We can`t talk about equity without talking about Vesting: if the co-founders were to receive their shares at the same time, there would be nothing more than half of them pressing the sleep button and letting you do the work. By creating a vesting calendar – often four years with monthly payments – you encourage everyone to earn a living. In addition, investors are waiting for a typical market vesting schedule and it would not be a good sign to have one. In this section, you are not going to rewrite your spending and budgets so much – you may not even know them yet – because you are saying exactly how you are going to manage the budget and the expenditures. Like what. B Is a person responsible for the budget or can it be approved by a particular person? What about the reimbursement of expenses that the founders pay out of pocket? How should founders file a refund? All of this should be clarified here. A business creation agreement is a legal contract concluded by the founders of a startup. It can cover everything from the one who is involved until they have contributed to what happens when someone leaves. This is a legally binding contract and should be created at the beginning of the company`s life cycle to put everything on the table before a group of co-founders collapses. Remember that all these conversations may seem unpleasant, but they protect all co-founders in the same way. No one is exempt. Unfortunately, the problems addressed by a foundation agreement are not uncommon and any good partner will understand the need for such preparation.
Here are other tips on how to agree on a founder`s agreement: here are some steps you can take to get a founder`s agreement. They are not binding, but they are a good general guide that you should follow when you follow this process. Again, salary and compensation are part of the founders` agreement, but it is incredibly important. Will you notice the trend? We tend to miss the discussion on these bases when the entrepreneurship aisles turn, but the drafting of an agreement requires us to address these topics… And to clarify all the uneven expectations that everyone could put on the table. Intellectual property is the creative material that sets your business apart from any other company. This includes your products, recipes, marketing materials, logo, branding, packaging, website, business plan, themed songs, inventions and much more. Of course, your intellectual property is important to protect – and the agreement of the founders is a great place to do so. Now that the Easy-Peasy is out of the question, you and your co-founders can sit down and have the serious discussions we mentioned earlier. Compensation, fairness, mission plans, roles and responsibilities, exit clauses—putting everything in place here and now, so there will never be a procedural problem thereafter.
Once you and your founding team have agreed on the size and mission of your business, take the time to define your respective roles and which team member is monitoring what. While the functions of formal roles tend to change (particularly in newly established startups), the corporate article “Build Your Management Team,” written by Steve Robbins, describes the general functions of each formal role.