Wanted - Website developer to help start up business

[Rich M]

Hi, I am looking for expert website developer that would consider building e-commerce site in return for small equity stake in new health / nutrition start up?

 

[ryedale]

Hi Rich

Welcome to the site

Nearly all designers will stay well clear of that sort of deal unless you were bringing something new and revolutionary to the market

How do you plan to pay for marking and promotion if you can't affort the design fees?

 

[obscure]

Why would they settle for a small stake? You currently don't have anything and you need them to create a site so you can make money. Then they will need to support it and develop it as the company grows.

 

[Mr D]

Hi, I am looking for expert website developer that would consider building e-commerce site in return for small equity stake in new health / nutrition start up?

10% of nothing remains nothing.
An equity stake can be worth something in the future if the company builds up and grows, rather than crashing and burning.
However if you cannot afford a website how will you afford to market the website, usually a much bigger cost?

 

[billybob99]

Hi, I am looking for expert website developer that would consider building e-commerce site in return for small equity stake in new health / nutrition start up?

You need some skin in the game if you want people to take you seriously. Even if it means delivering pizzas to make cash.

If you still don't want to risk your own pennies then this isn't the best place. You need to go to here and post your idea, you're more likely to get a response from the people you're looking for.

 

[Rich M]

Thanks for advice, I had heard of different barter deals previously but agree the developer would need to see what on offer from my side.

 

[Alan]

I agree, why would a 'small equity stake' be interesting?

 

[ethical PR]

Thanks for advice, I had heard of different barter deals previously but agree the developer would need to see what on offer from my side.

But you aren't offering a barter. You want their expertise and time. Their time is money. You are offering them 10% of nothing.

Would you give away £1000 of your product to a start up for nothing on the basis that if they ever made a profit you would have 10%.

When you were starting up your business, you should have costed in your marketing costs including developing a website.

 

[LiveNetworks Ltd]

If that's your proposition you'll need to provide your web developer which an idea of how many days/weeks/months of work you'd like from them.
You'll also need to start with a cash flow projection and projected P&L accounts so that the designer can see what you expect to be turning over and making as profit.

Then you'll need to provide an indication as to what the 'small equity stake' will be worth in say 5 years time, if for instance, you're paying a dividend of say £50K and the developer is getting 10% of that (assuming you've not raised more cash and diluted his shareholding, or paid everything out as salary and bonus to leave no dividend to the share holders) then a £5K a year dividend may give the shareholding some value.

Lastly you'll need to provide the designer with an exit route. Now that he's got his % stake in the business, how will you ensure that he can sell his shares, and who to, and at what value? Are you going to personally guarantee to buy the shares back from him for a minimum value at some point in time?

 

[Alan]

I like your footer "IT Guru, Chartered Accountant"

I might change mine to "Accounting Guru and font of all wisdom, Chartered IT Professional (CITP)"

 

[Clinton]

Thanks for advice, I had heard of different barter deals previously but agree the developer would need to see what on offer from my side.

Soooo..... what's on offer from your side? How much of cash, sweat equity, other input? How much of work have you already done? Have you secured your IP? How can you demonstrate your commitment to the project - have you, for example, given up a high paying job to start this new venture?

Or are you expecting in the initial stages to just contribute your valuable idea and have the developer start work on the website? I only ask because we have on occasion had people so arrogant that they figured contributing their idea was equivalent to a developer contributing six months of dev work (much like the old horse and rabbit stew recipe - "take one horse and one rabbit ...")

 

[Alan]

I don't think the OP is likely to be back. Maybe I'm wrong, but ....

 

[antropy]

Thanks for advice, I had heard of different barter deals previously but agree the developer would need to see what on offer from my side.

Or you should be willing to pay a developer, rather than barter with thin air? Alex

 

[antropy]

I don't think the OP is likely to be back. Maybe I'm wrong, but ....

Every so often this exact same post pops up "I need a developer to make my (usually rubbish) idea in to a business and in return I'll give them a small percentage of it".

It never goes down well

Paul

 

[iDigLocal]

We were approached about this sort of deal a few years ago. We linked the increase in turnover of the business to our equity stake (it was a trading business), capped of course. The premise being that if we are doing all the work then we should be seeing an incremental payoff. It also acts as an incentive for us to make it work.

Can't remember the exact details though.

They didn't go for it. Now the have 100% of nothing.

generally anybody who is going to make this sort of offer is not realistic enough as a business partner. they've been watching too much dragons den.

 

[antropy]

generally anybody who is going to make this sort of offer is not realistic enough as a business partner. they've been watching too much dragons den.

Spot on. Who wants a selfish business partner who wants to take all the rewards from your work and give you as little as possible?

Paul

 

[TheWebDesignCompany]

We have been asked to do this sort of thing so many times over the past 21 years we have been building websites...

If you really want to stick this the deal you need to find someone starting up (look for the posts in the marketing section for new designers asking how to find customers)

 

[Alan]

@TheWebDesignCompany not cool to re open old posts that have been dead for a while