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. | | Cell names in bold | | | |
. | | TotalExtended | $4,180 | Running Total of all work (rates x hours) done | |
. | | PredictedTotal | $25,000 | Predicted Total Cost of project to reach cash generating self sustainability - this is a highly speculative number and will change frequently with new information - this is a 'best guess' | |
. | | Estimated Cost of 1% | $250 | Useful reality check, just 1% of current PredictedTotal for the mathematically challenged | |
. | | Running Allocated Percentage | 16.72% | Indicates how much equity as % of PredictedTotal is allocated | |
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. | | Suggested Rules of Thumb | | | |
. | | Owner shouldn't be able to make more than x/month- this will prevent owner from abusing system and firing everybody and paying himself 1MM /day and effectively destroying others' equity | | | |
. | | Percentages shouldn't be sold for VC/Angel financing after beginning w/o impacting/diluting all participants- this is to avoid owners allowing investment that wouldn't dilute themselves | | | |
. | | Any lump grants for idea origination etc should be set out at beginning | | | |
. | | Rates should not be set indiscriminately, but most importantly should be consistently calculated | | | |
. | | creative commons license sharealike 2.5 author Jeff Krupman 11/16/2006 | | | |
. | | contact: fk.20.krupman@dfgh.net | | blog/discussion | |