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News & Analysis

ASK KOCHIE: How do you value cash v sweat in a business partnership?

- May 30, 2019 < 1 MIN READ
Your Money Your Life

Libby and David Koch – partners in life and business. 

 

Plenty of startups have co-founders who bring different skills to the business.

Sometimes it’s “sweat equity” – the sheer hard work required in the business to succeed, without pay, and for others, it’s the capital needed to get the business up and running: cash, which means you don’t have to chase seed funding or a series A to get cracking.

Flying Solo’s sat down with Pinstripe Media founder David Koch ask him how to calculate what each partner brings to the business after a member of Flying Solo’s Money forum asked what to do if they bought a business with a partner who was bringing cash to the deal while they were going to be doing most of the work.

Here’s what Kochie said about how to deal with it:

This video was originally published on Flying Solo as “Help! How do we structure a business when one partner brings all the cash?” You can read and watch the original here.

  • David Koch is the founder and owner of Pinstripe Media, publishers of Startup Daily and Flying Solo.