Co-Founder Conflict: Common Issues & How to Navigate Effectively​

There wouldn’t be a startup if there weren’t a conflict. That’s a line that rings true for almost every early-stage company. Emotions are running high, roles are misaligned, decision-making feels impossible, and both growth and recognition can destabilize relationships and performance.

Many new businesses do not get past the launch stage due to co-founder conflicts. But there are ways to navigate conflict among co-founders effectively without losing a partner, a valued relationship, or an investment. Drawing from Reboot discussions and reflections from founders who have lived these moments (and have survived), here are the best tips we have for getting through co-founder conflicts.

Where Co-Founder Conflict Arises

In 2012, Harvard Business School professor Noam Wasserman studied 10,000 founders for his book The Founder’s Dilemma. His research found that 65% of startups fail due to co-founder conflict. ​There are a few main reasons co-founders fight, and while other reasons might be present, you can navigate any issue by scanning the following usual suspects.

Unspoken Issues

This is–by far–the most common reason why co-founders argue. It’s also the main reason why teams in well-established organizations disagree. It’s impossible to keep a strong feeling about any topic under wraps for too long, and this is especially true when it comes to co-founders. 

If one partner has strong feelings about any topic but hasn’t voiced those opinions, they will come to the surface at the worst possible time. Avoiding deep, conflicted discussions is never a good strategy. Get it all out on the table, no matter the topic or resolution.

The Overlooked Founder

It’s easy to run a project and handle most steps by yourself or with one other co-founder while overlooking a partner who may not be included in your decisions. On the surface, it can seem innocent to forge ahead and not look around you when business is going well. But you may be ignoring that one person who isn’t involved in any recent project or hasn’t been asked for an opinion. Stop and ask yourself if you could include that quieter partner more in daily happenings. Sometimes angst comes from being, however unintentionally, ignored.

Who’s Who

This one is so common that it may be the reason why things are going awry. Have you taken the time to determine who will make each decision? Does every partner know what their role is and where another person begins or ends? Setting those types of boundaries early in a business relationship is crucial. Otherwise, a business can be pulled in several directions, with everyone working individually rather than as a cohesive team.

Growth Resentment

It’s easier for a CEO to grow rapidly than a non-CEO. Someone will inevitably take the spotlight and may seem to produce more results. But that perception isn’t always the truth, and some partners may resent the person who shines more. Performance tension in this situation is common and can be quelled with a frank and honest discussion.

Talk is Never Cheap

​You cannot discuss business enough with your co-founders. Really. Set up weekly or bi-weekly conferences to talk about projects, issues, tensions, and any other topic that is important (and when you’re launching a business, every topic is important). But know that nobody will feel safe or comfortable discussing any issue unless it’s clear that all topics will be heard openly and without consequence.

There are effective ways to discuss business (and some that do not work). It will likely be trial and error to discover what works best for the people you are in business with, but here are some ways of holding meetings that have worked for the people we coach.

Structured Agendas 

Agendas and pre-reads can be useful and do not have to be exactly adhered to. A structured conversation agenda will allow everyone to speak about important topics and get through the items that matter, while leaving space for new conversation.

Naming Conflicts Directly 

Everyone knows what the issues are, so there’s no sense in calling a problem anything other than what it actually is. Bring up the hard stuff. Read that again. Talk about the things everyone is uncomfortable discussing. So often, problems fester because nobody is brave enough to name them directly–but that’s exactly what being a leader is. Sometimes it’s about the hard conversations.

Listen Actively

Do not prepare a rebuttal, and do not let your emotions get the better of you. Wait your turn and listen to what your co-founders are saying. Remember that there are a lot of things people aren’t saying in body language, facial expressions, and voice tone. If you sense tension or confusion, name it.

Ask for Help

Sometimes conflicts can’t be resolved because co-founders are too invested or emotionally involved in a situation. This is when bringing a coach into a conversation to help facilitate can help. More often than not, a third party can help move a topic past its ‘stuck’ point.

Navigation Not Avoidance

​If you’re a co-founder stuck in a disagreement with your partners, get used to working it out. Leadership is all about learning to navigate tricky situations with honesty and difficult conversations. It can seem tempting to avoid a topic you do not want to discuss, but that will only lead to more disputes. Is it hard? Yes! Is it necessary? Absolutely.

​You have to get used to learning to work things out. Otherwise, the business you are trying to build may fall apart with co-founders quitting or courtroom disputes. Almost every situation can come to some kind of resolution with the right conversation. 

As coaches, we see these types of co-founder disputes regularly, and a lack of true and honest discussion is almost always at the root. Remember that bringing a leadership coach into the conversation may help move things forward, which is always better than being stuck in a stalemate.