Decision-making and conflict between co-founders

Co-founder conflict is one of the most common reasons early startups die. Not because founders disagree, but because they don't have a way to finish a disagreement. Set that up before you need it.

Who decides what

• Split the company into areas (product, sales, money, hiring) and give each one an owner who has the final say.
• List the few big decisions that need everyone: raising money, new co-founders, large spending, selling the company.
• Write it down, and revisit it every six months.

A simple decision process

1. 1
   Frame itWhat exactly are we deciding, by when, and who decides?
2. 2
   Hear everyoneEach person states their view and the strongest argument against it.
3. 3
   DecideThe owner decides. Others can disagree and still commit.
4. 4
   Record itOne line: the decision, the reason and when you'll review it.

Keep conflict healthy

• Raise issues early, in private, and about behaviour, not character.
• Have a regular founders' meeting just for 'how are we working together?'
• Never argue in front of the team, customers or investors.
• Separate reversible decisions (decide fast) from hard-to-reverse ones (take more time).

When you're stuck

• Bring in a trusted mentor or advisor both of you respect.
• Run a small experiment instead of arguing about opinions.
• Use a professional mediator before it becomes a legal dispute.