How to Make the Deal Clear with Your Co-Founders

How to Make the Deal Clear with Your Co-Founders

Starting a business with co-founders is a common practice, and it has numerous advantages such as shared workload, expertise, and support. However, it’s essential to establish a clear agreement and understanding from the beginning to avoid misunderstandings and conflicts that may damage the business’s success. In this article, we will discuss some practical tips to make the deal clear with your startup co-founders.

Define Roles and Responsibilities

One of the most common causes of co-founder disputes is a lack of clarity around roles and responsibilities. It’s important to establish each co-founder’s specific duties, including decision-making authority, leadership, and division of labor. This will prevent overlaps, misunderstandings, and potential conflicts.

Establish Ownership and Equity

Ownership and equity are critical components of any co-founder agreement. It’s important to discuss and agree on the percentage of equity each co-founder will receive and how it will be vested over time. This will prevent disputes and ensure that everyone is on the same page regarding the business’s ownership and financial rewards.

Outline Exit Strategies

It’s vital to plan for possible future scenarios, including the potential departure of one or more co-founders. This includes a clear process for the transfer of ownership and equity, as well as an understanding of what happens if one co-founder wishes to leave the company. These provisions should be outlined in the co-founder agreement and will help avoid disputes if an unexpected departure occurs.

Define Intellectual Property Ownership

When co-founders work together on a project, it’s crucial to clarify who owns the intellectual property rights to the company’s products, technology, and brand. This can be done through a clear intellectual property agreement, which outlines how each co-founder will contribute to the company’s intellectual property, and how they will be rewarded for their contributions.

Set Up Communication and Decision-Making Protocols

Effective communication and decision-making are essential to any business’s success, and this is especially true for startups with multiple co-founders. It’s important to establish clear protocols for communication and decision-making, such as regular meetings, decision-making procedures, and dispute resolution mechanisms.

Hire Professional Help

Establishing a clear co-founder agreement can be a complex process that involves legal, financial, and strategic considerations. Therefore, it’s advisable to hire professional help, such as a lawyer, accountant, or business consultant, to ensure that the co-founder agreement is thorough, legally binding, and suitable for the business’s needs.


In conclusion, making the deal clear with your startup co-founders is an essential step in building a successful venture. By defining roles and responsibilities, establishing ownership and equity, outlining exit strategies, defining intellectual property ownership, setting up communication and decision-making protocols, and hiring professional help, you can set a solid foundation for your business and avoid potential conflicts. A clear and thorough co-founder agreement is an investment that can pay significant dividends in the future success of your business.

Suggested Further Reading

Linkxar Founders Network: Insights