How to keep team going?

[dmz123]

My situation: I own a small startup inc. (from pres to whatever, its me).

I got a small core team, whose positions are negotiated but only when we get funded. Right now they are putting their part time and effort while working outside fulltime.

In this situation, what is my best strategy to keep them
interested as funding process may be a long drawn process.
There is a chance that they may lose interest if our money-raising process takes a long time.

So what would be my best strategy and options in order to sustain interest and keep going?

Thanks

[Jmcauley]

I have run into the same problem with my business. You have to keep a direct line of communication with them and get them to believe in you. The hardest part is inspiring them.. in order to do so, you have to give them some tangible results to gain their trust. It's a difficult task that is a form of art.

[BusinessAdviser]

Keep them informed of every occurrance throughout the long drawn-out process. They need knowledge of the process.

[dmz123]

Thanks for your inputs. Yes, I am keeping them in the loop.
Infact they do attend my funding raising pres and support
me. I am committed totally to get them on board, but
as always several options to from point A to point B.

Now my real dilemma: I have std numbers in terms of
shares (with a vesting schedule over 2 yrs) when they
_actually_ join (it means we get funded).

Q1: Is it good to reveal those numbers right now but with a caveat that if and only if they join, when offered?

If they refuse, or the continue, irrespective of the joining, the following applies:
I also want to reward them with small %, lets say 0.1%
of ownership (fully vested) for their efforts and time during this pre-funding stage .

Q2: Is it a good idea? and

Q3: if so, when exactly is a good time to grant?: a) right now b) at the time of funding (or 3-4mnths from now)

Any thoughts on these; appreciate them very much..

can any one of you post how does a typical conversation goes when this topic is on the table between you and your
prospective team member

Thanks a zillion

[CIsaac]

I think it would be fair to reward them a good amount of compensation when funding is received. For those who might consider joining your venture more on a full-time basis while they work a part-time job or something, I would reward with ownership as value added. Most of the information you would reveal would have to come from your instincts as well. You would be surprised at how much people change when money is involved. I learned from my mistakes a while ago and what I do now is observe people a whole lot now before discussing certain things. Then again, you probably have already. Just an opinion...

[meaghannf]

I definitely think rewarding them when investment or competsation is received is a good idea - that's how a lot of startups operate; they ask someone to work for them with a signed contract that stipulates how much they will earn given different outcomes of the company, along with their own work. For example, someone in business development for a small company might work for free, but receive a $100,000 bonus if they get a $1,500,000 funding deal with a bigger company.

I think this is an interesting topic although, as I'm currently running a business myself, I'm having more trouble finding those initial people to beginning... let alone keeping myself motivated, lol. Good luck, and nice topic.

[paul2145r]

The amount of interest that they show in the company and the concept prior to the influx of large amonts of cash will determine how dedicated they will be further into the venture.

Personally, I believe that business partners are all too often fair-weather friends. When everything is going your way, they will stick around. As soon as there is any type of hardship, they will jump ship (and potentially try to take parts of your business with them).

Make sure that they are the people that you want to keep working with, even when you have the money to hire professionals. If they are, then give them a decent amount of shares in the company. The sweat equity that they are putting in now should give you a clear understanding of how much to give them. If they are dedicating 1-2 hours of their free time per day, then they definitely deserve a large interest in the business. If all they contribute is a couple of hours of work a week and some names and connections, then don't bother offering them a share in the company -- compensate them with a bonus when you get funded and leave it at that.

I have had many business partners in my time. How many of them are still around? Only one. It is all too easy for a person to absorb every bit of knowledge, charisma, and drive that you have, and to go off on their own.

Then again, if these are solid individuals with experience and drive of their own, make sure to never forget them on your rise to the top. Never make the mistakes Caesar made with his best friend. After all, the closest individual to him ended up being the source of his downfall.