MA Business Success 32: Successful Co-Ownership

Alex: Today, particularly if you're a co-owner. How to run a business not being the sole owner. How do you work with others, how do you make that relationship work, etc., etc., etc. Big topic. So Phil, kick us off here. What does it take for a successful co-ownership, knowing that your co-owner is in the building? Phil: Hm, what can I say here? No look, in all seriousness, it's one of those things that, a business partnership, people warn about. And I have been in bad business partnerships before. And there are things that you both have to do. You just have to do it. And we put it down into eight points. So for the viewers out there and the listeners, what I suggest you do if you get a chance...if you're driving, don't do this...but if you get a chance, write the word "powerful" down vertically. P, and then under that, O, powerful down there, because we're going to have a point on each one of those which we believe have been the crucial success of our co-partnership. Alex: Okay. Phil: And number one, for P, is passion...is you both have to be passionate about your goal, your drive, your business, whatever it may be. If one's losing passion, then you're going to feel like that you're always dragging them up the hill. You know, so...and it's okay to lose passion. You have to reignite it. It happens, it happens. So number one would be passion. Graham, I'll just take a couple and then I'll hand it off to you. Graham: Yeah, yeah. Sure. Phil: So number one would be passion. Be passionate in your business. Be passionate for success, both the success of your business and the success of your partner. Alex: Yes. Phil: It gives me nothing more than a great feeling to see Graham and his family succeed in life. His wife and his kids, I just want the best for them. And I know he does the same for me. So when you have that commonality, then you're going to be going to bat for each other. Alex: Yes. Absolutely. Phil: Number two, for the O, is ownership. Taking ownership of your role. Both of us have skills in different areas. Some of them overlap and some of them...clearly Graham's more skillful in than I am, and I'm clearly more skillful than Graham in. And it's making sure that we always take ownership of the roles that we are in. And also the failures as well. It's like, "Yep. Hand up. That's me. How can we work on that?" Alex: And you've got to know the parameters, you know, where they fall as well. So who is best at this? Who is...and define those roles, really, haven't you? Phil: That's right. And you know, for the listeners out there, Graham and I have multiple businesses. Not just the martial arts business. We obviously have TIMA, which is the online coaching. We have another company called International Defensive Solutions where we teach corporate and government staff self-defense. We also have a speaking company, we're called. So we're partners in a few different businesses. Alex: You're busy. Phil: We're busy guys. And we're all different, have different skills in different areas. So Graham knows, yep, that's your thing. And he's got my back and he knows I'll do it to the best of my ability. And if I don't, then I'll take ownership for that. And that's where ownership comes in. Alex: You're accountable to him. Phil: I'll take this one here, as well, which is willingness. The willingness to go above and beyond. The willingness to do the best that you can possibly give in your business. Both mentally, physically, emotionally. Because that's business. Business is mentally, physically, and emotionally. It is, no doubt. So having the willingness to go above and beyond, not just for yourself but for each other. A great example of this is whenever Graham or I go on holidays, we have a competition. How many things...if I'm back at work and he's on holidays, what can I do so when he comes back, he goes, "Man, that's awesome." You know what I mean? Alex: That's fantastic. Phil: Remodel the... Alex: How many trinkets can you bring back anyway? Not that kind of competition. Phil: To remodel the club shop and me walk in and go, "Whoa, what did you do?" Do you know what I mean? Graham: Awesome. Phil: So it's that competitive, friendly competition. Willingness to always outdo and up-level ourselves. Graham: For sure. And look, I also want to read around a couple of those because we both speak the same language in regards to this. And spending so much time together, it is, as Phil pointed out with the P-O-W first off, which...passion. You can hear it in the way that Phil talks. I don't even know how, I just sit here nodding my head. Just go, "Wow." We're in sync in that regard. And unfortunately I guess I can also point out some of the failures that people have had. We speak from our passion and progress together. But as Phil said, your partnership is sometimes categorized as a sinking ship. There's been many failures there. And that is through lack of passion and clarity. You know, we talk about passion because passion's going to change from when we started the business to where we are now to the future. And we've just got to reignite or redefine or become clear with where we're heading. Because we can both be passionate in opposite directions, and that doesn't work for a partnership. So growing together, which is good. Ownership, I can't specify that enough because there'll be things you own, what you do well. And there's things that you have to own and take responsibility over when things don't quite go to plan. But that again strengthens the communication, the direction you're headed. Because when you know someone's got your back, or if they've dropped the ball, they're happy to pick it back up and go, "Hey," you know, "This is how I can improve." That's what it's all about. And I've got a few experiences from parents at my kids' school, that are going through some pretty challenging partnership breakups on a business scale. And it's through people not taking ownership over mistakes. Or their passion is now lacking. So that's why they're at the top and they really are quite powerful and important. But willingness. Willingness to go the extra mile. Doing things that are sometimes unwritten, unexpected. I know that Phil's got a few gigs coming up where he's out of the state. We've got a co-joint gig coming up. And it's like, boop, now you're vacant. I can't wait to step in and actually do that, knowing that he knows that we're both there. We're both pushing that. And by having him absent somewhere else, means I know he's driving that force somewhere else. That will benefit us all as we go. So willingness to step in and step up, but also see each other succeed because you can't be in every place and space at every moment. So having your teammate there to help is really quite cool. That brings us down to sort of E. So we've gone P-O-W-E. Equal. Equal workload, there's equal support there. Equal time. And I guess time is probably one of the big ones that we really try and work on together. Having younger families, we will make sure, hey, if you've had some time off, I'm going to have that same time off. And that's okay. It's important to do that. Because as Phil pointed out, when he's away for those few weeks, I'm busting my hump to get it right. When he comes back I've completed this, this, this, this and this. And then the same thing goes. Alex: Rather than seething in the back room, going... Phil: He's going on holiday and I've got to work like this all day. Graham: That happens, a little bit [laughter]. The joy of it, going...but that's okay. And it's being transparent in that regards, because there's definitely going to be times where you just go, "Man, I wish I could join you." But I can't and that's okay. Because the will be a time where I will. Alex: I will have my day. Graham: And that's okay. But having things equal and clear, I know myself and Phil have got a great app that we use. And for anyone listening, feel free to get on there. It's called Trello, which is an online app that we use where we've got a list of tasks and things that we have to do. And as we go through our different businesses, it just goes round. "Okay, what am I doing? What's Phil doing?" I know he might have two or three projects, but they're quite heavy, in-depth projects. Where I may have five or six on there. It's still very much equal. We still know where each other lies. That's super-important here, just to make sure that not one person is taking the mickey and the other person's kind of going, "Well, you know, I'm bathing in this joy, but I'm not really pulling my weight." Underneath that, respect. That's a given. I say it's a given. But there are a few out there that forget that. And they blur the lines as time goes on. So respecting each other's decisions. Respecting each other for who they are. And to be honest with you, we've made some business decisions that one or the other person may not agree with, but they respect the other person's passion and drive about. And go, "Look, I can't be an authority on this, but I respect you enough to know that you've got this handled. Beautiful. I've got your back." And that's a really powerful connection you can make with someone, to go... Alex: "I respect your abilities." Graham: Yeah. Ability is one thing. Decision-making, you know? All the above. But respect transcends in so many different ways. I guess there's one more here and then I'll throw it back to Phil, is that fear. That fear factor. Fear can be many different things. Understanding the other person's fears and limitations and whatnot. There's been a couple times that...and I use this as a fun example...you know, Phil... Alex: Look, he's smirking. [laughter] Graham: Yeah, I'm smirking, I'm smiling. Because Phil knows I've got a fear of heights. Alex: Okay. Graham: Yet he'll drag me climbing mountains. You know, that's why we laugh because it's like, well, I know it's not going to hold me back. I know I can overcome this and I'm not crippled by it. But always push that. Always try to help that other person overcome that fear, understanding sometimes those limiting thoughts that we have. Because to see someone succeed in a partnership, to enable that fear and let them sort of stop at that, may hold you back on your future growth together. So just sometimes push and support and nudge wherever you can. Alex: Feel the fear and do it anyway. Graham: Drag you up the mountain, hang you off the side of an 800 meter cliff. Okay. There's times I've looked at him and gone, "Why am I here?" You know, it's just, it's understanding that. Alex: Because his B.S. is powerful. Phil: Come on, come on. We can do it. Graham: It is, it is. So look, obviously there's a couple of things, equal respect and fear. I'll throw out and see if Phil's got anything to chime on that. Phil: Look, for those guys who know us out there, everything Graham and I have is equal. Including our cars. Alex: Yes, I know. When they're parked in my car park. Phil: Anything he has, I have and vice-versa. It's just the way it has to be. Alex: It's uniform. Phil: It's cool. And we know that going into a purchase of whatever. If it's blurred as a business expense, where you're going to know the other person's going to want it. Or want a credit up their sleeve for something that they want. You know what I mean? So it's a bit of a funny thing, yeah. People who come over, our guests that come over and stuff like that, "Look at you two." And as we're going through powerful, I can see we're equally sharing the letters as well. Phil: The respect is always there. And as Graham said, pushing each other past the fear because know we practice what we preach. When you're on the edge of your comfort zone, that's when real growth happens. And the only way you can do that is by pushing past the fear. And then the other acronym there is False Expectations Appearing Real. So yes, Graham has a legitimate thing with heights but it's not going to kill him. Alex: No. Phil: Falling will. But it's not going to kill him. Alex: Let's hope it doesn't get that powerful. Phil: And so by overcoming that each time, makes him stronger as an individual. Alex: Sure. Phil: Understanding is the second to the last one, for U. Which basically is exactly understanding each other's situations. Understanding each other's place, where we're at in life, where I have been. And just...I don't really need to explain anymore, except just be understanding for each other. Alex: Yes. Yes. Graham: With that, Phil just sort of hinted on this. We all change, we all grow, you know? When we started training and knowing each other close to 20 years ago, where we were in our life is different to where we are now. And give it 10 years from now. So understand we all change. And our drive changes. As we move to managing a martial arts business and to grow other businesses, we've got to understand that there's going to be be challenges and changes and different interests. And that's kind of cool. Some people will grow together and strengthen that. Some will grow apart and have different things. And that's okay. Understanding where you're at in your life, and where you want it to go, is absolutely vital. And I'm going to chime in on this one, the "laugh" one... Graham: It's equal. Phil: The laugh one really means laugh. L, laugh. Graham: And we laugh often, laugh hard. Being competitive is a great thing. We have a good old giggle. But there's times where we will have...it was only just the other day that we were doing some work together. Phil managed to find this foosball table, and challenged me to a few games. Now I'm absolutely terrible at this. Phil is a champion at it. But we had a great giggle. It broke up that sort of monotony. And that's just one of the things that we try to do, to have a good time together and have a laugh. Have fun. Because if you forget having fun in the relationship as you progress forward as a partnership, you end up just coming and doing your work and then going. And that's not what it's about. It's about making sure that you can share in the successes. Share in those challenges. But also have a great ride as well too, which is always good. Alex: Just coming back to that point that you made before about knowing each other for 20 years. You've been very lucky and you've kind of been thrown together. Or you've created that luck and you've generated some very successful businesses from it. But just encapsulate for me if you can, the qualities that if I'm going to go into ownership with somebody that I haven't got that history with, what are the key things that I should be looking for? Phil: Well, we were very upfront and honest with contracts as well. Definitely. Even though I knew Graham very, very well, there was no blurred line on the contract of our business agreement. That gets the elephant out of the room. "What happens if this happens? What happens if this happens? What happens if you don't do this? What happens if you don't do that?" Therefore, we can go right ahead. That was a tough time with lawyers. You know, "What if Graham dies?" "What if I die?" "What does the family get?" So it was a really tough time, trying to do that. But it's probably the most important part of a business partnership. Alex: Mm. Absolutely. Phil: Is getting that elephant out of the room. Getting all the nitty gritty done so that you can then start working on the bones of your business, I suppose. So if there was one thing I would do is don't go into business with someone that you haven't got your agreements and contracts down and worked out and that you're both happy about. Both you and your partners, being your wife or husband or whatever it may be. Graham: I think Phil, you just summarized it so well. If someone resists to those agreements being put in place, they're probably not the right person for it in the first place. It's like, "Out of protection and respect for us all, let's get it all out." There was even discussion in these meetings, having both of our wives sitting there, and I brought up the topic of divorce. And they looked at me like, "What? Is there something that you want to say?" It's more about the what-ifs, the what-ifs. Because at the end of the day, in partnerships if it breaks down, it can cause a real dent on your progression in your life. And cause some major stresses and some financial burdens that really we're trying to avoid. So all the other acronyms we did almost after the fact. But first and foremost, get things locked down, get a clarity, and get someone to assist you documenting it properly. Alex: And then get powerful. Phil: And then get powerful. Graham: Yep. Alex: Awesome. Boys, thank you very much indeed. Phil: Thank you.