3. Manage talent
Whether you already have co-founders or if you’re looking to hire your first co-founder, it’s important to have hard disucssions early on to reduce friction and problems in the future.
- How should we divide the shares? Who gets what percentage of the company?
- How will decisions get made?
- What happens if one of us leaves the company?
- Can any of us be fired? By whom? For what reasons?
- What are our personal goals for the startup?
- Will this be the primary activity for each of us? Will one of the co-founders be keeping her day job until the company gets off the ground? Will one be working on another sideline business?
- What part of our plan are we each unwilling to change?
- What contractual terms will each of us sign with the company? Will each of the co-founders be signing some sort of contract with the company (outside of the shareholder agreement)? If so, what will the terms of this be?
- Will any of us be investing cash in the company? If so, how is this treated? Is it debt? Is it convertible debt? Does it buy a different class of shares?
- What will we pay ourselves? Who gets to change this in the future?
You can read more details about the questions in the sourced article: