Episode 8 RYOB: Shared assignments and tasks

In the last episode we started looking at different ways of sharing your daily work life as a solo/small entrepreneur. In this episode let us talk about a few things worth to keep in mind as you start working togther.

Collaborating on assignments or work tasks can be a good way for a small company to increase its power. By working with others, you can create better solutions for customers. 

From basic to complex

Collaborations can take multiple forms. Sometimes it can be restricted to simple tips. Here you could either consult your business partner on how to complete certain work tasks, or you could promote, through word of mouth, other small businesses with the agreement that they will do the same for you.

However, sometimes business grows beyond your own capacity and the quick and easy is not enough. To take it one step further and make it easier for your clients, you can subcontract the small business to offer products or services to your clients. This way you remain the first contact point with the clients and strengthen your bonds with the other businesses.

It is crucial to write an agreement 

How much and how often you collaborate with others determines what type of agreement you should have. Whether it is a simple agreement on a specific product or a framework agreement for a longer collaboration, it is just as important as in the case of a co-ownership scenario to have written agreements covering everything from practical routines, to dealing with crises when things go wrong. 

One tip here is to remember that, unfortunately, it is usually in collaboration with close friends or colleagues that misunderstandings form the basis for conflicts. This is because both parties knowing each other well might think that they mean the same thing and act based on assumptions rather than talking things through the way we do in new relations. Writing down all the terms of an agreement simply forces you to formulate and express yourself clearly and you can see where the other person thinks differently. 

3 simple tips for writing a contract

1. Before you begin, think about what you and your contract partner are going to do together: who does what? Then think about layout and distribution. Write down what you agree on,in clear language that is understood by all parties.

2. Think about what can go wrong and write down how you intend to solve it if it arises. Think of things such as conflicts, illness, accidents, mistakes towards the customer, whose logo do you work under, how are customer contacts handled and how are follow-up projects or products divided.

3. Feel free to create templates for the type of collaboration you usually have recurring such as employment contracts, subcontracting contracts, collaboration agreements. When you then adapt the template to the situation, you will make sure to cover all aspects of the collaboration.

Having employees can help you grow

Maybe your business is growing beyond what your own working hours can cover and you need to decide whether you should keep up with the growth or remain at your current size and refine. 

Hiring is one of the ways entrepreneurs can choose to make more time available. For many, the step is perceived as very large, and rightly so. On the day you become an employer, you also take responsibility for your employee(s) being properly insured, receiving good working conditions and an agreed salary every month, regardless of how things are going for your company. 

However there are many ways in which you can make this process easier and less risky for both yourself and your business. For example, you can hire part-time employees for a specific set of tasks or for the production/launch of a specific product or project. It is not necessarily all or nothing.

There is an overlooked side to having employees

Hiring does not only entail extra responsibilities and obligations. It is also a way to include more people in your vision and get more people working to realize it. You can complement with other personalities and other competencies or add someone like you while still retaining the ownership and decision-making power. As a good supervisor, you probably want to engage your employees and involve them in decisions and planning, but you can still keep the vision of “what” and engage employees in the “how.”

Use coaching to clarify your vision

Consciously reflecting on how you want your workday as an entrepreneur to look like, how close you want others in your business and what is important for your inspiration and development are excellent topics to address during coaching. Take the time to work with a coach through your core values, your vision, and your needs. Starting and running your own business is a career choice as well. Give it space and make active choices and you will create the workday that gives you the best potential to be the best version of yourself that you can be.

Congratulations! If you made it so far it means you have most of your company set and ready to go. In the next few episodes we will explore the marketing side of your business.

Episode 7 RYOB: Sharing your work life with others while staying sole owner

In this episode we go even deeper in exploring the co-working scenarios. We will discuss several ways of work life sharing to help you be efficient and effective. 

If you decided to run your company as a sole-owner/worker, this is something well worth looking at. Running your own business does not mean you have to do it all alone. On the contrary, co-operations of different kinds is a way to strengthen your company and diminish the risk of your own limitations, whether in time, skills or energy.

Shared workspaces 

Especially in the beginning when you don’t have staff, one other option to keep energy up if you don’t like to be alone is to join a shared workspace. These can be found in almost all cities. For a one-time fee or a subscription you get access to a co-working space.

Choosing this option is oftentimes a cheaper alternative to renting an office space. At the same time it allows you to meet other people and therefore have a more social daily life when compared to working alone in an office or at home. 

Another advantage of using a shared office comes, again, from people. There you are likely to meet professionals from all sorts of industries, from accounting, law and management to marketing, IT and arts. People who may work with the same customer segment can also provide synergy effects. This gives you the opportunity to find new partnerships or even clients. And it also offers you a more stimulating environment. Even a small coffee chat with someone with a completely different perspective can be a real eye opener and a great learning experience. Entrepreneurs and freelancers can always benefit from a networking opportunity.  

Networks, associations, and groups 

Another way you can share your work life with others is by joining networks, associations, and groups. 

Depending on the industry and level of development that you are in, there are dedicated organizations which you could join. There are global associations, as well as national, or even local associations. For example, if you were to open a coaching business (like Guldkanten) you could join the International Coaching Federation (ICF) which brings together coaches from all over the world. Like ICF, many organizations host events and meetings where professionals can meet, exchange experience and lessons, give and receive advice and solve problems together.

Personal network

Alternatively, you can put time into building your personal network.When setting up your own business and while running your operations you are bound to meet all sorts of professionals, some of whom you will probably find inspiring or interesting. Reach out to these people and connect with them. Similarly, if you complete any training program, many trainers have alumni networks which you can later remain a part of. There you are likely to meet other entrepreneurs and freelancers just like you.

As I myself am working in a small town in the Swedish countryside, for many years I had no opportunity for meeting people in my industry locally everyday - there was only one coach in the area. And that was me. However, that has rarely felt like a problem. I always feel that I have a colleague I can call or send an email to and start a conversation with if I need an additional perspective on something. I also use forum groups online. I hang out there and get inspiration from my coaching association that monitors my questions and keeps me updated with what's happening in the industry.

Locally I network with people from other industries, giving me inspiration, ideas and excellent benchmarking that has helped me develop my company outside the box thinking of my own industry.

Join us in the next episode as we share with you the basics of sharing assignments and tasks.

Episode 6 RYOB: Co-ownership - a few things to think of

In the previous article we talked about the options that you have when it comes to sharing parts of your company with others and we explored some questions which could help you make a decision. 

In this article we go in more depth and explore the key aspects which you need to consider if you decide to run your business together with other entrepreneurs. 

Running a business together

If you chose to run the company in joint ownership, there are multiple company types you can choose from. Depending on country forms may vary, here are some examples from my Swedish context. Check out specifically what is true in the country where you are planning your company.

1. Limited companies are the most common. The ownership is distributed through a proportion of shares to each owner. Owners then assign a board (out of themselves or by adding externals) and this board assigns CEO who takes in employees (among owners and/or external). The company’s management system and the roles each owner has, are decided through decisons in the board of the company and when you distribute the tasks.

2. An economic association is another form that is growing rapidly in popularity in Sweden today. The economic association is formed by three or more people. What you should keep in mind when considering this type of organization is that it is an open form. The statutes you write set the framework for who may be a partner. Therefore, everyone who then meets these criteria has the right to request to become part of the economic association. 

   The implication of this is that economic associations are very common for organizations such as cooperative preschools where membership is naturally linked to having children in that preschool. But staff cooperatives of various kinds are also emerging. In these cases, a group of people working together often share premises and other costs associated with that. 

3. The trading company is another alternative you could choose. However, since limited companies in Sweden today are so simplified in their administration and require relatively little effort, trading companies are very rare here today. The great personal risks are seldom defensible if you are not already married and have shared finances.

4. And so there is the unusual form of “simple company”. It is really only sole proprietors who for a joint venture obtain a joint VAT return number the form is not its’ own legal entity and quite unusual.

You need a good plan if you want to ace your partnership

A good basis for successfully running a company together with other entrepreneurs is to spend plenty of time on the partnership agreement when starting your collaboration. In the partnership agreement, you write down how the responsibility is distributed among you, how profits and losses should be distributed, who does what, and how you should handle different situations which may arise. 

Here are some questions which you might be useful to consider: 

• What do you do if you do not agree with your business partner(s)? 

• What do you do if someone wants to quit the partnership? 

• What if your company get into tough times, what do you do? Are there limits to your risktaking?

• What do you do if someone becomes ill or for other reasons unable to run the company?

If any of these scenarios were to happen, you can fall back on the partnership agreement for answers and guidance. 

The very process of writing the agreement can reveal points in which you think alike or differently from your business partners. This in itself will be a valuable lesson and experience. The key here is to think about as many scenarios as possible and have constructive conversations and agree on ways of managing them. This will make your joint-entrepreneurship journey smoother.

More things to consider 

Here are a few more questions you might find useful to ask yourself before you enter into a joint venture: 

• How equal are you in your collaboration? 

• Do you agree on how much you are willing to invest in terms of time, money and energy? If not - how do you compensate for the differences?

A situation where one partner is full of energy and drive while the other wants or needs to prioritize other things in their life can wear off the partnership, making it more likely to break in the future. It is therefore important to make each of the partners’ expectations and wishes clear from the very beginning. Then you need to negotiate sharing the responsibilities, as well as the compensations to make sure that everyone receives their deserved share.

External resources

Lastly, consider if and when you want to use external resources. For example, in Sweden, newly started companies are offered by the NyföretagarCentrum a mentor program where a mentor brings in an objective, outsider’s perspective which can bring a lot of new and valuable feedback to help you find your way forward. This is a great resource for new entrepreneurs. 

For established companies, an external board member can be a good way to get a new perspective, more clarity and sharpen the priorities around the entrepreneurship collaboration.

Join us in the next episode where we take a deeper dive into a different scenario: sharing your work life (but not ownership) with others.