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Reply To: How to choose the best fit co-founder(s)? 

 

By  Matthew King

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Avatar of Matthew KingMatthew King
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Business Consultant 1

No one ever believes that the venture they are about to do could completely go wrong. Even making deals with your friends in business can get hairy by requiring everyone to do paperwork and legal documents to protect yourself. So the convincing goes as far as protecting everyone. I believe it is essential to have a contract written up and if you are starting a LLC or some other business having article of organization or corporation and an operating agreement is a must.

The legal documents protects everyone. If a time comes when a partner has to be let go due to not pulling their weight on they just can’t do it anymore with legal documents in place it will make that transition much easier than if they weren’t there. It states who is owed what and how to part. One of the easiest ways of letting a partner go. Is to simply say this is not working out and if the business is profitable, give them their profit for that year, then buy them out of their portion (if they own part of the business) then say later. I’ve had to let a partner go that was a part of the first business venture.

He didn’t put in the same amount of time or money and was simply lazy. (We didn’t see this at first of course). After a long talk with the partner we just didn’t see any improvements so it was time to let them go.

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