Ownership considerations when you start…

I came across another business the other day that had decided on an even ownership structure with a 50/50 equity split between two Founders.

2 shares issued in a company structure, with each Director each holding one share.

Great in theory, with undertones of, "let's get after this thing together..", but comes with inherent flaws and risks.

The Directors had drifted apart, and now had different priorities, different appetities for risk, different goals, and different levels of commitment to the entity they'd founded together.

The resulting stalemate is not pretty.

Neither wants to sell their equity to the other, and neither can make any operational or financial decisions without the other's approval.

In effect, the entity is now paralysed and dying.

Whilst not an accountant or financial adviser, when I'm engaged to help an entity get up and running with more than one Founder involved, I always recommend that there be a controlling party who can ultimately make a decision, and that 'even-equity' splits carry risks, including those detailed above.

Often, having an initial discussion about who will hold a controlling share brings to light issues that will arise later.

It's better to bring these preferences and aspirations to the table during initial discussions, before debt, employees, risk, and significant financials are involved.

Founding or owning a business by yourself can be a lonely, intimidating, overwhelming place, so having someone come on that journey with you can be great - just think through the structure you choose.

Cheers, Garrick

https://www.garrickjackson.com

Founder x 2IC relationship...

I've been lucky to work with many Founders throughout my career, both internally as an employee; and externally as an advisor; and they come in all shapes and sizes.

They're driven; see things through different eyes; and are built differently than those of us who work alongside and help them to build out their businesses, brands and vision.

For several years, I thought I wanted to be an upfront, visible Founder (and it may still happen one day), however, my skills ultimately lie in working WITH Founders - helping them to put structure to their thoughts - and then executing and implementing with them, or on their behalf.

We'd often joke that they 'do the sexy stuff, and I do the unsexy stuff'; however, I later came to know that both functions are equally necessary, and that the Founder holds the 'visionary' role, and I hold the 'integrator' role.

Being the 2IC or 'wing-person' to a Founder can be extremely rewarding, satisfying, and fulfilling; and the faith, trust, and bond that can develop is unique.

You go through good times and challenging times together. Both have to be candid and vulnerable on occasions; and both experience the highs and lows of growing and running a business, albeit in different ways.

It's a privilege to act as that trusted confidant or sounding board to a Founder, and that relationship should not be taken for granted by either party.

So; a quick shoutout to all those Founders who have shared and trusted their vision with a GM, CEO, COO, or advisor; and a mutual shoutout to all those 2IC's out there who execute and integrate on behalf of their Founders, Teams and Brands, day in, day out...

Cheers, Garrick

garrick@garrickjackson.com

Salts and Suits by Phil Jarratt…

Salts and Suits by Phil Jarratt is a great read on the history of the big three - Rip Curl, Billabong, & Quiksilver.

I scored a copy before a Bali holiday back in 2013 and could barely put it down between Bintangs…

I’ve read it a couple of times since…

It’s a cracking combination of business lessons, history, and the story telling in between; so if you’re interested in the surf industry and/or business, I’d recommend grabbing a copy if can find it…

Cheers, Garrick

garrick@garrickjackson.com

If you're a leader of young people...

Yallingup Mainbreak, Western Australia

If you're a leader of young people, don't underestimate the importance of leading by example, setting expectations, and exhibiting kindness.

I've seen many young people treated poorly by substandard employers.

The result is a young person with crippled confidence, who battles to get back on the horse with their next gig.

I fully appreciate that there are lazy crew out there; however, there are also a ton of good young kids deserving of your best efforts.

Set expectations, teach them, and pass on what you've learnt throughout your career. Cast your mind back to a great mentor or manager you had at the start of your career, and recall what a positive influence that had on you as a young person.

If you weren't lucky enough to have a solid influence early in your working life, be the leader who breaks that cycle for the young people coming through your business.

Cheers, Garrick

garrick@garrickjackson.com

If communications are turning sour, pick up the phone...

Peppermint Beach, Western Australia

If you feel a virtual discussion is starting to turn sour, pick up the phone, or if possible, meet face-to-face.

Virtual back and forth can easily be misinterpreted, go off the rails, and escalate in the wrong direction, so if you have the opportunity, speaking directly is the way to go.

The nuance of listening to another person's voice; the language they use, the speed they talk, the tone and pitch they use; all provide clues and benefits in terms of understanding what the other person is saying, and more importantly, how they are feeling.

Developing good communication skills and being able to talk to people from all walks of life takes practice, and you'll stumble and skin your knees from time to time; but the upside, and real connections that talking delivers, are 100% worth it.

Cheers, Garrick

Reach me at garrick@garrickjackson.com

Keeping it real in business...

Bremer Bay, Western Australia

I doubt many things I see online.

With AI, CG, and deep fakes proliferating, anything fringy, radical, or provocative needs to be taken with a grain of salt, in my humble opinion.

It's super easy to be drawn in and triggered on any number of topics.

Maintain a degree of scepticism; look behind the veil; and proactively search for contrarian viewpoints to ensure you're not locked in your own echo chamber...

Physical activity, family, friends, surfing, hobbies, phone calls, and real face-to-face interactions with customers, prospects, and your network have always been valuable: and are more important now, than ever.

Focus on 'real', 'quality', and 'value'.

Don't abandon technology - it's amazing, useful, and entertaining - but real relationships; real communication; and real interactions are hugely valuable and are worth retaining as part of your approach to business and life.

Cheers, Garrick

Reach me at garrick@garrickjackson.com