For an early stage startup that
just received 500,000, 600,000 or $1 million in capital, what
are the critical things they should be looking to address? – These guys have
a great company. Let’s make sure we link up
both Ace’s and their company and Plum’s company in
my description. Staphon make sure you
team up with Sam on that. Well look I mean first and
foremost, you don’t blow it. The amount of people that
have blown through their five or 600, million in cash because
they didn’t have a strategy of what they were going to do
with money is unbelievable. It’s unbelievable how much cash
and wallet is just burning for so many startup
founders it’s quite said. So I think you have to have a
real plan for it and again no different than the first
question on this episode, you have to have a strategy on
where you’re going to deploy it. What are your biggest needs? To me I like to invest in
things that bring back dollars in the midterm. I don’t need the short term but
I don’t need the longest term. I think sometimes
people are too… It’s funny, ideas are shit until
execution I like to say a lot because I think most
founders get caught on one side or the other. Some founders take $500,000
and they want that 500,000 to make them 800,000. It’s all transactional.
Sales, conversion. Other founders start thinking
about what their company needs in three years. In three years, we’re going to
need video editing software so let’s buy that now and you
didn’t get to three years. By the time that you spent all
the money that was what created this scenario you never getting
to those three years from now. I think much like marketing in
the year that you live in, day trading attention, some
of my marketing principles, I deploy in my
operating principles. What is the most important
thing with that money right this second that isn’t short-term
sales turn 500 into 600,000 but what is not the were going to
need this in three years so let’s spend it? By the way furniture and rent
and all these things that’s where people waste money. AJ and I started
this company in a conference room
of another company. This is not a
super fancy office. Right? Yeah.
It’s good. I’m happy about that. This is actually pretty fancy
compared to where we were a year ago so like people just waste
money on a lot of things that don’t matter. Now, it can’t be so screwed
up here that people don’t want to come here. But we don’t need $8000
recliner chairs for everybody and that’s what a lot
of startups do. It’s crazy. They spend more time and energy
on like how fancy this coffee machine is gonna be than
actually building a god damn business. So what you do with it? You better know what to
do with it or your startup is in deep shit. Don’t ask GaryVee, I hate
third person, don’t ask me. Figure out what to do with it. Make it practical as hell
because that money will disappear fast and the only
thing that will disappear faster is your hopes and dreams about
your business if you don’t know what to do with it.