Takeaway #19: Equity and Alliances. Inspired by Special Ed

***

I got . .. An accountant to account the amount I spent

gotta treaty with Tahiti cuz I own a percent . . .

 I’m not a trader

if what you got is greater I’ll trade

but maybe later cuz my waiter made potato -n- alligator soufflé–

I got it made.

 

Special Ed        (I Got It Made Youngest In Charge)

Oh my, he “makes fresh rhymes daily.  You burn me, really?”….Special Ed echoes the value investing strategy here as, but there is more bang for the buck BPM thinks.  The art of the deal is on stage and BPM likes the techniques spun on Technics-1200 here.  Special Ed has a great negotiation team — including the accountant to crunch the numbers.  He makes sure that he gets a piece of equity or backend participation with his owned “percent”.  His philosophy is not casual trading for the sake of being a short term investor, but only if you make sure he is showing “greater” value on that deal.  It’s all about the ROI.  No trading for the sake of getting the shiniest new asset here – no vanity deal.

The treaty reminds us that a joint venture or strategic alliance can be critical in taking your enterprise to the next level.  It may be a supply chain deal, or business process outsourcing.  It does not have to be a vast international deal, but think partners.  You don’t need to do all the work internally or yourself.  People are specialists for a reason.  Use the better resource.  Partnerships are great.  And for paranoid lawyers, make sure you do not cross the line into some conjured up notions of price collusion and anti-competitive behavior.

BPM TAKEAWAY#19:

  • GET A PIECE OF EQUITY

  • STRATEGIZE AND ALLY

Takeaway #137: equity or service fees? via #Chamillionaire

 …Hear you talking ’bout your hustles, ain’t no profit there

Hear you talking ’bout your deal, that ain’t profit square

Y’all get lil’ royalties, I get profit share

Chamillionaire Hero

Takeaway 137: All we want to know is are you getting equity today or just a service fee?  Are you filing schedules or waiting on your W-2?

Takeaway #42: E-40 on Equity as King

Sometimes it’s cool to floss

But don’t buy an eighty-five thousand dollar car

Before you buy a house . . .

And now you wanna call me hardcore

While I be stepping out the shower on a marble floor

I paid the IRS taxes send FedEx and faxes

E-40   (E-40, Too $hort) Rapper’s Ball

 In media, the debate is whether Content is King or the Distribution is King.  It doesn’t really matter, in either scenario; the commonality is ownership of something that builds equity.  There is no joy in betting the farm on depreciating assets:  flashy cars, soon obsolete technology or the like.  These are the items that are subject to lease.  No one buys the fax and copier machine.  You make buy the firm’s building.

 There is also no job to big or small for the manager.  If taxes have to get paid or someone has to stay late to get a FedEx package out the door, the manager has to be willing to roll up the sleeves and get it done and convey that culture throughout the organization.  Who will do the dirty work if they do not believe the leader will do what it takes when the crunch comes.  BPM says managers are only managers when other people are willing to follow.  Other people follow when they realize that you are committed to getting done whatever needs to get done.

BPM TAKEAWAY#42:

  • EQUITY IS KING

  • NO JOB TOO BIG OR SMALL