Get a Pre-Nup
Would you get married to a person you’ve spent only a few days with? It may sound like an insane weekend in Vegas, but startup founders do this all the time. Not realizing the commitment it takes—years, not months—founders are notorious for haphazardly jumping into partnerships. Just as you would hesitate to get married after a weekend, take your time when looking for a business partner. Find someone whose long-term interests and vision align closely with yours. And whether your new partner is a weekend fling or a lifelong devotion, get a pre-nup.
The startup world’s version of a pre-nup is a contract between partners that specifies exactly how the company will operate—everything from what equity is owned by whom to the details of what happens if the founding team breaks up. Get a great startup lawyer to make sure your pre-nup includes all of the important issues. Use this contract to protect your interests, and those of the company. So many startup failures happen as a result of poor partnership planning. It might be awkward to talk about contingencies, but it could save your company down the road.
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