Hello , Happy New Week to you.

So, do you have a co-founder for your business?

If so, then you must pay attention.

As a founder, choosing a cofounder is a critical decision that can significantly impact the success of your business.

And this is why you must do it right and get it right from the beginning.

Having been working with founders and smart business owners since 2017, I have seen many preventable cofounder mistakes that went really bad and blew up in the face of everyone, including us as the mediating parties.

And this should not be.

From the legal perspective, one thing you must be super sure of is the ownership structure and equity split.

clearly Agree on Equity Distribution.

Ensure that the division of ownership between you and your cofounder is clearly outlined.

Don’t assume anything and don’t think that anything not clearly communicated is understood.

You also need to Consider whether equity is split evenly or based on contributions such as capital, skills, time, network, etc.

 It’s vital to agree on how much each party owns and formalize it.

Also, vesting is very important.

Implement vesting schedules to protect against situations where your cofounder decided to japa and leave you alone in Nigeria to keep building while he reaps benefits from Canada!

Vesting the equity helps the cofounder earn his equity over time, reducing the risk of someone owning a large stake without contributing anything reasonable to the startup.

Do this in your business.

Do it today.

Don’t make the mistake of not doing it.

If you need help with this, reply to this email now and we will be in touch.