends don't add value, why would you want them to join? It will only breed animosity for them just being a trophy partner.

If they add value in some other way, put them to work in that, but don't feel obligated to add them to your team because they asked.

In terms of equity, you negotiate on what's fair for the job and vest over time. So anyone joining an entity that's been established knows they aren't going to get half the pie.

But here's the best news! - you don't have to worry about equity when they don't match any of your openings.

AAnonymous· Jan 18, 2015

I know what you mean. I have friends that tell me even though they have no experience in an area that they have the "gift" and to tell them that you don't agree might come across as insulting.

Like others have said, just tell them you don't bee help at the moment while going out and looking for a real salesperson. When they ask you later you just said you changed your mind when you located the right person.

AAnonymous· Jan 18, 2015

"None of my friends have sales experience or any experience related to my current platform on which the product is built.", there's your answer. If they don't recognize the truth of it, they are not your friends. If you don't act on the truth of it, you are doomed to failure.

AAnonymous· Jan 19, 2015

How much commitment are they willing to put in? That's one way to measure their willingness. Are they willing to put in cash? Or are they willing to come in full-time.?

Are they willing to learnt a new platform while working with you part-time (while they are still in their current jobs)? This might give you enough time to focus on sales to get some cash into the business.

Have you asked your prospects for pre-payments? This will allow you to perhaps get a sales co-founder more easily, and help you say 'No'.

Finally, if a friend is willing to spot you $1000+/month, while working, with some milestones to get with you full-time, while working part-time on your tech, that's someone who is showing significant commitment to you when you need every bit, and someone who might want to work with as a co-founder.

Don't look at value that someone brings from too narrow a focus.

AAnonymous· Jan 24, 2015

1st rule of business. never hire friends. I made this mistake twice. Now my neighbor hates me and my kids have to see their kids at school everyday. What a mess.