By Fernando Berrocal

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Building a startup from the ground up is both an exhilarating and stressful business experience. However, many different types of professionals aspire to the chance to start a business from scratch. They aspire to make a legacy for their relatives–and inspire future generations of their communities. 

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There are various approaches to accomplish this; either by doing it alone, or teaming up with a startup cofounder (or several cofounders). If you chose the cofounder route, there are several actions you can do right away. Some of these actions include making sure to have a lasting, prosperous partnership that realize goals of both parties. You should be aware that not every endeavor with founding members is prosperous, since there are many inside and outside factors in the startup world. Therefore, it's crucial to spend some time considering factors that can benefit younger businesses like yours.

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In some specific circumstances, cofounders of a business receive nearly the same respect and recognition as the primary founders. When you consider outstanding cofounders, you probably think of a few recent names in different industries. We will discuss a few of the more well-known individuals and their businesses. Some of these are James Gamble and Bill Proctor of Proctor & Gamble (P&G), Ben Cohen and Jerry Greenfield of Ben & Jerry's, Bill Gates and Paul Allen of Microsoft. In the latter case, Paul Allen (Microsoft´s cofounder) even came up with the initial name in 1975. As a result of their partnership, Microsoft's MS-DOS operating system was subsequently formed in the 1980s, and revolutionized the world as we know it.

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The secrets of the (successful) cofounder relationship formula are varied. In the following paragraphs, we will try to describe what we consider to be the most important aspects of this formula.

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• Give your labor your maximum effort.  If one business founder puts in all the work while the other doesn't, it will lead to a strained relationship. This doesn’t just occur in the workplace; it also happens in academic contexts and team sports competitions. Extenuating situations may arise from time to time–the partner needs to comprehend the scenario. For instance, if one of the founders has a close relative who is very ill, they could require additional time away from the business (to help their relative). How can you handle reasonable circumstances such that everyone is comfortable with the partnership? How do you ensure that the split of labor is reasonable?  Before possible issues arise, discuss them with the owners and staffers. Settle on a framework that suits both parties and covers matters such as:

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• The duration of any leaves of absence
• How compensation, and working hours will be handled
• How bonuses will be handled

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• Try to keep your expenses as low as possible. The largest disagreements between partners usually arise from their financial situation(s). Keep your spending as minimal as possible. since most small businesses generally struggle with cash flow during the early stages of operation. As your enterprise expands, there will come a moment when you can choose from additional possibilities.  For now, stay humble. For instance, rent accounts for about 80% of the price of an office space.  Finding ways to save money might need some ingenuity from you and your team. To ensure that you and your cofounder are on the same page with your choices, decide how much you will each spend in various categories–well in advance.

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• Attempt to communicate to your partner daily.  You should be aware that successful cofounders frequently discuss business-related topics with their partners for at least 15 to 30 minutes each day. Verify that you and your partner are in agreement, and go over any important choices or impending milestones that may need to be addressed. A study done with 10,000 businesses found a core reason why high-potential startups fail 65% of the time: interpersonal conflicts among founders. So, be intentional about communicating.  The pressures of day-to-day operations can be distracting; don’t forget to speak with your business partner.

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• Reinvest in your business brand. Individuals routinely give more attention to the things in which they put their time and money. Decide how much of your profit you will return to the business. Do you wish to leave a lasting impression on upcoming generations? You might adopt a little bit more aggressive financial tactics to accomplish that. It helps to plan out every aspect of running a business in detail to avoid confusion later (or between partners). When one founder needs a salary to survive, the other founder needs to know they won’t be forgoing one for the first 6 months.

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• Expand your business as you grow. As the organization grows, be flexible with your business duties–and your partner(s). Managing more than a hundred employees is very different from two friends wrapping up orders in a garage. The firm's founders shouldn't attempt to do everything they did in the early stages of business development–there are bigger responsibilities now. Instead, employ others to do some of the founders' former tasks, or add more team members to assist with running business operations.

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• Develop trust. Establish who owns what, who makes the decisions, and how assets are distributed–in every part of the business. Make sure your actions and visions are in harmony. What do the two of you want for the business? Failure modes operate against your primary goals whereas operating modes enable you to reaffirm the fundamentals. Keep communicating!

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Recall your narrative. Most co-founders talk about their past; they have a story to tell. To develop a business idea, launch a startup, and reach for a future vision, stakeholders must get along well. Talk about your journey and how you overcame obstacles. Take time to meet outside of work, and discuss plans. Developing a long-lasting co-founder relationship is just like any other bond. Take transitions in stride and draw on memories to get you through tough times. With simple consideration, a shared focus, and a plan for handling stress, any firm with founders has a chance for success.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.