Create For Cash

Do You Have a Bad Business Partner?

Bad Business Partners

A bad business partner can come in all forms. From the partner who wants you to do all of the work. To the partner who has an ulterior motive, to the partner who makes your life miserable. Running a business takes a lot of time, energy and commitment. It also takes a certain amount of financial investment. Going into business with someone is similar to a marriage.

The business world is littered with stories about bad business partners. I came very close to a couple of those myself. I had spent hundreds of thousands of dollars of my own money working 2 jobs to start a business. I was incredibly naive and felt like I needed some help. Running a manufacturing business is very hard for one person to handle on their own.

Don’t Sign a Contract on a Cocktail Napkin

So, when I ran into someone who claimed to be able to finally get my business off the ground in a big way, it sounded promising. I wasn’t an expert in signing contracts. So when we met at a bar over a couple of drinks, a simple partnership agreement written on a cocktail napkin didn’t sound unusual. But when my friend read it the next day, he quickly asked for the guy’s phone number. The contract was very one sided and my friend was none too happy over how he was trying to take advantage of me. Let’s just say my friend has a few connections. I don’t want to know. But that partnership was over before it began and I never heard from the guy again.

Really Bad Business Partner

You would think I would have learned a lesson about contracts, but a year later I was still plodding along with my business and struggling to get it off the ground. So, when a friend of mine mentioned a marketing “guru” she worked with, I really checked it out. He had worked with some very big celebrities on their product lines and it all seemed legit.

I met with the so called “marketing guru” and it looked good on paper. He gave me a 25 page contract which looked like a marketing agreement. I didn’t think he would be a partner as much as a marketing consultant. Hiring an attorney to read the contract was going to cost more than I had at the moment. So I signed it. You can probably guess that it was a deal with the devil.

Right after signing the contract he started demanding that I send all of my inventory to him. His demeanor changed completely and he made my life hell. It turns out that I wasn’t the first person to cross his path. He had defrauded numerous business owners across the country. I finally had to hire an attorney to get out of the contract and it kept my product off the market for months.

Serendipity

I have to say that as bad as this guy was, he turned out to be a serendipitous twist of good luck in the story of my product. I made contact with someone who turned out to be an incredibly ethical guy, and the best patent agent on the planet, who was also scammed by “dirtbag”, as we call him.

To this day, if you hand me a contract, odds are that I won’t ever sign it. I’ve worked with distributors in 25 countries for years and have only signed one contract. That was with a distributor who sold about 100,000 units of my product in one month. And even then, we drew up a very simple one page contract in plain English. When I work as a motivational speaker I also have a very simple one page contract that has been signed by many Fortune 500 companies.

There are usually red flag signs that you shouldn’t go into business with someone. A perfect business partnership isn’t always easy and shouldn’t be rushed into. Here are some bad business partner stories from other business owners:

Business Partner Who Doesn’t Give 100%

I met my first business partner for a digital marketing business through a
Facebook Messenger chat. He was promoting his blog and I told him about my
blog, then we decided to grab lunch and we hit it off, initially. After
deciding we had unique talents that would compliment the other well, we
started the marketing business.

The major difference is when I commit to
something, I’m all in. You’re getting 100% of my energy, focus, and
attention. Whereas he had a 9-5 job and another commitment at night that
caused immediate problems. Not only that, he’d go out to dinners and
parties, plus the week-long vacation he took when he was already behind,
which infuriated me. I was bringing in significantly more business, doing
more fulfillment, and leading the strategy. But the profits were split
50/50. Talk about communism.

Eventually, we both felt the giant elephant in
the room of unfairness, but continued on. That is until one Monday morning
he sent me a 5,000 word email out of the blue explaining why he’s quitting.
He basically said he had some personal problems going on, too much on his
plate, and was tired of being constantly overwhelmed. It worked out for the
best as I bought him out and started my own digital marketing agency. We
now have served clients across the US, Europe, and Asia. It’s been the
biggest blessing!

Brian Robben

Robben Media

www.robbenmedia.com

Business Partner Spouse

This is one for the record book. My bad business partner was my husband. We had separate businesses. Then he thought it would be a good idea to merge them together. In retrospect I see that was a huge mistake. It started out simple enough with him taking small amounts from the business and then it started being larger amounts. Then he started lying to customers about their deliveries to buy time while he waited for the next sale to clear to cover the previous debt he racked up.

Eventually I put my foot down and guess what? He split. Locked me out of the website and bank accounts. We are awaiting our court date to settle the business and our marriage.

Krystal Phillips

Roll Ice Cream

www.rollicecream.com

Get a Business Partner With the Same Passion

I have been a business owner for over 10 years now and have met and made business with different people who have different attitudes and perceptions in life.

I’ve had multiple experiences with people I tried to collaborate with but ended up doing things alone. When I was starting with my business, I met a person through a common friend who was also interested in the business I was trying to establish. We met and had a business meeting and finally agreed on working together to bring our dreams to life. As months passed by, I realized that I was the only one who was actually doing everything. From following up with clients to doing all of the paperwork. I realized that he was not as passionate as I was.

It is important that you share the same values and passion with the person you are trying to build your business with. I gave it a couple of months before I finally decided to let go of the arrangement. I bought his share of the company and I am now working on it alone with the help of my employees, of course. Right now, I can say that my business is thriving. I work with people who are just as passionate as I am.

Matt Scott

Termite Survey

www.termitesurvey.com

Business Partner Mistakes

Like every entrepreneur, I had a couple of…let’s just say unfortunate business ventures before I was able to build my successful one. A friend I met in college and I wanted to go into business together (with an admittedly terrible idea) and as you do, we were going to go in 50-50. Equal partners, equal work, equal shares of the money, all that. A very idealistic arrangement that only two 20 year olds can put together.

To the surprise of no one, he let me put in my share of the money and all the work hours I was humanly able to dedicate, but his money was always “coming”. It was always “on its way”, he was always “closing the deal”. Never seemed too keen on actual work, either. He’d arrive late and leave at 5, and I’d be there until late at night.

Looking back, I should have gotten the heck out way sooner, but I was young and enthusiastic and we were friends. Of course, I ended up taking the loss and losing the money, the hours of work, and the friend. But that’s the kind of stupid mistake you make when you’re at that age. It’s not super obvious to me that he was not at all the entrepreneur “type”, because he wanted none of the work and all of the glory. So I consider it a learning opportunity. Never made that mistake again.

Nelson Sherwin

PEO Compare

www.peocompanies.com

How to Overcome Fear of Starting a Business

Don’t let the fear of starting a business stop you from becoming an entrepreneur! There’s always a little nervousness when you’re starting out on a journey into the unknown. But the best way to overcome your fear of starting a business is knowledge.

I have to admit that I haven’t always taken that advice. I’ve started many businesses but I’ve always just jumped into them without learning what I was doing. It was great that I actually did it, but I could have saved a lot of time, energy and money if I had done some homework first.

Being a business owner is never predictable. Make peace with the fact that you will probably always be living outside of your comfort zone. If you’re looking for a steady paycheck and no drama, get a regular job. You might still have some drama, but you’ll have a steady paycheck. You also get to shut off the business at the end of the day. Business owners never can.

Most people have a list of excuses that stop them from ever taking the first step. In order to overcome the fear of starting a business, let’s get the excuses out of the way first.

Here are 5 excuses for not starting a business and how to overcome them:

It’s Too Risky Yes, it can be risky to start a business. Risk comes with the job of being an entrepreneur, but so does reward. And the more you risk, the more chances you’ll have to be rewarded. In the past it was considered more risky to start a business than to work a steady job. But in these uncertain days of rampant unemployment and the constant fear that the axe will fall even if you do have what you think is a steady job, starting a business sounds a little less risky. Like any game, the only way to win is to play. You’ll never reach your dreams sitting on the sidelines.

I Don’t Have the Money Guess what, unless you get really lucky and find someone to give you a lot of money with no attachments, you’ll never have enough money to start a business. The best way to start a business is with no money. You simply have to be more creative. And it’s usually the most creative things that work the best anyway. You’ll have to run the business yourself, which means you’ll learn every single aspect of running a business from the ground up.

I Don’t Have the Time If you’re working another job, great! You’ll have an income and you can work on your business on the weekends or after your regular job. If you’re unemployed, great! This means you’ll be able to spend all of your time on it and can get it up and running even faster.

I’m Too Old Colonel Sanders was 65 when he franchised Kentucky Fried Chicken. And Michelangelo painted the Sistine Chapel when he was in his seventies. Ray Croc started McDonald’s when he was 52. No excuse.

I Don’t Know How There is a wealth of information out there to help you. Do research on your own. The Internet and your local library are gold mines of information. Treat it like you were in college and study every day. Look for a mentor. Those that have gone before you can offer knowledge you won’t even find in books. Seek them out. The best advice is to keep chipping away at it every day and never, ever give up. Any successful business owner will tell you that it takes time, perseverance and passion to get a business off the ground.

What I’ll Never Take for Granted as a Business Owner

With the latest COVID-19 pandemic, many business owners went from business as usual in a great economy one minute to a screeching halt the next. I heard from many business owners and their stories were really touching. It goes to the heart of what it means to be a business owner and how we are so much more connected than we think. Here are their responses:

What business owners will never take for granted

“When your business is busy and people have more downtime, most businesses tend to receive reviews pretty regularly. But recently, especially during the last few weeks since the lockdown began, we noticed a significant downturn in the number of reviews we were receiving.. It’s understandable as people have other things to worry about.

So now since the lockdown, whenever we get a review I’m amazed that someone has taken the time amidst all that is happening to take the time and write it. I’ve now grown a real appreciation for this, and we’ve made sure to thank every reviewer personally.”

Sam Williamson, owner of CBDiablo, www.cbdiablo.co.uk

Missing hope

“As a small business owner, one thing I’ll never take for granted again is hope. In a growing economy we all have dreams that the next big thing could be us. Now it’s hard to even have dreams.”

Michael Mason

Owner, Perfect Chaos Films

www.perfectchaosfilms.com

“I miss being able to pick up my Starbucks order in-store and working from Starbucks. I can still get my order from the drive-thru, but it’s not the same as having the in-store experience. Saying hi to my favorite baristas and checking in with how their day is going. Sitting in my favorite cozy chair as I use the store WiFi to answer work emails, and being surrounded by the quiet hum of conversation from other individuals from all walks of life. That’s one moment I can’t wait to savor all over again once we have found our footing.” — Deborah Sweeney, CEO, MyCorporation.com

Ability to travel

“The flexibility and ability to travel. As a business owner, you are no longer tied to vacation requests for time off or an inability to take work with you. We have a dedicated team in place, the technology to work from any location and can finally travel when the itch hits…until Corona Virus. We have a vacation planned for June to the UK and France to celebrate our 2 graduates (one from College and one from high school). As the corona virus numbers go up, that dream vacation slips farther away.

Secondly, concept delivery is not the same. So much communication is lost online. Two dimensional images, budgets and even spacial references in the design industry can be difficult to convey through technology. While we are accustomed to using every tool available for remote project delivery, it won’t ever be a true replacement for a face to face client to architect interview. “

Jennifer Carlos, CFO Business Manager
Carlos Architects, Inc.

www.carlosarchitects.com

Taking things for granted

There are a few things I’m realizing that I take for granted:

1. That revenue will continue organically. That is clearly not the case as this pandemic continues to hurt businesses. You have to prepare for the unexpected.

2. To relish the good times. Businesses have ups and downs. You really should enjoy the ups as the downs will inevitably happen, whether it’s within your control or not

3. My employees and contract staff are amazing. They are willing to take deferred payments to support the business, even if there is a possibility they might not be paid for their work.

4. Nothing beats face to face. Zoom has been great to stay connected, but nothing compares to the energy and productivity of physically working alongside someone.

5. Everyone balances family life. You often don’t notice this in the office, but you certainly see if when children are popping their faces in video meetings. When we go back to normal, I want to be more thoughtful of this.

Neal Taparia | Solitaired

SEO search traffic

“I took for granted the fact that people were searching for search terms that seem so normal in everyday life, and I never dreamed these everyday terms would be searched less for any reason in the future. After the lockdown started, people have been searching much less for terms that involve going outside, going to restaurants, and living normal lives, which has impacted the SEO and traffic of many sites I work on. I know realize how fragile even something as stable as search volume is and am doing my best to provide new content that diversifies the risk in some of these areas, so there will be less future risk for something like this happening.”

Stacy Caprio
Founder, Growth Marketing
www.acceleratedgrowthmarketing.com

“The one thing I took for granted was time. We all have the same amount of time but how we use it is different. When times are good, I pay less attention to it because it feels as if everything is perfect. Now, I have an increase in time and am realizing the holes I need to fill. One of them is prioritizing my time. I need to always focus on the money generating activities that will expand my business and then investing in apps and resources that can take care of the mundane tasks.”

Al Wisnefske

www.landandlegacygroup.com

Control over your time

“While work and life might seem more mundane when you’re just an employee, and while you have less flexibility and control over your time, the good news is that you are not responsible for everyone else.

When you’re a business owner, it’s obvious that the fate of the company lies in your hands at the end of the day. Plus, there’s minimal options for disconnecting from work, especially when it comes to driving revenue, keeping the business afloat, and making sure your operating procedures are still in place.

While owning a business gives you much more pride of ownership, accomplishment, as well as security and overall fulfillment… it also makes you much more vulnerable to excessive working hours, and experiencing overwhelm and a decline in other areas of your life..

In times of high distress, business owners sometimes wish they could just collect unemployment checks, sleep in, and take extended time away like everyone else.

It’s even tougher when business owners notice friends and family members enjoying “unemployed life” for months at a time, while still collecting paychecks, with minimal responsibility.

When the economy gets tough, business owners have to make tough decisions like cutting costs, or letting go of employees, and doing other things that nobody else wants to do.

Obviously, a bad economy still means business owners are personally responsible, year-round, for keeping a roof over their heads and feeding mouths at home.

And while business owners are typically the highest paid in the company, they usually have limited access to getting unemployment paychecks, low income health insurance, and things of that nature.”

Alex Savy

CEO and Founder | Sleepingocean.com

Being around my team

“It sounds simple, but really I will never take for granted the ability to be around my team in close proximity. Actually going into to the office. Being surrounded by people daily that I consider my extended family. And be able to collaborate with them in person. Having our team breakfasts and lunches. Spoiling someone on their birthday. I will never take all of that for granted. Although we are all still connected through technology, it’s just not the same and I truly miss them.”

Nellie Akalp, CEO and Founder CorpNet.co

Missing the daily routine

“I started a global branding and marketing firm 19 years ago in Cambridge, MA. I am very concerned about the spread of this virus and the short and long term impact it will have on the economy. Didn’t think I took anything for granted but I do have to admit now that we are on lockdown. Really miss all the people who are part of my daily flow and routine like the neighborhood restaurants and coffee shops we go to every day or so, gym/exercise class people, etc. I am in great contact with close friends and family now but I miss the folks who I just see regularly who are no longer part of my week. My work is getting done it is just not as fun without the cast of characters who brighten my day who I now realize I took for granted.”

Paige Arnof-Fenn, Founder & CEO

Mavens & Moguls

Because Marketing Matters^TM

paige@mavensandmoguls.com

Communicating with others

“As a business owner, the biggest thing I took for granted was the ability to communicate with others. As a business owner and baker, I take pride in the items I create and I really enjoyed seeing what customers thought about their custom cakes and treats. Since we are now social distancing and only shipping items out now, we started to be more digital focuses to try and gauge our audience better and see how they feel in different ways.”

-Katherine Coyne, CEO, 12 Oaks Desserts

www.12oaksdesserts.com

Missing old routines

“I believe, ironically, the things I took for granted from the “old days” were the very things I used to not look forward to – leaving my comfy home to go networking. Get dressed up, drive to new locations, and walk into a room where you mostly know no one. Lots of “hi, I’m Susana….” and shaking stranger’s hands and exchanging business cards. Shaking hands! Something we did all the time without a scrap of thought in our heads is now considered to be dangerous and life threatening!

A stranger’s smiling and nodding as you explain what you provide in your business – at the time you wondered how badly you were boring them with your intro – and now I will swear to appreciate every smiling face before me! Sitting down next to strangers at a breakfast, lunch or dinner meeting may have caused nervous shyness – now I can’t wait to sit with strangers sharing a meal once again. What a wonderful human connection we had! I look back on days when I looked at my crowded calendar and thought, “I just want to skip this and stay home”. I look forward to a crowded calendar again and won’t take a single event for granted!”

Susana Fonticoba

Clear Path Marketing

There are many things business owners will never take for granted. Covid-19 has taken so much from them. It helps to put things into perspective.

What Some Creative Mom and Pop Shops Are Doing

The term “mom and pop shops” usually refers to small, independent brick and mortar stores. I know the term well. I grew up in one. My grandparents ran a small gas station/grocery store and I stayed there as a baby while my parents worked. All the free candy and ice cream I could eat!

Everyone in the small town stopped by on a regular basis to sit for a while and have some snacks and strike up a good conversation. Who needed a newspaper when you could hear all of the latest news at my grandmother’s store.

So, it was kind of sad when the mega chain stores started going up downtown. But it really never changed her level of business at all, because there are some things the big chain stores simply can’t compete with. She had learned from the time she opened her business at the tender age of 17 that business is about relationships. Sure, you could buy those snacks and groceries cheaper at Walmart, but you could never get the camaraderie and personalized service you got from Mama Parney.

When she died almost everyone in the whole town showed up for the funeral. It was a testament to how well she treated all of her customers. Even when people didn’t have the money to pay, she would run a tab. I heard pretty much everybody paid her back.

With more and more customers seeking a good customer experience, mom and pop shops have a great opportunity to compete with the big box chains, doing things they aren’t able to do. Here are some mom and pop shops who are rising to the occasion:

SitStayGo – SitStayGo™ invites you to come out for a special trunk show event at the D Pet Hotels in Chelsea showcasing the recently launched PET DINETTE & Leash. This unique all-in-one system allows pet owners to conveniently pack all of their walking essentials so that they can grab n’ go with ease. On Saturday, Pet parents will have the opportunity to learn more about this innovative product firsthand, meet the inventor, Michelle Glasser, enjoy some wine and cheese, have a treat tasting with Fido, and shop for SitStayGo™ products just in time for the holiday season! The Trunk Show is FREE and open to the public and little dogs. Guests will experience the luxurious D Pet Hotels, enjoy delicious wine and snacks, mix and mingle with other pet lovers, all while learning more about the innovative PET DINETTE & Leash from the inventor herself, Michelle Glasser. Best of all, this is the perfect opportunity to get your paws on some awesome pet gifts for the holiday season!

Michelle and the SitStayGo™ team are devoted to giving back to the animal community. Through their launch and the holiday season, a portion of each sale will be shared with Houston SPCA to help the most vulnerable victims of Hurricane Harvey thanks to their Give 2 Get program. [Read more…] about What Some Creative Mom and Pop Shops Are Doing

Would You Buy Products Made in the USA?

Made in USA

When I posted the question “Would you buy products made in the USA?” on social media, I got a flood of responses. As a manufacturer, we have to deal with many different issues, and one of those is price. Americans have gotten used to paying low prices for products that are made in other countries, mostly China.

I got a quick lesson in importing when the company I was licensing my product to went bankrupt only weeks before we were to sign our contract. With no time to wait, I realized I was going to have to do it myself. I had never even run a business before, and here I was searching for international manufacturers, and learning about freight brokers, ports, and ocean shipping. I also have to deal with regulations and taxes in the other countries I ship to. Plus, you have to allow about 30 days for delivery and usually have to buy in large quantities.

Robotic Manufacturing

I have hope that we will soon be bringing cheaper and better manufacturing back to the U.S. through innovative manufacturing systems like robotics and 3-D printing. Right now robotics in manufacturing is still new. They are limited to one task, and aren’t yet suitable for assembling small items. But new models currently being developed will be able to assemble any kind of product, and will be able to work alongside humans without danger of injuring them.

Since wages have soared in China, they have also begun to invest heavily in robotic manufacturing. The small, family owned factory I use there is constantly increasing my prices. Hopefully, robotic manufacturing used here to lower prices will mean the end of manufacturers always having to chase the lowest wages.

Buying Products Made in the USA

Buying products made in the USA is something many Americans feel strongly about. In fact, about 80% of the people I polled said they would rather buy American made. And it’s a completely bi-partisan issue. Everyone knows American-made products, for now, will be more expensive. The question is, how much more?

Here are some of the answers I got when I asked about buying “Made in USA” products:

“Yes I would and here’s why: I don’t actually know what’s in my cleaning agents, for example, if I import from China. They recently had a huge bust over there with a sophisticated operation selling industrial salts as food grade. Happens all the time in that country. In American I know what I’m getting. That I’m supporting people outside my own company is karma in the bank that will come back to my business if we all pitch in.”

Sean Desilva, owner of http://EveryLastSpot.com