Tom Wang is a multi-million dollar brand owner. Over the last three years, he bootstrapped his beauty brand from zero to millions of dollars by learning new strategies, understanding the business landscape, and diving deeper into Amazon’s algorithm. He has been an Amazon FBA (Fulfilment by Amazon) seller for quite some time, and his journey has led him to coach thousands of students on how they can kick-start their venture with Amazon.
Generating millions and being an innovator in the FBA space, Tom has come far in his quest to become successful. His experience also helped him filter right from wrong when it came to business and dealing with different people, customers, and partners. Here are some tips, from the millionaire himself, on finding the right business partner and mitigating common issues while working with one.
In this article we address one of Tom’s most asked questions.
“My students are most concerned about how to pick the right business partner, as it’s such a crucial factor that influences your business,” says Tom.
Choose your priorities
If you are having trouble solving a problem because you both have different opinions on the solution, then take a step back and define how important that issue is to you.
“I recently learned this trick from the CEO of Slack. Both partners will sit across the table and define how important the issue is to them on a scale of one to ten. So when either person writes a higher number, that means that problem concerns him more, and so they go with the solution that the person with a higher degree of concern proposes.” said Tom.
Partnering your match
There are two common types of people when it comes to running businesses: a visionary and an operator. They go together like yin and yang.
The visionaries are the dreamers, innovators and future thinkers. They’re great starters, but they often have a hard time keeping things working because they’re always moving on to new things.
The operators are the sharp-minded implementers who excel at executing and managing the day-to-day tasks that make the company continue working.
You should know whether you’re a visionary type or an operator type when choosing the right business partner. If you have a million-dollar vision and your partner is great at overseeing the operations to make it a reality, then it’s a perfect match. Essentially, it’s about knowing who you are and what you’re looking for. Tom says, “However, it’s absolutely indispensable that you and your partner do not have skills that are too similar,”
An ideal business partner is the one that compliments you and your strengths and weaknesses. Otherwise, you will both end up doing the same jobs and not getting anything done at all.
Contract it up!
Whether your business partner is your best friend or an acquaintance that you trust more than anyone, it’s imperative that you have all the terms and conditions in writing. This helps to solidify expectations and job roles and mitigate tension between partners when things start to suffer—finances, operations, logistics, etc.
A shareholder agreement also holds a partner accountable when they decide to move on from the company. This reduces the risk of them starting the same venture or using your resources to compete with your product. (Notice: It is best to work with a lawyer who specializes in shareholder agreements to remove any unclear language to make sure loopholes are removed).
Tom leads the FBA business world through his successful ventures and contributes to the innovators’ space through his masterclasses. His students are mentored on various topics that concern everything about Amazon third-party sellers, FBA, Amazon rankings, and much more.
“I feel like the solution to the problem depends on the situation that you’re in. Partnerships and individuals are dynamic, and we humans are unpredictable. Things like finances and emotions can come in your way, but at the end of the day, you should be focused on working for the best of your business,” says Tom.