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	Friday, June 10, 2005

Solomonic Business Decisions Part 2  (on business) If you are an aspiring entrepreneur, try to read Seth Godins' The Bootstrapper's Bible.   It is an e-book available for free download at this address.  It is one of the most pratical guides on how to succeed in business as an entrepreneur. He shares many tips on building a business.  One of the great tips he shared which was particularly relevant was when two equal partners have a dispute, and since both have a 50% share ( which he does not recommend as a business model), would have a problem how to resolve the issue. He says that if you are equal partners, take particular care to put in your agreement a shotgun clause, which is simple, quick and fair.  What it means is that at any point, if there is a dispute, person A can go over to Person B and offers an amount to buy out Person B.  Person B then has a few days either to take the money or turn around and pay Person A exactly the amount proposed.  This model, a slight variation of the original decision handed by King Solomon, is also effective when my kids are arguing how to divide their toys, cards, or food.  I would ask one to divide it as equally as he can, and the other one to choose first which half he prefers. Here is another great parable which happened over 1,500 years ago in China.   During the Northern Song Dynasty ( 420-479 AD), two royal families were fighting because of the uneven distribution of the family wealth.  Each contended that he got less than half of what he deserved.  They went to seek arbitration with then prime Minister Zhang QiXian. The prime minister made them wrote out all the properties that they received, and to express their view in writing why they feel that it was less than half, and then to sign it as evidence. When both had written all the assets that he has received, the prime minister switched the list, and inform them to exchange all the assets with each other. The two families could not say anything and resolved the dispute because evidently they have expressed in writing that the other asset list was more than his share, and thus indeed, both have indeed up with more than half of their shares! Creative ways to solve disputes, and to engage business decisions is always encouraged!     6:31:45 PM     comment []   trackback []