Joint Tasks, Joint Work, Joint Meetings and Joint Ventures what is each one worth?
I sit at tables to discuss deals often. Frequently I hear the word “partner”. Many parties introduce themselves as partners. As our interactions progress I ask certain questions. I am interested in 1) organization, 2) commitment, 3) history and 4) capitalization.
I hear many people use the word partner without actual vesting or ownership in a joint organization. These individuals utilize “partner” out of context.
Beware of people who cannot give you at least three (3) people they know for longer than 5 years in partnership.
A Joint Venture Partnership is a perpetual relationship where two (2) professionals agree to share resources on a consistent — revolving basis. Any Joint Venture undertaken is similar to marriage. Both parties must do things for each other. It is important to cover each other in highs and lows. The relationship must pass numerous tests. When an agreement is drawn for partners it should have organization. There should be 1) A Joint Venture Agreement or Memorandum of Understanding, 2) A tax identification number, 3) a commitment of resources to the entity, and 4) each person should have the “same” business card.
These are professionals who seek to combine each other’s resources for mutual benefit.
I find it amusing when people hand me separate business cards. I find it more amusing when these people pretend to be “partners”. These individuals fall into other categories.
Joint Tasks are activities that require the participation of both parties to fulfill a common goal. These activities are typically one (1) objective orientated. These activities consist of 1) completing a single activity within a project, 2) working a resource to solicit money (a popular one I encounter), or 3) relying upon a task to start the individual’s true desire.
Most individuals fit into categories two and three. These individuals typically commit to doing some trade or service in spirit of accomplishing their true desire. The hidden agenda is often easy to spot out. The difference between a Joint Task & Joint Venture is obvious. One has a hidden agenda and the other does not. There is no commitment with a Joint Task aside from the responsibility of each other’s task.
Commit to a performance metric only if you can measure income effectively against one activity. Do not be sold on future activities.
Joint Work is different than a Joint Task. The difference between the two is work typically involves more than one activity. The individuals within this structure commit to quality and reputation. These individuals do not commit to formal relationship. Despite no formal relationship they exhibit informal partnership characteristics. Often these individuals are friends. Joint Work has no negative connotation — aside from the fact that it lacks organization. Lack of organization means work complete is individualistic. Without a clear leader to direct the activities long term goals may not be accomplished. You can spot out Joint Workers through 1) no formal relationship, and 2) no clear business model aside from the unique opportunity available. Any positions held in each other’s companies are typically part time. The majority of each other’s time is committed to other activities.
Commit to a performance metric if you understand how to apply the relationships. Arbitrary work performed in an unclear manner results in waste. Individuals may not value work performed for work not directly correlated to success.
Joint Meetings are my favorite. This is an opportunity to spot an intermediary who attempts to form their concept before your eyes. These individuals have desire to form a Joint Venture, Joint Work Relationship or Joint Task. Typically the person they are meeting is the catalyst for their team committing. I have met many of these people. My advice is to listen but not commit under a performance arrangement. A start up has limited opportunity to succeed. A startup yet to organize may result in you not receiving payment. These individuals have no commitment, no direction, and no plan.
Stay away from people who 1) Don’t Know, 2) Don’t Care, or 3) Don’t Understand. Each person in this category will be reason for negative consequences in your ventures.
Joint Meetings are participants who “Don’t Know” what they are going to do or “Don’t Understand” what needs to be done. This is a pitfall I encourage you to avoid.
Do not commit to a performance metric under this circumstance. If someone aggressively pursues you charge them. Ask for a retainer. I am all for performance but you must know what you can perform at to hold yourself accountable.
People who require guidance to figure themselves out should pay for your time to help them discover. Time is valuable. Do not expend limited resources with no clear path to earnings. We are here to earn a paycheck. Make sure you approach each circumstance properly. Each situation has unique characteristics that require recognition. Failure to identify which category applies may result in time spent for no money.
We are not business owners, we are Professional Entrepreneurs. Earn money everyday regardless of a business’ success.
About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at www.christopherklopez.com.