Are you an aspiring business owner or an entrepreneur that’s in the beginning stages of launching a new product?
If you’re venturing alone, then you have my respect; however, chances are you’ve chosen to take this leap alongside a close friend or acquaintance that shares a similar view for the future of your startup.
Hi, my name is Jim Samson and over the years I’ve had enough experience with both successful and not so successful businesses, due to failed partnerships, that I’m confident my advice will steer you in the right direction and prevent you from making the same mistakes that I did.
Similar to a friendship or marriage, business relationships often start off on the right foot, but over time the original foundation begins to crumble and fall apart.
For this reason, it’s important to protect yourself AND your business from these fallouts… even if both parties are initially unconcerned about the partnership.
That’s not to say that every startup is doomed by conflicts with cofounders, but studies show that 65% of businesses fail as a result of these relationships.
Don’t let the business you’ve put so much time and effort into slip down the drain because a conflict with a cofounder. Protect yourself and reduce the risk of a premature business failure!
So, how exactly do you prepare for the worst and prevent these business breakups from happening in the first place?
Although these disagreements may be inevitable, you can lookout for your own best interest by establishing contracts.
Yes, this may be an awkward topic to bring up with a business partner, but your future self will thank you for signing these agreements and getting percentages of ownership or equity splits on paper. TRUST ME.
In reality, the differences between business partners can easily be avoided from the beginning if everything is always on the table.
Just like any other relationship, communication and trust are key factors that can determine its overall health. Similarly, a business that is just starting out is directly affected by how transparent one side is with the other.
It’s essential to have both the founder and cofounder of a startup on the same page when it comes to making decisions and moving in the same direction.
A pilot and copilot of the same aircraft won’t successfully reach their destination if they’re constantly directing the plane in opposite directions and a business is no different.
Whether big or small, keep business decisions transparent to avoid potential conflicts and plan for the worst by establishing written agreements early on.