5 ways to ensure that co-founder relationships don’t go bad

Starting a business is not an easy undertaking.  It becomes even more challenging when the co-founders of the business fall out.  The challenges that co-founders typically face centers around misalignment of vision, wrangling over control and fights over money.  These issues cause low morale within the team, preventing the business from achieving optimal success and in some cases ending in breakups (and business failure).

Here are five suggestions to help prevent co-founder relationships from going bad.

  1. Agree on terms between co-founders and sign a shareholders agreement
  2. Allocate shares on vesting schedule for all founders
  3. Reward contributions fairly using premium on shares
  4. Be very clear on who leads the organization
  5. Establish mediation and arbitration paths even before you start the company

Over the next 5 weeks, the weekly tips will expand on each of these suggestions.