Business Mindset 33
Right way of setting up partnership
Those considering Partnerships among each other, please take note of few important points.
1. See this video first to understand 40-20 rule
2. See the contract template that you can use to setup your partnership – sunnyali.com/contract
3. Those going for Elite training will be getting a recommended partner from EC itself.
- You can always setup LLC or Australian Pty Ltd or UK LTD depending on where the overseas partner is from and add your Pakistani passport as a share holder. 50/50
- In regards to investments, you may do 50/50 or 70/30 or 100/0 depending on whom you are partnering up with. If you are partnering up with EC core team such as Muhammad Arslan, Zeeshan Jalil or Hameer Ali then this is going to be 100/0. But profit sharing remains 50/50. No sharing of loss whenever you do 100/0 with someone including someone from BC network.
- If you are doing 70/30 with someone. It means, you are lending 20% loan to your next partner and once profit starts coming in, you get your 20% investment (Loan back to you) before start splitting profit/loss 50/50. In case of loss, it is going to be 70/30
Now, please follow these guidelines while evaluating and selecting your next business partner.
- Do not work with rigid partner. Always work with flexible partner.
- A 40 year old partner must aways try to partner with young blood in 20s. 40 40 do not partner due to lack of available working hours. 20 20 do not partner due to lack of funds and experience. We are in trading business. Not innovation. If this was about innovation and startup culture, I would happily encourage 20 20 to partner with each other.
- Just talk to each other on phone. See if your frequencies are matching or not. If your partner don’t have a big gurda on loosing money then walk out of this relationship. It’s not going to last.
- If you ask partner to share access, card info or any details and if your partner shows reluctance. This partnership is not going to work. It will fail. Walk away from a rigid partner who is always reluctant in sharing access details and too concerned of his/her privacy. We should respect his/her privacy by waking out of this relationship.
- If your partner ask you too many questions before settling down on any issue. Means he need a lot of convincing. This partnership is going to fail. Walk out otherwise you will remain miserable throughout this relationship. Never waste your time in explanations and everyday convincing.
- If partner want to add more clauses and terms in the agreement and always focus on legalities and formalities. It shows the rigidness. Walk out. Remember we are talking about small online business here. We are not setting up a multi national and dealing with 20 million dollar funds here. We need that level of trust and faith in both sides to make it work.
- Any partner who focus too much on fine lines of business is going to fail. Partners who focus on bottom lines are going to work. A 40 year old partner focusing on bottom line and 20 year partner focusing on fine lines is going to work. But a 40 year old partner focusing on fine lines will fail, it will never workout.
- People who focus on fine lines are intelligent and have high IQ but they fail due to their demand of perfection. Perfection is a good thing when you are innovating something. Your demand for perfection in trading or ecommerce business will destroy your business. Learn to settle on less perfect and less ideal things and focus on the bottom line. Profit is the bottom line. And systems, processes, workflows and infrastructure is all fine lines. Intelligent people always go for fine lines and average people go for bottom lines and this is the reason average entrepreneur creates wealth much faster than the high IQ entrepreneur who mostly fail due to their focus on fine lines. Their own high IQ or intelligence is the cause of their failure.