Most businesses will not work with one person alone.

You might start it alone, but you might need to bring someone else on board, maybe to handle marketing, operations, technology or any other critical area where you lack the expertise, which is also cheaper to partner than to hire.

But before You Shake Hands with That Cofounder, ask yourself this…

What Happens If It Doesn’t Work Out?

Yeah, I know, nobody likes to talk about breakups when they’re just falling in love.

But if you’re starting a business with a cofounder and you’re not talking about how things will end if they ever have to, you’re setting yourself up for unnecessary pain.

Here’s the reality… not all startups make it. And not all cofounder relationships survive the journey.

Sometimes it's disagreement, sometimes it's life, and sometimes, you both just evolve in different directions.

Whatever the reason, the worst time to start thinking about how to dissolve a business relationship is when emotions are running high and things have already gone south.

we at barinaada legal have painfully gone through the process of ending business relationships and I must say that it’s much more difficult when the parties didn’t consider this possibility from the beginning.

That’s why it’s so important to include clear and agreed-upon dissolution terms right from the beginning.

If things ever hit the fan or even if you both mutually decide to walk away, there should be a legal framework that spells out exactly what happens next.

Who gets what?

How are assets divided?

What happens to the company’s liabilities?

What happens to the IP?

You don’t want to be figuring that out when trust is already broken.

Think of it like this…

Like I tell many people who are afraid of making a will, that having one doesn’t mean you’re expecting to die tomorrow; a dissolution clause doesn’t mean you’re expecting the business to fail.

It simply means you’re wise enough to plan for all possible outcomes.

It means you're building with clarity, maturity, and mutual respect.

If you’re serious about protecting your dream (and your peace of mind), don’t skip this conversation.

Plan for the beginning, plan for the growth, but also plan for the end.

That’s a habit of highly effective founders…

I’m sure at this point, that popular book must have come to your mind. Lol!

Anyways, that’s the truth, and you must take it seriously.

To Your Legal Sense.

Barinaada Legal.

P.S. If you need some legal help with your business, reply to this email now.