It's a Fair Deal...!    is it..??

It's a Fair Deal...! is it..??

Let's do some Thinking Exercise..! There is New Business idea, 2 people agree to start it. One is having net worth of 5 millions and another 500,000 in USD term. Both are well versed Entrepreneurs. This new Business only require, 400,000 USD, and Looks like will bring good returns for Both of them. To Keep it fair. Both agrees :

  • Both will invest, 200,000 USD each.
  • Both will give 20 hours a week each, till it gets on Cruse mode. As both have tied up with other ventures. Time commitment has to be formal as well.
  • Both bring similar kind of competencies, which actually is plus for this new Business idea.

To keep it simple, no other variable to put up here.

It's a Fair Deal...! right...! is it..??

I have seen lots of very good Business idea getting failed, just because it was not a Fair Deal since the inception. Then I read a Book "Skin in the Game". where i learned How we can actually have a Fair Deals. Having everything equal, equal time, equal investment, equal risk, almost having everything equal, from start to end. Keep equally win-win and equally lose-lose for all.

some would now, say the Deal above is Fair, but not Equal, though risk of capital is same for both. Risk appetite is different for both, as their total net worth varies in 10X form. You might be right in some what ways... Some will say it's not the case, as both committed for equal time investment. You might also be right.

But the Question is "How to solve this Puzzle", It's a Fair Deal, still is it..? I think it's a Hard Problem. To even start with it, we first need to know, what's the Problem in it...

Let me put the first few Bricks here.

Problem is, Intention & Attention.

which is very Hard to define in some mathematical form here. And till we have equal Intention & Attention from both. It's very hard to say is everything equal. So, equal "Skin in the Game" doesn't solve the problem. As Defining Skin itself is a Hard Problem.

Anyways, we can say Sometimes Equals are Not Equals.

Keep Thinking...

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