Now that the Easy-Peasy is out of the question, you and your co-founders can sit down and have the serious discussions we mentioned earlier. Compensation, fairness, mission plans, roles and responsibilities, exit clauses—putting everything in place here and now, so there will never be a procedural problem thereafter. Here`s what you should include in an enterprise agreement: if intellectual property is an essential part of your business, it`s important to protect that IP during the start-up phases of a business. You can solve this problem by relying on patents, trademarks, copyrights and trade secrets to protect your valuable ip. Another step you can take is for all co-founders and third-party developers to assign the company their IP rights that they created and that are used by the company. This will help avoid problems when a co-founder leaves the company and wins a decisive patent. The last thing to keep in mind is not so beautiful — but it is important. And it is a non-competition clause or a confidentiality clause. These documents ensure that you and your co-founders cannot advise you on your competitors – or even become a competitor. It`s probably not something you want to think about in the heady beginnings of a startup, but it`s worth launching a plan, just in case.
Finally, discussion of non-competition clauses and confidentiality agreements is also under consideration. Should a co-founder be able to hold shares in competing companies? Or advisor for competitors? Hopefully this is never a problem for your business. But the point of a founding agreement is to be ready, so even if you trust your co-founders more than your own grandmother, don`t give them an easy way if things change without you noticing! In my experience, how the founders decide to allocate equity depends on each team. Some teams may find a fair distribution approach to better cope with their situation, while others may opt for a division commensurate with a founder`s contribution to the company. Whatever the decision, here are some suggestions that help maintain an attractive picture for future investments and create a successful business: it is normal to start with mutual understanding, but it is advisable to document it as quickly as possible in the form of a “founder`s agreement”. You just came up with a brilliant billion-dollar startup idea; You have defined the promise of perfect value for your business; And you just met the perfect co-founder (or co-founder) to help you launch your idea. Here are some steps you can take to conclude a founder`s agreement. They are not binding, but they are a good general guide that you should follow when you follow this process. It is a preventive measure for conflicts and misunderstandings, and it is a way to clarify the responsibilities of each member in ensuring the success of the company, including what that success means. The business creation agreement assumes that the company will be able to occur in the future with the procedure to be followed. This not only helps founders cope with the challenges, but also minimizes the risk of harming a company and its chances of success.
The agreement is also a way to reassure investors and ensure transparency about the risks they have taken. With all the things that go to creating a startup, it can be tempting to forget to design your founding agreement.