A friend of mine recently approached me with an idea for a small software startup. I met with him and the rest of the ?team? and went over their idea with them, and decided it sounded somewhat reasonable. I?m the only ?tech? guy in the group, and thus will be the guy doing all the coding. Four of the guys are older people (40-60 years old), my friend and I are both 21. The older guys have the connections we need to market the product, and will be able to obtain some of the resources I?ll need to develop the software (example data which would be unavailable to somebody outside their position, and also real-world testing of the software when it?s ready). They also have the knowledge of what the product will need. I do think there?s a need for our product, and depending on the marketing ability of the rest of the group, it could go pretty far.
My problem is that at the rather informal meeting we had Monday night I got the impression that most of the older guys didn?t take my friend and I too seriously.
I have to figure out how to protect myself in this situation, in the event the older guys try to edge my friend and I out of the business once/if it takes off. I considered hard coding the software to not work after a certain date, and keep updating that date as long as I?m working with them, and keeping the source code to myself, but I?m not sure about the legality of doing that. I?ve also considered churning out a polished product, and offering to sell the rights to them, and calling it quits then, but the problem with that is that a) I don?t think they have the capital available to pay me a worthwhile amount, and b) I do believe that the potential long-term profit from this product would be worth lots more than I could reasonably request up-front.
And before anybody suggests it, there?s no way I could be successful with the product on my own ? I could create it; but I wouldn?t be able to market it.
So... suggestions here?
My problem is that at the rather informal meeting we had Monday night I got the impression that most of the older guys didn?t take my friend and I too seriously.
I have to figure out how to protect myself in this situation, in the event the older guys try to edge my friend and I out of the business once/if it takes off. I considered hard coding the software to not work after a certain date, and keep updating that date as long as I?m working with them, and keeping the source code to myself, but I?m not sure about the legality of doing that. I?ve also considered churning out a polished product, and offering to sell the rights to them, and calling it quits then, but the problem with that is that a) I don?t think they have the capital available to pay me a worthwhile amount, and b) I do believe that the potential long-term profit from this product would be worth lots more than I could reasonably request up-front.
And before anybody suggests it, there?s no way I could be successful with the product on my own ? I could create it; but I wouldn?t be able to market it.
So... suggestions here?
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