Consider a startup with a small number of founders (lets imagine 2 to 4). At some point down the line a difference of opinion developed (such as market to target, or if to continue or fold) that can't be resolved in the normal way.
What can you do to ensure that organisational paralysis doesn't ensue?
- equity & control split 49% / 51%
- the parties want to take company in different directions
- controlling party can force their way - but then minority party can loose all motivation, which means majority part has no incentive to work either as they put in 100% of work for 51% of future gain.
- controlling party may be able to buy out minority party if they can agree on price - but what if they can't agree or refuse to?
- obviously more of a problem the closer the majority/minority part.