Finding a Business Partner and Managing Business Operations: The 3 Pillars of Business

Finding a Business Partner and Managing Business Operations: The 3 Pillars of Business


Yo, what is up guys and we’re back here with another video I’m off a red bull right now So I’m super hype got a lot of energy pumping through my veins. I think they can see that But today is one of the more important videos that we will be filming and these are all lessons that we learned the super hard Way around the topic of being able to find business for business partners slash co-founders along with coworkers You don’t necessarily need to be a business owners to be able to apply these rules now We have the three pillars if you want to name them real quick. Yeah, so Pretty much when you’re going to business. There’s really three pillars that you really need to run a business There’s finance there’s marketing and sales and there’s operations I mean, there’s also stuff like like legal But that’s not really ever really considered that part of building a business super important at least in the starter phase Yeah, centrally when you’re starting business you want to have one of these three pillars and you you know you really want to try and people that fulfill the other two pillars that you’re missing or if you know if you can carry the Weight you want to of two pillars you want to be able to find the last person that you know The person that has the last pillar that can really carry you to the finish line now kind of like the way that I like to Compare a good business partnership to and some of you guys may disagree but is a relationship slash marriage now, bro You’re my boy. Don’t get the wrong idea But at the end of the day we’ve been in business for a long time. At this point we share bank accounts Yes, we’re constantly communicating in calls Like what’s the next step what we’re doing working with our virtual assistants/ employees And we’re kind of like an everyday part of each other’s lives and there just needs to be fulltransparency there Can’t be any ego because that’s how company culture will be ruined. Yeah, I guess as you could say just starting off the bat bat I think the main thing you should look out for when you really know You’re getting a business partner You have to watch out for people that have a huge ego because as we know through personal experience And we’ve had people we’ve brought people on that, you know destroyed the company or destroyed cohesion you know how we do things just by the pure ego as you may as you probably know like people with big egos can tend get in the way of growth and it tends to cloud their judgment and you know make them put Put decisions that make them look good over the benefit of the company So I think that’s one of the most important things to look out and something super interesting is A lot of times when I’m in a social type of setting and I’m talking to people and more and more I’d say of like a networking event where you’re kind of getting to know both sides Seeing what value one person can provide you what you can provide to them and there’s always that one person That’s super loud trying to dominate the conversation and people are really good at selling themselves to others anyone can make themselves sound good Especially those like networking conference I hate That’s the whole plan. But then when it actually actually comes to executing inside the business. It’s kind of like What you told me is not matching up with what is actually happening And this is what happens a lot people you need to look at someone’s track record Not what they are saying and this is a big mistake. We made early on now one of the big ways of spotting this I’m kind of seeing if someone is legit is when you’re actually partnering up with them Finances are a super important thing you you want to be side by side if you want to go into that a bit one hundred percent so when you start a business you know when you’re bringing other people you want to make sure you know their in for it they have the money because a lot of the Times we’ve had through personal experience. We’ve been you know, we started visit with somebody we’re like, okay, let’s invest in this Let’s move on this and me and mr. Ready to go and last person’s like, uh, I don’t have that money And that’s one of the most aggravating things to ever deal with so a lot of times before we started visit someone you have to get a little bit person say like, you know I need to I need to know is your full focus on the business And do you have the money to go in on investments in order to grow the business? Because a lot of the times which would it’s happen I think it’s happen more than once to us for sure With more than one business partner is we’ve gone we decide to partner up somebody the FIR and one of the first deals never done We’re like hey Can you you know front some money for advertising for marketing for you know for hiring this person then you know They’re like, oh I don’t have that So, I mean that’s and that’s one of the things also about being young, you know Trying to find people a lot of people don’t have money at our age and something that literally makes zero sense to me it’s thing about this way say person eight has 100 thousand dollars in their bank account liquid to invest into Some sort of venture the other person comes off all big like I can do this I could do that You know, I’m good at this come to time. They need to make acertain business investment And in reality that other person only has five thousand dollars in the bank account versus you who has say six figures That’s not gonna play out well at all. Yeah, and especially those situations need to be some sort of way You can balancing things out whether you agree that one person is almost all the workload and most workload Or if you know the other person gets a little more equity I think people really have to have that off the bat a lot of the times wouldn’t you know when you’re determining company equity a lot of times what actually ends up happening is These people that you know have don’t have any money. Nobody really realized it and reality Those people should be getting less equity if their skills aren’t you know? Insanely high exactly and one example that could just relate to personally that happened with us is whenever we have business expenses We’re big about credit we use credit for any for literally everything We never ever use cash and whenever we make certain business covers sort of business expenses investments We always leverage credit for that and then obviously you pay everything off on time when it comes to paying it off on time we like to split everything three ways and You are good for it. We add up the other person your payment’s due by this time you able to send it. Nope I’m not able to do that and then you got yourself in a little situation when we got to use our own money to cover that person and they’ll be like I’ll pay you by this by this time and it just becomes a huge red flag You you instantly lose trust for the person ruining culture with them and that partnership is pretty much dead Yeah, and no, I think I think another another mistake people often make you know, when they first look for bids partners, you know When they look for miss partners, I think people need to recognize When when they need to bring somebody on as a co-founder and you as a partner? You know have someone who actually holds equity and you know when they have to you know bring someone on and they just really need an employee because I think a lot of mistakes people make in the first starting out is They think that the solution is, you know Keep bringing on more co-founders. Keep giving people more equity. When a lot of times actual solutions, you know, just hire people out I mean though it’s more of an upfront cost and you know, it’s more dollar-wise It’s gonna see them a lot more money in the long term I think that’s one of the biggest mistakes average people make and a lot of it kind of comes down to what the business is And what skill set you are missing. So again say there’s a business full of three people Let’s just say us – I’m good with marketing sales your son that enjoys doing legal work back-end stuff such as finances Yep, same we wanted textbook sources of exactly say we want to build some sort of software We don’t have the coding skills required to build one. We want to bring a coder on now This is where you kind of decide. Do you pay him hourly. Do you give equity away or do you pay one big fee? And that is where a lot of people get stuck being able to choose what to do with their business I mean, I think text a little bit different I mean, I have some experience coding. You know, I’ve kind of dipped my hand in that little like cookie pot But I think like you said while the time-base off what I’ve heard is tech is like really really different compared to what we do You know what you guys some of you guys may or not know, but Mitch and I are working a little bit I’m a tech tech company in the background probably won’t launch for a while This is actually something that Mitch and I are actually just starting to get into too as well And you know, we’re trying to venture into tech and you know bringing this knowledge over and seeing how it goes I’m seeing you know, I think a lot of it will apply I think stuff like, you know hiring professional clothes I think that’s gonna be a little bit of a struggle for us personally because Personally, I’m sewing that likes to double down on a skill So say for example, you’re really good at soccer and you see a career in that why go ahead and try to learn basketball So the way I view things this kind of learn your skill try a lot a bunch of different things see what you enjoy see what you’re naturally good at stick to that and then when it comes to the business find someone that Compensates for your weaknesses and stick to your strengths that way you’re not able to have say say for example, I’m good at marketing Why would I bring some sort of other market on when what I’m not good at saying? Rather give away I could eat or pay hourly to them Yeah I think another theme we should probably touch on is we’ve learned this personally is you know don’t have more than one person do the Same exact job unless it’s sales. That’s a little bit different But I mean, we’ve kind of seen this firsthand like we’ve added people, you know That that have been marketers or that we want to be, you know on the marketing pillar of things, you know It didn’t go so well because you would clash with them They would clash with you and you guys are pretty much doing the same thing so I think a lot of people have to realize is you shouldn’t really be hiring people to the same exact function because that ends up People clashing heads and just ruins culture quite frankly I mean sales a little bit of different environment because you know sales salespeople are pretty fun people, you know their objectives You know to sell and you know grow the company, but that’s fine If you know sales people are competing because you know, it kind of makes more competitive more of a game Yeah, and kind of going off that obviously with sales a lot of sales jobs are a commissioned base You’re not really working with a sales person side by side You’re kind of you’ll kind of want to get your own customer get that Commission your multiple commissions Call it a day and they’re kind of going off that we’ve we’ve kind of dealt with a lot of people in which we’ve had Conflicting personality was with and again, it just comes down to ego. Like for example you and I Emiliano not for those we can’t we probably mentioned it in a previous video but we’ve known each other for ten years so way before we got into business we were Playing basketball video games kind of built up that friendship and all he goes side to everything no competition We kind of work together to keep everything transparent But when you bring on someone new that you don’t really have that close of a bond with that’s when you kind of get to The point of wanting to one-up one another and that kind of ruins the teamwork you’ll instantly lose trust in the second There’s some sort of tension Partnerships gonna clash you guys are gonna make me you’re not you’re no longer gonna be happy You know you want to be able to look forward to meeting with your team working solving problems But you know that feeling we’ve had that figure has constantly you constantly dread. Just having to talk to that one person Yes and I just remember this one story where we have cut business partners off and there was this one specific time where Sir, you need to be kid You want to explain because you need to be really careful with how you choose to cut a partnership off Yeah, so we had a couple bad experiences, you know where we would end a partnership I me know respectfully then someone you know Like go and like drain the bank account, but you know, luckily we have precautions to make sure that well that bad We’ve had a lot instances where you know, they just really ended on bad terms and think it’s really important, you know If you’re trying to if something’s not working, you should be fully transparent and you know, obviously no way say anything offensive I know personally we have personally never said anything, you know It’s like hugely impacted someone’s you know How someone’s felt but I think it’s important and apart ship Something isn’t working yet to be just really really really straightforward or it’s gonna ruin how things go You know solving a company or you know even if you decide to move forward because it sometimes if things aren’t working out and you can’t really express yourself transparently and without ego what ends up happening is You know Every off you to what that person is just gone it’s just over and that’s kind of the world that we’re living in today Where people are so used to receiving positive praise seems like much but now when it comes to receiving critical feedback They get defense they get full they go a full on defense everything exactly, and that’s kind of something that you’re able we weren’t able to spot in the early stages now we are and kind of going Forward we’ve come to realize that it’s not about what the person says. It’s show us your resume Show us your track record show us what you’ve done before if you want to work with us work together partner up on Do you wanna see proof of concept that they were able to build something with instead of just believing what they have to say? Yeah, I mean a lot of people, you know, not sound claim a lot people talk talking I walk walking business and you’re like the walk you really have to watch out for you know What people have done for what they say? They’ve done? I mean, I think that’s enough for the negatives think we should talk about You know why you and I work together so well and you know what to look for exactly so as you guys know, I’m more on the sales and marketing side Emiliano likes doing more back-end work such as legalities fine I don’t enjoy any of that stuff So it’s kind of a perfect compensation for and then there’s three pillars wise he can takes over marketing and sales I took her finance then we both kind of share operations And we you know hire employees to manage that certificate and also one important rule when choosing a business Partner is think of someone if you’re gonna partner up with them something and just think would you want to go on vacation with them? I heard that cuz we’ve traveled together and obviously it’s always a good time There are certain people that we’ve traveled with before and we’re like, oh it didn’t go as planned Yeah, I mean, I think the moral of the story is if you know, you can’t travel someone for like a couple days I don’t you know, I don’t think you guys should be we know working together in trying to grow our business together I think it just won’t end Well, you just kind of think about the biggest companies and how they treat their employees, you know, for example Working on Google everyone loves it. There. They get Buffet’s Massages they get like a sports person crazy. She’s ridiculous and everyone’s kind of able to speak with one another no barriers while Certain businesses that don’t work out again. There’s a like for example in GoPro. Yeah I remember researching a lot about GoPro first off. The nepotism was a problem party those That was with only stocks that you know ever lost your money I didn’t get on that one, dude And the business itself was shaped more like a pyramid where the person had the top was telling everyone what to do instead of it Being much more decentralized. Yeah and everyone just kind of knowing like for example, Emiliana. Yes We communicate a lot with what we’re supposed to do but at the end of the day We also know what we’re supposed to do and we kind of do it without us having to constantly talk So when we meet up, it’s like you did this. Yeah, you did that Yeah, and you know, if one of us doesn’t plan wait, you know, we tell each other that like yo Mitch I need you to do this shouldn’t do that I need you like, you know, I need to get on the shit and again going back to critical feedback Kind of able to tell each other anything We don’t take anything personally and that’s kind of what I think shapes up the partnership to working really smoothly I mean I got a so there’s a huge You know debate on do you need to be friends people you’re in business with that. Where do you fall on that? Yes, and no, but I believe Well, this is where it gets complicated business. Each business is a different size Yeah, so say for example, there’s a business that has hundreds of people right? You don’t need no everybody You don’t need to know everybody know you’re able to Find a person to manage this group a person to manage that group and they’re kind of doing their job because I’ve been today not Everyone wants to own a business. So say for example, you hired a CFO you don’t necessarily Yeah You want to be on good terms with them you want to trust and make sure they’re not gonna screw you over because there have been many instances in the business where one Co-founder or want someone who’s at the top of the business would screw someone over so I’d say yes You need to be fairly close you need to at least trust them But when it comes to starting a business from complete scratch just you and one other person maybe three people altogether Yes, you need to be super tight with them. I agree I think the large the company, you know the less you really need to know someone personally But I think if you are starting a company from scratching like you and me have done with you know, multiple companies I think you do need to have a connection with the person or at least You know be able to be decent friends with them like how I think about it is if you went to you know If you went to a friend’s place this person showed up Would you be able to hang out with them for like five hours straight that’s not like think about it and just taking into account How hard it is to start a business from scratch and grow to the point of view in five 10k per month? It’s a lot of hard work and if you don’t enjoy like who you’re working with and you constantly scale Your constant, you know, you know Sometimes you think of something you’re like I want to say this to this person But in your head you’re like not like they’ll take you personally You don’t want to have that thought or you can’t wrap your mind You want to be able to say to that person exactly how it comes up in your mind? Without being worried. Oh, they’re gonna take it personal, you know, they’re gonna react this way. Oh, they’ll go behind my back Maybe screw me over some way somehow No You you want to be able to sit say to them knowing? That you guys have full trust in each other and that is a rare quality that because at the end of the day, yeah If you have some sort of ego issue some power dynamic issue and you just don’t work well with people Start your own business just be lone wolf. Nothing around that maybe we don’t help people that have their own operations pretty much do everything That we find I know people that I’ve cut everyone off kind of lock themselves up in a room and they’re just working on their own business Which is completely fine to each their own. I personally like working with others simply because Countability main accountability. Um Compensation of skills. Yep, and just in general. It’s just more fun If you’re if you’re super tight with a group of people you guys are building a business. It’s doing numbers You guys are all able to spend time together and travel. He just makes fun completely different life excuse Yeah, you want to have fun with it? Yeah, I think there’s a complete different dynamic, you know, trying to grow something yourself, you know? As I was talking about like I did I didn’t piss a little bit before you kind of hopped in and had a couple shop Fine, I have to say it was way way harder and there was way less accountability Under centigrade with what he said So yeah But that that pretty much covers a lot of what we wanted to go over I’d say the main thing is knowing how to read People that’s one of the most important skills I’d say the past few years reading people because I know how to sense people’s energy their true Intentions and we’re kind of easily able to tell who’s a talker versus who’s an actual doer. Yeah. It’s really not that hard Um again power dynamic issues. Those are a huge now something something that I also wanted to mention. There’s a big difference between business and friends at the end of the day if someone like for example, emiliano and I We didn’t really need to convince each other we kind of just naturally like the whole process of starting a business growing it, but say for example There’s someone your say for example, I was entrepreneurial II entrepreneurially minded but Emiliana wasn’t You know, yeah I’m good friends with them but never for someone that’s not business minded to get into business just because they’re your friend I haven’t agree with that I think We’ve seen it. I think we’ve seen a person with some people trying to convince her friends Like hey, I need you like you want you this to me and the person tries it out They’re like the other person kind of gets all its when they realize that person isn’t really not you know an entrepreneur Minded say you’re ready to put in 10-15 hours a day of work every single day just because you want to the person will put in 2 to 3 days 2 to 3 hours a day call it a day that’s gonna be unfair out to you You guys are going to get into argument friendship could be ruined over that for no reason So there’s just too much downside to risk. So never For someone close to you to get into business just because they’re friends with you know You want to see that actual passion inside of them? Yeah, I think we should also touch on you know Something that’s nice not always required but uh, you know with you and me, you know I I kind of hate doing what you’re good at and vice versa. I mean for instance. I don’t really like marketing sales I really hate being on the phone really hate, you know Like closing she like that or I really hate like marketing running Sometimes running an ad campaigns not really a huge fan like copyright and all that stuff, but that’s you know It’s more especially and you know on your side you kind of hate doing the financials You know hate doing the accounting you hate You know managing all lines of credit you hate managing the banks or is that something that I just love doing or like you hate? Imagining productions, you know financial reports and that’s you know, that’s my shit also something super important is While I do not enjoy necessarily what Emiliana was good at it’s something that you need to still know It’s something what a million a know does. I still understand how to do it Obviously he could do a way better, but you still want to understand how to do what other teammates are doing I remember you told me you don’t need to necessarily write the best-selling book. You just need to be able to read it That’s for example how I view finances. I want to be able to look at the balance sheet statements I want to be able to understand them especially come tax season I want to understand how all that works because when I look through I’m okay. This makes sense you just understand the whole PL the Email to make sure you have enough experience to make sure that what the other person is doing is quality for instance Like I said, like I really hate doing you know, the marketing and sales side But I understand how it all works and I can recognize good work when I see it and you know vice versa You’re you’re you, you know my finance, you know finance, you know She like that and you just don’t like doing it and you know You may not be as good as me but you recognize good work when you see it and vice versa exactly It’s just the idea of being open-minded despite you Despite me being good at this and not wanting to get good at that You need to put your ego aside and learn also, learn what you’re not good at you don’t need to be great I didn’t but understand it Yeah, so like for it is similarly with code if you don’t want to learn code learn how to read it he’s gonna make a complete because for example When son that doesn’t know code and so on that does is no code Are talking with one another on building a business in the sense. They’re both speaking of complete different language Yeah, I agree. And that’s something that needs to be fixed if they’re gonna be working together. Yeah, I know That’s why I’ve been really touched touching up on, you know learning more I know a couple I know like pythons basic stuff like that That’s you know why I’ve been trying to expand my whole coding knowledge Is so and thing you and me are planning fine launches And you know, we probably bring someone on that’s more of like a tech a technical the coder guy I can be able to understand like is there what good what are they doing? That’s cool What what could be improved stuff like that, you know is having a basic understanding Exactly. So yeah that pretty much sums up a lot of what we wanted to go over and as I mentioned earlier you don’t need to be a business owner necessarily to be following all this advice and Value in general but you could be sewn that’s work that just got a new job You’re kind of trying and like a lot of jobs in the corporate world today. It’s all team-based You’re constantly working with other people it could be a group of ten people and there’s one person that’s kind of like micromanaging everyone a lot of The rest of the team secretly doesn’t like that one person They’re not gonna tell the boss and that all right a lot of problems arise So being able to learn those skills to kind of excel in a setting of a team inside of a business that’s trying to grow It’s gonna be super hit or miss on how much time you actually dedicate to learning that psychology learning through your own experiences I would say a lot of this stuff is actually more I would say most stuff is actually really really applicable, you know company culture more than just solely You know finding co-founder or business partner I think a lot of what what makes a good and founder or business partner is actually the culture and that you know You can take that You can also apply it, you know Like actual business organizations or even if you’re not an entrepreneur you can apply it to your own workspace So yeah, we hope that you guys could take this advice that we kind of went through and again We haven’t fully learned team psychology team dynamics, you know, we’re only 19 years old We’re still going off Our own experiences. Still learning But that’s kind of the fair share that we can give you guys over the past few years of us being able to start and grow businesses and team up with other people and that’s kind of our Scent on that. Yeah. See you next episode. Take care

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