Startup Library

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.

  1. How should we divide the shares? Who gets what percentage of the company?
  2. How will decisions get made?
  3. What happens if one of us leaves the company?
  4. Can any of us be fired? By whom? For what reasons?
  5. What are our personal goals for the startup?
  6. 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?
  7. What part of our plan are we each unwilling to change?
  8. 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?
  9. 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?
  10. 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: