The Partnership Works Today-but What Happens in Two Years? Why a Founders’ Agreement Addresses the Scenarios No One Wants to Imagine
Most business partnerships begin with optimism: a promising idea, a natural division of roles, energy and often a belief that personal friendship is stronger than any legal document. That is precisely when people say they have known each other for years and do not need complicated contracts. A founders’ agreement is not only for people who distrust one another. It defines expectations while relationships are good-before the business grows, money arrives, an investor enters, one founder wants to leave or personal circumstances change. Registering a company is only one step in creating a joint venture; the relationship among the people behind it requires much deeper planning.
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