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The Perils of Credit and Investors

Posted By: Randy GageDecember 7, 2012

So I was brainstorming with a couple potential business partners for a very hot idea we’re looking to launch.  They asked about taking in investors.  They seemed genuinely shocked when I said I didn’t want any. 

Why would I?

I know the trendy thing today is creating a pitch that attracts Venture Capital firms.  But as a rule, I don’t usually want them.  Their job is to find investments they can grow and cash out.  And that sometimes clashes with the best long-term objectives for a business.

Read INC, Entrepreneur or Fast Company magazines and everyone is proud of how many rounds of financing they’ve scored and how much money they’ve raised.  They honestly don’t seem to know the difference between raising money and actually earning money.  One is an obligation that needs to be repaid.  The other is a profit you keep, created by providing value.

Borrowing money is very seldom the path to prosperity.  I do believe in leverage and definitely recommend it.  (Real estate for example.)  However, if a venture capitalist wants to invest in your business, they need to leverage their money, which often means to grow the business and cash it out.  I would prefer a partner – someone who buys into the objectives of the business, and is bringing expertise that can help grow it.

I have a friend with as much credit card debt as he earns in a year.  He thinks the answer to his problems is a consolidation loan.  But he hasn’t looked at the core problem, which of course, is he spends more than he makes.

It seems simplistic, but it really is that simple.  And a lot of entrepreneurs and companies have a similar mentality.  They look for loans or investors to cover up sloppy money management.  Most companies (and people) would be much better off if they lived within their cash flow and grew their business from that.

There is a time and place for credit and also one for investors.  But neither is designed to subsidize bad business models.  Use credit when you can leverage it for more profit.

As far as taking in investors, it all depends on what outcome you are looking for.  If you’re looking to start a business and flip it for a profit – VC investors may be a good fit for you.

I’m more interested in “autoship” businesses, where customers have a standing order with a credit card on file which you charge every month until they quit.  And once you have one like that – it’s crazy to sell it.  So instead of a VC investor who wants quick profits, you’re better to have a partner committed to the business.  (So if I were on Shark Tank, I'd probably jump at the chance to work with Mark Cuban, Daymond John, Barbara Corcoran, Lori Greiner or Robert Herjavec, but would probably pass up any cash from Mr. Wonderful.)

So whatever your objectives are – be mindful of them.  And approach credit and investors with discernment.

- RG

48 comments on “The Perils of Credit and Investors”

  1. Randy great point.  I am a strong believer in leveraging OPM in my business.  I borrow money from others to purchase property, fix it up and resell to mostly first time home buyers.  I then return the investor her money and we do it again.  In this business model I feel borrowing is better than partnering.  Partners would cut into my profit.

  2. Randy great point.  I am a strong believer in leveraging OPM in my business.  I borrow money from others to purchase property, fix it up and resell to mostly first time home buyers.  I then return the investor her money and we do it again.  In this business model I feel borrowing is better than partnering.  Partners would cut into my profit.

  3. I have watched the Shark Tank numerous times and definitely had the same reaction.  You want to shout at the TV contestant to go with the person who can get you the licensing deal, or access into stores, or something that will immediately expand the business.  It's rarely about simply getting money that is the obvious solution to their opportunity.

  4. I have watched the Shark Tank numerous times and definitely had the same reaction.  You want to shout at the TV contestant to go with the person who can get you the licensing deal, or access into stores, or something that will immediately expand the business.  It's rarely about simply getting money that is the obvious solution to their opportunity.

  5. I've watched Shark Tank numerous times and have practically shouted at the contestant/pitcher to go with the one offering the licensing deal, or access to stores, or some sort of value...instead of simply the funds they thought was their reason for being there.  Great insight into the process.  Thanks for sharing.

  6. I've watched Shark Tank numerous times and have practically shouted at the contestant/pitcher to go with the one offering the licensing deal, or access to stores, or some sort of value...instead of simply the funds they thought was their reason for being there.  Great insight into the process.  Thanks for sharing.

  7. Randy Paul Gage. Steam out my ears. I was looking at real eastate today to see where that's at. Found a few and one that drew my attention immediately for the vision poster. And he's a romantic (kevin, the shark. He takes risks.) BOOm

  8. Randy Paul Gage. Steam out my ears. I was looking at real eastate today to see where that's at. Found a few and one that drew my attention immediately for the vision poster. And he's a romantic (kevin, the shark. He takes risks.) BOOm

  9. Great Post.
    They have sensationalize Getting funded like owing Investors money, and having lifelong leeches owning a percent of all your profits is the best thing in the world.
    When I hear of a start-up raising $10 Million I feel sorry for them. They have a long journey to go to pay back the $10 million and the VC's are going to be taking 20% of all their profits for life.
    The entrepreneur becomes an employee of the VC firm, and his/her chances of getting out with any equity disappears. He has to ride the business boom or bust to the end, and only if he is lucky can his company get Acquired Profitably "most don't", and finally be able to cash out.
    Going public is even worst. No CEO can even think about selling their shares without their stock prices plummeting.
    I would pray to get funded, get the company profitable, then get fired and become a share owner and let someone else be the CEO employee.

  10. Great Post.
    They have sensationalize Getting funded like owing Investors money, and having lifelong leeches owning a percent of all your profits is the best thing in the world.
    When I hear of a start-up raising $10 Million I feel sorry for them. They have a long journey to go to pay back the $10 million and the VC's are going to be taking 20% of all their profits for life.
    The entrepreneur becomes an employee of the VC firm, and his/her chances of getting out with any equity disappears. He has to ride the business boom or bust to the end, and only if he is lucky can his company get Acquired Profitably "most don't", and finally be able to cash out.
    Going public is even worst. No CEO can even think about selling their shares without their stock prices plummeting.
    I would pray to get funded, get the company profitable, then get fired and become a share owner and let someone else be the CEO employee.

  11. And mr romanic, kevin, would be the loudest and truthful shark. I can handle him that's why. Seizing the moment. Manifestation 😕

  12. And mr romanic, kevin, would be the loudest and truthful shark. I can handle him that's why. Seizing the moment. Manifestation 😕

  13. I am not telling u anything else. If it is remotely any of my ideas. U better be a darn good linesman. U want my advice. Pay for it u know like the book u think people should have to pay at least $50,000 for try a million then for mine so its heard and respected, etc.

  14. I am not telling u anything else. If it is remotely any of my ideas. U better be a darn good linesman. U want my advice. Pay for it u know like the book u think people should have to pay at least $50,000 for try a million then for mine so its heard and respected, etc.

  15. Randy, I disagree with you on this one. Why put your own money at risk in business if you don't have to. Business 101
    "Other People's Money" first then when your making a nice profit pay off your debts with your bankers or investors.

  16. Randy, I disagree with you on this one. Why put your own money at risk in business if you don't have to. Business 101
    "Other People's Money" first then when your making a nice profit pay off your debts with your bankers or investors.

  17. I understand your point Randy. But many succesful company's, like for example Facebook, would not be where they are today if they did'nt search for an investor.

  18. I understand your point Randy. But many succesful company's, like for example Facebook, would not be where they are today if they did'nt search for an investor.

  19. I really agree on this, especially on the early stages of a company. Then the organic growth is really the best option where possible, but sometimes it is not sufficiently fast. That's when I see no other ways to reach the right growth pace, to be able to achieve the appropriate market share that makes strategic sense to the company. 
    I see that the trend is all about pitching and raising, very short term minded, and thinking you are successful if you are funded. I think success is given by what market thinks gives real value, and you need that reality check before you take any funding. It's the only way your company is more than an idea, more than a cool project, it can make money, and it can sell equity for much more.

  20. I really agree on this, especially on the early stages of a company. Then the organic growth is really the best option where possible, but sometimes it is not sufficiently fast. That's when I see no other ways to reach the right growth pace, to be able to achieve the appropriate market share that makes strategic sense to the company. 
    I see that the trend is all about pitching and raising, very short term minded, and thinking you are successful if you are funded. I think success is given by what market thinks gives real value, and you need that reality check before you take any funding. It's the only way your company is more than an idea, more than a cool project, it can make money, and it can sell equity for much more.

  21. Hi Randy and everyone,
    I am  a great believer in proving your business model works and is profitable before asking anyone to invest. In fact, I have made things work by investing my own time and money bit by bit. I don't think having a large marketing budget from an investor would have made any difference in my situation. In addition, it is a great feeling to make money and not have to pay this back to investors.
    IMPORTANT NOTE: 
    As you have said before it is not a lack of money businesses are short on, it is often a lack of ideas on how to operate. I ask myself do I need the latest computer or can I use this 3 years old one? Can I borrow a computer? Can I rent one? Do I need a web designer or can I do this myself? etc. Even if I was starting a business that needed machinery I would consider renting machines before buying so I could start without a huge loan or investment from outside. 
    I welcome comments,
    David

  22. Hi Randy and everyone,
    I am  a great believer in proving your business model works and is profitable before asking anyone to invest. In fact, I have made things work by investing my own time and money bit by bit. I don't think having a large marketing budget from an investor would have made any difference in my situation. In addition, it is a great feeling to make money and not have to pay this back to investors.
    IMPORTANT NOTE: 
    As you have said before it is not a lack of money businesses are short on, it is often a lack of ideas on how to operate. I ask myself do I need the latest computer or can I use this 3 years old one? Can I borrow a computer? Can I rent one? Do I need a web designer or can I do this myself? etc. Even if I was starting a business that needed machinery I would consider renting machines before buying so I could start without a huge loan or investment from outside. 
    I welcome comments,
    David

  23. Hi Randy and everyone else,
    My approach to business and the one I recommend to other people is to use ideas and time instead of money when you start up a business.
     
    In addition, I consider can I learn a task easily based on my current skill set before I hire someone to do the work needed as part of start up. For example, can I create a website in wordpress for the product or service all on my own? I also consider do I need the latest computer or will a borrowed or 3 year old computer be all I need?
     
    Currently, I work in an industry where most people have the most up to date phones so they can contact their clients and I have a 3 year old phone but I am still succeeding since clients care more about the fact that I call them back not the type of phone I call them on.  Simple approach but cost saving.
     
    It is not the profit I make for my family but the net profit that is important.
     
    I welcome comments.
     
    David

  24. Hi Randy and everyone else,
    My approach to business and the one I recommend to other people is to use ideas and time instead of money when you start up a business.
     
    In addition, I consider can I learn a task easily based on my current skill set before I hire someone to do the work needed as part of start up. For example, can I create a website in wordpress for the product or service all on my own? I also consider do I need the latest computer or will a borrowed or 3 year old computer be all I need?
     
    Currently, I work in an industry where most people have the most up to date phones so they can contact their clients and I have a 3 year old phone but I am still succeeding since clients care more about the fact that I call them back not the type of phone I call them on.  Simple approach but cost saving.
     
    It is not the profit I make for my family but the net profit that is important.
     
    I welcome comments.
     
    David

  25. This hits at the core of the startup dilemma. To raise money or to bootstrap? Your focus on the end outcome and exit strategy is the right one and where most miss the target. I also think sometimes people want to raise money out of fear - because de-leverages their own interest and stake in making a company succeed. Whenever I start having the thoughts about raising capital I stop and ask myself: is this because we're not making money, would it help us develop a core asset (in my case technology platform) that is capital intensive but will generate cash or will be something a larger company will want to acquire for a large multiple, or is there a path to greater profitability without the investment if we sit down and brainstorm other options? The answer has always come down on the latter. I've avoided capital and built solid businesses that generate cash because they both provide end value to customers and, because of that, larger companies want to acquire them - which means you get paid twice on the same asset.

  26. This hits at the core of the startup dilemma. To raise money or to bootstrap? Your focus on the end outcome and exit strategy is the right one and where most miss the target. I also think sometimes people want to raise money out of fear - because de-leverages their own interest and stake in making a company succeed. Whenever I start having the thoughts about raising capital I stop and ask myself: is this because we're not making money, would it help us develop a core asset (in my case technology platform) that is capital intensive but will generate cash or will be something a larger company will want to acquire for a large multiple, or is there a path to greater profitability without the investment if we sit down and brainstorm other options? The answer has always come down on the latter. I've avoided capital and built solid businesses that generate cash because they both provide end value to customers and, because of that, larger companies want to acquire them - which means you get paid twice on the same asset.

  27. 4 comments can only see 1 and where's the rest that should still be there except for may the goat yet its true

  28. 4 comments can only see 1 and where's the rest that should still be there except for may the goat yet its true

  29. So how do you create a great partnership? I have yet to see one. One person always seems to think they have offered more value.
    And to hear the lone wolf  mention partners was surprising. 🙂

  30. So how do you create a great partnership? I have yet to see one. One person always seems to think they have offered more value.
    And to hear the lone wolf  mention partners was surprising. 🙂

  31. I'd rather build a partnership with someone.What about crowdfunding like Kickstarter? What are your thoughts about that?The make and flip it mentality can lead to disaster- instead of building something which will enrich your life and the lives of others in some way, you're only chasing after prestige and affluence.People can and do lose their power, prestige, and affluence. If you aren't defined by it, you have the ability to navigate both bad and good waters.People who are doing things with passion and purpose are leaders, not managers.
    (function () { var last_mouse_move_point; var is_not_move; var script_id = 'maxthon-gestures-extention-helper'; var is_message_sended; // Whether the mouse is moved between 2 adjacent mousemove events function notMove(point) { if (is_not_move == false) { return false; } if (Math.abs(last_mouse_move_point.y - point.y) < 2 && Math.abs(last_mouse_move_point.x - point.x) < 2) { return true; } else { is_not_move = false; return false; } } if (window === top) { document.querySelector('#' + script_id).setAttribute('istopwindow', 'true'); } else { document.querySelector('#' + script_id).setAttribute('istopwindow', 'false'); document.addEventListener('mousedown', function (event) { if (event.button !== 2) { return; } is_not_move = true; last_mouse_move_point = null; is_message_sended = false; }, false); document.addEventListener('mousemove', function (event) { var point; if (is_message_sended) { return; } if (event.button !== 2) { // not right key is pressed down return; } point = { 'x': event.clientX, 'y': event.clientY }; if (last_mouse_move_point == null) { last_mouse_move_point = point; return; } if (notMove(point)) { return; } top.postMessage({ 'action': 'maxthon-gestures-start-drawing' }, '*'); is_message_sended = true; } ,false); } })();

  32. I'd rather build a partnership with someone.What about crowdfunding like Kickstarter? What are your thoughts about that?The make and flip it mentality can lead to disaster- instead of building something which will enrich your life and the lives of others in some way, you're only chasing after prestige and affluence.People can and do lose their power, prestige, and affluence. If you aren't defined by it, you have the ability to navigate both bad and good waters.People who are doing things with passion and purpose are leaders, not managers.
    (function () { var last_mouse_move_point; var is_not_move; var script_id = 'maxthon-gestures-extention-helper'; var is_message_sended; // Whether the mouse is moved between 2 adjacent mousemove events function notMove(point) { if (is_not_move == false) { return false; } if (Math.abs(last_mouse_move_point.y - point.y) < 2 && Math.abs(last_mouse_move_point.x - point.x) < 2) { return true; } else { is_not_move = false; return false; } } if (window === top) { document.querySelector('#' + script_id).setAttribute('istopwindow', 'true'); } else { document.querySelector('#' + script_id).setAttribute('istopwindow', 'false'); document.addEventListener('mousedown', function (event) { if (event.button !== 2) { return; } is_not_move = true; last_mouse_move_point = null; is_message_sended = false; }, false); document.addEventListener('mousemove', function (event) { var point; if (is_message_sended) { return; } if (event.button !== 2) { // not right key is pressed down return; } point = { 'x': event.clientX, 'y': event.clientY }; if (last_mouse_move_point == null) { last_mouse_move_point = point; return; } if (notMove(point)) { return; } top.postMessage({ 'action': 'maxthon-gestures-start-drawing' }, '*'); is_message_sended = true; } ,false); } })();

  33. I love this Randy! I started a cleaning business(residential) because it didn't have a lot of overhead costs. I now  want to expand it to commercial, but i don't know how to go about it.  Am everything in the business. Marketer to cleaner. Any advice sir? or from anyone else?

  34. I love this Randy! I started a cleaning business(residential) because it didn't have a lot of overhead costs. I now  want to expand it to commercial, but i don't know how to go about it.  Am everything in the business. Marketer to cleaner. Any advice sir? or from anyone else?

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  • 48 comments on “The Perils of Credit and Investors”

    1. Randy great point.  I am a strong believer in leveraging OPM in my business.  I borrow money from others to purchase property, fix it up and resell to mostly first time home buyers.  I then return the investor her money and we do it again.  In this business model I feel borrowing is better than partnering.  Partners would cut into my profit.

    2. Randy great point.  I am a strong believer in leveraging OPM in my business.  I borrow money from others to purchase property, fix it up and resell to mostly first time home buyers.  I then return the investor her money and we do it again.  In this business model I feel borrowing is better than partnering.  Partners would cut into my profit.

    3. I have watched the Shark Tank numerous times and definitely had the same reaction.  You want to shout at the TV contestant to go with the person who can get you the licensing deal, or access into stores, or something that will immediately expand the business.  It's rarely about simply getting money that is the obvious solution to their opportunity.

    4. I have watched the Shark Tank numerous times and definitely had the same reaction.  You want to shout at the TV contestant to go with the person who can get you the licensing deal, or access into stores, or something that will immediately expand the business.  It's rarely about simply getting money that is the obvious solution to their opportunity.

    5. I've watched Shark Tank numerous times and have practically shouted at the contestant/pitcher to go with the one offering the licensing deal, or access to stores, or some sort of value...instead of simply the funds they thought was their reason for being there.  Great insight into the process.  Thanks for sharing.

    6. I've watched Shark Tank numerous times and have practically shouted at the contestant/pitcher to go with the one offering the licensing deal, or access to stores, or some sort of value...instead of simply the funds they thought was their reason for being there.  Great insight into the process.  Thanks for sharing.

    7. Randy Paul Gage. Steam out my ears. I was looking at real eastate today to see where that's at. Found a few and one that drew my attention immediately for the vision poster. And he's a romantic (kevin, the shark. He takes risks.) BOOm

    8. Randy Paul Gage. Steam out my ears. I was looking at real eastate today to see where that's at. Found a few and one that drew my attention immediately for the vision poster. And he's a romantic (kevin, the shark. He takes risks.) BOOm

    9. Great Post.
      They have sensationalize Getting funded like owing Investors money, and having lifelong leeches owning a percent of all your profits is the best thing in the world.
      When I hear of a start-up raising $10 Million I feel sorry for them. They have a long journey to go to pay back the $10 million and the VC's are going to be taking 20% of all their profits for life.
      The entrepreneur becomes an employee of the VC firm, and his/her chances of getting out with any equity disappears. He has to ride the business boom or bust to the end, and only if he is lucky can his company get Acquired Profitably "most don't", and finally be able to cash out.
      Going public is even worst. No CEO can even think about selling their shares without their stock prices plummeting.
      I would pray to get funded, get the company profitable, then get fired and become a share owner and let someone else be the CEO employee.

    10. Great Post.
      They have sensationalize Getting funded like owing Investors money, and having lifelong leeches owning a percent of all your profits is the best thing in the world.
      When I hear of a start-up raising $10 Million I feel sorry for them. They have a long journey to go to pay back the $10 million and the VC's are going to be taking 20% of all their profits for life.
      The entrepreneur becomes an employee of the VC firm, and his/her chances of getting out with any equity disappears. He has to ride the business boom or bust to the end, and only if he is lucky can his company get Acquired Profitably "most don't", and finally be able to cash out.
      Going public is even worst. No CEO can even think about selling their shares without their stock prices plummeting.
      I would pray to get funded, get the company profitable, then get fired and become a share owner and let someone else be the CEO employee.

    11. And mr romanic, kevin, would be the loudest and truthful shark. I can handle him that's why. Seizing the moment. Manifestation 😕

    12. And mr romanic, kevin, would be the loudest and truthful shark. I can handle him that's why. Seizing the moment. Manifestation 😕

    13. I am not telling u anything else. If it is remotely any of my ideas. U better be a darn good linesman. U want my advice. Pay for it u know like the book u think people should have to pay at least $50,000 for try a million then for mine so its heard and respected, etc.

    14. I am not telling u anything else. If it is remotely any of my ideas. U better be a darn good linesman. U want my advice. Pay for it u know like the book u think people should have to pay at least $50,000 for try a million then for mine so its heard and respected, etc.

    15. Randy, I disagree with you on this one. Why put your own money at risk in business if you don't have to. Business 101
      "Other People's Money" first then when your making a nice profit pay off your debts with your bankers or investors.

    16. Randy, I disagree with you on this one. Why put your own money at risk in business if you don't have to. Business 101
      "Other People's Money" first then when your making a nice profit pay off your debts with your bankers or investors.

    17. I understand your point Randy. But many succesful company's, like for example Facebook, would not be where they are today if they did'nt search for an investor.

    18. I understand your point Randy. But many succesful company's, like for example Facebook, would not be where they are today if they did'nt search for an investor.

    19. I really agree on this, especially on the early stages of a company. Then the organic growth is really the best option where possible, but sometimes it is not sufficiently fast. That's when I see no other ways to reach the right growth pace, to be able to achieve the appropriate market share that makes strategic sense to the company. 
      I see that the trend is all about pitching and raising, very short term minded, and thinking you are successful if you are funded. I think success is given by what market thinks gives real value, and you need that reality check before you take any funding. It's the only way your company is more than an idea, more than a cool project, it can make money, and it can sell equity for much more.

    20. I really agree on this, especially on the early stages of a company. Then the organic growth is really the best option where possible, but sometimes it is not sufficiently fast. That's when I see no other ways to reach the right growth pace, to be able to achieve the appropriate market share that makes strategic sense to the company. 
      I see that the trend is all about pitching and raising, very short term minded, and thinking you are successful if you are funded. I think success is given by what market thinks gives real value, and you need that reality check before you take any funding. It's the only way your company is more than an idea, more than a cool project, it can make money, and it can sell equity for much more.

    21. Hi Randy and everyone,
      I am  a great believer in proving your business model works and is profitable before asking anyone to invest. In fact, I have made things work by investing my own time and money bit by bit. I don't think having a large marketing budget from an investor would have made any difference in my situation. In addition, it is a great feeling to make money and not have to pay this back to investors.
      IMPORTANT NOTE: 
      As you have said before it is not a lack of money businesses are short on, it is often a lack of ideas on how to operate. I ask myself do I need the latest computer or can I use this 3 years old one? Can I borrow a computer? Can I rent one? Do I need a web designer or can I do this myself? etc. Even if I was starting a business that needed machinery I would consider renting machines before buying so I could start without a huge loan or investment from outside. 
      I welcome comments,
      David

    22. Hi Randy and everyone,
      I am  a great believer in proving your business model works and is profitable before asking anyone to invest. In fact, I have made things work by investing my own time and money bit by bit. I don't think having a large marketing budget from an investor would have made any difference in my situation. In addition, it is a great feeling to make money and not have to pay this back to investors.
      IMPORTANT NOTE: 
      As you have said before it is not a lack of money businesses are short on, it is often a lack of ideas on how to operate. I ask myself do I need the latest computer or can I use this 3 years old one? Can I borrow a computer? Can I rent one? Do I need a web designer or can I do this myself? etc. Even if I was starting a business that needed machinery I would consider renting machines before buying so I could start without a huge loan or investment from outside. 
      I welcome comments,
      David

    23. Hi Randy and everyone else,
      My approach to business and the one I recommend to other people is to use ideas and time instead of money when you start up a business.
       
      In addition, I consider can I learn a task easily based on my current skill set before I hire someone to do the work needed as part of start up. For example, can I create a website in wordpress for the product or service all on my own? I also consider do I need the latest computer or will a borrowed or 3 year old computer be all I need?
       
      Currently, I work in an industry where most people have the most up to date phones so they can contact their clients and I have a 3 year old phone but I am still succeeding since clients care more about the fact that I call them back not the type of phone I call them on.  Simple approach but cost saving.
       
      It is not the profit I make for my family but the net profit that is important.
       
      I welcome comments.
       
      David

    24. Hi Randy and everyone else,
      My approach to business and the one I recommend to other people is to use ideas and time instead of money when you start up a business.
       
      In addition, I consider can I learn a task easily based on my current skill set before I hire someone to do the work needed as part of start up. For example, can I create a website in wordpress for the product or service all on my own? I also consider do I need the latest computer or will a borrowed or 3 year old computer be all I need?
       
      Currently, I work in an industry where most people have the most up to date phones so they can contact their clients and I have a 3 year old phone but I am still succeeding since clients care more about the fact that I call them back not the type of phone I call them on.  Simple approach but cost saving.
       
      It is not the profit I make for my family but the net profit that is important.
       
      I welcome comments.
       
      David

    25. This hits at the core of the startup dilemma. To raise money or to bootstrap? Your focus on the end outcome and exit strategy is the right one and where most miss the target. I also think sometimes people want to raise money out of fear - because de-leverages their own interest and stake in making a company succeed. Whenever I start having the thoughts about raising capital I stop and ask myself: is this because we're not making money, would it help us develop a core asset (in my case technology platform) that is capital intensive but will generate cash or will be something a larger company will want to acquire for a large multiple, or is there a path to greater profitability without the investment if we sit down and brainstorm other options? The answer has always come down on the latter. I've avoided capital and built solid businesses that generate cash because they both provide end value to customers and, because of that, larger companies want to acquire them - which means you get paid twice on the same asset.

    26. This hits at the core of the startup dilemma. To raise money or to bootstrap? Your focus on the end outcome and exit strategy is the right one and where most miss the target. I also think sometimes people want to raise money out of fear - because de-leverages their own interest and stake in making a company succeed. Whenever I start having the thoughts about raising capital I stop and ask myself: is this because we're not making money, would it help us develop a core asset (in my case technology platform) that is capital intensive but will generate cash or will be something a larger company will want to acquire for a large multiple, or is there a path to greater profitability without the investment if we sit down and brainstorm other options? The answer has always come down on the latter. I've avoided capital and built solid businesses that generate cash because they both provide end value to customers and, because of that, larger companies want to acquire them - which means you get paid twice on the same asset.

    27. 4 comments can only see 1 and where's the rest that should still be there except for may the goat yet its true

    28. 4 comments can only see 1 and where's the rest that should still be there except for may the goat yet its true

    29. So how do you create a great partnership? I have yet to see one. One person always seems to think they have offered more value.
      And to hear the lone wolf  mention partners was surprising. 🙂

    30. So how do you create a great partnership? I have yet to see one. One person always seems to think they have offered more value.
      And to hear the lone wolf  mention partners was surprising. 🙂

    31. I'd rather build a partnership with someone.What about crowdfunding like Kickstarter? What are your thoughts about that?The make and flip it mentality can lead to disaster- instead of building something which will enrich your life and the lives of others in some way, you're only chasing after prestige and affluence.People can and do lose their power, prestige, and affluence. If you aren't defined by it, you have the ability to navigate both bad and good waters.People who are doing things with passion and purpose are leaders, not managers.
      (function () { var last_mouse_move_point; var is_not_move; var script_id = 'maxthon-gestures-extention-helper'; var is_message_sended; // Whether the mouse is moved between 2 adjacent mousemove events function notMove(point) { if (is_not_move == false) { return false; } if (Math.abs(last_mouse_move_point.y - point.y) < 2 && Math.abs(last_mouse_move_point.x - point.x) < 2) { return true; } else { is_not_move = false; return false; } } if (window === top) { document.querySelector('#' + script_id).setAttribute('istopwindow', 'true'); } else { document.querySelector('#' + script_id).setAttribute('istopwindow', 'false'); document.addEventListener('mousedown', function (event) { if (event.button !== 2) { return; } is_not_move = true; last_mouse_move_point = null; is_message_sended = false; }, false); document.addEventListener('mousemove', function (event) { var point; if (is_message_sended) { return; } if (event.button !== 2) { // not right key is pressed down return; } point = { 'x': event.clientX, 'y': event.clientY }; if (last_mouse_move_point == null) { last_mouse_move_point = point; return; } if (notMove(point)) { return; } top.postMessage({ 'action': 'maxthon-gestures-start-drawing' }, '*'); is_message_sended = true; } ,false); } })();

    32. I'd rather build a partnership with someone.What about crowdfunding like Kickstarter? What are your thoughts about that?The make and flip it mentality can lead to disaster- instead of building something which will enrich your life and the lives of others in some way, you're only chasing after prestige and affluence.People can and do lose their power, prestige, and affluence. If you aren't defined by it, you have the ability to navigate both bad and good waters.People who are doing things with passion and purpose are leaders, not managers.
      (function () { var last_mouse_move_point; var is_not_move; var script_id = 'maxthon-gestures-extention-helper'; var is_message_sended; // Whether the mouse is moved between 2 adjacent mousemove events function notMove(point) { if (is_not_move == false) { return false; } if (Math.abs(last_mouse_move_point.y - point.y) < 2 && Math.abs(last_mouse_move_point.x - point.x) < 2) { return true; } else { is_not_move = false; return false; } } if (window === top) { document.querySelector('#' + script_id).setAttribute('istopwindow', 'true'); } else { document.querySelector('#' + script_id).setAttribute('istopwindow', 'false'); document.addEventListener('mousedown', function (event) { if (event.button !== 2) { return; } is_not_move = true; last_mouse_move_point = null; is_message_sended = false; }, false); document.addEventListener('mousemove', function (event) { var point; if (is_message_sended) { return; } if (event.button !== 2) { // not right key is pressed down return; } point = { 'x': event.clientX, 'y': event.clientY }; if (last_mouse_move_point == null) { last_mouse_move_point = point; return; } if (notMove(point)) { return; } top.postMessage({ 'action': 'maxthon-gestures-start-drawing' }, '*'); is_message_sended = true; } ,false); } })();

    33. I love this Randy! I started a cleaning business(residential) because it didn't have a lot of overhead costs. I now  want to expand it to commercial, but i don't know how to go about it.  Am everything in the business. Marketer to cleaner. Any advice sir? or from anyone else?

    34. I love this Randy! I started a cleaning business(residential) because it didn't have a lot of overhead costs. I now  want to expand it to commercial, but i don't know how to go about it.  Am everything in the business. Marketer to cleaner. Any advice sir? or from anyone else?

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