Are you thinking of starting your own business but don’t know where to start? Are you interested in the idea of working for yourself, but you’re unsure of the whole concept? Do you think it would be more beneficial if you team up with someone else? For those who are eager to learn how to start a business, today’s episode is tailored just for you.
Today’s guest is an expert on business valuation, value improvement, deal structuring, and financial understanding, to name a few. Aryeh Sheinbein is the founder of Results Advisory, which is a results-driven digital marketing agency that helps businesses build their digital marketing strategy.
He joins James and Dean as they discuss how the foundation of a business should be built, the importance of knowing the difference between a joint venture and a partnership, and why it is fundamental to set up your business with a systemized process. Tune in to learn more about how you can maximize your opportunities and grow as an entrepreneur.
In terms of structure, people just need to start realizing that there is no hard and fast rule that says, ‘It has to look like this’. Otherwise, it’ll never happen. - Aryeh Sheinbein
Outline of This Episode
- [03:51] Where entrepreneurs go wrong when they are putting deals together
- [09:53] The distinction between building a business and building a cash flow stream
- [13:35] The differences concerning a partnership and a joint venture
- [18:32] How typical licensing works
- [27:38] Revenue sharing and how to structure your business
Common mistakes that entrepreneurs make when starting a business
When entrepreneurs are just starting out, they are less concerned with the nitty-gritty details of the business. The trouble comes from a place where the details, like legalities, are left out of the picture. Setting up the legal side of your business is important so that, when things go wrong, you don’t end up broke and back at square one.
Another mistake is when people don’t do enough evaluation on the people they work with. Not doing your due diligence on getting to know your potential partners, workmates, or employees is a setback waiting to happen. Entrepreneurs need to see if the people they are going to work with fit the right position and not hastily team up for a business deal just because they have the same ideas about a prospective business.
The difference between building a business and building a cash flow stream
The main point that differentiates the two is centered on whether you are planning to exit the business on any level. When you are setting the business up to where you can sell it, that end will deem that you are building a business. On the other hand, if it’s going to be a constant hustle wherein the business cannot run without your presence, then that will lead you to a cash flow stream.
In the early stages of a business, it will always need more involvement for it to progress. But if your venture is not set up with a process where, in the long run, it can run on its own, you are building a cash flow stream.
Are you starting a partnership or a joint venture?
These terms mean different things depending on the business level. In the entrepreneurial world, a joint venture is considered as a glorified affiliate relationship where one party has a product to sell, and the other has something of value to the audience. One brings the content, while the other brings the audience.
In contrast, a partnership is where two people do complementary things that will build the business. It becomes a collaboration of activities, efforts, disciplines, and the like.
Resources & People Mentioned
- Aryeh Sheinbein’s Website: https://resultsdrivenadvisory.com/
- Aryeh on Instagram: https://www.instagram.com/aryehthebusinessman
- Aryeh on Facebook: https://www.facebook.com/aryehsheinbein.public/
- Aryeh on Twitter: https://twitter.com/aryehsheinbein
- Aryeh on LinkedIn: https://www.linkedin.com/in/aryehsheinbein
- Check out his Podcast: https://insidethelionsdenpodcast.com/
- FREE Book - The Iceberg Effect: https://www.icebergeffect.com/free
- For Deal Structuring or Consulting with Aryeh: http://www.applytotheden.com/
Music for “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod (http://incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License
Connect With James and Dean
James P. Friel:
- CEO Quickstart: https://jamespfriel.com/ceo-quickstart/
- Facebook Group: https://www.facebook.com/groups/hustledetox/
- Site: www.jamespfriel.com
- Facebook Group (BulletProof Business): https://www.facebook.com/groups/1107362546297055/
- Interested in being a guest on the show?
Dean Holland:
- Blog: www.DeanHolland.com
- FB Page: https://www.facebook.com/DeanHollandHQ
- Billion Dollar Project: https://www.facebook.com/groups/BillionDollarProject/
Just The Tips Podcast:
- Facebook Page: https://www.facebook.com/justthetipsshow/
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