Christopher V. Flett

I’m in the process of forming five new profit models right now. I was corrupted, long ago, by the sweet, sultry seduction of Capitalism. More is more and less is less. In a market like this, the strong rise to the top and the weak wither. I’m okay with this. There hasn’t been a more constructive, affordable, and exciting time to start a new business, or re-work an existing model. In upcoming weeks, I will show you my new ‘babies’ and give you details on what they do, how they make money, and the big picture for them. My partners have varying levels of skills they bring to the table. Some what to have a company that can feed the ego, others want one that will make them wealthy. I want both.

I have a lot of interest from people wanting me in a new venture. Some want the start-up costs, but most want the direction to take it to a big level. This is good for the ego, but what I must watch myself with is deciding if this partner can make things happen as well, or if they are going to limp into the business expecting me to chew their food for them. I think I have gotten better over the last few years stripping the mud out, but it can still seep in. What’s exciting is I have two good friends that I’m exploring a working model with. Doing business with friends is traditionally a bad idea, but having worked with one for 10 years and the other for 7, I’ve seen how they do business and I’m comfortable. What I love is that I’m a starter and they are finishers. I get the fire going, and they keep the fire going. That’s a good partnership for me. When partners want me to start it, manage it, tweak it, fix it, and they watch it and tell me what else it needs, it’s like having someone in the kitchen telling you how to season your food. If you aren’t a chef, get out of the kitchen. If you want to be a chef, get your pots and pans and get cooking!

Here are some questions I ask myself and you should too, if exploring new business models:

1. What role will each of us play?
2. Who brings what to the table?
3. Why are either person interested in the arrangement?
4. What type of investment (money and more importantly time, is required?)
5. Can either side keep their word and their end of the bargain?
6. Who has the most to gain/lose from the relationship?
7. Is this worth my time to be involved?

• I have one partner who moans that “he didn’t get enough time with me when we first started our model.” When asked if he called when he needed help, he replies, “No, I knew you were busy.” Well Tiger, if you want something, you need to ask for it. I’m in business, not mind reading. When he tells people this, it makes him look old and weak. Especially to other people I work with who know I return their calls.

• Another partner calls all the time with opportunities and I say to her, “What the hell do you want?” when I pick up the phone. She says, “To make you some goddamn money.” Then I say, “Please continue, I have all day for you.”
• A third partner is an amazing closer. He brings in big deals, but consistency is a challenge. We fight over breakfast, come up with a plan, follow the plan, fall of the wagon, fight over breakfast, come up with a plan… It might sound stressful, but it’s fun because he has potential and I think I beat a work ethic into him. Might be a losing battle, but I’m confident. There is no one better at engaging people than he is. I’d like to bottle it and sell it.

When both parties are coming to the table, business is fun. When one is hauling the other along, or a model is stalling, that’s not a lot of fun and it isn’t going to get me fired up to focus on it. Now with over 20 companies under my belt, I get how this song goes. I’m not a big fan of sharing my pie, unless the person coming to the table is bringing some ice cream. When you are looking at joint ventures, consider the personality first, the business model second, and finally the profit model. If all of those make sense, give it a go. If it’s a great model with the wrong person, get out. If it is the right person with the wrong model, get out. And be clear with what you want from the relationship. I’m in a position now where I’m very clear what I want out of a model and then I ask for it. The strength in this style of negotiation is I’m not focused on doing the deal. If I get what I want, I’m good to go (granted it’s the right person, model, and profitability), and if it isn’t a model that works for me, I wish them the best and bow out.

I will do business with almost anyone if the model interests me, the person can get it done and can be trusted, and there is money to be made. I’m open to hearing about any opportunity but unless I can answer the above questions effectively, I don’t put the model into play. Follow my advice friends and make sure of what you are doing, who you are doing it with, and how it is going to roll, before you commit. Remember, you can always back out if it isn’t working. Only death is forever and working with a boat anchor is death, trust me.

C/