There are so many things which Founders have to worry about and do in launching a new venture- financing, people, customers etc. All of these are important but the reality is that most ventures fail because of people issues and are really a failure of the relationships among the team members. Teams come together around an interesting or exciting idea or opportunity and tend to get swept up in the idea. They often don’t talk about their shared aspirations, vision and what they want to get out of the venture. The venture gets launched without these discussions and then problems surface “Big Time” down the road when these undiscussed topics collide.
These problems can be surfaced and dealt with early on if Founders work at it. This can be done by addressing some of the practical issues which should be considered in structuring the relationships among the Founders. This memorandum outlines some of the legal and business issues which the Founders of a new venture may want to consider in structuring their relationships among one another.
Author: Joseph G. Hadzima Jr.
Source: Massachusetts Institute of Technology (MIT)
Subject: Entrepreneurship
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