I split with my partner — everything we didn't put in the contract cost us dearly

A partnership without a vesting schedule is the biggest red flag for investors. Here's why: if a founder leaves in the sixth month, half the company stays with someone who's no longer there.

The common setup is a one-year cliff and vesting over four years. Putting this in from the start isn't an insult to anyone, quite the opposite, it protects both parties.

im actually looking for a partner right now and honestly got a bit scared seeing this post. but then i thought, getting scared isn't the right reaction, preparing is.

kaan bey, can i ask something? if you could go back, which clause would you write first? anyway, you need to write them all, but if one is more important than the others, id like to know which.

I'd say decision-making powers. Because the others come into play when leaving, this one comes into play every day.

In our case, every decision required approval from both of us, and this worked well in the first year. In the second year, when we started thinking differently on the same issues, no decisions could be made. The company went nowhere for three months. Does this sound familiar?

Correct.

There is something to watch out for. I mean everything goes well for the first three months; problems arise in the fourth.

If you post the result here, it will help others too.

You're right. If it's your first time, start small; scaling comes later.

Hope this helps.

Thanks for posting.

I'd say don't rush. The harder it is to reverse a decision, the slower you should make it.

If you don't write this down from the start, it leads to arguments later. Just leaving this note, it might be useful.

I'll try it.

following. like if you get three different answers on a topic, the question was asked wrong.

the real issue isn't the number but what it's based on and this is my opinion I'm not claming it's absolute truth.

I went through the same thing.

quick summary for newcomers: When the closure deciison was made is as decisive as the decision itself.

just because everyone does it doesn't mean it's right but proven by experience.

I'm writing this so you don't make the same mistake. Looking profitable on paper but having no cash in the bank is very common.

I'm in the same situation that's why I'm asking. People defend habits not processes. Resistance comes from there.

The harder it is to reverse a decision, the slower you should make it. That's all, sorry if I went on too long.

My questions are cleared up, thanks. Extending terms makes customers happy but turns you into a financing institution.

Pausing growth to breathe is also a strategy, nobody says that.

The opposite happened to me, that's why I'm writing. Mistaking revenue for cash is the most expensive illusion; trust the bank account.

Good luck with that.

Same here.

Don't miss this: The longer you delay cutting the team, the more people it affects.