How To Choose The RIGHT Business Partner For Your F&B | Small Business Advice Restaurant Management

How To Choose The RIGHT Business Partner For Your F&B | Small Business Advice Restaurant Management


Hey guys, my name is Wilson. Today’s video is on how do you choose the
perfect, the right partner for your food and beverage restaurant? This is a question that I’m asked all the
time. How do you find the perfect partner? I want to partner up with my friend and how
do we do this? Now I’m going to be sharing with you the importance
of finding the right partner. Because throughout my last 10 years of dealing
with business, mentoring different business owners, 99% of them have failed because of
partners. And this is something that I don’t wish upon
anyone because you don’t want to spend your time dealing with conflict with your other
half. You don’t want to spend time day in, day out
seeing someone that you completely hate. You don’t want to lose a friend because of
business, which is why it’s so important for you to understand these four secrets in finding
the right partner for your food and beverage restaurant. The number one secret in finding the right
partner for your food and beverage restaurant is vision. You’ve got to make sure that your vision is
aligned with your partner’s vision. And what I mean by that is if you have the
idea of creating 100 shop chain franchise for your food and beverage, then you need
to make sure that the partners that you bring on board has the same vision as well. Because at the end of the day, having a mom-and-pop
shop that automatically runs by itself and that requires little to no stress, zero risk
or actually not zero, but minimal risk versus 100 shop chain, a franchise chain that has
a lot more stress dealing with that, building that up. And a lot more risk in terms of financial,
in terms of putting in everything that you have been building and just leveraging it
and just keep rolling that. That is very, very different in terms of vision,
and the skillset to build these two things are very, very different as well. And the workload is very different. Stress load is very different as well. So if your partner and your vision does not
align, if he wants a business that automatically runs by itself, that requires a minimal amount
of work, much more like an investor. Whereas your vision is to find a partner that
can bring strategic value to your food and beverage until you’ve built this 100 shop
chain with you, then that itself creates a lot of conflict if your visions don’t align. Whereas, if your visions are aligned, if both
of you are wanting to create that 100 shop chain, then everything becomes a lot easier
because your vision is aligned because you guys want the same thing. The way to approach this vision of yours might
be different, so there might still be conflict with your partner. However, because of the fact that you guys
want to get to the same place, your visions are aligned. That’s what truly matters when it comes down
to it and that prevents a lot of argument because the intent is there. The vision is aligned. For example, with 720 Sweets I brought on
Brian and I told him exactly what he’s signing up for right from the get go, which is a reason
why throughout the last five years of relationship we have such a great relationship because
our vision was aligned. Because we were able to identify that right
from the get go, we were able to set the expectation for each other right from the get go. And that’s why it’s super important if you
want to have a successful relationship, a successful partnership, to have the right
vision and to have the same alignment in your vision with you and your partner. The second thing to think about and to consider
when choosing the right partner, is value, okay? What does value mean? We hear this term a lot. Value means how you do things. And what I mean by that is, at the end of
the day, what do you truly value? How is it that you work? Do you value relationships? Do you value efficiency? Do you value integrity? Do you value communications? Whatever the things that you value, these
are the things that if not done right, if not done the way you want, it would press
your buttons, okay? And if, for example, if you’re a person, you’re
high in integrity, whereas your partner is a little bit more flexible, if they’re a little
bit more, “Hey, know what, it doesn’t really matter what I do as long as I get to the destination,”
then you guys do things differently. Then there’s going to be clash because your
values don’t align. And another version of that is, for example,
if you value communication. If you truly want someone to always update
you all the time because that’s how you operate, because that’s how you think a successful
business should be run by having high communication, then it’s completely fine. You declare that. You tell your partners that, and you ask them
what is it that they value if they don’t value communication. If they think communication is inefficiency,
then right there alone you understand there is this conflict that would eventually happen
because they’re not going to communicate with you. They don’t like sending emails. They think that it’s inefficient, whereas
you value communication a lot. And that’s how conflict is being built. So for example, if the values don’t align,
then you should really consider whether this partner is good for you because the way you
guys do things, is just completely different. Another example with 720 Sweets, with 720
Sweets we have four different values. Communication is something that I highly,
highly value. I love people when they communicate with me
whether they can do something, or whether they cannot do something, I want to be able
to be fed into the loop, okay? And which is a reason why I tell Brian right
away, “Hey, is this something that you value?” And we have a consensus on the fact that we
understand the importance of communication in a company. The second value that we have is integrity. At the end of the day I’m handling multiple
businesses and we’re handling multiple teams at the same time. If someone that I handle with and that I work
with does not have high integrity, that they slack off when I get off work or that they
just drive off and say that they’re visiting our store to make sure that the quality is
there whatsoever, but yet they’re just slacking. They go off and watch football, and these
are the things that I can’t control. And if integrity is not part of what they
have as an intrinsic value, there’s nothing I can do, which is a reason why I got to know
Brian and I understand that integrity is really deep down his core. And that’s what makes us work really, really
well together. Then the third value is empowerment. Empowerment is trusting and telling and empowering
and giving the confidence to other people to be able to perform a certain task. And being able to trust that they have the
ability to do so. And that’s something that I really, really
promote because if you’re operating a big team without empowerment, without you inspiring
and without you giving opportunities for people to become leaders, if you don’t rise them
to become leaders, it’s very, very difficult for you to be able to do that. And which is the reason why Brian and I are
both are very, very strong in empowerment and giving opportunities for our staff as
well. And then fourth is get shit done. And this is a mentality that we have deeply
ingrained in us and that’s the reason why I love him so much. It is because he has this GSD mentality. GSD really means that with business there’s
no right way. There’s no formula. There’s no structure. When you have an objective, all you have to
do is hit that objective, okay? I don’t like to hear any excuses. All I want is for them to be able to achieve
that goal and achieve that task, which is the reason why me and Brian work so well together,
because he has that same mentality. He’s not going to come to me and tell me that,
“Wilson, this thing can’t be done because the suppliers won’t allow us to make this
modification to the cup.” No, he’s going to go find another supplier
and he’s going to find another supplier. He’s going to find a supplier who will work
with us, that will provide that feature that we need in order for us to get that smoking
effect without coming back to me. Without me telling him, “Hey, you know what? Your attitude really determines how you achieve
this goal. So make sure that … go out there and find
other people.” He has this GSD mentality right from the get
go. Now me explaining our four values to you really
just shows you an example of when two people’s values align, how much power it gets and how
much harmony it creates within a partnership. Just imagine, Brian does not have these values
that I have. Then there’s going to be a lot of conflict,
and we won’t be focused in building our business. We’re going to be focused fighting each other
and that’s not good for business, which is the reason why you need to find a partner
who has the same value as you do. The third secret in choosing the right partner
for your food and beverage is table. What is table? It is what they bring to the table. At the end of the day, when you’re choosing
a partner you need to understand just because they’re best friend, just because you trust
them a lot, just because they’re your family member does not mean they’re qualified to
become your partner. When you’re choosing a partner, always be
strategic with the partners that you bring on board. It is because your friend is only your friend. They are not meant to be your partner. Although they may have the skill set, although
they might have what it brings to the table, they might not be suitable to become your
partner because they don’t bring any value to this whole operation. Now let me give you an example with 720 Sweets. I brought on Tim, which is our supplier for
our ice cream and bubble tea chain as a partner. And the reason why I brought him on board
is because he is a supplier and a wholesaler of all the ingredients. Which in turn, what does that mean? That means that we have the lowest cost of
goods sold and that’s guaranteed. That means that for research and development
we’re able to have a lot more resources and a lot more depth for us to find different
equipment for us to find different product ideas because he is in the trade of wholesaling,
okay? And thirdly, it is because he has a warehouse
and delivery system that we’re able to leverage off when we’re working with our ice cream
shop. This is a reason why I brought Tim on board
and as much as it sounds very strategical and calculated, that is not the case because
right now we’re dealing with business, people. We’re dealing with business, which is the
reason why we need to understand what they bring to the table because they’re going to
think about the same thing. Wilson, what did you bring to the table, right? So you need to be a person of value and you
need to know exactly what you bring to the table. You might be able to make the best dish in
the world and that’s the reason why they want you. Or he might be the best market, or you may
be the best face for your company, which is the reason why you, and that’s what you bring
to the table. And vice versa. For me, we’ll bring Brian on board as part
of the partner. It is because our visions align, our values
align, and on top of that he is super dedicated as a spearhead of this business. Because he’s very strong on operations and
he’s very strong on people side, dealing with all the staff. And that’s part of the reason why I brought
him on board because he can focus 120% his time and energy and resources in building
720 sweets. Whereas I’m handling multiple different businesses
and my time is spread quite thin. Whereas what I bring to the table is that
very strategical. And I know a lot of different trade and I
have a high sense of business acumen and I’m strong on marketing, because I’m able to understand
what people and what the market is wanting. So this makes for a great team because everyone
brings different things to the table and it is not just money, okay? A biggest mistake that people make is that
they bring people on because of money. And you don’t want that because money doesn’t
solve problems, right? So at the end of the day, make sure you understand
the partners that you bring on board, strategically speaking, what do they bring to the table? What value do they add to the table, which
would enhance, which would make this project super, super successful? And that’s part of the reason why we’re able
to expand internationally and to China, Beijing within a span of only four years, okay? Because of the fact that we chose the right
partners, we have the right support, and we have the right talent to build this business. So when you’re trying to find a partner for
your food and beverage, make sure you understand what they bring to the table. The fourth secret in finding the right partner
for your food and beverage business is, what are they going to do? And what I mean by that is what are they going
to be doing on a daily basis, on a weekly basis, on a monthly basis. And we need to make sure we identify that
and be on the same page, and be okay with what they are signing up for. And what I mean by that is, are they good
at operations? Are they good at marketing? Are they going to be doing finance, are they
doing logistics? We need to be able to identify all the operations
and all the arms of your business and identify who is responsible for what right from the
beginning. And this is something called a shareholder
agreement. So if you don’t have that, you can download
them from the link below, it’s called a shareholder agreement. And that is like a 40 plus page document that
identifies everything that you and your partners are responsible for. So for example, if your partners are not really
carrying their weight with marketing, then you can tell them. And it’s very, very clear who is at fault
at this point in time. Because when there’s this partnership that
is formed right from the beginning, if your partner is responsible for marketing and they’re
not pulling the weight, you know exactly that they messed up and they know exactly that
they messed up. The biggest problem that happens with partnership
is that they do not clearly identify who is responsible for what. And in turn I feel like he’s not doing his
job and vice versa. He thinks I’m not doing my job and this creates
a lot of conflict and unnecessary burden for the business, and in turn does not move the
business forward. In turn, you guys are just going to end up
fighting with each other because the roles are not identified clearly. So make sure you know what each other are
doing. Identify that. And for example, you need to also identify
that if your partners want out, if they want to exit, if they want to sell their shares,
how can they do that? If they’re not doing their job, how can you
buy them out? If they sign up as a partner and they are
super excited, they’re super motivated in the first two months and then afterwards the
third and fourth month they fall off the track and you’re trying to incentify them. You try to tell them you’re trying to inspire
them, nothing works and what are you going to do? Are you still going to build that business
for them? Or are you going to have an option to buy
them out? This is the reason why shareholder agreement
is so important because it identifies what are the terms and what is it and how is it
that I can buy someone out if something like this happened? A lot of people don’t have shareholders agreement
because who would ever think about getting a divorce during their honeymoon? No one does that, but then yet so many people
come to the stage where they do not clearly identify their work and clearly they do not
align with each other’s vision and values and which is a reason why they want to part
ways and it’s very difficult to do so without my shareholder’s agreement. To prevent that identify exactly what you’re
going to be doing, what your partners are going to be doing, and create that shareholder
agreement, which is the reason why with all my businesses, I have a shareholder agreement
with my partners. Just so then we can have all the ugly, all
the difficult conversations right from the beginning. And after that’s done, all the focus and all
the intention is about building the business, moving it forward, moving the needle, and
that’s precisely the reason why we’re able to grow our business so fast, so rapidly,
and so successfully. So there you go. The four secrets that you need in choosing
the right partner for your food and beverage restaurant. First of all, make sure your visions are aligned. At the end of the day, do you want to create
something that is super easy, super simple, super stressless? Or do you want to create something much bigger? Have that conversation right from the get
go. The second thing is values. Make sure that you identify how you work,
what you believe in, what presses your buttons, what is it that you truly value? And make sure you have that alignment with
your partners if and when you bring them on board. Thirdly, you need to make sure that what do
they bring to the table, okay? At the end of the day, you’re going to feel
unfair if they don’t bring anything to the table that you don’t have, right? So make sure any one that you bring on board
plays a strategic role in your business. Because when everyone brings something to
the table, that’s when you can grow the business like crazy and you can focus on growing the
business and not focus on the flaws of your partners. And lastly, identify what the rules are within
the company and have a shareholder agreement. Because as clear as it gets, you can now actually
identify who’s accountable for what operations within your business. And if things actually turn out sour, you
still have a clause to understand how you can buy your partners out. And what are the difficult conversations to
have right from the get go. So there you’ve got the four secrets and finding
the right partners. I really hope you find value in this if you
want more good stuff, I’ve actually in the link below created something that I’ve documented
for the last 10 years of my journey from finding locations, to getting free rent, to identifying
a winning matrix of your menu. To marketing, to your customers, getting to
the minds of your customers to actually marketing crazy to them, to growing a multiple shop
chain. Everything within the link below. So check it out in the link below. Otherwise, I really hope you enjoyed this
video. Smash the like button. Subscribe, Along The Journey, and I’ll see
you guys in the next video.

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About the Author: Oren Garnes

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