Most founders think a solid operating agreement will save their partnership. It won't.
Travis Lee Howard—ten-time founder, conscious leadership expert, and former partnership attorney—joins us to reveal why sixty-five percent of startups fail not because of market problems, but because founders don't know themselves well enough to work together. He shares the "gift versus gift giver" framework that helped him navigate thirteen companies, why traditional governance structures create the conflicts they're meant to prevent, and the exact provisions he'd write into every partnership agreement today (hint: they're not about voting rights). If you think your co-founder relationship just needs better documentation, this conversation will change your mind.
Here's the uncomfortable truth about partnership agreements: no contract can save you from yourself. The most ironclad operating agreement in the world won't protect you when stress hits, egos clash, and someone wakes up on the wrong side of the bed. Traditional governance structures focus exclusively on the "hard machine" of business—voting structures, equity splits, exit terms—while completely ignoring the "soft machine" that actually determines whether your partnership survives.
The real work starts with a different kind of agreement. Before you argue over equity percentages, ask yourself: Do we know who we are as individuals? Have we identified our personas—the versions of ourselves that show up under pressure? Can we name the triggers that make us defensive, withdrawn, or controlling? These aren't soft skills; they're survival skills. Without this foundation, every business decision becomes a personal battle.
Partnership problems almost always trace back to self-awareness gaps. One founder thinks they're being strategic while their partner experiences it as controlling. Another believes they're being collaborative while coming across as indecisive. The disconnect isn't about competence or commitment—it's about how well you understand both your internal experience and how others perceive you. External self-awareness matters even more than internal self-awareness in business settings, and most founders have neither.
Smart partnership agreements include provisions for the soft machine. Monthly founder check-ins where you discuss relationships, not just metrics. Quarterly equity reviews based on who actually showed up and performed. Communication protocols that require talking to people, not about people. A "man down" rule where anyone can call out closed body language or defensive postures. These aren't nice-to-haves—they're the difference between partnerships that implode and ones that evolve.
The "gift versus gift giver" framework clarifies roles before conflict emerges. Some people are the gift—their value walks in the door with them through presence, energy, and relationships. Others are gift givers—they create tangible deliverables that exist after they leave the room. Neither is better, but if both partners are gifts in a business that requires constant production, tension is inevitable. Understanding this distinction early prevents years of frustration over who's pulling their weight.
Start every partnership with foundational assessments. Colby, Enneagram, CliftonStrengths—pick something that reveals how each person naturally operates. Then commit to using that information. Keep the profiles visible during leadership meetings. Reference them when conflict emerges. Let them serve as the third party that reminds everyone: this isn't personal, it's just how we're wired. The goal isn't to excuse bad behavior but to create shared language for navigating differences.
Even the cleanest exits require relationship infrastructure. When one founder needed to leave a consulting partnership, weekly non-business check-ins where they discussed their roles as spouses, parents, and partners created enough trust to handle the transition smoothly. They used a predetermined formula, settled finances without drama, and left the door open for future collaboration. That only happens when you've been practicing vulnerability and transparency long before the exit conversation.
Watch the Full Episode on Partnership Governance with expert Travis Howard below:
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