Morning money gang. Charlotte Green here. Excited to welcome you into another addition of hair extensions business master class. Today we’re talking about the different ways that you can protect the business you’re building. I’m going to be saying some things that a lot of your partners are not going want to hear, but these are things then you be said, it’s hard conversation for me to have with my partner slash boyfriend but have the conversation and now we’re cruising. So let’s go ahead and get into this t. Give it up for the one and only, Charlo sticking iffy Greene, it’s money Monday! I am here for you, whatever you need, we literally got it. Yesterday we talked about the different ways are a licensed attorney, talked about the different ways that you can go about registering your business. The Thing that, um, I wish I would have recorded this private conversation I had with one of our tax experts that we consult with, uhm, on how we’re moving with our company.
But before we decided to how we were going to form the business and how we were going to split the business. We had a conversation with her and her biggest advice to me was do not go 50 50 in your company. Don’t do it. Even if this person is putting all of the money up for the company, you always have to retain at least 51% legally. Why? And I’m not like advising you legally, I’m just telling you what her advice was to me and it made a lot of sense. But if this is your business, if this is your baby, then you understand the vision that you hold for this business. I tried to relay last week when we talked about the, what it takes to make $1 million thing and that I was like weeping myself to sleep because there was just so much work involved.
That is how hard it is when you’re creating something out of nothing. It takes so much work and things might be nice. Now when it’s just an idea, when now we’re just talking about logos and we’re talking about colors and, and you know it’s, it’s all of the work has yet to be actualize. All the work hasn’t shown up at your hard work. It’s not here yet so everything’s going just fine, but you are going to get to a point where you and your partner are either going to decide this is too much or you know what? This is a lot, but I’m going to double down and fight through it. The issue that you might face if you are 50 50 or in a 50 50 partnership with someone is what if that person isn’t willing to continue doing the work? What if that person isn’t whim, isn’t willing to continue pushing forward?
What if that person has other things that come up in life because that’s just how life is babies, they, they happen. People have to move. People lose their jobs. What happens to your vision when your partner is no longer willing to sacrifice their early mornings? Their late nights? Their weekends with their friends? Their date nights? With their, with their part.? What happens when that person no longer cares as much about your vision? Yet they have 50 50 say in what happens. And in business, when you have a 50 50 partnership, if you want to turn left, you need this person a co-sign and say, okay, we’re turning left. If you have that 51% you don’t need anybody’s advice. You don’t need anybody’s co-sign. You don’t need any body to, okay the moves that you need to make to continue actualizing your dream, to continue fighting for your future.
But in 50 50 you do. When you do go to get your business bank account, they’re going to ask who else owns the company and how much equity they have in it. Say, and you have to put down like the legal owners of the business. So that part is solidified there now say your 50 50 business owner decided that selling online wasn’t enough and took your business papers and signed a 10 year lease on a building that is now tied to your name because they can just do that with that 50% how would you feel about that? Not Good, Huh? That would kind of suck, Huh? Especially if this person is never back in order, never bothered learning anything. They just, you know, I own a company telling everybody I own a business, not putting in no work and now they just, they just fucked your credit.
How would that feel giving someone that kind of power over you? It’s like group assignments when we were back in school. When someone, when you’re trying to communicate and that person’s just not even interested or on the other side of things, when this person just not communicating with you and they’re just out doing whatever they want in the name of your business, all of those things are scary. I hate the idea of anyone else being in control of my future, but me and anyone else, I hate it and I think that’s why you’re here because you hate that shit to Not trying to downplay anyone else’s contributions or anything, but you have to own your dream if you are going to be able to protect it. That 1% difference means the success of your company or the failure of your company. That 1% difference means you are giving someone else the right to control whether or not you make it to your dream.
When I put it that way, is it worth it for you to have that conversation that is going to be a little awkward and is going to be a little uncomfortable, but it does make sense. That’s just something that I think you definitely need to think about. Definitely need to consider one way to protect your business is by retaining ownership over your business. She said 51 is the very least. She actually said I should have at least 60 70% of the company because we are a corporation and we might end up going public at some point. It’s important for me as the owner to have that extra bit of equity that we can trade in exchange for, for investments, so deeper conversation for a whole different posts, but you need to keep this stuff in mind because you’re building the business that is going to drive you to the life you were always meant to live, the life that your kids deserve, the life that your parents deserve.
That’s what you’re building. And if you give someone 50 50, you’re giving them the right to control whether or not your kids ever get that life. Uh, so today’s homework, we’re going to keep this one a little light cause I know the conversation’s been hell of heavy. Go ahead and keeping it light droplet the name of one of your favorite groups growing up, that broke apart and drop a song or something. Talk. Talk about partnerships. Let’s get more communal. I’m checking your homework. Let’s see if there are any of our favorite hits that end up on the timeline. But this is just to again remind you that even with all the money in the world, these groups could not stay together to continue getting all of the money in the world. So hard work. It’s going to come into the picture. Uhm, and you got to protect your vision. That’s just what it comes down to. Do what you need to do to protect yourself and to protect your future. That’s Today’s master class. Thanks for tuning in. I look forward to seeing you tomorrow.