Many business owners neglect to spend time thinking about their vision. Specifically, on how they plan to achieve their goals and the risks they are likely to face along the way. Many also fail to invest time in thinking about the people who will take them to their ultimate destination.
Long-term, poorly considered appointments can even result in litigation and business failure. With prevention in mind, this article focuses on some of the questions to weigh up when selecting a winning team.
One of the ways to do this is by way of Joint venture. It is not unusual for two parties that are independent of each other to join forces on a specific project. When this happens, the parties can opt to enter a joint venture agreement that sets out their respective obligations. In many cases, however, a joint venture agreement constitutes a partnership which, in turn, raises the inherent risk of unlimited liability.
Shareholders (eg co-founders, investors or partners), in contrast is a much more complex relationship. Selecting the right shareholders is just as vital to minimising business risks as appointing the right team members. Shareholder agreements have always been essential tools in negotiating stakeholder involvement or attracting additional investment. Usually, these agreements also included provisions regulating governance, which is of particular significance when investing in any company.
To achieve your long-term vision, you need to regulate the relationships between all these parties effectively. PocketAdvisor teaches users to identify various critical relationships that are vital to achieving business success. In addition, we provide all the relevant legal structures, documents and contracts needed. For more information please contact us or enrol today!