When a company starts becoming successful, conflict will often arise among the founders over what each founder deserves to have. This may happen six months to a year after the company was started. To avoid this issue, we recommend you sit down with your partner(s) to figure out what everyone expects from the company upfront. Some important things to cover would include: what kind of time commitments they are willing to make, what kinds of capital commitments are they going to make, what role they want to play, how much money they expect to be paid, and how much ownership they expect to have. At this point, compromises may have to be made. A good solution for when a person expects more than what the company is willing to give is setting up stock that they will receive overtime. It is recommended to have this conversation and establish each founder’s expectations as early on as possible.
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