MBA1430 Q&A Wednesday: Not enough cashflow to pay my cofounder a salary. Should I buy him out?

The $100 MBA Show

Your co-founder wants in. You need them out.

This is awkward.

It’s Q&A Wednesday, and we’ve got a doozy. One listener co-founded a business a while back, but the co-founder in question took a back seat — only just maintaining their involvement while they pursued other things. Now, said co-founder wants to commit full-time to the business, and expects a full-time salary.

The problem? The company can’t afford it.

Business has no shortage of uncomfortable situations with conflicting wants and needs. Navigating such situations fairly, professionally, and productively takes finesse. Today, we’ll help our listener work it out with their co-founder in way that considers everyone’s needs — and those of the business. 

It’s easy to work with your team when things are going great, and there’s enough to go around. It’s the difficult situations that make or break an entrepreneur. 

Tune in, and learn how to talk openly and fearlessly about that ugly necessity of business: money. Learn how to prepare for a conversation with multiple possible outcomes, and find the sweet spot between personal interests that don’t align. Click Play!

To submit your questions, visit 100mba.net/q.

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2020-01-01 9 min

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