Speaker 1: We're talking to Steven in Albuquerque, New Mexico, coming out of school. Got his buddy. They want to both be consultants. They're talking about doing it together and he heard a rumor that that might be troubling like a bad marriage. So what kind of consulting are you going to do,

Speaker 2: Steven? We're thinking of partnering with local high schools and helping students apply for scholarships. Okay. Either one, have you ever done that? Well, we both have a lot of experience applying for scholarships and successfully getting them. So we think we're a good fit for helping people that are kind of new to that sort of thing. Okay. All right.

Speaker 3: What's the business model? Have you guys figured out how you're going to charge? Is it parents? Is it school systems paying you? What's the model?

Speaker 2: So the basic model is going to be two tiers. We're going to have one opening tier where we provide introductory videos where parents or schools can pay to access the videos where we provide basic stuff. And then if folks want to move up and meet with us one-on-one, we'll offer

Speaker 1: that too if they're in our region. Okay. All right. Well, let me start with the premise that I operate on, and that is the only ship that won't sail is a partnership. So I would urge you to start with the premise that I operate on, and that is the only ship that won't sail is a partnership. So I would urge you to try to figure out a way to do this as a joint venture rather than a partnership. Because what typically happens in all the years I've done business coaching, I find almost zero. I mean, it's not quite, but it's almost zero businesses one decade later are still partners. The exception is by far, the notable exception is medical partnerships and law firms. But short of that, the typical exception is that you don't have a typical two guys that go start into doing something. And what normally happens is one of you works harder than the other. One of you has better ideas than the other. One of you makes more sales than the other. One of you is more personable, more talented than the other. And it can be you, it can be switching places. Like one of you is more talented and the other one works harder. And so they, you end up, there's this resentment thing that builds up and you don't feel like the other guy's carrying his weight and it runs into all kinds of crap. If you are going to, and so I would try to figure out a way to do this. I would try to figure out a way to do this. I would try to figure out a way to say, okay, uh, I'm going to go over here and do this set of schools. You go over here and do that set of schools. We'll compare notes. We'll help each other. Uh, we'll encourage each other, but that set of schools is your money. This set of schools is my money. And even if we create a video product together that we share the cost on, when I sell the videos in my schools, I make money. When you sell the videos in your school, you make money and just kind of keep it very separate, like a joint venture rather than a partnership. I challenge you to do that. That's what I want you to do. Cause I think you're going to make a mess if you don't. But if you ignore that, here's still some guidelines, right? You need to get an attorney, believe it or not. I don't want to tell you to do that, but you need to draw up a detailed partnership agreement and it has to address all of the evil D's. Everything that's bad is going to happen. Just about begins with a D drug use, disinterest default. One of you, walks away and wants to own half of it while the other one keeps working. That's default, right? Um, disability, death. What happens then? You now own half of a scholarship business with his mom and dad because that's his heirs because he's not married. What a dadgum mess, you know? And so you've got to address every one of the possible negative D's disability, death, divorce, drug, use. Uh, uh, default disinterest. I just don't want to do this anymore. I'm going to walk away and go, I'm going to go get a job. We're not making enough money, but I'm still going to be pissed at you when you're successful later. Um, and so all of that kind of crap. And so you got to deal with every possible exit scenario. And most of them begin with a D and you need to do that in writing in a partnership agreement before you begin. And I probably would not put it in the form of a general partnership, which leaves you open to all kinds of financial liability. I'd put it in the form of an LLC, but it still functions as a partnership. And I'm still going to tell you to figure out a different way to do it. Yeah. And I would, I would add to that. I think

Speaker 3: that's absolutely brilliant advice. I would not even think about starting a business. I liked your idea. I'm going to edit it a little bit on the idea of you take one school system in this County, you take the other, let's see if we can prove this thing before we actually, either one of us thinks about a business. Let's prove this model first. I like that approach. And then the other thing is, is I was, I'm curious to know if you've got a situation where maybe Steven's more of the sales guy, uh, more of the, you know, okay, this is the handbook on how to get scholarships. And maybe the other guy's more video related and we don't know that, but in that situation, instead of a true partnership, maybe one of you is like, okay, you're the video product producer. I pay you and they work together, but it's not even a joint venture. That's a way to do it as well. And the other option is, um,

Speaker 1: just one of you own it. That's right. And you pay the other one. Hey, and the other one can make a percentage of profits as their income. That's right. But they're not the owner. That's right. When I sell anything with two heads is a monster. I agree. So if one was the video

Speaker 3: specialist, the idea here is, is that he gets paid a percentage on every course you sell, but it's your company and he's your production. It's like a contractor.

Speaker 1: Yeah. There's something that we seek out Steven that I want you to avoid because it's a, it's a, it's a, it's a, it's mythology. It's a lie. And the, that, um, there's comfort in doing things with other people and not feeling like the Lone Ranger. There's comfort in you and your buddy doing locking arms and working on stuff together. There's comfort when Ken and I work together on launching Ken's book. And then when we add to that an entire team around us, there's a lot more comfort to that because it's not, you know, it's not good that man be alone. And, um, so you feel more invincible, more strong, more courageous when you have that. You know, your guy next to you and, and you confuse that comfort with the need to do a partnership. It can be an employee employer relationship. Yes, absolutely. And you can pay him zero salary, only a percentage of profits. And the part that he brings to the table is X, Y, and Z, and you bring a B and a C. And one of you probably had more of this idea of turning this

Speaker 3: into a business than the other one did. That's right. And just because you both want to win, that's what Dave's saying. It's so beautiful. It's because you both want to win. Doesn't mean we have to, uh, both be in it together in the same exact role. Yeah. I think you're right, Dave, that comfort can turn into contention pretty quickly if they don't focus on those D's. Almost always. Almost always. Yeah.