ready to leave their jobs if you do; 3. Agree that you want to start a company together. The next several dozen steps will test this. 4. Agree on an idea. The idea is much less important than the team as the idea will likely change and evolve; 5. Agree on the time and money each of the founders will contribute. 6. Agree on areas of responsibility. Choose a co-founder who complements your skills, not one which duplicates them; Who will be on the board? 7. Agree on intellectual property ownership. This is essential. The IP must reside in the company; Create NDAs and employment contracts which you should ALL sign (even founders); Create these even if you're not paying yourselves anything; 8. Agree on how you will handle personal guarantees, credit cards and other personal liabilities. Steer clear of personal credit card debt if you can; If you rack up directors' loans against your start-up as long term liabilities, bear in mind you may be pressured by future investors to convert these to equity; 9. Agree on founder compensation and equity allocation. Allocate options to yourself and co-founder vesting (reverse vesting) over four years; Include favourable terms for you the co-founders (eg six months' redundancy pay, three months' notice) and a three or six month probation period for staff -- they may not work out; 10. Agree on the exit strategy now. This does not necessarily mean running your company toward a quick sale -- you should focus on