Questions

I am the CEO of my startup, and have two co-founders. I hold the most shares among us, but our ownership percentages are fairly close. We have no other employees. One co-founder is only involved part-time because of another job; he has useful connections for our business, but can't contribute much day-to-day. The other one works in the company full-time like me, but needs to be guided through almost everything they do, taking very little initiative to solve problems on their own. I often feel that in the time I spend worrying about whether or not they have accomplished their next important task (and constantly following up with them), I could have just done it myself. Am I better off trying to motivate them to contribute more, or looking for new team members?

I know how frustrating it might be for you, trust me I have worked with several companies that do have conflicts with co-founders and it is really damaging. I can advice you to do the following:
1. Have a Plan of Action (In Writing): Conflicts are inevitable and oftentimes necessary for start-ups to evolve, so it is best to be prepared for those circumstances when conflict arises. Being prepared by having a written agreement that outlines your individual roles, profit, liability, and work-load distribution. This is also a good place to outline a conflict-resolution game plan. This way, when conflict inevitably occurs, you have a founders’ agreement to refer to.
2. Address Conflict Head On: It is a natural human tendency to avoid conflict and, by doing so, you might feel like you will salvage your business relationship. The harsh reality is that if you prolong addressing conflict, you are only likely to escalate the problem, repeat it someone down the line, or worse damage your company beyond repair. Addressing and embracing conflict head on is not only positive for founding partner relationships, but it can actually set a good example for your team that is, if you and your co-founder can come to an understanding. Co-founder conflict should always be discussed away from employees since conflict in the open is a fast way to reduce morale and lose the respect of your employees. When it arises, take the discussion to a private place.
3. Work to Understand Your Co-Founder’s Point of View: As a founder, it can be easy to make the mistake of thinking your point of view is the only correct one and, in turn, vocalizing that to your co-founder(s). After all, you are emotionally attached to this business you have poured your blood, sweat, and tears into. However, only seeing your side of things damages working relationships. Make the effort to put yourself in your co-founder’s shoes and truly listen to what they are saying during times of conflict. You will win some arguments and lose others, but at the end of the day it is important to remember that your goal is to run a successful business.
4. Come Up with a Solution: The same logic can be applied to co-founder conflicts as driving in bad weather conditions steer into the skid. If it is your first time in a co-founder dilemma, it unlikely that you will navigate the waters as a professional. It takes a bit of practice to arrive at a solution. Do not agree on something? Do not leave the room until you have a resolution. This might mean you need more than a one-hour meeting. Perhaps you need to venture outside the office to resolve this conflict. In this case, cancel your weekend, go on a hike, and work through the dilemma together. If it is more severe, you might need to seek professional guidance.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 4 years ago

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