When two friends Pam and Carmen first contacted me about their new startup, they had found an operating agreement online. They asked me if it was good.
When I read it, though, it didn’t include anything about how they would work through a big disagreement.
Going into business with someone without an operating agreement is just like riding a motorcycle without a helmet.
Just like a helmet, a good operating agreement can save a life (the life of a company, that is)! It does that by providing a framework for how disagreements among owners will be resolved.
Pam and Carmen learned that not every contract form on the internet is good (surprise!)
Please share this lesson with friends venturing into business. Ask them about a time when something they found online fell short of expectations.
Friends don’t let friends get contract forms online.