Have you had a frank discussion with your co-founder(s) and documented a Co-Founder Agreement?
Here are 12 items to discuss and include in your agreement.
Don’t risk it: Get your Co-founder Agreement right
A Co-founder Agreement is an essential document that can save you a lot of pain, money and confusion.
At the outset of a new venture there’s a lot of excitement in the air and everyone feels passionate and committed to the new business.
The problem is that things change. Situations arise, expectations change and much psychological and financial grief can be caused to unsuspecting co-founders who plan only for the upside and ignore the potential downsides.
Sometimes in the endorphin rush of a new business idea, we hear what we want to hear and avoid asking the tough questions of others and ourselves about motives, goals and contingencies.
Plan for the unexpected
What happens when one founder is lured by a lucrative job offer in an exotic country?
Or falls unexpectedly pregnant?
What if one is keen to expand the business internationally but the other isn’t convinced?
Or an offer is made to buy the business but the founders can’t agree whether to sell or how much for.