This article is about slicing pie – two types of pie – equity and fruit. Equity pies and fruit pies need to be sliced – that is about as much as they have in common. This article is about both because, in a way, the dichotomy exemplifies the work-life balance that every entrepreneur struggles to maintain. Do we build equity or do we bake pie, that is the question? Perhaps we can do both.
Recently, a mentor recommended the book “Slicing Pie” by Mike Moyer – a book about equity (see slicingpie.com). At the same time, my cousins recently requested that I document our grandmothers turnover pie recipe.
“Slicing Pie” by Mike Moyer
A few points that strike me about Slicing Pie, the equity book:
Trust
Trust is key is all relationships, including business relationships, and especially in a startup business. A startup business relationship is like a marriage. It requires friendship, chemistry, hard work, long term commitment for better or worse, promises, passion, and love. Without trust and fair dealing, these aspects and others in the relationship fail.
Slicing the equity pie in a startup means dividing an imaginary pot of gold that has its only present-day representation in hard work, creativity and the future hopes and dreams of founders. The Slicing Pie book makes the point, effectively, that slicing equity too early or too late can doom the relationship of founders.
Dynamic Equity
The book explains “dynamic equity,” a creative way to slice pie as you go based on ongoing contributions to the startup. One note on dynamic equity – another mentor suggested that the downside of dynamic equity is the administration and accounting it requires. There are a few grains of salt for your pie.
The Slicing Pie equity book does a good job of outlining accounting rules for dynamic equity. You don’t necessarily have to follow these rules but kudos to the book for detailing concrete rules you could follow or alter as you wish.
Grunts
The slicing pie book describes “grunts” – the type of people who work on, and sweat invest in, startup companies. I find the term “grunts” an appropriate way to describe the entrepreneurial spirt, risk taking, and dogged stubbornness required of startup founders. We should not underestimate or take for granted this personality type and we should reward it – it is the foundation of the American dream.
That’s all I have to say about slicing pie, the equity book.
Recipe Download! Turnover Pies by Grandma Vincent
If you would like to learn how to make grandma’s turnovers, download the recipe and step-by-step instructions by filling out the form below. We build software nearly as good as these pies.