Previously, we issued some instructions on issuing the correct number of shares/options to employees and consultants. As mentioned in this article, sharing equity with employees and consultants is often used as a motivating tool and as a way to develop a company`s relationship with that person. The FAST agreement recommends standard capital grants for an individual advisor. It is not uncommon for a technology startup to award a 5% capital pool to a group of strategic advisors or an advisory committee. With a single signature and a box to coerc on the FAST agreement, entrepreneurs and consultants can agree in a few minutes on how to work together, what to accomplish and the correct level of equity compensation. Us Startups For U.S. startups, the Founder Institute offers some instructions on numbers, as well as a free presentation agreement to avoid the formal framework of the relationship quickly and without legal headaches. You can read your instructions and access the American model here. The aim of consultant agreements is to avoid conflict and to clarify the duration of the contract. This should allow for a successful and professional working relationship. Some companies will even create an advisory board; However, this is not considered a legal body. This is not necessary and purely optional. It is designed to improve the credibility and social evidence of the start-up.
It is not mandatory to indicate this in the consultant agreement. It should be noted in the agreement that an advisor is not directly employed by the company. It is an independent organization that cooperates with the company for a limited time and for a specific purpose. Therefore, no business benefits should be extended to the consultant. Awareness of these details will facilitate the relationship, as the role of the counsellor is clear. But before you think about the number of stocks or options to issue an advisor, there are a number of points to hammer. What is the councillor`s role? Will it give marketing insights or instructions at the board level? How long is it expected of her each month and how long? What does she pay? Defining these points will help determine the right amount of justice that needs to be spent and that everyone is on the same side in terms of expectations and responsibilities. A conventional approach for a contractor to hire a consultant could follow the next project. Sometimes sharing justice between your employees and advisors is a good way to increase motivation. Issuing shares to a consultant could be a good way to develop the professional relationship. However, before thinking about stocks or options, it is important that the basics are defined first. For example, a consultant agreement generally states that, in order to avoid conflict, the consultant should not violate any obligations he or she may have with another company.
The founder/consultants default model (“FAST”) was developed by the founding institute to assist future entrepreneurs in the start-up programs we implement and implement around the world and in contact with the mentors with whom they interact throughout the program. In 2011, the founding institute published the public FAST agreement, and we have since undergone gradual updates to version 1 of the agreement. On August 1, 2017, the Founders` Institute released a preview version of Version 2, which contains a number of improvements: consultants who have the GOALS of the FAST agreement are founders and senior executives for strategic advice by advisory bodies, and these consultants are generally compensated in equity. The FAST agreement is not designed for traditional project council and work-rental relationships. The FAST agreement is used by tens of thousands of entrepreneurs and consultants a year to build productive working relationships, business advice and support for a standardized amount of equity.