Building great business partnerships – simple rules of the road
There are two titles that I see getting thrown around way too freely these days: entrepreneurs and business partners. The former is a topic for another day but suffice it to say, entrepreneurship is a profession, not just a passion.
Regarding the latter, there are legal reasons to be a bit more discerning about your use of the term “business partner” or, more specifically, “partnership”. I’ll leave that for your lawyer to advise you … for legal reasons, of course. 
Here are 5 simple rules of the road that will help you keep your partnersh…err…business relationship out of the ditch:
Rule 1: Don’t partner just to partner, pardner. Don’t partner with someone unless they have a set of skills, relationships, or other value you absolutely need but that you don’t have the time or money to build or buy. Simple as that.
Rule 2: Read Rule 1 again. Seriously.
Rule 3: Bring something extraordinary to the table. You want great business partners? Be great yourself. What is it exactly that you do as well or better than anyone else you know? What business-related capability are you a master craftsman? It isn’t likely to be more than an item or two unless you’re extremely gifted or otherwise have been on this earth long enough to develop your talents.
Rule 4: Own your turf, not the other guy’s. Do what you do well and let the other person/people do their thing. Again…simple, right? Trust me, on more than one occasion you will have the ball hog or curious cat on your team or in your network that makes it their business to be in your business. Don’t. Be. That. Guy. (or “Gal.”)
Rule 5 (4, if you’re a stickler): Communicate. Communicate. Communicate. Make sure communication is done regularly, openly, honestly, and in the right context. Man! Does this sound like marriage, or what?!). Ummm…it kinda-sorta is. Rule 1 ringing a bell?
That’s it. Let me know what you think and good luck out there.
James
Forwards, not backwords, Senator Dodd
Senator Dodd,
I know you are leaving the Senate shortly but, before you go, please don’t destroy angel investing by raising the bar to become an accredited investor. As you know, an accredited investor is someone who has demonstrated themselves to be an investor sophisticated enough not to warrant additional protections provided by the SEC.
Now, in the interest of full disclosure, you have to understand my trepidation using the word “protection” and “SEC” in the same sentence given the financial debacle government regulators (“Bueller? Bueller? Anyone?”…) and our financial institutions, particularly banking/investment banking, have bestowed upon the world the last 5 years. I digress.
Regarding the definition of an accredited investor, instead of basing their “sophistication” on their net worth, why not create a certification process based on their financial acumen related to angel investing? The Kauffman Foundation offers just such a course in the $400 range, I believe. I took it. I loved it. I learned from it. Thank you Bill Payne. Unfortunately for me, it was after the fact…I could have used that training before I started angel investing.
I am the CEO of a software start-up here in Austin. We could use smart accredited investors willing to provide funding, advisory, and connections. I don’t care how much capital they say they have. Like them, I care about results.
That aside, please do not do any more damage to the seed/angel investing arena. We entrepreneurs are the lifeblood of this economy — always have been, always will be. Please let us do our thing and don’t make it harder than it already is. In fact, why not move us forward, not backward, and make the basis of accreditation an individual’s training and certification, not their reported capitalization.
Call if you any any questions Senator Dodd. I’ll be more than happy to help.
Thank you,
James Weddle – CEO, ShareOnce.com – (512) 410-0041
Note: If you’re an entrepreneur, past, present or future, please consider signing this online petition: http://www.saveregd.com
Unintended Consequences — So you want to be an entrepreneur?
Starting a company is one of the all-time thrills you can have in your life. Nothing beats following your dream and making it happen.
But wait…
DON’T get ahead of yourself. You have to have a lot more going for you than just your idea, timing, luck, skills, cash, customers, and on and on. You also need to have expertise in some key areas, especially finance and accounting.
Here’s an advanced issue for you. http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2010/march/205310.html
You’d think it’s pretty straight-forward. Get the right partner or two, start a company, get the right partnering agreements, and let’s get after it. It’s not.
Unintended consequences? Potentially unintended tax obligations.
Life is short. Hire a great accountant (and lawyer and web designer and salesperson and …).
James
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Current Venture: ShareOnce.com – Do more business with the people you know.
Managing your Cap Table from Bootstrap through Round 1
What?! What’s a cap table? Well, as the old basketball saying goes, “If you don’t know, you’d better ask somebody.” It’s VERY important to have one of the key assets of your business — the stock of your company — under control from day one. When you are bootstrapping, stock can be a key to recruiting the talent you need to be successful.
Here are some good resources to consider:
If you need help developing yours, just contact me here. I would be glad to help.
James
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Current Venture: ShareOnce.com – Do more business with the people you know.
To iPod or not to iPod – 5 reasons to say “Yes”
I have had an iPod Touch for the last 6 weeks and I can’t believe how much it’s helped me from a time management/productivity perspective. Here’s 5 reasons how:
1. Morning email – The first read of email of the day happens on my iPod, over coffee, as the kids are getting ready for the school bus. I find I can more easily scan what’s important and what’s not and, at least, set the first half of my day up re: issues that need my immediate attention. More importantly, I don’t have to disappear into my home office until they leave.
2. Education – I’m now a huge podcast person; Forbes, WSJ Small Business, NPR Planet Money…some GREAT content out there. I plug it in when I walk (45 min) or for a drive to a client appointment or event.
3. Relaxation - Should be 2A; I work my you-know-what off and I especially rely on my creativity and problem solving to win. My brain has to be sharp and I find listening to comedy/satire podcasts like Adam Corolla, Bill Mahr, and even “Old Jews telling Jokes” makes me, at least, smile. Anything to recharge.
4. Design – Yes, to the “delight” of my Design & Dev team at ShareOnce.com, I’m giving my 2 cents (ok, a quarter…I am the founder!) on what I think it needs to do/say. The iPod and the white board tool I use on it helps keep me inbounds.
5. Feedback – I’ve found over the last 9 months that feedback-feedback-and-more-feedback is the whole enchilada when it comes to product development. Having our design mockups available for short, impromptu “What do you think?” sessions with friends, colleagues, and prospects has 10X improved the amount and relevance of the feedback we’ve received at ShareOnce.com. Nothing beats full A/B testing, UX sessions and the like…when they actually happen. In the meantime, what’s a founder/business owner/designer/family guy/iPod devotee to do?
Cheers,
James
Business networking and golf do mix
A good friend of mine, Hector Puchi, is starting a business networking group in Tucson, Arizona centered on sports and entertainment, particularly golf. The new enterprise is called “Biz19″ and is just now getting underway. I just blogged about it here and here. If you have ideas or interest in the group, please let him know at his ShareOnce account here.
Tumblr IS “the easiest way to blog”
Simple. Easy. Big buttons. What’s not to love about the Tumblr blogging platform? We just added Tumblr as a marketing channel for ShareOnce and it was very easy to get started, set up and keep up-to-date. Check it out.
Google needs to be applauded
We should applaud Google’s stance on China’s repeated attempts to stifle dissent and free speech. On too many occasions over the last 18 months, our corporations have put themselves in front of our country’s founding principles. In this case, just the opposite.
Outstanding. Well done.
At this moment, I am very proud Google is an American-based company.
Holidays 2009
Merry Christmas
and a Happy New Year!!!
Three Questions to consider when joining a Business Networking Group
As you think about joining or renewing your membership in a business networking group (chamber of commerce, association, networking group, alumni chapter), consider these three (3) questions:
- What tangible cost-saving benefit(s) do they provide you?
- What tangible revenue producing benefit(s) do they provide you?
- What are the indirect costs (time, travel, additional fees) to extract these benefits?
With growing popularity of online networking, social media, and mobile/location-based services, more people than ever are utilizing online communities to network, build relationships, and save cost.
Still, there is enormous value in having a relationship with a group of people in your local community that are dedicated to helping you grow your business. If they are online, leveraging social media, and adopting mobile services, all the better.
Have a Happy Holiday and prosperous 2010.
Cheers!
James
