Dividing ownership, family and business

Lesson Details:

Video Transcription: In this video I want to talk about dividing the ownership of the business with your children or your child this video is brought to you by Appy Pie’s Academy and general thoughts about family and business it's very difficult you usually do not want to mix family friends and business because disagree while things are good things are great but disagreements can cause rifts in relationship so you want to be very careful I'll make it easy for you this business is for your kid they are the boss they're the owner if you want your own business start your own business for you but for your kid it's your I would say it's their business that would make things easier if they have siblings whoever's the leader is the leader and that's it there's only like I would say there's one decision-maker one owner because the worst thing you can do is have this business cause disagreements misunderstandings rifts in your family that's the opposite of what you want to happen because the whole goal of this thing is so that you improve your child's give them new skills for their school for their career hopefully help them make a little money okay so it's for them to learn new skills to set for their own self-improvement and so I think it's easiest to keep it at that without getting into legal issues legal documents debates about equity ownership and those those conversations are very often very weird and if you go 50/50 okay there's a problem there because that's the other malevolent billable sorry but benevolent like good nature thing is to say oh we're gonna go 50/50 everything is a partnership blah blah blah that's okay but what happens in terms of when there's a disagreement 50/50 means you have no arbiter to settle so somebody should be the leader and that person needs to be chosen in the beginning so there's no misunderstanding and I would say your child's business it should be theirs of course you're free to decide but it's easiest and again this is all should be done at the outset and these rules should be laid out very clearly in the beginning because in the beginning where there's very little at stake if there's some success and there's real money at stake these conversations become very difficult and very complicated people get greedy people start having their you know like low you know insecurities tested and you don't want that so I'd suggest completely avoiding it give it all to your kid and you know see how they fare in the worst case it's there other another way thing for them to practice is to these kinds of really difficult situations where they have to literally leave that make decisions so again maybe see it as a learning experience for your child and again if you want to do your own business that's on your own.