The Tipping Point (or—how to make decisions)

Recently, I was speaking with an advertising entrepreneur about combining forces. He has a skillset my team is looking for, and we have a skillset that he’s looking for. 

The trouble was, we didn’t know how to manage the logistics. Whose business and whose bank accounts should hold the projects and why? Should we create a third business entity and push projects through that? What should we tell our current clients?

We decided the best way forward was to not set up a third business entity… yet.

It would be more work than it’s worth to file the paperwork and set up the systems for a project that we aren’t even sure will pan out. It would be simpler and quicker to manage the projects under our current businesses, and pay out the other party manually. But at some point, not setting up a business would be more work than it’s worth. Trying to manage processes between two entities once things really get going will be a headache. 

Right now, it’s foolish to set up a third business. Soon, it will be foolish not to se up a third business. 

There’s a tipping point in many decisions. 

If you’re wondering whether or not to do all the startup work for a new project you’re testing, just don’t. Get a few dry runs under your belt. It’s okay if it’s not a perfectly clean process. The act of getting the ball rolling, and gaining momentum will show you all the things you didn’t know.

Find out where the tipping point is for you, and try to get there as quick as you can.