Arriving at a fair equity split for co-founders of a startup company in Ohio can be difficult, but considering different factors could help. Perhaps the most important factor is what positions the partners are going to fill in the new company. A CEO has more responsibilities than a consultant or other non-key executives, so that person should have a greater equity interest in the company.
It is important for Ohio entrepreneurs to take care of legal matters when forming a new business. Many start-ups fail to have in place basic legal documentation outlining each founder's role in the business. Many times, this is because the owners would rather spend the company's money on products and advertising rather than on legal matters. However, businesses that have legal documentation in place that gives a blueprint for what will happen if major changes take place or the company shuts down tend to be more successful than those that do not.
Perspective business owners in Ohio who want to achieve success begin by drawing up a comprehensive business plan. Successful business planning works to provide the owner with marketing, profitability and assessment tools to measure the business's financial growth. The business plan should be thorough and detailed, and an effective business plan carries several parts, such as an introduction, an outline of the company's marketing and financial arrangement, a detailed outline of the business operations and a conclusion.
The mayor of Akron has called for the merger of his city's two main hospitals, Akron General Medical Center and Summa Akron City Hospital, in a measure he feels would hold off the need for outside ownership of the facilities and eliminate the duplication of costs. Don Plusquellic made his plea during his State of the City address.
Ohio business owners may be interested in an article looking at some timetables for exiting out of the business. For those who wish to retire or sell their companies, planning is an important step in the process, and it is advisable to start sooner rather than later.