How To Create Agreements and Business Partnerships

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Hey, this is Aleksander, I’m going to share with you how to create business partnerships, agreements and deals that are profitable without getting screwed,not, not literally, for all you Facebook sensors out there, figuratively screwed.So, how do you create these deals? The thing is, if you talk to most business owners,they’ll tell you some kind of horror story of how they create deals,business partnerships,and agreements, where it has gone terribly, terribly wrong.

In fact, most business partnerships that I’ve known in my life ever in 10 years in business, and actually beyond that, as well, before I was running my own business, most of them have failed in quite a dramatic fashion. I’ve seen pretty big companies just completely collapsed because of a bad business partnership. Not huge, but big companies, ’cause in huge companies, there are so many owners that if, you know a few people have a fallout, it’s not a big deal.

So how do you create those partnerships?How do you set things up in agreements where it’s not just partnerships,where it’s deals with clients and so on,so stuff actually works? I’ll give you an exact blueprint there and how to do that.The first thing is the word ass.The word ass is one of my favorite words.And it’s the first three letters of the word assume.And that’s what we’re gonna talk about right now, assuming shit.

So, when you create a business partnership or you create a deal,one assumes that you’re on the same page with someone,one assumes that you’re gonna work as hard,one assumes that the client is gonna deliver things on time,and the person selling is gonna deliver things on time,and everything’s gonna be just amazing.If you assume usually you’re gonna be wrong.Here’s why people are different from you. The way you think is completely different from the way someone else thinks,I can guarantee that 100%. If you just google Jung typology test or DISC test, you’ll see there are many, many different types of person a lities and different priorities that people have.And people think vastly differently from each other,so, you need to adjust for that.And you can never really do that without knowing someone.

So, the first rule is find out who this person is and how they got brought up, like who are they, where they came from, how was their life at home? Just know someone for an extended period of time, 6 to 12 months,before you close any business partnerships.As for deals, you know, if you’re selling of course,you don’t need that,just have some standards and have some contracts, right,which we’ll cover in a minute.

But for business partnerships where it’s basically a marriage, yeah, not literal marriage, but you guys know what I mean, you need to really know someone. If you don’t know someone, you’re gonna go marry them, then stuff is guaranteed to go wrong, right? So, instead of starting your first business as a business partnership, I recommend just don’t. Start your first business in a normal way where you’re just one person, selling a certain service or product and you sell it to a certain audience, you know, using a certain funnel, it’s not a big deal. And then if your friends also wanna start a business, they can start a similar business under your own business name, and everything else.

Later, if you wanna merge or you know,have one business together,that’s fine being,in beginning, for beginners,don’t build business partnerships.But if you ever do find out about equity and vested equity and howto agree contractually how much work someone is doing in your business, right,to earn that equity, most of business partnerships that have failed that I’ve seen,they failed because one person expects the other one to work equally hard, and he doesn’t,and that’s why most business partnerships fail.They just, it’s basically just resentment.So don’t build a business around resentment.That’s the bad, bad foundation to build a business around.

So, the second thing I wanted to discuss is the whole thing with agreements. Yeah, you wanna get a lawyer to write the agreements, right? And you don’t need necessarily a lawyer to write the whole agreement early on, if you’re just creating simple agreements. You can go to things like Rocket Lawyer, Legal Zoom,and have a template edited,or edit the template yourself,not as expensive as spending 800 to $5,000,or 15,000 dollars on lawyer.So, it costs almost nothing, it’s like $40,something like that, it’s very, very, very cheap.Having a lawyer review it is a little bit more expensive,but you know, that’s for later,you can initially use a bunch of templates and edit the templates together, essentially.Not that I’m giving you legal advice,I just, you know, seen entrepreneurs do that successfully in the past.

The next thing is, in terms of agreements,have the scope of the agreement very clearly defined.Is it a freelancer agreement,is it a joint venture,like what are you doing exactly?Like, what is the nature of the relationship?Is it long term collaboration,like who owns what at the end of the agreement?Who owns what at the beginning of the agreement?What is expected from each party?When is it expected?It’s as if you’re doing a little homework together with a bunch of friends from school,like who’s gonna do what and in what amount of time?You kinda need to agree on that,unless you’ve worked together many times,you’re really good at working together.But as we all know,people aren’t like that,it’s exceptionally rare.So in the beginning, you do it with contracts,you do it with proper agreements,and then things tend to go much better.

So, another thing is people think that if you have an agreement, that this is flexible in some way. Now, this is true and not true at the same time. It’s flexible in the sense that if everyone agrees, you can change an agreement, especially if it’s written,but if one person disagrees,and he wants to change the agreement,they can’t do this unilaterally,they can’t just change it by themselves without talking to anyone else.Anyone who tries,you get into a lot of trouble that way, right?So it gets complicated,and the bigger the business,the more complicated it gets.Right, so what I’m talking about now is for small businesses.Once the business, big business gets bigger,oh, man, that’s a different set of rules there,stuff gets really, really messy and complicated.But let’s talk about small businesses,because we don’t wanna make this like a super complicated livestream,and probably you don’t really care about big businesses anyway.

So, for small businesses, you wanna have clear division of work. Also, when you’re selling, like the client, the receiver of the service or product also has to do some work, they have to deliver feedback on time, they have to be available at certain times, throughout the month, to receive the news of how the project is going and stuff like that.

 Right, if they’re not, then they’re not participating,if they’re not participating,they don’t feel involved,they don’t feel involved,they feel left out,if they feel left out,they feel like you’re not really working hard,if you feel, they feel that you’re not really working hard,they’re gonna fire you, right?They’re gonna go ask for refund or something like that.So you don’t want that.You don’t want that miscommunication to happen,so just set things up properly from the get go,where the communication is discussed,the scope of the project is discussed,the liabilities is discussed,who owns what is discussed,and etcetera, etcetera, right?

You just, you can find template contracts,for whatever you’re selling,I don’t know what you’re selling,but for whatever you’re selling,you can find template contracts in the internet,and kinda look at all the bullet points to see which clauses are in there, right,and just put similar clauses that are relevant to what you’re selling in your contract.It’s not really complicated,or get the lawyer.

So, that’s, that’s pretty much it guys,like you could spend a decade studying this stuff,but as an entrepreneur,you don’t need to know every single detail.If you just know the basics,for now, that’s enough.And, definitely don’t start business partnerships unless you know exactly what you’re doing.And definitely only start business partnerships with people who have like normal, healthy upbringings,who don’t have like weird belief systems,and don’t understand data,don’t understand facts,stuff like that, you know.I like working with engineers,I like working with people that are logical,because I know that seeing things relatively, similarly.

Relatively, not the same,but relatively similarly,’cause they tend to look at facts and data in a similar way that I look at facts and data.You know, my parents are engineers,maybe I learned it from them, I don’t know. But basically, if you’re able to find the right people and make the right deals, really you can,you can make a lot of money,you can create a big, beautiful business and that’s what it’s all about.And that’s what we kinda do in Business Mentor Insiders.

Now, there’s like this trend of all the guys doing like 20, $30,000 to merge their businesses together, to create one big beautiful business doing 70, $80,000. So it’s just a trend that’s going on, it’s profitable, you know, they merge, they save a lot of time, effort, expenses and stuff like that. So, it’s working out for them, and especially people with synergy, they’re doing it and it’s working out really, really well.

Aleksander Vitkin

Aleksander Vitkin has helped over 700 people with a sincere interest in entrepreneurship and contribution, to start profitable businesses and quit their jobs.