Most founders wait too long. 

Whether it's an early hire, a co-founder or even a lover, the cost of sitting in a bad relationship compounds fast. Morale, momentum, opportunity cost. 

One bad hire is enough to bring down your company’s culture. What I see again and again: the founders who move fast when it's not working come out better. If it’s not working now, it’s probably not going to change. Your intuition is generally correct.

If it's a co-founder, that's its own can of worms.

This tends to surface early. If you're carrying the company and your co-founder isn't, you'll know.

What I've seen work is simple. Founders who successfully work through it have the conversation before they do anything else. Share what you've observed: what you've done versus what they've done. How they respond tells you everything. If they own it and there's a path forward, most give it another shot. If they deflect, that's usually the answer.

Gut-checking yourself before you act also helps. Share the situation with people you trust. Make sure you're being reasonable. Frustration clouds judgment more than founders expect.

If there's a deeper reason they're not pulling weight (lack of commitment, misaligned incentives, wrong skill set), don't wait. Fire fast. Sitting in a bad co-founder relationship is one of the most expensive decisions you can make. 

Equal (50/50) splits with a non-performing co-founder are the worst version of this. You can't outvote them or easily remove them. Although they would be incentivized to leave if there are clear misalignments, there will most likely be negotiations around equity. 

That’s why the best way to deal with this situation is to find the right co-founder in the first place. If they're not working out and you can't buy them out, leaving and starting your own thing may be the cleaner path.

IP assignments + Equity agreements have to be sorted before anyone leaves. If you haven't raised capital yet, it's relatively clean. If you have raised money, severance becomes part of the conversation.

Vesting cliffs exist for exactly this reason. If it’s under a year and they don't owe equity, you might still want to offer something. Early work has value, and an olive branch costs you a little equity but buys you a lot of goodwill.

Once you've parted ways, be honest about what you need. What skill sets does the company require? Who do you want on the other side of the table for the next ten years? Start those conversations early. Those searches can take awhile, and the best co-founders aren't found when you're desperate.

There’s always a way forward. As an entrepreneur, it’s your job to find it. Don't let one bad hire be the reason your company dies.