kendra is asking how much test-driving do you need to do before you ask for an
do you need to do before you ask for an
do you need to do before you ask for an investment oh I think I I think with all
investment oh I think I I think with all
investment oh I think I I think with all these things actually let’s let’s look
these things actually let’s let’s look
these things actually let’s let’s look at it the other way what are investors
at it the other way what are investors
at it the other way what are investors look for they look for a really good
look for they look for a really good
look for they look for a really good kind of management team and an idea so
kind of management team and an idea so
kind of management team and an idea so back to the product idea and I you know
back to the product idea and I you know
back to the product idea and I you know I know that you can raise money on the
I know that you can raise money on the
I know that you can raise money on the back of a mentoring team and idea I
back of a mentoring team and idea I
back of a mentoring team and idea I think for your your confidence because i
think for your your confidence because i
think for your your confidence because i hate kind of seeing you guys give away
hate kind of seeing you guys give away
hate kind of seeing you guys give away too much here companies i think you want
too much here companies i think you want
too much here companies i think you want a test drive again run it on fumes don’t
a test drive again run it on fumes don’t
a test drive again run it on fumes don’t spend loads of money to evans point
spend loads of money to evans point
spend loads of money to evans point because you can do things really cheaply
because you can do things really cheaply
because you can do things really cheaply especially through social media and
especially through social media and
especially through social media and digital and you can test drive loads of
digital and you can test drive loads of
digital and you can test drive loads of stuff really cool e but really cheaply
stuff really cool e but really cheaply
stuff really cool e but really cheaply as well and that’s what you should do so
as well and that’s what you should do so
as well and that’s what you should do so iterate it and test driver and i’d say
iterate it and test driver and i’d say
iterate it and test driver and i’d say i’ll be honest businesses should never
i’ll be honest businesses should never
i’ll be honest businesses should never stop test driving you know when they get
stop test driving you know when they get
stop test driving you know when they get super scale they should always be test
super scale they should always be test
super scale they should always be test driving stuff new ideas new products
driving stuff new ideas new products
driving stuff new ideas new products prototype them incubate them kill kill
prototype them incubate them kill kill
prototype them incubate them kill kill them if they’re not going to work if
them if they’re not going to work if
them if they’re not going to work if they are going to work cause correct to
they are going to work cause correct to
they are going to work cause correct to make sure they learn from it and then
make sure they learn from it and then
make sure they learn from it and then when you go to investors i think i would
when you go to investors i think i would
when you go to investors i think i would we’ve talked about this a lot i would
we’ve talked about this a lot i would
we’ve talked about this a lot i would always kind of try and run your business
always kind of try and run your business
always kind of try and run your business almost on fumes you want to plan your
almost on fumes you want to plan your
almost on fumes you want to plan your cash so you’ve got plenty of cash runway
cash so you’ve got plenty of cash runway
cash so you’ve got plenty of cash runway but i’m the best way to do that is
but i’m the best way to do that is
but i’m the best way to do that is either through friends and family
either through friends and family
either through friends and family certainly wouldn’t be going to get loads
certainly wouldn’t be going to get loads
certainly wouldn’t be going to get loads of money because I’ve seen the parallel
of money because I’ve seen the parallel
of money because I’ve seen the parallel the extreme and when I was a CEO of a
the extreme and when I was a CEO of a
the extreme and when I was a CEO of a nasdaq company and we were startup back
nasdaq company and we were startup back
nasdaq company and we were startup back in well this a long time ago 1997 we we
in well this a long time ago 1997 we we
in well this a long time ago 1997 we we had this phrase where we you know
had this phrase where we you know
had this phrase where we you know basically treat treat the company’s
basically treat treat the company’s
basically treat treat the company’s money as if it’s your own number one
money as if it’s your own number one
money as if it’s your own number one revenue always should follow expenses in
revenue always should follow expenses in
revenue always should follow expenses in a business kind of number to rule and
a business kind of number to rule and
a business kind of number to rule and number three rule we saw loads of
number three rule we saw loads of
number three rule we saw loads of companies at that time go and raise a
companies at that time go and raise a
companies at that time go and raise a hundred million dollars or two hundred
hundred million dollars or two hundred
hundred million dollars or two hundred million dollars and they would just
million dollars and they would just
million dollars and they would just waste money just you know you couldn’t
waste money just you know you couldn’t
waste money just you know you couldn’t believe the waste that be booking
believe the waste that be booking
believe the waste that be booking private jets and stupid stuff like that
private jets and stupid stuff like that
private jets and stupid stuff like that rather than worry about what really
rather than worry about what really
rather than worry about what really mattered was about the customers on the
mattered was about the customers on the
mattered was about the customers on the product so I think it’s a really good
product so I think it’s a really good
product so I think it’s a really good ethos even when you
ethos even when you
ethos even when you on the scale up your company to keep
on the scale up your company to keep
on the scale up your company to keep that kind of hungry sort of street
that kind of hungry sort of street
that kind of hungry sort of street fighter kind of mentality that we’re
fighter kind of mentality that we’re
fighter kind of mentality that we’re really going to preserve cash we’re
really going to preserve cash we’re
really going to preserve cash we’re going to preserve every dollar and we’re
going to preserve every dollar and we’re
going to preserve every dollar and we’re going to ask ourselves on that dollar we
going to ask ourselves on that dollar we
going to ask ourselves on that dollar we invest what fraternity we get but within
invest what fraternity we get but within
invest what fraternity we get but within that context I think there’s tremendous
that context I think there’s tremendous
that context I think there’s tremendous scope to test drives and when you feel
scope to test drives and when you feel
scope to test drives and when you feel confident in terms of your business your
confident in terms of your business your
confident in terms of your business your test driving to get investment then I
test driving to get investment then I
test driving to get investment then I think that’s a whole different
think that’s a whole different
think that’s a whole different conversation around where you get there
conversation around where you get there
conversation around where you get there but probably the last place i go for
but probably the last place i go for
but probably the last place i go for businesses like ours that we talk about
businesses like ours that we talk about
businesses like ours that we talk about is to the sort of traditional places i
is to the sort of traditional places i
is to the sort of traditional places i think there’s much better sources of
think there’s much better sources of
think there’s much better sources of investment and people who will be great
investment and people who will be great
investment and people who will be great partners to you and your business who
partners to you and your business who
partners to you and your business who can give you advice we potentially can
can give you advice we potentially can
can give you advice we potentially can join your board or your management team
join your board or your management team
join your board or your management team and all those sort of things and the
and all those sort of things and the
and all those sort of things and the final thing back to our recruitment
final thing back to our recruitment
final thing back to our recruitment actually back in the day Evan when I
actually back in the day Evan when I
actually back in the day Evan when I started a business I got people to join
started a business I got people to join
started a business I got people to join our company take a massive haircut on
our company take a massive haircut on
our company take a massive haircut on their salary and trade that for equity
their salary and trade that for equity
their salary and trade that for equity so they had a share of the business but
so they had a share of the business but
so they had a share of the business but wow did that change their attitude they
wow did that change their attitude they
wow did that change their attitude they had so much skin in the game and you
had so much skin in the game and you
had so much skin in the game and you know they worked harder and we build a
know they worked harder and we build a
know they worked harder and we build a great business and they got rewarded
great business and they got rewarded
great business and they got rewarded over long term much more than they would
over long term much more than they would
over long term much more than they would if they’re just taking a salary so
if they’re just taking a salary so
if they’re just taking a salary so that’s a question I get asked a lot from
that’s a question I get asked a lot from
that’s a question I get asked a lot from my audience and I’m cue to hear your
my audience and I’m cue to hear your
my audience and I’m cue to hear your perspective giving up ownership in a
perspective giving up ownership in a
perspective giving up ownership in a startup business who to give it to how
startup business who to give it to how
startup business who to give it to how much to give up because then your
much to give up because then your
much to give up because then your ceiling to raise capitals you grow and
ceiling to raise capitals you grow and
ceiling to raise capitals you grow and you can’t give the same percentage to
you can’t give the same percentage to
you can’t give the same percentage to everybody if you’re certain the business
everybody if you’re certain the business
everybody if you’re certain the business and you’ve identified some key employees
and you’ve identified some key employees
and you’ve identified some key employees that you want to keep long-term do you
that you want to keep long-term do you
that you want to keep long-term do you have advice on how to go about
have advice on how to go about
have advice on how to go about determining how much to give them and
determining how much to give them and
determining how much to give them and how much you want to lose in the
how much you want to lose in the
how much you want to lose in the business yeah i would say um Evan on
business yeah i would say um Evan on
business yeah i would say um Evan on this I think yeah this is this is an
this I think yeah this is this is an
this I think yeah this is this is an extreme philosophy but I would counsel
extreme philosophy but I would counsel
extreme philosophy but I would counsel you that everybody you hire should have
you that everybody you hire should have
you that everybody you hire should have equity in the business I think there’s
equity in the business I think there’s
equity in the business I think there’s no more powerful way to get commitment
no more powerful way to get commitment
no more powerful way to get commitment and to get alignment around
and to get alignment around
and to get alignment around the purpose and you know the dream that
the purpose and you know the dream that
the purpose and you know the dream that you have then people having real skin in
you have then people having real skin in
you have then people having real skin in the game so even if you have to sort of
the game so even if you have to sort of
the game so even if you have to sort of pay them hopefully you could pay them
pay them hopefully you could pay them
pay them hopefully you could pay them what seventy eighty percent of the
what seventy eighty percent of the
what seventy eighty percent of the market salary or even fifty percent and
market salary or even fifty percent and
market salary or even fifty percent and then give them the trade on equity then
then give them the trade on equity then
then give them the trade on equity then that’s a great thing to do and I’d say
that’s a great thing to do and I’d say
that’s a great thing to do and I’d say that pays for itself a hundred times are
that pays for itself a hundred times are
that pays for itself a hundred times are the other thing back to your message
the other thing back to your message
the other thing back to your message about partners if you’ve got a great
about partners if you’ve got a great
about partners if you’ve got a great product and you do our dependent
product and you do our dependent
product and you do our dependent potential on a distribution partner I
potential on a distribution partner I
potential on a distribution partner I don’t think there’s anything bad to if
don’t think there’s anything bad to if
don’t think there’s anything bad to if you’re if you structure something with a
you’re if you structure something with a
you’re if you structure something with a partner so they actually make an
partner so they actually make an
partner so they actually make an investment that’s a pretty cool thing to
investment that’s a pretty cool thing to
investment that’s a pretty cool thing to do in return for a bit of equity but
do in return for a bit of equity but
do in return for a bit of equity but then have some really big milestones in
then have some really big milestones in
then have some really big milestones in terms of distribution you for it the
terms of distribution you for it the
terms of distribution you for it the more with partners you know the real
more with partners you know the real
more with partners you know the real thing is how are you going to get them
thing is how are you going to get them
thing is how are you going to get them committed how you know if they’re
committed how you know if they’re
committed how you know if they’re carrying 50,000 products why do they
carrying 50,000 products why do they
carrying 50,000 products why do they care about your product so anything that
care about your product so anything that
care about your product so anything that you can do back to Evans but what can
you can do back to Evans but what can
you can do back to Evans but what can you do to differentiate yourself when
you do to differentiate yourself when
you do to differentiate yourself when they look in a catalog on a screen of a
they look in a catalog on a screen of a
they look in a catalog on a screen of a thousand products if yours pop out and
thousand products if yours pop out and
thousand products if yours pop out and they’ve got an investment in it that’s
they’ve got an investment in it that’s
they’ve got an investment in it that’s not a crazy thing to do and so on it
not a crazy thing to do and so on it
not a crazy thing to do and so on it comes back to sort of the design of your
comes back to sort of the design of your
comes back to sort of the design of your business what what’s your big idea how
business what what’s your big idea how
business what what’s your big idea how are you going to be successful and who
are you going to be successful and who
are you going to be successful and who are the people that you need and where
are the people that you need and where
are the people that you need and where the audience is to really deliver that
the audience is to really deliver that
the audience is to really deliver that dream do you have and then i would use
dream do you have and then i would use
dream do you have and then i would use equity as a good way i’d suggest as you
equity as a good way i’d suggest as you
equity as a good way i’d suggest as you grow and scale your business typically
grow and scale your business typically
grow and scale your business typically you’re going to dilute your company and
you’re going to dilute your company and
you’re going to dilute your company and you just have to accept that ah but
you just have to accept that ah but
you just have to accept that ah but again to have it’s always the old adage
again to have it’s always the old adage
again to have it’s always the old adage of North percent of a billion dollars is
of North percent of a billion dollars is
of North percent of a billion dollars is not as good as ten percent of a hundred
not as good as ten percent of a hundred
not as good as ten percent of a hundred million so you know I think you just
million so you know I think you just
million so you know I think you just have to be in some ways generous as you
have to be in some ways generous as you
have to be in some ways generous as you share the opportunity for world creation
share the opportunity for world creation
share the opportunity for world creation in your business and you connect people
in your business and you connect people
in your business and you connect people you the dream but I’d certainly look at
you the dream but I’d certainly look at
you the dream but I’d certainly look at some key stakeholder groups and then
some key stakeholder groups and then
some key stakeholder groups and then obviously if you’re raising money Evan
obviously if you’re raising money Evan
obviously if you’re raising money Evan I’d always go to things like friends and
I’d always go to things like friends and
I’d always go to things like friends and family are get network it i’ll
family are get network it i’ll
family are get network it i’ll definitely if you’ve identified a rock
definitely if you’ve identified a rock
definitely if you’ve identified a rock star potential sort of board member who
star potential sort of board member who
star potential sort of board member who really knows the industry that would be
really knows the industry that would be
really knows the industry that would be a great person to be invest in your
a great person to be invest in your
a great person to be invest in your business as well so as those sort of
business as well so as those sort of
business as well so as those sort of people people
people people
people people really going to have skin in the game
really going to have skin in the game
really going to have skin in the game who can bring something to move the dial
who can bring something to move the dial
who can bring something to move the dial for your business and normally that’s
for your business and normally that’s
for your business and normally that’s great experience or contacts or networks
great experience or contacts or networks
great experience or contacts or networks or access to markets and distribution
or access to markets and distribution
or access to markets and distribution very cool or Kenya is writing back to
very cool or Kenya is writing back to
very cool or Kenya is writing back to say thank you sir that is awesome advice
say thank you sir that is awesome advice
say thank you sir that is awesome advice and then a big happy face so I thanks
and then a big happy face so I thanks
and then a big happy face so I thanks tender this is like in the answer
”
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