Too many times I have heard the words "if only I had known" from business owners. Unfortunately, I usually hear these words on the eve of bankruptcy. Here are my top ten things "to know:"
Forget about 50-50 ownership.
You believe you and your partner will get along forever. Such utopian thoughts rarely work in business. If a shareholder deadlock occurs, your recourse is to buyout the other party or to ask that a state court appoint a receiver to dissolve the company. To avoid these problems, consider a buyout provision in your shareholder or operating agreement and the use of outside directors to provide advice and to break director deadlocks.
Don’t put all of your eggs in one basket.
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