When deciding who has the final say or what happens with different exit timelines, getting a clear agreement down early is definitely the safest route to take, Daniel. figuring out those expectations in writing is so important before you even think about launching a joint LinkedIn presence. As I see it, establishing those boundaries upfront actually allows the working dynamic to remain much more human and personal as the business takes off. How often do you find that new partners actually make time to formalise these details before diving into the fun stuff?
I've been through this four times as well. Only one ended well.
A prenup not only helps avoid a lot of painful mistakes later, but it also prevents you from investing all the time and energy into developing a new idea, only to discover later that you can't agree on the very points you initially discussed.
It's so easy to get swept up in a great idea and watch it start to take off, only to find out that your partner(s) had very different assumptions about control, ownership, and profit sharing.
I learned that if it's not written down, hidden assumptions remain just that, hidden, until the issue is finally put on the table. By then, it's often too late to avoid unnecessary conflict.
Excellent advice. It is better to have a clear understanding of everyone's expectations before committing to ownership interests and roles in the company.
It is wild how many founders hand out 50/50 equity splits just to avoid an awkward conversation in week one.
Giving away half your company because cash is tight usually ends up being the most expensive hire you will ever make.
A 50/50 split can feel wonderfully fair when the company owns one laptop and a Canva subscription.
The maths gets more emotional once there’s something worth fighting over.
When deciding who has the final say or what happens with different exit timelines, getting a clear agreement down early is definitely the safest route to take, Daniel. figuring out those expectations in writing is so important before you even think about launching a joint LinkedIn presence. As I see it, establishing those boundaries upfront actually allows the working dynamic to remain much more human and personal as the business takes off. How often do you find that new partners actually make time to formalise these details before diving into the fun stuff?
Very rarely, in my experience. The fun stuff feels urgent. The awkward stuff feels hypothetical, right up until it’s suddenly ruining the company.
I've been through this four times as well. Only one ended well.
A prenup not only helps avoid a lot of painful mistakes later, but it also prevents you from investing all the time and energy into developing a new idea, only to discover later that you can't agree on the very points you initially discussed.
It's so easy to get swept up in a great idea and watch it start to take off, only to find out that your partner(s) had very different assumptions about control, ownership, and profit sharing.
I learned that if it's not written down, hidden assumptions remain just that, hidden, until the issue is finally put on the table. By then, it's often too late to avoid unnecessary conflict.
Four times and one good ending is a fairly brutal sample size.
The dangerous assumption is thinking the relationship will stay reasonable once money and control are involved.
Excellent advice. It is better to have a clear understanding of everyone's expectations before committing to ownership interests and roles in the company.
Everyone agrees on the dream while it’s still free.
The trouble starts once the dream has shares attached.