In every aspect of your life, communication is the number one thing. It will continue to be for the rest of your life.
And it can be both good and bad.
People are often scared to say the bad stuff. But the bad stuff’s always going to come out. It’s way better to surface from you early on rather than from somebody else later.
And the communication, if you put that into a one-pager or two-pager, will remove the frustrations of what I’ve seen in hundreds of deals.
Here’s an example: You and your friend from high school, you’re 18 years old and you start a lemonade stand. Then six weeks later, that lemonade stand does 68 bucks an hour. You’re paying that kid nine bucks an hour. You guys are crushing it.
Then, your friend gets drafted to go to Harvard and gets a full ride scholarship to Harvard. She leaves. She goes to Harvard for four years.
Meanwhile, you’re back in Alabama and now operating 19 locations of lemonade stands.
Does she own 50%?
There’s no clarity. It’s an uncomfortable situation to be in.
That simple communication will relieve you from so much stress.
Author: Dan Fleyshman