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The Biggest Rookie Mistake Every Entrepreneur Should Avoid

Name: The Biggest Rookie Mistake Every Entrepreneur Should Avoid
Uploaded: 2015-09-28T00:09:43+00:00
Duration: 34 s
Channel: Royston G King
Description: In this excerpt from Royston G. King's YouTube video, two speakers discuss common pitfalls founders face when dividing equity. They argue that the…

28 Sept 2015 · 1 min

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In this excerpt from Royston G. King's YouTube video, two speakers discuss common pitfalls founders face when dividing equity. They argue that the default 50/50 split is often a way to avoid uncomfortable negotiations, which can cause greater pain later. The conversation highlights that there is no universal equity formula; instead, founders should focus on personal motivation and excitement about the venture. If a founder feels disengaged or unmotivated, it signals a deeper problem beyond the percentage split.

Chapters

This is one of the things that is important. I think a lot of times people do 50/50, and just be honest with yourself and ask this. I think a lot of times people do 50/50 so they don't have to have a difficult conversation. And that's like a humongo mistake. You can tweet that quote. You know, not wanting to have a difficult conversation is a bad sign, number one. Number 2, it's just super painful to— it's more painful not to have it.
The pain comes out later, so you save yourself today. That's a rookie mistake, like not doing something hard today just leads to doing something even harder later.
Yeah, so, you know, yeah. Is there one way that works? No, because then we wouldn't be having this conversation and debate. But I just think that there's a myth that it always should be 50/50 and I deserve them, blah, blah, blah. But at the end of the day, you want to build a huge company or a great company. And like, is it about 5%? Is it about, you know, 8%? It's just really not. It's about like feeling like you're excited to get up in the morning every day and work hard and, and be able to do it. And if you don't feel like that, you have a problem.