Countless startup ideas are hatched among friends, colleagues, college roommates and family members. A late-night discussion between two friends could potentially become the next social network or mobile ad platform.
These relationships can be great breeding grounds for new ideas and innovation, but navigating business management with friends or family members can also be tricky. It's tempting to rush forward without anything in writing — after all, you know each other so well, you both want the same thing for your business, why waste time with the formalities?
While you may agree on everything today, issues will inevitably emerge. Maybe a friend gets married and decides it’s time to go back "to the office." Perhaps you’ll disagree over compensation, or whether to spend your whole marketing budget on a fancy launch.
Having some kind of partnership agreement in place from the start can be a helpful starting point to figure out any issues that arise down the road. It doesn’t need to be a fancy document, but your basic discussions should include four things.
