Why Do You Need Startup Agreements?

Startups are important for a country’s financial ecosystem. We know how memorable all the firsts are in your business — the time you got your funding or when your product is commercially ready or your first sale. There are so many defining times that make you say, “I made it!

Each of these actions requires business contracts backing them. The time you initiate discussions for any relationship, you need to plan for an agreement.

Why Are Startup Agreements Important?

A contract makes your intentions transparent and helps in outlining the other party’s duties in the relationship. As a budding business owner, you have a lot of high-stakes decisions to make.

You need to employ staff, set up infrastructure, identify distributors and customer market. All of these arrangements take a considerable marketing effort and need pouring in a lot of resources. When you are stretched on funds, you can’t afford to avert them in drafting contracts through attorneys.

Contents of the Agreement:

1. Names of the people involved in the startup agreement

2. Validity of the agreement

3. Goals and objectives of the agreement

4. Roles and responsibilities of the people involved