Other Internet entrepreneurs might want to consider contracting with others for the digital transaction piece of the business. You don't need to take time out of the day to learn this, because there's a lot of information out there, and a lot of it is out of date or wrong. Finally, in late August, Segal brought aboard lawyer David Eisenberg to be vice president of operations. All partners were given salaries 10 percent to 20 percent below market value. But that's typical, Segal said.
Stock options make up for the disparity.
After compiling a team, it's time to raise money. Entrepreneurs typically use their own savings and credit to fund the start-up's first steps, which might include travel costs related to interviewing potential partners and buying computer hardware and office equipment. Credit cards are the easiest form of financing at this stage, Segal said. It's not worth the headaches in dealing with relatives. Two other types of investors are angels and venture capitalists.