Slicing Pie Handbook Perfectly Fair Equity Splits For Bootstrapped Startups
Are you a bootstrapped startup founder struggling with dividing equity among your team members? This is a common problem that many startups face. However, with the Slicing Pie Handbook, you can now create perfectly fair equity splits for your team members.
What is Slicing Pie?
Slicing Pie is a model developed by Mike Moyer, an entrepreneur and author, to help startups divide equity in a perfectly fair way. The model is based on the principle that everyone in a startup contributes in different ways, and their contribution should be reflected in the equity they receive.
How does Slicing Pie work?
The Slicing Pie model works by dividing equity based on the amount of resources each team member contributes to the startup. Resources include time, money, ideas, connections, and anything else that helps the startup move forward.
For example, if a team member invests $10,000 in the startup and works full time for six months, their contribution would be valued at $40,000. If the total value of all contributions is $100,000, then the team member would receive 40% equity in the startup.
Why is Slicing Pie fair?
Slicing Pie is fair because it takes into account each team member's contribution to the startup. This means that team members who contribute more resources will receive more equity, while those who contribute less will receive less equity.
This is different from traditional equity splits, where equity is divided based on arbitrary factors such as seniority or job title. In Slicing Pie, equity is divided based on actual contributions, which ensures that everyone is fairly compensated for their work.
How can you implement Slicing Pie in your startup?
Implementing Slicing Pie in your startup is easy. All you need to do is follow the guidelines set out in the Slicing Pie Handbook. The handbook provides a step-by-step guide on how to implement the model, including how to calculate each team member's contribution and how to divide equity based on those contributions.
The handbook also includes templates and examples to help you implement the model in your startup. By following the guidelines in the handbook, you can ensure that your equity splits are perfectly fair and reflect each team member's contribution.
Conclusion
The Slicing Pie model is a fair and effective way to divide equity in bootstrapped startups. By taking into account each team member's contribution, the model ensures that everyone is fairly compensated for their work. If you're struggling with equity splits in your startup, consider implementing the Slicing Pie model with the help of the Slicing Pie Handbook.
