Welcome back to another episode of the Resellers Mindset Podcast.
My name is Mike, also known as the used book guy on YouTube,
along with my friend and fellow full-time reseller, Johnny B.
We help people start and grow their reselling businesses from the ground up.
We also have a weekly zoom call and private discord for all YouTube members.
Head on over to youtube.com backslash use book guy to join the channel and gain
access to the full length podcast zoom call and private discord today.
Let's get into this week's episode.
What is up everybody?
Welcome into another episode of Resellers Mindset Podcast.
Mike next to Johnny, if you're watching over here on YouTube, I am
pointing at this man right now.
Today's conversation is going to be around basically business
partnerships and reselling.
I think a lot of people on the outside think, Hey, this is going to be a great idea.
If I moved to Texas, me and Johnny, we could conquer the world as media sellers.
Right.
And on the, on the surface, everything seems great.
Right.
All of a sudden I get down there and I put in my 20 hours of work and I'm like,
all right, Johnny, I'm done for the week.
You know me 20 hours.
I'm gone.
That's my limit.
And Johnny's the guy that's like, wait a minute, I'm working 80 and you're
working 20 and all of a sudden Johnny hates me.
He never hosts the podcast again and it all blows up.
But a lot of people think this is like, Oh, you know, if I can get around somebody
that's doing the same thing, all of a sudden, you know, things are just
going to take off for me.
That's not the case.
I know a lot of resellers are like, it sucks doing this on your own.
Well, it can actually suck a lot more if you partner it up with somebody else.
Because listen, what's the big change here going from one person to two person?
I mean, I don't know.
Like what's your take on this type of type of business model?
It's a very doable model.
If you know what a partnership entails, I mean, I've been in part of partnerships
before and they are a blessing and a curse at the same time.
And everybody focuses in on the pros and not necessarily the cons.
There are some major cons and there's also some major pros and you have to live with it.
To me, a partnership is just like a marriage.
It's all shiny upfront.
Like when you're dating and stuff, you're in lovey dovey.
But you know what happens in marriages and in dating, everybody fights.
Not everything is the Disney Channel 100% of the time.
There's going to be fundamental disagreements and then concessions,
which nobody really wins in a concession.
Somebody has to give up or it's not exactly what everybody wants just to keep the peace
and status quo. Partnerships are the exact same way.
Usually in a partnership, you don't want somebody exactly like you.
You actually want somebody who's doing something completely different that you have no knowledge on.
And they'll want that same thing from you.
And when you combine together, that's when you really have a successful partnership.
Is there bringing something to the table that there's no possible way that you could do
without spending an exorbitant amount of time to learn it, whatever it is they have a knowledge base in?
I think if we'll just throw ourselves out there as an example, right?
So me and you committed to all right, we're going to go into business together.
Okay.
I would think along the routes of, okay, well, you have experience with employees, right?
So, you know, you have some experience hiring people, having a little facility there.
Like, I think our route would be you can correct me if I'm wrong.
I think I roll up down there.
We buy one of those scanner conveyor belts. We hire a lot of employees and then we just, we just get the sources
and, you know, keep the sources coming.
So we always have inventory to scan and, you know, maybe you can manage employees or I can manage the employees or vice versa.
And then the other person focuses on, you know, getting better sources all the time.
But like, if me and you partnered up, that would be my idea of like, Johnny, we're going to get one of those conveyor belts with one of those conveyor belts.
We're going to spend a hundred K, whatever it takes to get a property and just, and just go that way.
I agree with that.
The slight modification of I would keep you on YouTube just for networking purposes of getting opportunities from people you meet on the Internets.
I don't like throwing my face out there that much, despite me doing this in this group.
That's you like that more than I do.
And I know this and I know that you like that more than I do.
And I know this and we have to cater to your strengths there, I think.
But yeah, I would have, I would be very happy in the warehouse is managing employees and the day to day logistics of things coming in and things going out.
You would probably actually, I'd actually like you to go out and find more local sources or opportunities for us.
You like not necessarily huge amount of drive time, but you like going out more than I.
I like staying in the warehouse, making sure the warehouse is working.
So yes, there would be that dichotomy.
You're more of the face and going out kind of person.
I'm more of let's keep the machine going.
And then I let you know when we're having a problem and I need you, we need more.
Go get us more.
Me and Deb will be like the pharmaceutical like drug sale reps, like we'll drive like a Porsche and pull up to these little rat hole, you know, thrift stores and be like, hey, we'll take everything you got on a, on a single day.
On a seasonal basis, right?
Like I'm wearing a tux, you know, she's got on like some kind of gown and everything.
You're like, who the hell are you?
I'm like, we just want your media.
But I do think it does bring in what happens here with these relationships and why a lot of them form and why they're guaranteed to fail is one person feels like they need more capital to grow their business.
So they're willing.
It's kind of like selling a stake of your business, right?
If I wanted to buy 5% equity of Johnny B's books, you hope book business, you think you need more capital to kind of grow faster.
Personally, I think it's I think that's like the biggest mistake people make is, OK, I'm going to go and partner with this person because they have money and they can supply me the money so I can buy the items.
And then the person that's just supplying the money who really has no idea how business works or things like that, they just expect to get paid when all they're doing is writing you a check.
Yeah, I mean, in that case, it's more like a silent partner that offers you.
Not necessarily a loan, but they're they're venture capitalists, more or less, they're injecting cash flow into your business in hopes that they can have some kind of rate of return later.
It's an investment to them, plain and simple.
A lot of people like that idea.
I don't think it's a great idea because if you need the cash to make it work, you haven't figured out how to make it make it work pretty much where you don't need that cash injection or getting a loan is essentially a loan.
It's just it's just worded and replayed differently.
It's worse off for you if you're going to give up a part of your business instead of like you said, if you prove that your business is viable, you can get a loan.
If your business is viable, you can go to the bank with your P&L and they'll they'll give you a SBA loan.
Right. But if you're just going to be like, OK, hey, Uncle Bob, you got five thousand dollars.
I'm selling used t-shirts, vintage t-shirts, and I know I can make lots of money and I'll I'll give you some kind of repayment or if you want, you know, some kind of monthly stipend or a percentage of the company.
I don't even want to know the crazy deals that go on behind the scenes with resellers, because, listen, resellers have some of the highest margins and most of them are dead broke.
That's just the reality of the situation.
So I know people are out there hitting up friends, hitting up family members like, hey, you got money when they got all this crap sitting around that isn't sold.
That's just the reality of it.
I remember used to have this this one guy, I think his YouTube handles like Mega Man something.
And he actually had a business partner. And what happened was he was working in his he felt like he was working a lot more than his business partner.
Right. And what and I think that's like always everybody.
You can't expect nobody else to work as hard as you. It just never happens.
Right. When I was in retail, it's kind of like a thing.
You can't expect somebody else to work as hard as you, because in your mind, you're working harder than everybody else.
And when you get in a partnership, Johnny's going to think, hey, he's working.
I'm working harder than Mike. Like he's barely been here 20 hours a week.
Like I'm going to be like, I'm working smarter than Johnny.
He wants to sit here for 100 hours a week. I don't care.
I'm only here 20 hours. Right.
Now, a partnership, here's the best example or the easiest example that most people can extrapolate and understand.
You have a. 20 cars and then another person has a car lot.
You need a car lot to sell the cars.
The car lot guy needs cars to, well, make money.
Those two go in partnership together. One had something the other didn't have.
And when they combine, they have the whole piece of the pie.
And now they're able to run a business.
Now, what a lot of people do is they form partnerships to meet a need like let's hire a lawyer in house, give them some equity and they'll handle all our legal.
That's another benefit to a partnership.
That's a good way to go or the bookkeeper or the logistics guy or that's what CFOs are for.
They're in charge of how the money is spent. They make the decisions there.
Then you have the CEO who keeps the grand vision going and then talks to the CFO is like, OK,
I'm going to spend this money smartly to achieve the CEO's vision is usually how it goes.
Now, they talk to each other. It's not just a yes, sir.
You're going to go do it, sir, like, no, Bob, that's a stupid idea.
We need to sit down, hash that out.
You think that's a great idea. But here's all the financial reasons why it's wrong.
So that's the other benefit of partnership is you can see things differently from different perspectives.
The guy just has a great idea.
The guy knows the expenses that go in that and tells the other guy, this is a bad idea for we're going to go broke if we do that, even though there is a huge gain.
We cannot do that right now. Six months later. Yes, we can pull off that idea.
So this is just a these are just loose examples of what partnerships really are.
You got to be straight up with other people, too, right?
Because a lot of people like to know that nobody wants to offend anybody.
Nobody wants to, you know, I don't want to make Johnny made because I'll be sitting here, you know,
next Sunday morning reporting the podcast by myself because he's pissed off.
I think there is something to be said about just being straight up with somebody, right?
Just being like, hey, this ain't going to work.
This is this is a bad decision. I don't think we should do this.
And what happens here, if it's just you and one other person like who's the tiebreaker, right?
Say if me and you, we got this crazy idea and I'm like, this is the greatest idea.
And you're like, this is the worst idea.
How do you find that middle ground?
And most people can't get to the middle ground.
It's got to be my way or the highway.
And that's when you really start getting in the headaches and troubles when it comes to partnerships.
Right. And it's kind of like I was talking about in the whole marriage thing.
You've got to compromise or you've got to make concessions.
And it may not be that exact vision you had in mind, but to make the partnership work,
you had to come down a little bit. They had to go up a little bit.
And then you decided to go forward.
And it's not really the best of both worlds.
It's just a satisfactory to keep the peace and the relationship going.
It is a relationship.
And speaking of that, since I have experience of this,
you're going to get a call at 2 a.m.
Mike wants to cry how we're making no money.
And I have to reassure Mike that give it three months, man, and we're going to be fine
because I'm looking at the numbers and the projections.
We're on track, but I got no money right now.
Mike, you need to give it three months.
We're going to get there, man. Just be patient.
You're going to get those calls and a partnership.
Because when it comes to money comes high stress.
Everybody is stressed out when you're going on a big adventure, that everybody's scared.
We're enough time in. Everybody's scared shitless.
They don't know if it's really going to work or not.
But everything on paper says it is.
You have to really, really believe it.
And you have to have the numbers to reassure you along the way.
But while you're trying to generate those numbers,
man, your heart's beating a million miles a minute.
I want to take it a kind of different direction with business partnerships.
And a lot of resellers, they do commissions.
You give me your stuff, I'll sell it for X percent.
This is another thing that might sound fine and dandy on the surface level.
Johnny's going to start taking my CDs and sell them.
And we're going to split it 50-50-50.
So send Johnny my box of CDs.
And a month passed and nothing sold.
So all of a sudden, Johnny starts looking like the bad guy, right?
Because you're thinking to yourself, well, if I would have listed these myself,
they probably would have sold already.
So I think the commission thing is dangerous ground to get into personally.
I would never do anything like that.
Just be like, hey, here, either I'll buy them from you outright at X percent.
Or I don't want any parts of it.
I think the commission stuff, man, it's a slippery slope.
And it can be, it's not good.
I don't like it.
I don't like the model at all.
I know some people thrive on, oh, my whole business is commissions.
And I think it's just, I don't know.
I would just rather, I personally rather buy it outright from you and say, here goes 50%.
And then I can make the other 50% when I sell it versus me taking something and promising you,
you can't guarantee it's going to sell for X amount of dollars, right?
I can't take something from you, one of those books and say, hey, I guarantee you I can sell this for $30.
And you'll get $15 and I'll get $15.
There's no guarantee in reselling.
And a lot of people think, well, commissions, it's a hack to get more inventory.
I don't like it at all.
I hate the business model, honestly.
I just like it as well.
And I would never do it as for myself.
But to play devil's advocate here, let's say you're just starting out.
And let's say you got lucky.
You walk into a room.
It's filled with 500 Eastern Press books.
They want $20 each for them.
You don't got that money.
You don't got that scratch.
But the harebrained idea comes along.
Can I do a commission deal with you?
Oh, and the customer or your client at this point is on board with it.
That gives you an opportunity to get cash flow.
But once that deal is done, you need to get out of commission work because now you have the cash to buy it out, right?
Like Mike say.
So I'd say at a certain stage of your business, commission is OK.
But that needs to be a very short stage of your business because that comes with a lot of paperwork.
Like Mike was saying, a lot of disgruntled customers, when their stuff isn't selling, those 3 a.m.
phone calls I'll be that I was talking about a minute ago, they're going to be doing that to you.
And they're not your partner.
They're your client, more or less.
And they're going to want their money because clients and clients can be more demanding because they've
given you an item with the expectation of you to sell it.
If you haven't sold it, they're going to want to know why.
And they're going to want to yell and scream at you.
And it's just a whole nightmare of things, especially when you
didn't give me any paperwork.
I think paperwork and commission game, you got to be Johnny on the spot in that.
No pun intended.
They're going to want it.
They want to know when it's sold, how much is sold, all the fee breakdown.
They're going to question every single line item to get a justification of why is there a fee for this?
Why is there a fee for this?
You're going to have to be able to explain that.
So you're going to have extra customer service because you're going to have to service your clients.
Money is the root of all evil.
And when people think they're not getting the money they should be getting from you.
And unfortunately, a lot of this happens in business just in general, family, friends.
Like you can burn a lot of bridges, a lot of relationships over money.
And I just feel like there's really, there is something to be said about having a business
partnership in positive light.
But you have to have such a tactical approach.
You both have to be almost on the same page of the vision of where the business is going to go.
But you bring different things to the table.
It's kind of like why me and you host the podcast.
Two completely different business models.
So it works.
If I just had another scanner on here, that'd be kind of cheesy.
But having somebody that actually has a warehouse, a little brick and mortar storefront,
does bulk books, that makes sense.
You can't partner it up with another scanner.
It would just never make sense to me.
If I sold sneakers, partner up with another sneaker seller, it just wouldn't make sense to me.
But I will say this, some positive lights on business partnerships.
I don't know.
I would think if you paid somebody to sit at the bins all day and they were there for their own business,
but they were grabbing the shoes for you.
If you said, hey, grab me all the Nike shoes.
I'll swing by at the end of the day.
I'll pay you for them.
That's kind of a business partnership on a lower level.
No, it very much is.
And even on that, I would still want to pay that person by the piece instead of a commission type of thing
or profit sharing kind of thing.
I'll get to profit sharing in a minute.
I actually am very much proponent of that.
A partner, and people also confuse partnerships up with managers.
You want a manager to do the things you don't want to do.
Or like you were saying, have somebody to run the shop, more or less.
That doesn't necessarily need to be a partner.
It could be a well-paid manager.
Yeah, that's an employee.
A salary, a high salary because they have a skill set.
But to me, it's not a partnership level skill set.
They're managing people and personnel or they're managing a portion of your business.
It's a manager.
It's not a partner.
Now, segueing to profit sharing.
I'm actually a big proponent of profit sharing.
Some people do bonuses.
I do profit sharing for my bottle.
I don't really spoken about it publicly.
But it's a piece of the pie that gets shared once a year.
And here's a good job.
Here's your bonus, more or less, for doing that.
And I use that myself.
And I plan on continuing to use it because I've used this in previous businesses.
And people work a little harder, in my opinion, for that bonus or for that reward.
And it's not just here's your weekly check.
Here you go.
Good job.
They say thank yous in the paycheck.
And yes, known that, yes, it's money.
You worked hard.
Here's your money for working hard.
But here's you worked harder than the rest.
Here's the reward for working harder than the rest.
I think that goes a long way in business.
Whether you do it in a bonus model, whether you do it in a profit sharing model, or whether
you do that in buying them something, a physical asset that they desire they can't afford on
their own as a reward, bribe, reward, similar.
Anyway, now, if you want to bring in somebody to do all your bookkeeping, that is not necessarily
manager.
I believe that is a value skill set and or legal that that would qualify in the partnership
realm because you generally wouldn't have any experience in that unless you come from
that background, then you don't need that.
You may need somebody to go out and be the dealmaker.
If you're that person, go get the deals.
I don't know how to do that.
I can sign.
I can make a contract for it, but I have no business networking deals to a high degree
where it's massively profitable.
That's your guy partner.
That would be a justification for partnership in my opinion.
How do you feel about like, you see this in larger businesses, but I know there's some
resellers out there that do this kind of crap.
If you work for me and be my eBay lister, I'm going to give you 10% of the company overall.
You're never going to sell your reselling company.
That's the only way that person would make any kind of gain.
If I give you 10% of my business and I never sell the business, who cares?
It's not like you're getting any money unless there's some kind of royalty attached to it.
But I know for a fact, there are resellers out there that are like, I'll give you 5%
of my business if you list my stuff.
I don't know.
It just rubs me the wrong way.
I think getting 5% of every revenue that comes in the-
No, it's just basically shares.
Shares in the company.
The overall stock shares.
Yeah.
It's pointless.
It's like Shark Tank where, oh, I'll sell you 5% of my company for X amount of dollars.
But you're really most likely never going to sell your reselling business.
Instead of cash, you're doing labor.
That works if the company produces enough, but it's hard for that to be produced because
the 5% guy, it's going to take a while to build up a business and you're not going to
see any of that for years, honestly.
You have to do some kind of distribution every year based on what percentage people have
in the company.
But personally for me, I don't know.
How much would somebody have to pay you, Johnny, to get 10% of your business, 10% of your holdings
every single year?
I'm going to have 10% of your business and every year there's going to be a distribution
based off my percentage and how much you made.
I wouldn't do that deal.
Me neither.
I'm glad we think of it like that because I watch Shark Tank.
I'm like, you work so hard to build a business and you're so quick to give it away for X
amount of dollars.
Like we talked about in the beginning, if your business has the P&L to support it, you
can go get a loan if that's the direction you want to go without giving up equity.
Yeah, they might ask for a collateral of some personal items your house, but hey, if your
business is working, then roll the dice.
All you people that love taking on crazy loans and crazy debt, sky's the limit.
You'll be a millionaire off your credit card miles and they'll never take your house when
you put it up as collateral for a small business loan.
For me, I just think grow at the speed of cash, right?
As much cash as you have, that's how you can grow your business and thankfully as resellers,
don't cost a lot to get a lot of inventory.
Even if we all wanted to switch over to basically truckloads of shirts, shoes, books, CDs, DVDs,
maybe $2,000 a truckload shipped from anywhere in the universe to your front door.
So $2,000 a week.
If you can process a truckload in a week, which I highly doubt, I mean, as a reseller,
you should have that type of money.
The margins we have are stupid.
Right.
So let me talk to you about a past partnership.
It was very much since you brought up shares, very much set up like a law firm and everybody
owned shares of the company and you had to pay to have these shares.
So you bought it from the company essentially.
And once a quarter, any revenue left over was distributed by your percentage.
That was your money.
Now you can leave it in there and let it roll over to the next quarter and you could take
a payout whenever you wanted as long as there's money there.
Now there would be some months where that number would be negative because we spent
lots, hundreds of thousands of dollars to make projects go, produce a project.
So sometimes a quarter, you could be in the negative.
Now you didn't have to owe any money on the negative side, but it would balance out based
off the project.
And you wait to the next quarter because the project should have produced money for that
following quarter.
But if you have a bad year all around where it's constantly negative and negative, that's
when people get squirrely and want to leave.
Or say the opposite effect, the whole year was positive, lots of money all around.
So let's say you own 10% and quarterly payout, there's $100,000 on the table.
While you're 10%, you're entitled to $10,000 because that's the money left over.
But that's after all expenses.
That's after paying all the employees, we're a fairly large operation.
That's after paying everybody a salary because partners do get paid a salary.
People forget that.
It's not just the 10,000 I'm talking about right now.
So that cuts into your percentage as well, even though that's your take home, your monthly
salary.
So there's 10K left and you can leave it in or you can take a distribution.
But we had about eight partners in there.
And then at the end, before I left, there was like four because people couldn't handle
a partnership level because what we were doing was very high stressed.
It was two AM phone calls.
They happened quite a bit.
It was mainly me answering some of them.
But anyway, and people decide that's not what they want to do.
They want to have entire ownership.
If you go through a partnership, you're going to go through, honestly, it's hell.
And sometimes there's those great glorious moments.
And that's what makes partnerships worth it, is those glorious moments.
But there is a lot of struggle along the way because you're dealing with different personality
types as well and or different ideas that are brought to the table.
And that's going to cause a lot of discussions, some more heated than others, some where everybody
agrees this is a brilliant idea.
It takes up a lot of time.
People forget about that as well.
All these discussions take an exorbitant amount of time to finalize and get through.
Does the shares company share partnership model work?
Yes, it does.
I was part of one of those so I can speak fanatically that it does work great.
Does something where you're just taking a salary and just pumping money back in as fast
as you can also work, meaning you're not planning to take a check till 20 years down the road
where everything is built up, all the infrastructure is there.
Yes, that model works.
I know a couple of people that do that and reselling.
They're just plowing it all back in.
They've assigned themselves a salary.
They take out a small percentage of their equity that gets put into a bank account and
they'll withdraw from that bank account down the road.
Anyway, I'm going on a tangent here.
Partnerships is a fun topic for me because I've done it.
So you go down, Mike.
I've been rambling.
I think the way I look at a partnership is like you said, all right, now there's two
of us.
So now Johnny's also got to feed me, Deb, and the fat cats.
So when I think of a partnership, I think of how many Xs is it going to my business?
If me and Johnny get together, we might be together.
I'm one X, he's one X.
So we got to at least maintain two X for us both to be where we're at today.
But a partnership, I'm not thinking, oh, if me and Johnny get together, maybe we can do
three X.
We're doing at least 10 X, dude.
That's the mentality you have to have.
It can't just be, okay, well, now we're together.
We both can make a little bit more money.
I think partnerships have to be a lot more than a little bit more money.
There's no point doing a partnership if it's just a little bit more money.
You want a little bit more money, work more than 20 hours a week, Mike.
You can get a little bit more money.
It's right there for the taking, right?
We all have opportunities like that in our business.
So why in the world would you want to partner up with somebody just to be like, well, we
can call each other at 2 a.m. on the phone and we'll make a little bit more money together.
That is not a good approach to partnership.
You have to look at it from a business level and realize, hey, this person is expecting.
That's another thing.
Especially if it's another reseller, right?
How much money are they making?
How much money do they need?
How much are you making?
How much do you need?
Johnny might need $10,000 a week to survive.
I only need $1,000 a week to survive.
Then when you see Johnny's taking out 10 grand a week and you're taking out a thousand, there
is so many headaches.
It would be a nightmare.
Right.
My overhead is way more than your overhead.
I mean, factoring out the YouTube side of your business because I don't know what you
spend there, but just my operating expenses for an employee in a warehouse is probably
way higher than yours.
I don't know by how much way higher, but it is because I spend a lot in salary and rent,
honestly.
How much is your rent?
Around a thousand a month, but that's before utilities and all that.
Just the rent itself is a grand.
I'm paying 12 grand a year just in rent.
Yeah.
I got one storage unit that's going to be around a hundred bucks a month.
Right there at 10x.
10x.
Just on the building.
Right?
It's like your expectations going into these things have to be clear.
I think it's not laid out crystal clear.
If I was going to go into a partnership with somebody, I would want to know all their numbers,
what they're doing, what their business looks like, and get a real overlook of the land
and not just be like, hey, I like this guy.
This Johnny guy is going to make me some extra money.
Sure.
Let's handshake.
Yeah.
50-50.
Then all of a sudden it blows up.
Now, this is probably the most critical piece that I can give anybody.
If you decide to go ahead with a partnership, well, two pieces, never do it with friends
and family, ever.
Never.
That's a good, that's like a Johnny B's signature line.
Never do business with friends or family.
It is just, it's bad.
I mean, listen, I will say this.
My YouTube editor is a lifelong friend.
So I guess it's a little bit different because I just pay him.
He went to school for editing, so this is just a side gig for him to make a few extra
bucks.
But other than that, anything on a more serious level, I don't care if your family falls into
trillions of dollars.
People, and I've experienced this, I think we all have in some sort of way.
People when it comes to money or business, they will hold things over your head until
you're dead.
You didn't pay somebody back that dollar 10 years ago.
You didn't pay your grandma back a dollar, your grandpa back that dollar.
That is going to be held over your head in one way, shape, or form.
And it's just, it's bad, man.
It's bad.
No, it's terrible.
My second biggest piece of advice, if you go ahead with a partnership, and let's just
say you maintain the majority equity, you need to have a buyout clause to buy your partner
out because if they're a bad partnership, like dating, right?
Everybody puts their best foot forward in the dating stages, but once you get married,
everybody gets a bit more relaxed, their true self starts to be revealed.
And you're like, five years later, I hate this son of a bitch.
I want him gone.
I'm going to write him a check for what the company is worth, and I will never have to
see him again.
Imagine if that was a thing in like, you know, relationships, like just normal relationships.
Write a check and be like, adios.
They could just buy me out and send me on my way.
Right?
I wake up one morning and there's a check for 20 grand and she's like, today is gone.
It is a don't borrow from friends or family.
I don't care if it's $10, $20.
My experience never ends well.
If somebody ever comes along to me and is like, hey, say Johnny needs 20 bucks, right?
He calls me.
He's at a Greyhound station.
He woke up.
He don't know where he is.
He needs 20 bucks for a bus ticket.
I'm going to give Johnny the $20 and it's not going to be a loan.
It's going to be here you go, Johnny.
You find your way back home.
I think the difference is when you just give somebody like a sum of money, there's really
no overhead to it.
Instead of loaning money or having a business transaction, that's never going to go away
until it's paid in full.
And then even when it's paid in full, if it's a family member, like you're still always
going to get like snarky comments or things like that.
Avoid friends and family when it comes to business.
Sure.
You can have them play a part, right?
Like, I can have Deb scan with me every day, right?
I got two scanners.
I try and Tyson her every day.
Yeah.
You want to come scan?
You want to come scan, right?
Like, that's different.
We're talking about next level business partnerships.
Me and Johnny move in together.
We buy a conveyor belt.
Those types of relationships might seem good at face value, but it's really not.
Johnny, you're going to take us away here with the Jerry Springer final thought of the
episode.
If you decide to do a partnership, you need to have not only their business assets evaluated,
but also their personal expenses.
If you have, if they're a hundred K in debt, even though they have all this flash upfront
for their business, that's a bad sign.
That's a red flag not to go in business with this person.
So a full background check on both personal and business to know the numbers on all of
their accounts before you two combine superpowers and become the wonder twins.
That is very critical outside of please have a buyout clause, please, please.
Because you don't know what are you two are going to be feeling on each other in five
years.
You may hate each other's guts or everything may be chim chim true as Mary Poppins would
say.
I hope I quoted that right.
Those are my words of advice.
I don't like, maybe our podcast would be better if we hated each other's guts.
I mean, we're only like a year and a half into this.
So I guess in another three and a half years, you know, we won't even say hi to each other.
We'll just come on here.
I'll just hit the record button and we'll both just like tell each other.
You sit here in silence for five minutes, just stare angrily at each other.
Yeah.
Talk about how wrong the other person's business is.
So yeah, we're going to wrap up there.
We appreciate you listening or watching over on YouTube and we'll talk to you in next week's
episode.
Thanks for listening to another episode of the resellers mindset podcast.
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