The Partnership Playbook: Finding the Right Business Partner

Hello and welcome. My name is Tavishima Ayede. I'm the host of the podcast and I'm making today's recording at home. So I expect to hear some noise in the background because it's a holiday kids at home. Now, the goal of this podcast is solving business problems, especially problems related to sales and marketing. Occasionally we talk about struggles in marketing, side hustles, career, all the things that are holding your business back.

If you'd love to subscribe, do so on Spotify, YouTube, Apple or any player of your choice. And if you want to connect with me, you can do so by calling SMS or sending me a WhatsApp message on 08064662140. Today on the show, I want us to do a listener question because it's been a while since I did that. And today's question is from ASA Matthew calling in from Karishi in Abuja. Of course, you called in on the radio show, not on the broadcast.

So his question, it threw up a number of things around how to decide or how to determine who to get into partnership with someone. And that's because in Matthew's case, Matthew, he's a photographer, like I said, And so he's the one coming with the skill and the knowledge. So when it comes to shooting, handling the camera, he's the one who knows how to do that. When it comes to editing the photos, he's the one who knows how to do that.

When it comes to interacting with the customer, he's the one who knows how to do that. Posing the shots, he's the one who knows how to do that. Everything needed to be done to get a photography business going, Matthew knows how to do. The problem is Matthew does not have a camera. Now Matthew's friend wants to be his business partner, and Matthew's friend is going to bring in the camera and he's proposing that they go into business on a 5050 basis.

So that was the backdrop to the question, and that was the question that Matthew had. So at the time, I think the question was more of, you know, should I enter into partnership? Are these times fair? Now, of course, you know, you always have to ask more questions, you know, tease out more of the facts before you can give an accurate recommendation or accurate advice. And we will get to that at the end of the podcast.

But it got me thinking, apart from the advice that I gave him over on the air, I thought it would be a good idea not only to be visited on the radio station but also to be visited here because there are some of you who are about to start the business or you've been in business for a while, you want to expand, you know, whatever. And you think now is the time that I need to get the business partner? So how can we think through this in a very structured, in a very organized way to make sure that we don't run into any Yawa in the future?

So we need to make sure that we think, think things through. Sorry, that's the tongue to say there. So #1 the thing to consider first of all, you need to define your needs because that's what is going to determine who you're going to start chasing and what you are chasing after. So some people need startup capital or some people need resources just to get this thing going. Is that the stage you're at? Some people trying to do market expansion and so they think they need a partner for that.

Some people think they need to gain more expertise, you know, in house. So just go ahead and partner with someone. And it's a good idea generally that if you're going to go into partnership with someone, you should consider your own strengths and your weaknesses. And so you should be bringing someone into the picture who complements you. So if you're weak in one area, the person should be strong in that area. So like, like for me, for instance, not very good with numbers at all.

So if ever I want to partner with someone, it'll be nice to make sure that I'm partnering with someone who is good with numbers and who is financially literate. So the person understands cash flow, how to read profit and loss, how to read account statements, you know, blah, blah, blah. The kind of person that will be able to look at some figures and tell us the local boy business is cracking on very well or boy business is suffering.

Like, yes, we're charging million and million, but if you look at this item on the balance sheet, you will see that or more we have some serious problem that we need to resolve. So in my own case, that's the kind of person that it would make sense for me to partner with. But you need to start asking yourselves all these questions. What do you need? Because it is your need that will determine who you will chase or that will determine the kind of what I put it, the kind of deal that you would accept.

Now in this case, Matthew Mafia already has the shop down is sorted. He has already put down rent for the shop. Mafia already has the skills down is noise. No problem. He already has an idea about how to go after customers. But then all he's lacking now is camera. So truly, your camera is the only thing he needs. Does that mean he needs to enter into partnership with someone on a 5050 basis? Think about it. I'll give him our recommendations at the end.

Then #2 You need to vet your partner. Vet your partner just means you need to shine your eyes on the person. Shine your eyes on them very, very well. Open your eyes. So first thing is what's your own vision of the company? What is the other person's vision of the company? And then is there any alignment between the two? Because you, you're thinking, you might be thinking how to grow big company multiple millionaire valuation floated on Nigerian Stock Exchange.

The other person might be thinking, look, you know what? So long as we can build this thing and at the end of the month, each of us is collecting 5500K every single month. You only share 500K, my own share 500K. I'm all right, I'm all good. If you don't have these sorts of conversations, people quarrel in the future because you, you'll be saying, guy, we need to expand, we need to expand. Let's move, let's move. The other person will be saying broadly, why do you rush?

Relax where you run into why are you recommending all these risky things? So sometimes it's not as if when you're trying to partnership, your other guy is a bad guy or the babe is a bad babe. He's just like who did not discuss more these things before you started. You're just thinking I'm a friend. She's my friend. She's my sister-in-law. He's my brother-in-law. This dadada mode, the runner. Let's just enter. So what's vision of the company that you guys have?

The vision of the business? What is your own idea of business success? What is that person's idea of business success? Some people if they're hitting 500K every single month, they're OK, they're cool. You on the other hand, you might be thinking 500K every single month. That means I'm only doing 6 M in a year. But some of my classmates are doing 23 M in a year. Those my classmates don't have any 2 head. How can I be happy with only 500K per month?

You will need to have these conversations. Then the skill set, your experience, it has to be complementary. In fact, there's something I can speak to 1st, my own, like I experienced it. So this one is not academic. Earlier on in my photography career, I got involved in the badmanship with my brother-in-law. Not the guy's not a bad guy at all myself, I'm not a bad guy. But The thing is, we didn't have any of these preliminary discussions and it ended up causing small misunderstanding because both of us were coming at it at the complementary skill set.

I was looking at the fact that me, I'm a photographer, camera is my thing. Now, my brother-in-law, he's also good on camera. But The thing is, he is a wizard at Photoshop. I have seen him make somebody taller on Photoshop. He has made people shorter, he has made people thicker, he has made people slimmer. Women that are straight, he has given them waste. Men that are straight, he has given them V shape picture that was shot in Lagos.

He has photoshopped them to New York. As in that kind of good wizard Photoshop. So we talked about partnering together. Now in my mind I was thinking correct, I know camera you, you know Photoshop. So in my mind, that's how everything was going to go, but he didn't think so. Now, of course, when quarrel comes up, as it will, in that case, you can see there is no matter of somebody's wicked, somebody's bad. No, people just didn't discuss.

Because for me, at some point I was not wondering, how does it all make sense now? I'm a photographer, you're a photographer. Why should two of us be in the field? Now it makes more sense that one person is in the field, one person is in the studio editing all these things. So you can see that this kind of quarrel, this kind of quarrel is, is normal. It can happen with anybody in different circumstances just because we fail to have some very simple conversations.

So your skill set, your experience, make sure it's complementary. So if you're a fashion designer, you know, 2 of you have design skills, you know, doesn't make sense. But if it's that you, you have design skills, the other person has construction skills, that is making sense. Somebody can be designing a cloth, another person is is in the shop with the tailors making sure that everything is properly sewn together. Or somebody has all the technical expertise, another person has the business expertise.

This is how we do merchandising, this is how we sell. This is how we put our our things in different shops. Just make sure that you have complementary skill sets. Then another one I used to call squirrel is work ethic and commitment. Again, is not as if one person is good, one person is bad. It's just different understandings. There are some people that will say, look, we're in business together, so 7:30 AM sharp, we must be in the office.

Another person will say I asked 7:30 AM sharp like for what the reason why I left paid employment was so I can relax a bit. For me I want to be coming in at 12:30 everyday sharp. Now in our case does not say one person is good, one person is bad, another person is wicked, another person is holy. No, they just have different expectations. One person is like look 7:30 AM we mean business sharp 7:30 to 6:00. Another person is saying 12:30

to 6:00, if you don't have these conversations ahead of time, there will be quarrel because you enter into partnership on a 5050 basis at the end of the year, business is good. Maybe we'll generate it like 40 M. You are now splitting in 5050. You'll now be thinking what the hell? I've been coming here 7:30 every day. This guy just casual 12/30, he'll just strolling here. Why should they seem to be 5050? You see, quarrel will now start then communication style and conflict resolution.

You guys need to talk about these things as well. Some people have different communication styles. Now after several years in business, I've become very, very direct, especially now that my skill set and my specialty in in sales and business development is growing. So now I'm not afraid of saying, look, this and these and these are the issues. In my own opinion, I think these are ramifications and I really think we should sit down to solve these things.

So what do you think about 123456? I propose we do like this. Now, I can have these conversations very, very frank. But early on in business, I wasn't that way. Like take for instance this photography thing. You know, it was my brother-in-law that was my sister's husband. So, you know, I was my younger sister's husband. So our, you know, there are some things I didn't want to. So the way I handled it, it could have been better.

In fact, I own it. It is my own fault that everything went the way it did because some people now come as how far now. I thought you and Patrick were partners. What happened? You know, back then my communication style, I just was not on the assertive and direct wavelength at the time. But we need to have this communication, sorry, this conversation. So it's not as if one person is good, one person is bad. We just didn't have these conversations.

So it happens. You have business with someone. The other person likes to shout. Any small thing, the person will shout, shout, shout. Or from their own point of view, the fact that they're shouting doesn't mean anything. That's just how they are. Some people are just loud. Trust me. Some people are just loud, like if you come around my family where everybody's around my cousins and you know, you notice that me and my brother were cool.

You know, we know they shout. You know, you say you're only keep quiet. You know what, man? My cousins, especially the females kind, they are loud. Like after three hours, like I have a headache. Like I need to rule myself from the situation. And then sometimes it's contextual because when I met my babe, my wife, then my babe, I was like, correct girl, very calm girl, very, you know, level headed, very everything. That was when, you know, we were out of the country in in Scotland away from family dynamics.

By the time we came back to Nigeria, I realized that or more my wife can be loud as well, because when my wife is now my female cousins, the volume as in all of them just loud together. So I remember the first I was like, really, is this the baby I married? You know? So some of it is contextual. You're seeing somebody in one light. You don't know that in the different contexts things are going to be different way. So you have some of these conversations, you know,

people's communication style. Because if you're somebody who likes to shout and quarrel, quarrel, quarrel, quarrel, you're on the quiet and every day you'll just be chopping by shopping, by shopping resentment, shopping resentment. And then one day YouTube will now explode and dissolve the whole thing. Your business might not be wondering where is all this coming from? Because you, you're normally on the quiet side. You're not, you've not been saying what's on your mind.

The other person likes to vomit everything that is on their chest. So any small thing will just be shouting. Just power up and down anyhow. So these are these conversations, our communication styles and conflict resolutions. When there's problem, I'm going to solve this problem. When it's time to make decisions, how are we going to decide, OK, we're in partnership only on a 5050 basis, but how are we going to be deciding what to do or however want to make website?

How do we break the impasse? You say it's a good idea, it's a bad idea. In my own experience, in my own experience in being in partnership, my brother-in-law was one of those things. He thought let's do website. I thought website, what the hell, we don't need it. Let's go out and look for customer. How do you resolve that kind of dispute? Anyway, what happened is since my brother-in-law was really good at computers, he just went ahead and made the website anyway.

And then he now showed me the vision and when I saw it I was like oh OK bro, you know what, I see what you mean. And then we now started collaborating on the website. But we have to think about it, how are we going to make decisions? Is everything 5050? How are we going to make decisions? Is it according to somebody's speciality? OK, you, you're the one whose speciality is websites. So whether we have a website or not is up to you.

I'll be your own specialities, accounting and stuff like that. When it comes to financial decisions that have to be made, that everything is up to you. But we have to decide upon all these things before we enter into a partnership with anyone. Then we also have to do financial and legal due diligence. That means we're trying to make sure that everything is adding up. We need to make sure that 1 + 1 is 2, not that 1 + 1 equals to greater than or less than -3 We need to make sure that everything is on point.

Look at that person's personal history. Ask around, ask people questions. I'm thinking of getting into business with Kilichi. What do you think some people say? I call it she. You know, good guy. Blast. Kalichi. Yeah. Are you sure? You now say calm now, like, OK. What do you mean? Are you sure? Say no, I'm not saying anything. But it's the same Kalichi that I'm saying. Yes, It's the same Kalichi. Like, Are you sure? Calm now.

You did something. Tell me. Say no, no, no. I'm not telling you anything. When you start hearing things like that, you download that. OK. Maybe there's cause for concern over this Kalichi fellow. Ask around this personal history, financial history too, where you can figure out those sorts of things. You know, there's some people who have been involved in partnerships with let's say 5 people before and each of those partnerships he ended because of money matter.

It'll be nice to know some of these things before you agree that OK Kilichi, you and me, let's go and be in partnership. Then the level of financial involvement or level of financial expectation. This is also one thing I we definitely did not discuss in the beginning, not only when I was in partnership with my brother-in-law, but also when I was in partnership with my brother. It's just that, you know, when you guys are brothers, at least in my family, when you guys are brothers, it's a lot easier to handle some things or 5050 you drop your own, drop my own.

You know, if there was a problem, you call me and say, look, this, this, that now say no one, no problem, I trust you. So that was different. And then also on some other dealings, it sometimes will be the other way around. Sometimes it'll be that I'm the one who fell into the busy and I don't have to call him and say, look, bro, you know what, that money, this and this and this happened. And he say, OK, no problem, these things happen, I trust you.

So at least in our family, you know, that was kind of easier to handle. But ideally we should be discussing all these things. What is people's level of financial involvement? How much are we dropping first then every week or every month? How much are we going to be dropping on certain kinds of projects? How are we going to be financing these things? You need to define your roles and responsibilities very, very clearly.

Who is responsible for what? Who is going to be doing what. Then it will also help if you have an exit clause or termination clause or termination strategy, which is the answer to the question, this partnership, how will this partnership stop? That's one of the things I call Squirrel. We didn't decide in the beginning. So eventually somebody leaves the partnership and is as if this person's departure was premature and I think causes problem.

Profit sharing, how we're going to be sharing the profit partnership agreement is unnecessary. Some people say yes, by all means get a lawyer. But The thing is, whether you get a lawyer or not, so long as you are having all these conversations and reducing it to some written memo, you're better than people that have not discussed at all. And The thing is, if you have all these conversations ahead of time, by the time you now decide, OK, let's have a lawyer,

you will have a very fruitful conversation with a lawyer because the lawyer will already have answers to all these big, big, big questions. And then based on that, we'll now be able to give you guys the best legal advice, at least because you have been having some of these conversations. Some partnerships have operating agreements. That would be a good idea as well. So there are lots of things that people have to look forward as they look forward that people have to look at and discuss with the other party or the other parties before you decide to get into partnership with someone else.

But these are some things to watch out for. This is my own personal, you know, just as per my own experience. And then looking at, you know, classmates, family members. So things to watch out for #1 narcissism and then #2 risk appetite. I repeat #1 narcissism #2 risk appetite narcissists. I don't know the correct psychological definition, but let me just put it this way. There are some people who believe that they didn't know everything.

They are correct on everything. Avoid those people. You can't be in partnership with that kind of person. The person who thinks everything he says or everything she says is correct, she can never make mistake. He's always correct. Those kind of people avoid them because it's rough. Business is hard. It's hard enough as it is. Trying to look for customer, trying to start conversations with the customer, trying to figure out their needs, trying to negotiate the pricing up and down after a bull price, trying to deliver, trying to make sure that they're happy, trying to gain referrals, trying to get recommendations.

All that is hard enough as it is. You don't want to go into business with a narcissist and every day you're busy massaging somebody's ego. I kind of life is is hard. So you feel as if you're dealing with a narcissist this you know he likes himself too much, she likes herself too much. They know everything they never make mistakes. Just leave those people. There's some personality types that can deal with narcissist, but look, we're in business to make money while annoying business to play psychological games.

So narcissist just leave them, leave them, leave them, let them go and partner with somebody else, jump and pass, then risk appetite. That was also really, really important. You know, like me, I become person. I cannot be in partnership with somebody who is, you know, let's go, let's go, let's go, let's get this money. Let's go. Let me like, I like this money and I'm chasing this money, but not on a very GRA GRA, GRA, GRA

level. I'd like to understand where we're going. Let's come up with a plan. Let's execute this thing, put some consistency in the mix and then let's make some money for sure over time. So like with the podcast, somebody who is let's go, let's go, let's go. The person will never make a podcast. The person will be like, what the hell are you doing here using sitting down microphone? Like how is this still getting us money?

Let's go, let's go, let's go, let's get this money, man, let's get this money. You know, but for me, maybe because of my background, I knew content marketing very, very important for lead generation if it's something you're able to do. And so I came up with a plan and I've been executing. And then by the time we got to year three or let's say 3 1/2, I started getting paid consultations from the podcast. But from year zero to year 3, to be honest, 0, no income from the podcast at all. 0 naira 00.000

Cobo from the podcast, but wasn't a waste because at least I used to use the podcast to leverage and get speaking engagements. So whenever, OK, like that first Smedan event that I did, if you're talking to organizers and then it comes out in conversation, oh, by the way, you have this podcast, you've done like 250 episodes. Like, oh, OK, the boy Sharp, the boy knows what's up. So that's how you should leverage the podcast early on,

but now it does both. If I need a speaking engagement, like there's the Nigerian Innovation Society, I'll be Nigerian innovation. Something I can't remember. We are talking about the conference that should be coming up in September. I'll be October. I can't remember. But anyway, when we finalize everything, I'll let you guys know the details here, especially if it makes sense and I'm going to be in Lagos, I'll let you guys know.

So those of you listeners who are based in Lagos will be nice to meet you guys at the event. You know, even if you don't want to be at the event, at least knowing that I'm going to be there, you know, who knows, you can time it so that if you come when the event closes, you know, maybe we can all just say what's up. Will be nice to meet those of you who listen to the podcast. So that's the way that I prefer the run business.

So somebody else with different risk appetite or you know, the thing who doesn't work, somebody who's looking for much more aggressive risky. Because like there's some of you who reach out to me on the podcast and you say, oh, you're doing crypto, you're doing this, you're doing this in my mind, I'm thinking, where are you running to now? Where are you running to relax. Especially those of you who reach out to me, you're like 1718.

I'm really thinking like, where are you running to crypto today, blockchain tomorrow? And you know, there's always one thing, one thing and for some reason always the very, very risky things. And I mind I'm thinking if you take all these hustle, you just calm down, look for something that is less risky. Come up with a simple plan, be executing this plan every day. Yeah, it might take, you know, two years or a year, but at least you'd be set instead of this whole thing of today.

No risk, no reward. That's what some people say. No risk, no reward. You go and get 600K, no risk, no reward, and then you throw everything into crypto and then what happened? And you know, I forget that thing now. Multi level marketing anyway. So yeah, just know people's risk appetite. Just basically just know. Just know where you're running to and where you're running from. You know, some of you are running from different things or some of you are running to different places.

You just know that you can't make this thing work. And then what else? Oh, yeah. Then also lack of complementary skills like me and my brother-in-law, the whole shooting versus editing thing. So I think if you avoid these big three, narcissism got complex. I know everything. Avoid those people. Risk appetite. People are running at the same pace and then you will have complementary skills. It should work out. All right.

Now back to Matthew's question. How should Matthew enter into a business partnership with this person on a 5050 basis? My own opinion actually was, no, you've already got the shop. I've already paid one year. Congratulations, that's pretty good. Everything else that you need, you already have. The one that isn't going to be doing the work all this other person is bringing is the camera. Enter 5050. Because of what? In the beginning you will say OK, but by the time you've been running the business for like 3

months and let's say every single month you're bringing in. Every single month you're bringing let's say 200K. And then you're giving this guy, OK, after expenses, you're giving him 5050. After a while you'll be thinking like, I'm giving him all this money because what? Because I'm using his camera. There are other ways to finance your business, especially in the photography space. There are lots of people, my contemporaries who got into the game by renting.

So they learn how to shoot, you know, with other people's cameras. And then when they have an actual job, they go and borrow like do some of those guys it I wish my what's up? They have a job for. So no, I don't have guy big borrow me on camera. That happens or you go and pay somebody, please borrow me on camera, I will pay you at the rate of, you know, 20,000 per day, 30,000 per day. That also happens. That is one way that you get access to the equipment that you need without having to get involved in a 5050 partnership.

Then if you follow the advice that I'd like to give, which is make sure you finance your business organically by using positive cash flows, by bootstrapping. So you work Buffy comes in, remove small to flex, remove small to invest inside the business and then keep some again, you know, to to save up for other expenses that you need. You know you can do that. Like the guy that I partnered with for producing the documentaries that we currently produce.

The last time we're out in the field doing a subject interview, the guy had one sweet microphone. I was like wow, this microphone is correct is bad. Like how much is this in cost? The guy told me 650 Ki say 650K1 microphone say yeah and you have 4. He say yeah. I say how did you how did you do this? He said I know her boss. I didn't just buy it 1. So now I've been saving, saving, saving small, small, small, small, small.

So you don't need to raise because it's 650K. You want 4 microphones 65650 that is 1.31.3 that is 2.6. You don't need to go and get 2.6 million from somebody and say people in partnership on a 5050 basis. You actually can be, can be gathering the money, small, small, small and do hire purchase on the car, purchase on the equipment or you know, small, small, small and then just be depositing because there's one guy in Abuja who used to sell camera equipment that way.

So you want to come and buy flash studio lighting from him. The studio lighting costs maybe 350K, but right now you don't have 350K. He was saying no problem, how much do you have? You have 200, you say no problem, drop the 200 and this particular model, I'll keep it for you. Nobody can buy it as you're raising the money. Just be dropping and dropping and dropping. When the money is complete, come and carry it and go.

If you change your mind, you come back. I'll give you your cash. So the guy used to do that. So that's the way that people used to buy stuff through him. So anyway, I didn't think it made sense for Matthew to get into partnership with this guy on a 5050 basis because they'll be quarreling in the future. He will think I'm not doing all the work. This guy is passive, All he has done is just give me a camera and right now I can't even afford to buy multiple cameras myself.

So why am I still in this partnership? Then quarrel will start, and then the other guy will now start calling him Ingrid. Now look at this guy Matthew. In the beginning, where were you? Who were you? What did you have I made you? You are an Ingrid. Is it not me? If not because of me, where will you be today? And then a perfectly good friendship is going to get, it's going to get destroyed just because we didn't have clear conversations about these sorts of things.

So those are some of my own random ideas. Excuse me, random ideas about how to get into partnership with people or the factors that we need to consider before we get into a partnership with someone. So that's it and that's all. Remember, if you'd love to connect, you can call, you can SMS or send me a WhatsApp message on 08064662140. Thanks for your time and attention. I'll catch you next time. Same place in your headphones or in your speakers.