Wednesday, April 1, 2020

On a Handshake

A very good friend asked me to come on board in 6 year old _____ company as he expanded from City X to City Y. On a hand shake agreement I agreed to help him. I wouldn’t do it unless I got a percentage of the company so we agreed upon 5% stake with a 10% share once the company reaches 100% increase. The company at the time was doing 600k a year.
I worked tirelessly with him for 10 months on $700 a week to grow his business. He was a tradie and didn’t really understand procedures and SaaS technology to help the business scale. I built partnerships with large retailers, implemented automated marketing technology, documented metrics to build cashflow forcasts, built in systems and procedures and expanded the company into City Z in 8 months. Doubling the company from an average revenue of $50k a month to averaging $100k a month.

Because we worked so hard and he had a lot of pressure on him to fulfill the projects, which caused a lot of friction. Because we worked hard and also partied together, we ended up spending to much time together and I noticed that during the last few months. I started to opt-out and look for other opportunities to try to save the friendship. Within 2 months, things got sour and he rejected my formal share exchange.

After this, I got nasty and removed 95% of my IP (systems and procedures, projections and data analysis) as he wasn’t upholding the end of his bargain. This is when a very successful mutual friend had to get involved, lawyers got involved and I got a small pay out rather than any share ownership.

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