To learn more about working with consultants, consult the Board of Directors and advisors. You can also visit articles protecting your company`s intellectual property and protecting it. Non-disclosure of confidential information should also be included in the consultant`s agreement. As a result, not all confidential information about the company is shared with third parties by the consultant. It should also be noted that by respecting this part of the agreement, it is ready to preserve the company`s secrets as best as possible. The return of certain company documents in the event of termination must also be respected. If you are interested in working with dozens of potential mentors and consultants to create your start-up, then you should apply for a Local Founder Institute program. You can apply on the link below: the agreement is noteworthy 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. If you want to know more about consultant agreements, you should describe the duration of the employment and the method of termination in the agreement. Sometimes it is not known how long the advisor will be with the company, so as a general rule, the contract is terminated when the advisor no longer adds any value. In this way, it is a good idea for the company and for the advisor to agree on a notification period during which each party collects a notice before a certain number of days before the termination of the contract. Independent contractors. As a general rule, a consultant agreement also states that the advisor should not violate any obligations he or she may have with another company in order to avoid conflict. 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.
There are three levels of maturity that affect equity compensation: idea, start-up or growth. There are also three levels of commitment for a consultant that also influence compensation: standard, strategic or expert. For example, if a consultant offers assistance to a start-up start-up by meeting with the team each month, recruiting talent and answering a customer call, that consultant earns 1% of the business in the form of shares or limited options awarded over a two-year period; offsetting a similar commitment to a growing business of only 0.6%. The FAST capital compensation framework is shown below and the full agreement, which explains everything, follows. 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. 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.