The Partnership Charter: How To Start Out Right With Your New Business Partnership
by David Gage · 2004
In a nutshell
David Gage's guide to creating partnership agreements that prevent founder conflicts. Essential for co-founders before they start working together.
Overview
David Gage shows how to create partnership charters that address issues before they become problems. Based on decades mediating partnership disputes.
The Partnership Charter
Address upfront:
- Decision-making authority
- Financial contributions
- Time commitments
- Exit scenarios
- Dispute resolution
- Values and vision
Key Topics
- Equity splits and vesting
- Roles and responsibilities
- What if someone wants out?
- Handling disagreements
- Buy-sell agreements
Why It Matters
Most partnerships fail due to unaddressed expectations. A charter prevents 90% of future conflicts.
Published by Basic Books 2004.
Reference
The Partnership Charter: How To Start Out Right With Your New Business Partnership — publisher / official page. Summary adapted from the Awesome Startup Books collection.
If you like this, read
Paul Graham Essays
Collection of essays by Y Combinator co-founder Paul Graham on startups, including classics like 'How to Make Wealth', 'Startups in 13 Sentences', and 'The 18 Mistakes that Kill Startups'. Considered essential reading, akin to Yoda's wisdom for founders.
The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup
Noam Wasserman's research-based guide to founder decisions. Based on studying 10,000 founders—essential for avoiding common traps.
Don't Hire a Software Developer Until You Read this Book
K.N. Kukoyi's guide is essential for tech startup founders, offering insights into hiring software developers and managing tech projects effectively. It's a practical resource for navigating the complexities of tech entrepreneurship.
The 7 Secret Keys to Startup Success
Authored by David Muchow, this book provides a comprehensive guide for startups and growing businesses, covering practical business and legal advice.
The Founder’s Dilemma
Written by Noam Wasserman, this book explores the critical decisions faced by startup founders, such as equity splits and hiring. It provides data-driven insights into the common pitfalls and challenges in the early stages of a startup.
The Startup Checklist
Written by David S. Rose, this book serves as a comprehensive guide for startup founders, covering startup execution, management, launch strategies, growth phases, and potential legal issues.