founder, partnership, co-founder, business-structure, partnersI’m a founder of a startup with another 7 (!!) co-founders. I was the visionary and the main founder. Along the way I believed in giving percents to people I thought would contribute. A rookie mistake as it turned out.
Sadly, after about 3 years I see I’m alone. More specifically, almost no one does anything, except one other co-founder.
There was very little done by others in the beginning, but mostly nothing even then.
So, now I’ve got only 25% for myself, doing about 90% of the work. I don’t think there is any financial reason for me to continue - as the others are benefiting by doing nothing and myself benefiting little even in face of success.
The company was bootstrapped 100%, so no investors to deal with here… Also, the company is just starting to get paying customers, but not in any really meaningful way.
I would be glad to get advice on what to do now. Should I just leave? If so, how? Renegotiate terms?
If I’d like to open a similar business but without those partners - could they sue me? What could happen?
Thanks in advance!
John
Tough situation you have in hands but if you really want to keep your dream (startup) alive, you have some options.
But no matter which option you choose, you need to use Assertiveness.
See, according to Wikipedia, assertiveness is:
the quality of being self-assured and confident without being aggressive. In the field of psychology and psychotherapy, it is a learnable skill and mode of communication.
I feel you, you are pissed and even a little bit angry with those fake partners, but talking in an intelligent way is your best shot.
Being assertive means you won’t “lose your shit” in front of them but also you won’t talk too soft. You will communicate what you really mean, in a confident way, without starting a fight.
Yes, it is not easy, but as already mentioned in the definition, is a skill that can be learned through some training and rehearse.
IF YOU WANT TO KEEP THEM
Probably you already know what you want to talk to them, but I’d like to emphasize that you need to get a commitment from them, here how I’d try to address this situation (of course, individually):
We’re getting into a new phase for our company and we need everyone on board. It doesn’t matter how much effort we have put already so far, we need and we’re going to work harder from now on. Now let me ask you something: Are you really willing to commit to this project and do whatever is necessary to us to succeed or are you looking for new ventures? Because if you decide to stick with us, we need to agree on a job description and milestones for everyone, you included. We’re going to review this bi-weekly because, as I said, we need everyone on board and those who do not aggregate, will have to leave giving space for new partners.
IF YOU WANT TO GET RID OF THEM
Another way is buying your shares back. Again you’re going to need assertiveness. Say to them you’re not happy with his/her performance and, when invited him/her to the project, was expecting much more effort and commitment. Ask him what happened.. let him/her talk.
Now say that you really want to look for a new partner to do what him/her was supposed to do and ask what agreement it can be made.
With those approaches we’re trying to avoid litigation.
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