 Hello Aces, welcome back to module one, lesson five, identifying your core team structure. In this lesson, what you're gonna learn are the do's and the don'ts of a headache-free and a drama-free partnership. This is one of the biggest questions that I get asked the most is, hey, should I be going into a partnership? And that's the reason why we're doing this lesson specifically for you. You're either in a lone wolf situation or triple threat. Lone wolf means that you're doing the business by yourself. Triple threat means you have co-founders. Doesn't really mean that you need three people, but I'm just writing it down because triple threat sounds pretty cool. So the pros and the cons of being a lone wolf. When you're a lone wolf running the restaurant by yourself, you have 100% ownership. What does that mean? It means that you have 100% of the rewards. Also, the decision process is shortened. Once you make a decision, you're ready to go. Versus you being in a triple threat situation where everyone has different agendas, different thoughts. You have full accountability and full transparency as to what's going on within the business. There is no mistake. There is nothing that is hidden behind underneath a rock whatsoever because you own the whole company. There's no founder drama. This is a big one as well that you don't need to spend any of your time dealing with founder drama. This is one of, by far, I guess the biggest advantage of being a lone wolf because you just don't need to have any conflict whatsoever with your founders. Whereas the cons, it is a super lonely path with no one to bounce ideas off and shoulders with. Just to share a short story with you is that when I first started my first student company, silly to say, one of the things that I really, really wished for was just to have someone to have meetings with me. It's kind of sad, but really that's really what was going on through my mind at that time is that I wish I had someone that can just sit with me and us drawing stuff on the whiteboard and just coming up with ideas. I think that camaraderie is really cool and it's something that I wish I had one day. So I don't know about you. That's my biggest thing that I struggled with. It is a lonely path for sure. You can't spread responsibilities because everything lies on you. There's nothing that you can rely on other people that have the same type of ownership just because you have employees that work for you doesn't mean that they will ever have the same type of ownership because they just don't have skin in the game. Also, there's no synergetic ideas. Oftentimes ideas really comes from collaboration that when you collaborate with other people they give you ideas and you put in your own version with it and before you know it, a great idea comes up. And it's also high risk. High risk, high reward. You have 100% ownership. You have 100% reward. You have 100% risk. So the million dollar question. To partner or not to partner Wilson? There are just no right way and there are no wrong ways. It's purely up to your specific preference. And I'll tell you a little bit more about what you should do and what you shouldn't do in partnerships. In my 10 years of tenure, I've coached dozens of different partnerships, literally dozens of partnerships. And I can only count like two to three of these partnerships that they still stay in partner. So the success rate is definitely very slim when you're working in partnerships, guys. And part of the reason is a lot of people enter partnerships for the wrong reasons. Do not get into a partnership for the wrong reasons, guys. Just because they're good friends of yours do not make them a good partner. A lot of people, hey, that's my buddy. We get along really well. We hang out all the time. Let's get into business together. Doesn't work like that, guys. Please do not ever get into a partnership just because they're a good friend. Same thing, just because they're family don't make them dependable or reliable. Just because he's your cousin, just because he is your aunt, just because he's your uncle does not mean they're suitable to be your partner at all. Just because they have money doesn't mean that they're good for your partner. There are a lot of people with money out there. Just because they give you a chunk of money doesn't mean that they're great partners. Just because they have knowledge in relationships also doesn't mean that they're your partner if the values don't align. If they're sketchy, if they're shady, and hey, you know what? I have a lot of knowledge. I have a lot of relationships. I can introduce you to everyone. It will not work out because your values don't align. Just because you're lonely doesn't mean you need a partner. Guys, this is also one of the biggest common pitfall that I see is the fact that people are just scared. Scared to venture into this journey themselves. And that's the reason why they go out and find a partner and dilute their shares by half. And in turn, they get into really sketchy relationship partnership which truly just kills their restaurant business because they're lonely. Do not ever get into relationship or partnership like that. And for that matter, this applies to any type of relationships, not just partnerships. So what are the great reasons to get into a partnership? The right reason is when you're clear on what each other brings to the table. It could be money, it could be talent, it could be sweat equity, it could be relationships. I'm not saying don't do it, but being clear on what each other brings to the table is essential to a partnership. Once again, this is not something that you should be afraid of bringing onto the table to talk, have an open communication to talk with your potential partner. Ask them, hey, you know what? I have all the money for this investment and that's what I bring to the table. What do you bring to the table? And vice, if on their hand, they're bringing money as well, then do you need them as a partner? Not necessarily. It's a different story if they have to know how and you have the money, then that could potentially be a great partnership because they lack money and you lack the resources and you lack the knowledge to build a business. Next up is you only get into a partnership, guys. Even if you guys bring great things to the table, each of you, it compliments each other. Even if that's the case, if your values don't align, do not get into a partnership, okay? Only get into a partnership when your values are aligned. In previous module, we talked about how do you define your value, put them through the same exercise, show them how do they define the value and see if your values match up, if they're aligned, if they are great, get into a partnership with them. If not, stay away, guys. Because otherwise, it's like fighting an uphill battle. It's like living in the same household with someone that you just don't vibe with. It's a horrible feeling, guys. Partnerships are things that's gonna last for years and you're gonna be seeing this person more than your mother, more than your father, more than your spouse, more than your other half. You're gonna see this person a lot so that's the reason why you need to choose someone that has the same values as you do. So then that way, you can make this whole journey much more enjoyable. Next up is when you have a clear plan for execution and delegation, you only get into a partnership knowing the fact that, hey, what are you gonna be working on? What am I gonna be working on? Then you can get into a partnership together. And next up, when you have a clear plan of exit, this is especially crucial when you're entering into a new partnership. Shareholder agreement, go and download it. It is so crucial to your success because oftentimes you don't know what you don't know. And let's say, for example, a scenario, you get into a partnership with a friend of yours. In the first year, they're doing everything that they can. They have that steam, that inspiration to keep hustling. You guys are 50-50 partners and you're super excited to work with them. After a year, they have a new girlfriend and they don't show up as much. They don't show up as often and they don't care as much. They're not putting in as much work. And you are the one that's gonna be putting in all that stress, all that troubles, and all that duty and responsibility on your own shoulders. And you start feeling resentment. You start feeling resentment. Third year comes around. This guy completely just doesn't show up. Yet he still owns half the business. Yet you're the one that's putting in all their effort. You think it's unfair, you're about to blow up because you're like, what is happening with this guy? But because you don't have a shareholder agreement in place, you don't have a clear exit plan in place, you cannot buy him out. And he's not willing to sell his shares to you. What's gonna happen then? You're gonna feel demotivated. You're gonna be like, why am I putting in all the effort and splitting half the rewards with someone who doesn't care, never shows up? Why? That's the reason why you should always have a clear exit plan, that you sign this upfront. You sign this shareholder agreement upfront that if anything goes on, these are the things that can happen. And shareholder agreement will allow you to give you different scenarios that what ifs? What if you wanna buy out your partner? Then what's gonna happen? What if you bring on a different investor? What's gonna happen? Have that clearly stated out right from the get go to ensure that these difficult conversations will happen upfront and not years down the road, which will erode your relationships and it will kill you mentally. What do they bring to the table? It is crucial for you to identify your team and what they bring to the table. So then that way, you can start to use this to raise funds. You can use this same bio that you have to go and seek mentors. Tell them this is your dream team, that I am good at this, my partner is good at this, we compliment each other, therefore, we're gonna be super successful. That's what you're gonna be able to do. This is a great way for you to onboard new members as well to get their buy-ins. People need to feel that this is a great team that they're working for and that it is very, very promising and therefore you need to identify what is it that they bring to the table and what is it that you bring to the table. And it is also great even if you're not seeking funding, mentors or new members, it is great for you to know and have clarity on what and who's responsible for what. To establish a win-win partnership and if you're looking for a partner or you already have a partner, it's time to list out what they are responsible for. What is it that they bring to the table? What is it that you bring to the table? What are your values and what are their values? By identifying these points, it allows you to actually have that conversation and reconcile all these things that might be happening and that's how you're gonna be able to establish a win-win partnership. In this lesson, we talked about the dos and the don'ts of a headache-free and drama-free partnership. So go out there and actually start putting the pen on the paper. Actually note these things down because as we start building your restaurant, that is the time when you can delegate to your partners and if you don't have partners, this is also a great exercise for you to understand the consequences that when you are to onboard a new client or when you are to onboard a new partner, what you should be aware of, even if it's an investor, same thing. Next up, we're gonna be talking about how do you create your master blueprint to give you the roadmap to reach your dream profitable restaurant. So this is a super exciting new lesson that we're gonna be covering. I'll see you guys in the next lesson.