– [Voiceover] Tommy asks, “In 13 thoughts of being an entrepreneur, “you say you focus on top line versus bottom line. Why?” – Tommy, you know, one thing I think a lot of entrepreneurs do, especially ones that are just starting companies, since I invest in so many of them, that completely blows me away […]
– [Voiceover] Tommy asks, “In 13 thoughts of being an entrepreneur, “you say you focus on top
line versus bottom line. Why?” – Tommy, you know, one thing I think a lot
of entrepreneurs do, especially ones that are
just starting companies, since I invest in so many of them, that completely blows me away is they start looking to drive margin, profit very early on. The reason I always focus
on top line revenue, and it was something I
did in my dad’s business and something that AJ felt
when I started going full time on the Vayner front was
you can always drive your profits higher eventually, but when you cut a moment in time, and when I run businesses,
I tend to innovate, and I tend to be slightly
ahead of the market, and the market eventually
catches up to me, and then that’s the good thing. That’s the moment when it gets exciting. People start believing
in social media marketing or believing in internet
e-commerce wine businesses or believing in Australian, New
Zealand, South African wine, I have to really run fast
and grab as many customers because I’m slightly ahead. Then three, four, five, six, seven, eight years down the line, I can start driving profit. You can always start cutting costs and raising prices at any time, but land grabbing more customers gives you leverage of the scale that you ultimately need to convert them, and so I think people go
in for the right hook, the big right hook a lot
of times way too early, sometimes to appease investors, sometimes because they just
want to start buying boats and Rolexes, and I’m just kind of pushing
and building leverage for the long term. – Hey, Gary. John Lee Dumas,