June 27, 2016 / Published Work

What is the most important thing to consider when setting up a venture with a partner or investors?

It is particularly important for entrepreneurs starting a venture with one or more business partners or investors to create a roadmap of roles, responsibilities and expectations right in the beginning stages of that venture. Creating an agreement that protects everyone’s interests while there is a level playing field may help to smooth potential bumps down the road, so it is best to ask the difficult questions and work through the what-if and worst-case scenarios before starting any work. If at any point a partner or investor ends up leaving the company or selling their stake in it, everyone will be more likely to be on the same page regarding how the business will operate going forward if a clear agreement was created at the start. The better job you do at the front end in making those decisions, the easier it will be later if there is an unfriendly parting of ways.

Lev K. Martyniuk

Porter Wright