For the past two weeks, our primary focus has been discussing on Cofounder agreement.
You may wonder why we are discussing this now when we don't even have a product??
That is a legit question.
Here is what I say.
Presuming forming a partnership with cofounders is a marriage, the whole process is like dating.
The discussion on what we should do with company shares if one of us decided to quit and keep the shares, and all the other what-ifs we cannot even think of now, helped each one of us finding more about who we are, how we deal with disagreement, and how much we are willing to come to terms.
I do admit I got frustrate at one point. I do admit I got emotional. I do admit I felt as if we should be moving forward in building a product first.
However, the more we discuss and get feedback from other startup founders and lawyers, the more I am convinced we are on the right path.
I feel good we went through this now than later, after we started to build a product.
It appears many startups jump on the wagon and start building a product (or MVP) before Cofounders agree on company terms.
Three of us at Two Places have been going through some of these datils in the last four weeks. We talked online, consulted an attorney, gathered some info. It's time-consuming. It makes you feel like it can wait. After all, why create a company before a product?
In the beginning, things are good. You have a new and exciting idea and everyone is eager. Everyone is optimistic. It's much easier to come to an agreement when things are good.
No one likes to think about "bad" things to happen in the beginning.
As things move forward, reality starts to hit - disagreements, troubles and challenges will occur.
When not so exciting issues come out, things get tough.
But now, the company is officially formed and cofounder agreement ready to be signed, I feel good we went through this before we start building a product.
We will start discussing the plan to build our product after next week.
See you next week.