How do you know how to compensate yourself and your co-founders? This is a very tricky question, and how many money-related problems can it really be troublesome. Some founders choose not to take a salary at all at first, while others can`t take that step while continuing to live. “When you`re starting a business for the first time, it`s easy to give up an operational co-founding agreement or other technical details in favor of dreams and aspirations,” writes Meghdad Abbaszadegan, founder of Free Fall. “It`s only when you succeed that money and greed come into play. Entrepreneurs stop thinking about the vision of their businesses and start thinking about themselves. When my co-founder and I were victims, Feel Free went from a success to a nightmare. A business creation contract is a legal contract concluded by the founders of a startup. It can cover everything involved until what happens when someone leaves. This is a legally binding contract and should be established at the beginning of the company`s life cycle in order to put everything on the table before a group of co-founders join forces. Some difficult decisions are the mandate to lead a start-up. How will you respond to such tough calls? Is it better to have a person with the power to decide? How do you check and balance? It is a hard call between a person who has uncontrolled power and decision-making paralysis at a crucial moment. Decisions would depend on the introduction of investments, the exercise of shares, the addition of new employees to the core team, dismissal and pivot, etc.
You can have a clear breakdown of sectors and owners for business development, marketing, product development, etc. The provision shall indicate the laws applicable to such disputes and the jurisdiction of the Tribunal to open cases. . . .