Meet Ben, he is one of the smartest and most hardworking people I know. I saw him put everything into his startup, but he still failed in the third year, why? Ben is a smart guy and thought of every technical component. He put in everything he had in, but he never thought of an eventuality where his business partner lost interest in the business and exited abruptly. They never signed any contracts and never spoke about what they would do if either wanted to quit. The problem is that before exit, Ben felt that he was doing everything and working much harder than his partner. He experienced the exit as the ultimate betrayal. Ben ended up paying out large amounts of money to this now ex-partner.
The aftermath was even harder. Ben realised that his partner was running a separate business while there and had poached his clients. Had Ben sat down with his partner and recorded the arrangements to exit a lot of animosity and the ultimate failure would have been avoided.
Unfortunately, many people face what Ben did daily, and that contributes to the astronomical rates of business failure. In a time where we need to create jobs and kickstart our economy. If Ben only used PocketAdvisor, he would have made better choices and put together a Shareholders Agreement and MOI. It provides people, like Ben, access to resources and contracts that would usually sell for thousands of rands. Click here for more!
