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Should I be concerned with cofounders background?

Since I am a techie, found a sales guy who seems good and could come on board as a 50% partner. He is doing his job well, fixing up meetings, talking to people and getting more clients.

Problem is, he had a business prior to this which shut down due to his one major client defaulting on a large payment and he has temendous debts related to that. He has been transparent with me regarding his debts and court cases which I truly appreciate.

Emotionally, I don’t want to get mixed up in his legal tangles. The logical part of me thinks if he has managed to come out through all this, guys got persistence and experience dealing with such problems. I am in two minds.

  • The best entrepeneurs (and great salespeople who eat and live off commission) ALL have real ‘war scars’ building income. Its part of being self employed which you will soon learn. It wasnt his fault and he was upfront.

    Self employed entrepenuers that had any level of real success had major hits and should be viewed on a different scale than say partnering with a long term corporate type who has a steady income for years with bonuses and company expense accounts and other departments handling income, collection & revenue.

    Even banks offer self employed entrepeneurs a higher risk and debt load consideration when extending credit.

    What you should be sure of is if his contribution is worth 50% or will you guys need another cofounder.

    Reply

    • +1000

      His previous venture has nothing to do with this one as long as you do an LLC or incorporate. It will protect this business and you from any liability he has prior or his personal entanglements.

      Reply
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