When a group of people come together to build a startup from the ground up, they see a collective dream, a dream of growing together and leaving their mark in the market.

 However, life's twists and turns may cause a schism between the founders, resulting in a fallout.

 The reasons may differ, but how the rest of the team handles this 'critical' situation will be critical to the startup's survival.

 If not handled properly, this situation can disrupt the normal flow of a business at any stage and lead to numerous internal and external disputes.

 The first thing you must realise is that when a co-founder quits the company, it does not mean the end of your prized creation.

 The goal is to approach this as a major priority transition process.

 Despite the fact that a co-founder is an important part of the company, "the show must go on."

 Let's go over this in three stages.

1. "Prevention is preferable to cure"

It's always a good idea to have a binding agreement that everyone agrees on before you start working on your startup.

Taking care of the details ahead of time will provide you with comfort and a sense of security.

Serving the notice period is required for a co-founder.

If a co-founder conveys their plans to quit, the rest of the founders will attempt to negotiate terms with them.

Leaving aside all of this, the normal structure of a company is built in such a way that there is constantly a backup in case a person in a managerial role leaves.

 That backup would be someone who acts on behalf of the co-founder when he is on leave or makes decisions in his absence.

2. "Survive the present, and the future will be bright."

The process of a co-founder leaving a startup is extremely difficult for the company.

This is the time when communication with your coworkers is critical.

This significant shift in management must be properly communicated to them in order to foster transparency and trust.

Stakeholders, investors, and key stakeholders must all be given the same information.

This builds trust with the investors, and they may even try to help you find a suitable replacement or advise you on your next steps.

It is preferable to complete the process in the presence of an attorney.

They will provide you with the best co-founder exit strategy and legal advice.

When defining the state of equity entrusted to the co-founder, a legal attorney is also required.

This is entirely dependent on the agreement that "should" be made before dividing the shares.

Most of the time, the company repurchases their shares before they leave.

The departing co-founder will be notified in advance that the company is prepared to repurchase their unvested shares.

3. "A solution to the void"

When one of the co-founders decides to leave, the remaining co-founders must develop a plan to help the company get through the transition period.

In some cases, choosing the right person to fill those shoes may be difficult.

Every company begins their internal search for a replacement first.

A person who is familiar with the business and its processes will save time and resources for the company.

Because the role of a co-founder is more managerial in nature, having a familiar face in that position would be more comfortable for everyone.

If you are unable to find the right person for the job internally, external hiring is your only option.

However, bringing in a new talent takes time and is dependent on a variety of factors.

Given the importance of the position they must fill, the hiring process will be more time consuming than usual.

Takeaway

A co-founder leaving your company is not Thanos' "inevitable snap," but rather another stumbling block in your startup's journey.

The way you deal with the situation determines your future prospects.

 The main takeaway  is that you must always have a backup plan in place and be prepared for any unforeseen events.

We all know that these are the kinds of situations that cause your mind to panic.

However, as a co-founder, your team looks up to you, and it is your responsibility to be their rock!

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