Putting in place a short, simple, shareholders' agreement between the founders of any startup right from the first day (or, at least, in this initial months) prevents future heartburn. Even if it is an informal set of terms and conditions, it helps to have it written down over an email or paper - this gives a reference point to all stakeholders. At the end of the day, it is a commercial venture that's being undertaken and would result in assets and/or liabilities (in simpler words, profit and / or loss) being created. It is important that these aspects do not come in the way of or spoil relationships, the collective force of which is running the startup and holds the potential of making it successful.
Orignally published Jan 22 2023.
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