Putting up a fair Ownership agreement or Venture Partnership agreement

By Andrew Ekwang

After the our series on formalizing Family businesses  to foster growth, many have quietly hinting to me the fear and challenges they foresee with business formalization and assuring themselves that their business and their stake in that business is safe for now and for the future. thinking about this for a while and I guess the biggest worry our Entrepreneurs now have in pulling out resources either from Partners, Venture capitalist or even Banks rotate around the issue of Ownership: Do I risk diluting my stake and control, or even worse losing the all business? This is sometimes the biggest questions in most entrepreneurs’ minds, let’s try and look few ways you can safe guard your business and still acquire the required funds to grow your business.

Initial Agreements

Business Ownership agreements is one of the most essential contracts that  you should  formalized between  you and any other parties you partner with prior to the registration and start of the business, so that there will be a smooth and effective operation of the business.  Sit and take time to discuss this and reach agreements that are acceptable by all parties, if possible invite the presence of you legal advisers You will discover that this will be best decision you will have made for the both for smooth start, running, growth and business life. Accordingly, ownership agreements must be able to achieve three important aspects namely, ownership protection, business continuity and sharing scheme among business owners.

In addition, vital points should be sufficiently covered which range from the remuneration of owners to conflict mechanisms. Once these points are satisfied, then it would minimize potential disagreements among business partners. In order to make sure that you have a fair ownership agreement, it is advisable that you employ the services of corporate lawyers before finalizing such agreement.

Register the Business or formalize the Agreed position/partnership through attorneys to make the agreements official and binding

(Am working with a friend of mind – Legal Practitioner to bring you the step by step advice on this in the next article soon)