Page 91 - The Bootstrapper Bible

ChangeThis 2. IDEAS AREN’T WORTH MUCH. Itʼs so easy (and fun) to go to a bar with a friend or two and dream up a new business. And at the time, it seems only fair to be even partners. But usually, only one of you does all the work. And then resentment builds, and the partnership falls apart. Sometimes the whole company folds. Sometimes the arrangement is just expensive. Itʼs not the idea thatʼs going to make you money. Itʼs the sweat and the effort and the execu- tion. If you want to brainstorm with people, thatʼs great. But make it clear up front that the pay is the pizza on the table or a flat fee or whatever else, so long as you donʼt give up a piece of your company. Hereʼs one way to do it: “Help me dream this up. If it works, and xxx happens, Iʼll give you a check for $50,000 in cash, for you two hours (or two days or two weeks) of work. If it doesnʼt work, we both lose.” More often than not, the party who doesnʼt really want to be an entre- preneur anyway will be happy to focus on the fixed number. By the way, donʼt forget to put your terms in writing. When Phil Knight needed a logo for his new sneaker company, he paid a woman $35 for the design. Good for Phil that he didnʼt pay her with stock or just license the design! Never give someone a big chunk of a business just because he had a great idea. There are plenty of good ideas around—free. The exception to this rule is if this person with the idea has a patent or a reputation that will dramatically expand the value of your business. 3. ALWAYS LEAVE BOTH SIDES AN OUT. Nothing lasts forever, especially business partner- ships. A dear friend of mine spent two years wrestling with a former partner when he left in a huff. In the end, everyone loses. Make sure you have a well-defined clause that lets either party leave without wrecking the business. | iss. 6.01 | i | U | X | + | Please donʼt be afraid; PASS THIS ALONG to as many people as you want! h 91/103 f