We are as excited as you are about the Taylor Swift Concert series in Toronto and Vancouver. As a tribute to the concert series of the decade, MT❯Ventures will be publishing a series of Taylor Swift-inspired blog posts. Here’s the fourth post in our series. We hope this advice will be useful as you grow your startup in this exciting era.

It’s no secret that co-founder conflicts are the number one killer of early-stage startups. They may arise through simple disagreements with respect to the business or may manifest themselves where founders fundamentally disagree on the culture or vision for the business. No matter what type of startup you have, if multiple founders are involved, conflict is inevitable. The goal is to embrace the conflict and ultimately be prepared to “shake off” any “bad blood” among founders, so you can focus on what matters most: turning your startup into a success.

1. Learn How to Communicate Effectively

Conflicts are inevitable. They arise in families, friendships, workplaces, and life. No two people always have the same opinions and perspectives. As such, it is important to communicate effectively. Remember to focus on the issue, not the person. Approach the conflict with curiosity and a willingness to understand the other side. Consider that the disagreement might actually give you insight and opportunities to explore new ideas. It’s crucial to keep perspective and remember your vision. When founders disagree, it’s helpful to come back to the reason why you started the business in the first place, and come to a solution that best serves your vision.

Transparent and honest communication are the foundations of any partnership. Regular check-ins and open dialogues can prevent misunderstandings and foster trust.

2. Use a Data-Driven Approach

When emotions run high, it can be helpful to take a step back and look at the issue objectively. Consider any available data and see what makes the most sense “on paper.” Find answers that are grounded in data and facts, rather than only emotion. With this lens, all founders will have a more informed conversation and come to the best decision for the business.

3. Set Clear Expectations and Boundaries

To proactively manage conflicts among founders, it is important to clearly define and delineate the role of each co-founder. You should draft a comprehensive founders’ agreement from the outset and revise and revisit the co-founders’ roles as the company evolves. A well-crafted agreement will answer important business questions and allocate the appropriate responsibilities. Most importantly, a strong agreement will help you navigate the company when it comes to unforeseen circumstances. For our top tips on creating a founders’ agreement, check out our recent blog here.

4. Bring in a Third Party

When co-founders disagree, don’t be afraid to seek outside help. This does not have to be an external mediator with no relation to the founders, but rather a third party who the co-founders trust and respect. A third party will be able to bring an external perspective and will objectively examine all the facts and circumstances and find a solution that best benefits the company. They might also provide recommendations and alternatives, allowing co-founders to ideate together and come up with solutions as a team.

5. Prioritize the Company and the Team’s Well-Being

Co-founder conflict will impact the entire company and, most importantly, all the people that make up the company. It is pervasive and divisive. Your startup’s success depends on how well you can work with your co-founders. When conflict arises, remember to be professional and never make it personal. You have a responsibility to your team and those building the company to be the best leaders.

MT❯Ventures: Your Backstage Crew

Conflicts are inevitable, and sometimes things don't work out despite your efforts. Most founder conflicts end in separation. Knowing when to walk away is as crucial as knowing when to stay and fight. If you do choose to work at it, remember to take the appropriate steps to proactively manage conflicts and resolve issues.

At MT❯Ventures, we strive to provide the legal smarts and strategic counsel that startups need to help you grow and focus on the vision. We will guide you through a plan to proactively resolve co-founder conflicts, helping you capitalize on your biggest opportunities and tackle the challenges you'll face on your entrepreneurial path.