Advice on getting a competitor as a potential co-founder

#1

Post by aadebola » Sun, Feb 09, 2025, 10:46 AM UTC

I'm a solo founder of an e-commerce platform with some traction. I'm open to finding a co-founder and was recently introduced to another solo founder who is effectively a competitor, but with some more traction than me. We're considering joining forces as co-founders, but I have a few concerns:

1. Fast Compatibility Check: We don't have the time or bandwidth for lengthy trial collaborations. How can we quickly assess if we're a good fit as co-founders?

2. Sharing Competitive Secrets: To make this work, we'd have to disclose sensitive information about our business strategies. How do we protect ourselves if it doesn't work out?

3. Potential Fallout: What steps should we take to ensure a clean and fair exit plan if the partnership doesn't succeed?

Any advice on structuring this process and making a well-informed decision would be greatly appreciated!

Re: Advice on getting a competitor as a potential co-founder

#2

Post by JoshTriplett » Sun, Feb 09, 2025, 11:00 AM UTC

> We don't have the time or bandwidth for lengthy trial collaborations.

Why not? If you can't take at least a little time working closely together first, this seems like a really bad idea.

> 2. Sharing Competitive Secrets: To make this work, we'd have to disclose sensitive information about our business strategies. How do we protect ourselves if it doesn't work out?

Get a good lawyer to write a good noncompete, making it clear that if one person leaves the partnership they cannot compete with the other.

Re: Advice on getting a competitor as a potential co-founder

#3

Post by brudgers » Sun, Feb 09, 2025, 11:53 AM UTC

If you don’t trust each other don’t get married.

Recognize and acknowledge what each of you actually want…what are the real attractions of a partnership?

Talk to each other. If you can’t do that now, it won’t happen when times are tough. Good luck.

Re: Advice on getting a competitor as a potential co-founder

#4

Post by codingdave » Sun, Feb 09, 2025, 2:23 PM UTC

You should merge the companies. Pick one of you to lead, put both of you on the board (if you will have a board). And then if it does not work, one of you has to quit, with the other remaining as the leader of the merged company. You need to developed a merged product to which you are both committed, with neither one of you holding any attachment to your former product or brand.

Anything short of that, you are asking for conflict. And if you are not both comfortable with that, you should not partner up.

Re: Advice on getting a competitor as a potential co-founder

#5

Post by aristofun » Sun, Feb 09, 2025, 8:19 PM UTC

There is no other way than to try.

To minimize the risk you should write down and agree on all possible what can go wrong scenarios and your realistic plan about it. Like a divorce contract before you get married.

Re: Advice on getting a competitor as a potential co-founder

#6

Post by bruce511 » Mon, Feb 10, 2025, 6:10 AM UTC

codingdave wrote: post #4

You should merge the companies. Pick one of you to lead, put both of you on the board (if you will have a board). And then if it does not work, one of you has to quit, with the other remaining as the leader of the merged company. You need to developed a merged product to which you are both committed, with neither one of you holding any attachment to your former product or brand. Anything short of that, you are asking…

I agree with this. I'll add the following;

Understand that this venture is risky, to both of you. There are possible upsides and downsides. Assuming you're both operating in good faith, both sides want it to work.

As a startup you'll be used to risk. It's kinda baked in. This is just one more. There will be more to come. You can "structure " some of the risk away, but fundamentally it's there.

I would recommend you both take one day and spend it together. Try and find topics you disagree on and just discuss them. This will help you understand how your partner deals with conflict. Explore areas which are material (politics) and something which is not (say sports). See if this is someone who understands consensus and compromise (find out if you are.)

Ideally you have more time, but even a day would be a good starting point.