[LRUG] [JOBS] Ruby developer for new startup

[Sidu Ponnappa]

Realistically, you can usually expect a couple of years worth of
income from sale of equity in places where such things are common. The
multi-million dollar/pound payoff is, as Alan put it, like winning the
lottery. You don't plan your future around that happening. A sudden
infusion of cash is a good problem to have - I'm sure we can all deal
with it if it happens :)

I like to look at equity as a bonus that's worth a couple of years of
my current salary multiplied by the (decimal) probability of me
getting it, versus going to a regular corporate job and trying to grow
my income in the usual manner (which of course also has a probability
attached to it, but at least you have yesterday's weather to help
project a more realistic estimate). The last option, is, of course, to
start your own business - and IMO it's worth asking yourself why you'd
be willing to take 0.25% of someone else's business (especially if
it's very very new and unvalidated) rather than 20 - 30% of your own.
Do you really believe that the company you're considering is run by
people smarter/more hardworking/better connected than you are to
justify that delta?

Careful thought needs to be applied when figuring out that percentage
probability as well as your own job prospects in a regular business.
The latter is often a more stable and predictable route to more money.
Factor in things like your judgement of your prospective employers
market, their ability to execute and most importantly, their level of
integrity (are they going to stiff you out of your earnings if they
exit?). Also include your own appetite for risk based on your age,
financial situation and current earnings.

Long story short, treat yourself as a one person consulting
organisation[1]. Now figure out which "clients" you want to engage
with, why and what the tradeoffs are.

Best,
Sidu.
http://c42.in
http://sidu.in

[1] http://blog.sidu.in/2012/06/everyone-is-running-business-including.html

On 11 July 2012 13:41, Matthew Rudy Jacobs <matthewrudyjacobs at gmail.com> wrote:
> On 11 July 2012 15:45, Alan Buxton <alanbuxton at gmail.com> wrote:
>>
>>  if your equity stake percentage starts with a decimal point then it ain't
>> going to be life changing, given the amount of time you well have to work
>> for it.
>
> I think a big exit is too unlikely to think in terms of "expected payoff".
> I think of equity more as having a stake in the product you spend all your
> time creating.
>
> If that 2.5% of £40 million over 5 years ends up coming my way, then that's
> cool.
> I can buy my parents house so my dad can retire.
>
> In a similar way, I think having the odd random gamble is also of value,
> Add some randomness to your life.
>
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