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Authentic Business Relationships Authentic Leadership Authentic Negotiating Deal-Driven Growth Podcast Guest

How to Hire the Best

Business psychologist, How to Hire the Best author, and Tap The Potential Founder Sabrina Starling is back with us again! This time she joined me for an amazing interview we conducted live on Facebook. Dr. Starling has coached thousands of entrepreneurs to overcome the day-to-day struggles of business growth by getting out of their own way and developing a success mindset that propels them to higher and higher levels of success (and profitability). Last time we talked we focused on transforming small businesses into highly profitable, great places to work. Today, we focused in on her latest book in her How to Hire the Best series.

Small Business Owners with Growth Opportunities

Years ago, Dr. Sabrina realized she was working with small business owners who were passing on growth opportunities because they didn’t have the capacity to take on anything new. They were stuck in that place so many entrepreneurs find familiar: running their business reports, ordering supplies at Staples, and wearing so many hats they were ending every day drained and exhausted.

Even though they were reaching the point where more and more opportunities were naturally coming their way….they had maxed themselves out and could no longer take advantage of their natural momentum and growth. If they did happen to have an employee or two, they were often what Dr. Sabrina calls “warm body” employees. That is, they were technically hired to work there, so they were there. They didn’t really have that A-Player, above-and-beyond, valuable asset energy of someone who could help you reach a new level.

Dr. Sabrina knew what they needed: to hire A-player employees and increase their capacity! However, she also knew that hiring is a huge commitment. From candidate searching and posting your job, to screening and interviewing, to onboarding and then releasing responsibilities to this new team member — the time, expense, and potential for things to go wrong make it feel prohibitive!

That’s why so many small business owners and entrepreneurs make the choice to put off hiring until “later”. The truth of the matter is, however, that you will never magically become less busy. If your business keeps growing (which is usually desirable!), you’ll actually have less time and capacity. You have to choose to either “cap out”….or find a way to expand!

For Growth, You Need A-Players

As a business psychologist, she tried coaching business owners on how to turn their “warm body” employees into something more…and it just didn’t work. The alternative, however, seemed to be hiring top-line employees. A lot of small business owners didn’t feel that was possible. After all, the more skills and experience someone has, the more they expect to be compensated. 

This felt like a true dilemma, and was one Dr. Sabrina herself believed for quite a while!

One morning, however, she woke up with this question: “What if it’s not true?”

That question resulted in the search for small business owners who already had employees they considered A-level. She started interviewing them, and kept asking how they had found them and hired them. Their answers, again and again, were “I don’t know!”. (They also requested she come back and tell them if she ever figured out, because they all wanted to do it again!)

I see that as “unconscious competence”, which Bob Proctor has done lots of work on! Somehow, some small business owners had hit the hiring jackpot. Since they weren’t clear on how they had done it, they weren’t able to truly profit from it.

Eventually, Dr. Sabrina found that networking and word of mouth seemed to be the key for success. (Very similar to the most proven marketing techniques for finding clients.) Because the small businesses employing these tactics weren’t aware WHY they were working, they hadn’t been able to consistently and methodically employ them for ongoing, repeated hiring success.

Traditional Hiring Methods Don’t Work

When you follow traditional hiring methods, you have a 1 in 4 chance of hiring an A-player. (And a 3 in 4 chance of ending up with another “warm body”.)

Traditionally, you decide you need to fill an opening. You make a job ad, and put that out into the world. As applicants respond, you complete interviews, then you pick someone. That’s how we tend to do it….and that’s the method that offers a 75% chance of missing the best fit for the role.

In How to Hire the Best, Dr. Sabrina teaches employees how to leverage her non-traditional method that’s been proven to work consistently.

Part of her approach includes starting with the end in mind, and employing best practices in a strategic way.

The first question I had is, “When does all this start?” I knew it probably wasn’t going to be “Once you realize you need someone.” – and I was right!

A-Players Think Differently

For one thing, Dr. Sabrina notes that traditional job postings tend to attract people who are unemployed. This can mean they’re willing to accept anything — even if they aren’t that excited about your company, mission, or values, they’ll position themselves as if they are because they need the job. 

A-Players, however, move from one opportunity to the next. They are looking for opportunities, and they transition when people in their networks let them know about promising positions. You should be networking for A-Players long before in the position of desperately needing to hire.

The best time to hire is when you are generating consistent business leads. As soon as you hit your rhythm here, you should be tapping into your networks and using them to look for your next A-Player. I appreciate Dr. Sabrina’s technique here, and see that it would fit into the bucket I call “entrepreneurial freedom”. 

It’s important to note that A-Players aren’t necessarily people who are superstars on every level. An A-Player might be a role player with a very specific ability or capacity — but in your business, that ability is what enables them to shine. You can’t be the best at every single thing, and your employees can’t be either. It’s not fair to expect that from them!

Hiring an A-Player is more about bringing on the people who have the gifts, talents, and personality strengths to do what you need them to do. They also need to resonate with your business’ values and culture. When you can get them plugged in, the change is powerful!

So who are these magical people? Well, they are go-getters, problem solvers, and autonomous agents who know how to use resources. A team full of people who think like that can change your business from the inside out!

Build Your Team to Create Your Desired Lifestyle

Regardless of what you do, building a team enables you to create a lifestyle business that will allow you to step away as needed and have your business continue to run without you. (Your A-players are there making it all happen!) 

This could mean you’re setting yourself up for a 4-week vacation, or that you’re working on a future transition plan. Dr. Sabrina notes that no one comes along and says, “I hear you work 70+ hours a week in your business. I’d love to buy it!” No one is looking to buy a job, they want to buy a business.

When you learn how to hire the best, you’re setting your business up for success, both now and in the future. The more A-Players you bring on to your team, the more value you are adding.

Dr. Sabrina notes that if you currently have many players who are more like D-Players, it can be overwhelming to know how to fix it. She encourages business owners in that position to focus on hiring up as they grow. That might mean you have the chance to replace someone, and you find an A- or B-Player for the open position. Once you hit a tipping point (say 3 out of 5 are strong employees), those who are lower performers will either choose to leave, or will rise to the challenge. 

Gradually, your culture will shift!

If you’re looking to hire the best, you NEED to listen in to this interview!

 

Categories
Authentic Business Relationships Authentic Conversations About Difference Authentic Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth Podcast Guest

HR Insider Knowledge


Ashley Paré
is a Leadership Coach, Negotiation Advocate, TEDx Speaker, and HR Change Maker. She holds a vast reserve of HR Insider Knowledge that she’s gathered over her career. She’s also the CEO & Founder of Own Your Worth, an organization dedicated to breaking glass ceilings. Her signature leadership program, The Activator®, takes clients on a journey within to uncover the hidden blocks that are holding them back from stepping into their power. This is so they can take action to negotiate the career, business, and life of their dreams!

You may have seen her on Good Morning America, TEDx, New York Times, CNN, and more!

Early HR Ambitions?

When she was younger, Ashley wanted to be an author, psychologist, and live in London. (Looking back, she feels like her HR work was a little like being a psychologist!)

The first deal that stands out to her was her first post-college job. At the time, she didn’t know the “rules” of applying for jobs. She did know she needed to be able to make enough to afford housing and student loans, and when she got offered $15 an hour she countered with $16. (They met her in the middle with $15.50!)

That early success enhanced her confidence and showed her that it was possible to ask for more! However, that was a lesson she’d have to continue to learn how to activate as her career continued to grow. Ashley has seen that many women have a similar need to learn how to speak up and negotiate for what they desire. 

[Note: Ashley specifically works with women, and we focus on women’s issues in this interview. I do want to be clear that we both recognize that “women” are not one monolithic group, and that each person is unique and faces unique challenges. In addition, not all humans identify on a binary spectrum. No matter who you are, I think you can find some gems in this episode!}

Avoiding Your Own Core Truth

Many times young girls have no problem asking for a bigger slice of cake, so to speak. As they get older, however, they often stop.

Some of that may be connected to socialization, which often encourages women to be people pleasers, or to play the “good girl” role. Ashley believes that it goes even deeper, however. Somewhere on the journey, many women begin to lose their sense of self. We abandon our truths to ensure that we are liked and to avoid potential negative consequences.

Because speaking up for ourselves can lead to negative responses….we have a tendency to stop. Our sense of worthiness and self becomes dependent upon external validation, which is never fulfilling in the long run. If we don’t build our own sense of self through self-awareness, of course our inner confidence takes a hit!

This can lead women to retreat into their “shell”. It doesn’t have to, however! By digging deeper, women can tap into their core truth and own their value and their voice. 

In my own work, I see how being disconnected from your own core truth and value significantly impacts your ability to be a deal maker.

HR Insider Knowledge

As a former HR leader and business partner, Ashley had access to salary data, leaders, policies, and the best training. Yet, she still struggled to grow her career. She realized she had stopped self-advocating out of fear of what others would think of her, and focused so much on proving herself until she finally burned out. 

She realized that having the tools to navigate a corporate career is important, but what matters most is having the confidence to speak up and use them. Now she’s dedicated her career to sharing her HR insider knowledge to help clients define and articulate their value and effectively ask for what they want. 

Ashley notes that, in her experience, a vast number of companies prefer to be seen and experienced and flexible and open, especially to incoming candidates! When they offer you a position and potential salary, it’s often expected that you may counter with areas that matter to you. In fact, it might even be encouraged! Negotiating should never be seen as problematic.

The worst thing that can happen is they’ll turn you down; that’s okay! Even if you don’t get everything you asked for, it’s likely you’ll learn more about what your options are and where there may be flexibility within the company. That’s a good thing! 

Confidence in Negotiating

Ashley notes that she offers a variety of packages and rates for clientele. As an early business owner, she was apt to negotiate with clients over those rates. Now, however, she rarely does. She is well established, she owns the proven value she has consistently created over the years, and she sets her rates annually.

When she first started as a speaker, her contracts with larger companies and organizations were more likely to involve negotiating. Now, however, she’s found that she has not only raised her rates, but she’s also started getting more “yes’s”. Her ownership of who she is and what she does, and her confidence in communication, has decreased the amount of negotiating involved in getting the rates she desired.

We both see this phenomenon happening for many of the people we work with and around in our careers. Those who own their value and communicate it with confidence are able to command better rates, broker better deals, and have more success at the deal-making table.

Listen in here for the full interview!

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal-Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

Deal-Making is About Relationships

Here we are at the end of 2020. What a year! Today, I’m offering up a solo-cast that leads back to the most basic truth about deals: deal-making is about relationships. As I share often, almost every business deal is either the start of a relationship, or the continuation of an existing relationship. There’s just no way around it, and it’s a key part of how I teach about the deal-making process.

Also, we just celebrated our 100th episode with guest Joe Apfelbaum! It was an incredible interview, and Joe shared awesome insights about his deal-making prowess and partnership experiences. 

Relationships are a Key Deal-Making Ingredient

Whether you’re in an acquisition or merger, or you’re creating deals with partners, vendors, or suppliers, relationships are a key element. You name the deal, there’s likely going to be a relationship being established, built, or leveraged. 

The journey towards a deal is usually paved by relationships as well. Your broker, your agent, your banker, your partner, your friend — these are the relationships that position us to know who we need to know, get people to the deal-making table, and start the deal-making process.

That’s what makes relationships such an important part of both business and deals, not to mention our day-to-day lives!

2020 Highlighted How Essential Relationships Are

In 2020, relationships played a key role in my life for even more reasons than usual. 

The support, guidance, connection, and opportunities that came from relationships during this hard, long year were key for me. Not just for growth, but for peace, strength, and stability. Now, more than ever, I know that connection with others fuels me, fuels my personal growth, and fuels my business.

I know that many of you have had to make major pivots this year, and I’ve seen again and again how relationships can truly pave the way to make those successful. Even as things have been hard, relationships with family, friends, and industry professionals often provided a key element that allowed us to turn things around, make the best of the options available to us, or otherwise find a way to navigate this year.

If you’ve been part of my relationship network this year as a client, a friend, a podcast listener or guest, a DealDen member, or otherwise: thank you. I truly appreciate you, and I hope to continue together with you into the new year!

Know, Like, Trust: Business Relationships Pave the Way for Deals

People want to do business with people they like. It’s just the truth! 

When it comes to deal-making, nothing much changes. When you’ve built that know, like, trust factor via real relationships, you’ll find opportunities seem to naturally appear. Why? Because when someone is thinking about who to offer a partnership to, who to strategize with, who to make a deal with, they feel best if they’re doing it with someone they know, like, and trust. 

Being in a relationship with someone builds confidence.

Worried that you’re not well positioned when it comes to relationships? Well, there is no magic pill that will develop them overnight! In fact, it can take a long time to build relationships. As the old Chinese proverb says, however:

The best time to plant a tree was twenty years ago. The second best time is now.

Another note: Just because deals are technically transactions doesn’t mean that your relationships should be described that way! People sense when you’re only interested in them because you want or need something. If you only set about to build relationships because you’re trying to get something, it won’t work the way you hope.

Instead, practice nurturing your current network. Add value. Seek to serve. Find a way to genuinely support someone else. Connect with people you’ve possibly just “not seen” in the past. If 2020 taught you anything, let it be that relationships matter and are always worth investing in.

Listen in to hear my full thoughts on the connection between deal-making and relationships!

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast..

If you want to find out how deal-ready you are, take the Deal-Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

High Energy Purpose

Joe Apfelbaum is the CEO of Ajax Union, a business-to-business digital marketing agency in Brooklyn, NY. He’s been featured in Forbes, Entrepreneur, Inc, The Wall Street Journal and more. His newest book, High Energy Purpose: How to Be All in On Your Life and Find Your Truth, is out now.

Before we dive in, I’d love to share that this is my 100th DealQuest episode! This is a huge mile marker for our show, and I’m proud to have consistently released episodes for over two years now. If you’ve been a long time listener, thank you! If you’re just joining us, welcome in!

Making a Living Helping Businesses 

As a young kid, Joe watched his mother try to make a living. He knew that one day, he wanted to be successful so his own kids and family wouldn’t have to struggle so much. At the time he didn’t know you could make a living helping businesses. Now, however, he’s thrilled to be the CEO of Ajax Union, where he gets to do that every day! It’s been part of his own journey to high energy purpose.

Joe’s company works with large companies to build marketing funnels. Typically they work with the in-house marketing director to make sure that there are marketing systems and processes that will yield results. Qualified leads that convert are key, and randomized acts of marketing won’t cut it!

As Tony Robbins says, the right strategy will save you a decade. Rather than wasting time, Ajax Union helps companies market smartly.

Joe’s other company, Evyrgreen, helps influencers, coaches, consultants, and businesses make strategic use of their online time. They have a course and coaching program to help people leverage LinkedIn so they can get in and use the platform to make a difference in their businesses. This is worth checking out if you’ve wanted to uplevel your online presence in the new year!

Deal-Making History

Joe’s mother always told him, growing up, that he could never trust anyone else in his business. Although his mother worked hard as an entrepreneur, she never surpassed the million dollar mark. Joe wanted to go further, and for him to do that, for his own business, he was going to need to bring in other talent. He needed support from others in order to focus and get things done!

Early on, Joe had a business partner who turned into a close friend. They started their business together without considering anything beyond a 50/50 structure. There was no real strategy, other than building a million dollar business. Unfortunately, however, it wasn’t gaining traction. At the end of 2008, they sat down together to brainstorm. At the end of the night, they decided to offer SEO to small businesses. Although they weren’t 100% sure if it would work yet, it seemed worth trying.

They used a prepaid, recurring model in order to grow a steady income. Soon enough, they were closing 10 deals a month. When Joe approached the CEO of the company he was working for full time, he was encouraged to strike out on his own and focus on growing his business. In fact, that company even ended up signing on as his biggest client! (You can hear more about that in our interview!)

We Have to Focus to Achieve Success

At the time, Joe had multiple side hustles going on: IT management, tech, eBay sales, and other services. He had to think seriously about whether it was worth it to scrap all those side hustles and grow only the main company. His partner, however, told him it was non-negotiable if they were going to grow together.

After contemplation, Joe decided to go all in and focus. With his partner, they quickly grew to one of the fastest growing companies in America. They were making millions in revenue, but didn’t have the cash they needed to grow even more.

They didn’t have cash flow, but they had relationships with people. (Although at the time Joe didn’t really know how to move beyond transactional relationships and build real relationships for deal-making.) His partner approached a friend, who offered a hundred thousand dollars in exchange for 50% equity in the company, and the guarantee of a full time, paid position within two years.

They turned him down, but they also realized that possible partners could be interested in exchanging cash for equity. This was news! Joe and his partner were in a strong place because they were a strong pair. Rather than flying solo and appearing to be a flaky entrepreneur (which Joe says he was!), their partnership added stability and credibility to their work.

Taking on Investors

Their first investors offered money for small portions of the business, and it was thrilling. It was also clear that they absolutely had to become a five million dollar plus company if those investors were going to make their money back.

Joe was loving the growth, and avoiding the paperwork. He let his partner handle all the contracts, legal paperwork, conversations with lawyers, and more. That was a mistake. He was completely out of the loop when it came to what was happening in the business. He also didn’t realize that his own sweat equity in the business was worth something.

The biggest problem ended up being that there were no exit clauses. There was nothing; no way out, no clear end point.

Looking back, Joe considers it a miracle that they grew the business to the level they did, because they had no idea what they were doing. He thought he was the smartest person in the room, and he lacked the awareness to see what he didn’t know.

Now, he knows disastrous things can happen within partnerships without clear agreements. He absolutely recommends that ALL parties are involved in the creation, understanding of, and implementation of these agreements. The language must be clear. Everyone involved must know what the company’s future is, and what the terms are.

If you have a partner and are growing a business, you cannot think things will just “come together”. Definitely don’t disregard elements that seem too future facing. Having clarity is life-giving and creates a foundation for everything in your future. Don’t take that lightly!

Living With Your High Energy Purpose

Expectations for growth can create pressure sometimes. And when you take in significant capital, you can seriously stress your business.

Joe noted that he had no idea how to deal with their investors. He didn’t know how to communicate with them, and he didn’t know what they were allowed to do, or not do. Now, he notes that if there is a specificity problem in your business, you are responsible for that.

You have to lay down what is expected, and how things work. If you don’t know, invest in resources that will help you! Joe notes that joining EO is what made him realize he didn’t have things like core values, team huddles, and processes. Creating those things helped him shift himself as an individual and build a business that serves a much larger role than anything he could have created just flying along and focusing on making money.

These lessons have also taught Joe the integrity he needs to not only be a CEO, but to be a husband and father. As he’s learned to embrace and embody his values and integrity, he’s found how he can live with his best, high energy purpose and create a life he is proud of.

Listen in to learn more about partnerships, integrity, high energy purpose, and building a business you can be proud of!

 

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Leadership Authentic Negotiating

The Power of Feeling Worthy

Renee Reese is The Worthiness Queen. She helps leaders, entrepreneurs and professionals heal their relationship with money and success and finally experience the power of feeling worthy of their next-level dreams. She’s also a transformational writer, speaker, and teacher and an innovator in the personal development industry. 

In addition to all that, Renee is an attorney, certified success coach,  NLP practitioner, T.I.M.E. techniques practitioner and hypnotherapist. She speaks and teaches all around the world, focusing on mindset and personal development. She is a dynamic, in-demand speaker and audiences love her for her practical application and takeaways, transparency, and relatability. You can listen in to our full conversation here.

Childhood Joint Ventures

Growing up, Renee always wanted to write. Now, writing is a huge part of her platform and work (she has a book coming out soon)! She also had aspirations of being an actress, which didn’t materialize. Her speaking and teaching does put her on stage and in front of crowds frequently, however, which she enjoys.

The first deal Renee remembers was negotiating a sleep-over at a friend’s house. Her early strategy was to wait till her mom was in a great mood, and to then have her friend do the big ask, since her parents were less likely to say no to someone else! We might consider her a master of the strategic alliance, or even a joint venture!

As an adult, Renee now works with leaders, entrepreneurs, and more. She got started as an attorney, but found herself burnt out and exhausted early in that career, despite financial success. Unfortunately, she was noticing that a lot of technically successful people were lacking confidence, passion, and positive relationships with their money too. In her heart she knew: there has to be another way, because this can’t be all that success is.

If you’re healthy, with friends you love and money in the bank, but you’re lacking a sense of worthiness….none of it will feel good. All too often, high-performers go from one thing to the next, hitting goals yet feeling empty. Renee helps people create alignment so they can experience success both internally and externally.

As an entrepreneur myself, I know how powerful alignment and personal money relationships are!

Owning Your Worth

I know that owning your own worth is a huge part of successful negotiations. When you’re dealing with fear, scarcity, and lack — it’s almost impossible to create strong negotiations you can confidently bring to the table.

Renee has noticed that when people are struggling with worthiness, they often struggle to come to the table with clarity on their non-negotiables. It’s not about being aggressive, it’s about matter-of-factly knowing what you need, what you’re willing to compromise on, and what you plan to take away from a deal. When you’re not coming from a place of worthiness, you tend to feel a strong sense of urgency around forcing deals to go through. Why?

Because your sense of success and worth are tied to the outcome of every deal. When you KNOW you’re coming from a place of worthiness, you don’t have to feel that your own reputation, worth, ability, or success are tied up in the deal. You are empowered to hold firm to your own non-negotiables, and you know you can walk away if the deal isn’t a good fit for you.

This is easier said than done! Owning your value and knowing our worth are powerful….but often they are concepts we only understand intellectually. Living it is a whole different ball game. Renee shares that owning your own value starts with your relationship with yourself.

You have to know your own desires, know your own strengths, and know the outcomes you want. Renee literally tells herself: “Self, you can tell me anything.”

She knows her boundaries, she knows what she craves, and she defines herself on her terms. Rather than trying to escape and avoid feeling bad feelings, awkwardness, loneliness, or scarcity, we often try to run (and force things to happen). Instead, you can actually allow yourself to sit with yourself, feel those hard things, and know that you can trust yourself to listen to yourself, be with yourself, and show up for yourself.

Trust Building With Ourselves

In a romantic relationship, you expect to build trust slowly. The relationship with ourselves is the same. We have to start slowly, communicate openly, and demonstrate acceptance and care.

One way of building self-trust is to keep the promises you make to you. If you said you were going to make your bed every day….ask for the promotion…write the book….you can build trust by actually showing up and doing those things. Pay attention to the ways you show up for yourself, and also take note of the ways that you don’t show up. Actually listen to yourself: what’s happening when you don’t show up? Why won’t you keep your word to you? Be willing to listen, learn, and make changes as needed.

When it comes to achievement and growth, Renee says we can build trust in our ability to experience success as well.

She recommends writing down three things you’ve already succeeded in, and three things you’d like to succeed in. Just like you’ve succeeded before, your mind starts to see your new list as things that are possible as well. Whether we believe it or not, we are constantly creating in our own lives. The best way to tap into that power is to be intentional about creating the vision we actually desire.

We all carry subconscious beliefs about topics like money, achievement, power, and success. Everything in our world starts with belief.

Self-Belief and Deal-Making

If you walk into a negotiation with the belief that the other person at the table is better and smarter, or that they deserve more, of course you’ll be dissatisfied with the deal you make. You’ll sell yourself short, and make compromises.

When you believe in yourself as someone who is intelligent, deserving, and successful, you’ll show up at the table differently. 

I teach that being crystal clear on your objectives and outcomes is an essential part of deal making. What Renee is saying here is so true: if you come to the table with a lot of internal blocks and haven’t done core level work, it does impact your negotiating.

Self-worth also impacts the deals you’re willing to attempt to make. If you can’t get by your fundamental self-worth struggles, you deeply limit the rest of your life.

Building the Life You Deserve

Renee’s work centers on helping people overcome these internal struggles and limitations so they can truly experience alignment and success.

One of her favorite clients was experiencing some level of success, but also dealing with massive amounts of doubt and fear. People on the outside wouldn’t have known, based on how she showed up, but she was unhappy.

From her business structure to the way she was showing up….she knew she wasn’t owning her work or her worth. When Renee started working with her, she was going through a dry spell, which was a repeating pattern in her life.

She would hit new income goals, then go into a complete slump and have no money again. It was the feast or famine cycle, which many entrepreneurs are familiar with!

Renee used strategies and tools from her NLP training that helped the client go straight to the root of her money beliefs. Internalized beliefs about being secondary, not deserving, and less than had impacted this client since childhood, and when she understood what they were based on she was able to blast through them and experience transformation.

Clearing past beliefs opened up so many new doors for her, and it all started with the root. Renee’s clients find that clearing these blocks changes their lives and their businesses.

Externalization + Personal Value

I noted that our society sends us so many messages about what we need to have and how we need to look in order to be valuable or worthy. That deeply impacts our confidence and self-worth, which bleeds over into our businesses and deals.

Renee agreed, sharing that consumerism is a huge driving force for many of us. It fuels a more, More, MORE mentality that makes it impossible to understand the abundance that is available to us in the present moment. And the reality is….there is never going to be enough in the external world.

There will always be something new, something different, something bigger and better that tells us we aren’t enough. We cannot understand our own personal value and worthiness when we are constantly looking at external measurements for validation. 

When we are building our relationship with ourselves and our own self-trust, we have to be able to detach from external messaging and gain clarity about our own values and desires. That’s the only way to maintain an internal sense of value and confidence, regardless of external circumstances.

Another way of coming at this is to clarify our WHY. If we are pushing ourselves to achieve because we are measuring ourselves against what we “should” be doing, it’s not going to work. Growing for growth’s sake to fuel vanity isn’t going to serve you in the long run. Get real with yourself about what you truly desire, and why it matters to you. Those are the goals that matter – that’s what you need to pursue.

To hear more about Renee’s take on negotiations and worth, listen to the full episode here!

 

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast

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If you want to find out how deal-ready you are, take the Deal-Ready Assessment today!

 

Categories
Authentic Business Relationships Authentic Deal-Making Deal-Driven Growth

A Capital Raising Journey

Sherisse Hawkins is a multi-talented builder, learner, risk taker, motivator, rainmaker, and speaker. She has a strong engineering background. Beyond that, she is the creative minded CEO & founder of Pagedip. Sherisse also has a proven record of meeting impossible deadlines, delighting customers, and re-imagining how things can be done. She believes anything is possible in the digital world, and is passionate about driving innovative content. She’s appeared in Vanity Fair and on Shark Tank. In this interview she shares more about her capital raising journey and other business experiences.

Early Deal-Making Experiences

Sherisse notes that she didn’t think of deals or deal-making until she became an entrepreneur. In her earlier work experience she had thought of decisions and deals pertaining to technology usage as being more technical. You examined which systems were most sound and used those. Pretty clear cut!

Moving into the entrepreneurial world and becoming a founder & CEO revealed how many other factors come into play. There are so many factors beyond “by the book” choices. Even when dealing with the objective facts of technology and science, things weren’t as clear as they had once seemed.

Becoming an Entrepreneur 

Not everyone is cut out for entrepreneurship. This isn’t just about having the dream, or being financially set up for success. Instead, there is a necessary personal mindset shift that must be experienced. This shift is what allows some people to make entrepreneurship a reality. 

Having worked in very large organizations, such as Walt Disney Imagineers, Sherisse hadn’t had the experience of working in a small company prior to starting her own. She understood that there were going to be financial risks. But she also knew there were going to be risks of not following her dream. She recognized that she liked starting things, and enjoyed getting things into the state they needed to be. That might be connected to her engineering background.

Sherisse shared that, throughout her life, she’s found that it’s intensely satisfying to take things apart and put them back together. There is a sense of exhilaration when a set of code works, or something comes together for the first time.

She found that same exhilaration in entrepreneurship. Although she had a great title, a corner office, and a bonus system at her role, she had a pull within her heart. She knew she could not deny the call to entrepreneurship. The field of communication and the development of digital tools held huge potential, and Sherisse knew she could make an impact. Finally, she took the leap.

You often hear of people in their young 20’s and even late teens starting companies and becoming millionaires. However, the average entrepreneur starts their business in the 30’s, 40’s, and later. There is no real time in life that it’s too early OR too late to become an entrepreneur.

Seeking a Co-Founder 

With Pagedip, Sherisse shares that she feels they’ve created what Microsoft Word might have been if they had created a word processor in the time of the internet. Essentially, they’ve created an editor that allows the user to marry core content with other elements. This combination creates a narrative flow that compels the reader to actually use the content you create. (Unlike traditional documents or PowerPoints!) Additional information can be added into what you’re sharing, all while allowing readers to stay on one page. 

As a result, materials can be kept up to date. Analytics are possible, so you can see where readers spend the most time, and which addition information mattered to them. Best of all, everything can live in one place. Pagedips are interact-able, measurable, engaging, and secure documents that create experiences for their users.

In terms of raising capital, Sherisse shares that she initially started the company with her own money. She was hoping for a technical co-founder, but had a bit of trouble finding the perfect person. Many of her peers didn’t want to take the risk. Eventually, she found a new graduate who seemed like a good fit.

Shortly after, they headed to an accelerator in Australia to get things moving! (She learned of this from Jen Matthews, who she had connected with after hearing her speak.) With her co-founder, she was able to further incubate the idea and started to understand the role capital raising could play in getting the organization off the ground. Sherisse sees that bootstrapping likely makes sense in some instances. For Pagedip, however, it was clear that bringing in outside capital made the most sense.

Notes on Capital Raising

After their first pitch, there were a number of investors interested in their idea. Not surprisingly, since that initial pitch, Pagedips has pivoted, as most businesses do. That initial interest was a great early start!

Sherisse shares that if she had known everything she knew about how difficult fundraising can be, she might not have taken the leap. (So she’s glad she didn’t know!) Raising money can be really hard. It’s made even more difficult for women and people of color. When she looks back at those early experiences now, she sees that the data supports the experience she had.

The company has now had two rounds of seed investments. Sherisse notes that fundraising takes longer than you think. It really is a full time job. There is a tension between wanting to move the company forward and invest time there, and needing to devote a huge amount of time to actually fundraising.

Along the way she’s had feedback that the company is thinking too small. Some investors have said they should be aiming to be much bigger and larger. She’s also gotten feedback that the idea is too big. This advice is usually paired with a warning that they need to think more reasonably. Between the two, “too small” is most common. Investors want to invest in something that will earn them back the largest possible dividend. That means more income, more markets, and larger numbers. It means casting a bigger vision with more dollar signs.

Want to hear about Sherisse’s appearance on Shark Tank? Curious as to why many companies DON’T need to seek investors? Listen in to the full episode!

Capital Raising as a Woman, a Person of Color, and Engineer

Sherisse shares that she approached this journey as an entrepreneur, a woman, and a person of color. Those identities came into play throughout her business building and fundraising journey. Although you cannot know what your experience would be if you did not possess those identities, she did feel that there were still some stereotypes. This was especially true about what technologists and professionals in the space were expected to look like.

She knew that her company was changing how people would experience information sharing forevermore. That’s a bold statement and huge undertaking! In a five minute pitch for that level of technology, there’s not time to dig into your background, prowess, and ability to pull that off. (And still share about the actual idea you’re presenting).

You don’t have the opportunity to share about the relevant experience you’ve had throughout your 20+ year career. You don’t have time to combat stereotypes AND establish your ability to succeed with a new venture.

Somehow you have to find ways to convey that experience and expertise. You can do this through non-verbal communication to save time. In addition, Sherisse noted that it was essential to bring that background to the forefront. Sometimes that did mean spending a bit more time on those areas than others who more apparently fit the funded founder check-boxes might need to. (Which also means less time to spend on pitching the actual idea itself.)

Sherisse found it was vital that she was able to own the fact that she is a technologist and a visionary in her field. That ownership was a key element in her ability to create a compelling pitch with confidence.

Studies have shown that perceptions about gender and race create huge assumptions about a person’s ability and capability. Everything from music auditions (read about the impact of blind orchestra auditions here), being considered for a Ph.D. program  (read about the impact of name and gender here), to the weight that GPA, professional experience, race, and gender play in hiring (read about the impact of these and other factors here) can be impacted by a person’s perceived race and gender. Appearance can immediately play a role in whether you can even secure the opportunity to show what you’re capable of. (Not only “can”….studies show that it most definitely DOES.)

Personal Growth and the Internal Journey

Sherisse shares that she is tenacious to a fault. Something she’s grappled with in her journey is when (and if) there is a time to say, “This is enough.” She hasn’t found that place yet! Instead, she keeps on pushing forward and growing.

One thing that fuels her is the belief that if you can see it, you can be it. She knows that there aren’t a lot of women, or women of color, within her field. Years ago, Vanity Fair brought Sherisse, as well as other women of color who had raised over a million dollars in capital, together in one place. They all fit in a really small room. There just weren’t that many people in those categories to invite! As someone who knows what it is to be one of the first, Sherisse notes there can be a lot of doubt about what is possible.

She also shares that she would be remiss not to mention that there IS a little part of her brain always processing what is possible in our time and within her industry. There aren’t a lot of people who look like her who have experienced a large amount of success in her industry. That’s a big undertaking, and an interesting journey!

In general, founders raising capital are a small group of entrepreneurs. Capital raising and making over a million dollars, an even smaller group. Among these small groups, white men continue to make up a majority. This means we still have this picture of representation that validates that we belong in the space, and that we can succeed.

As someone who has benefited from some of those privileges and has been committed to use that privilege to promote equity, provide opportunities and stand for representation of people of all backgrounds, I appreciate Sherisse sharing her journey with authenticity. Her commitment and drive to overcome the challenges of not fitting the mold and breakthrough and reshape the mold for her own benefit and that of others inspires me. 

Learn More

To learn more about Sherisse, Pagedip, and the capital raising journey, listen in the full episode! You can connect with Sherisse directly by emailing [email protected].

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Leadership Authentic Negotiating

Internal Succession Deals

What is the likely time you’ll want to retire? What happens if circumstances force you to leave your business earlier than planned? Your retirement and ownership transfer may be on your own timing, or dictated by things you may not control. Either way, having as many options as possible is advisable. While you might be able to sell to an outside party, you should also consider having internal succession on the menu.

How to Best Position for an Internal Succession Deal

Depending upon the size of your company, grooming a successor and/or building a strong executive management team is crucial. Empowered, knowledgeable employees create a potential pool of buyers. These buyers might be excellent candidates for a buyout when you’re ready to retire or move on. The great thing about doing that is your company is more likely to be able to operate without you. As a result, even while you have full ownership you’re putting yourself in a strong position for an external sale as well.

An internal succession deal is essentially an opportunity for you to sell your company to your existing team or one key employee. This may occur upon your retirement, death, or permanent disability. Creating an internal succession plan and binding agreement in advance with the management team or key employee is an essential step toward a successful internal succession deal.

Advantages of Internal Succession Deals

One huge advantage of this kind of deal is that you’re working with someone who knows the company. They understand the company culture. They’re also familiar with the ideal clients and the “state of the union”, so to speak. They may not need to spend as much time doing their due diligence and understanding the company at its core. (Note: They also know your skeletons, so there is a lot of transparency in most internal succession deals!)

If you’ve built a great company with a great team, an internal deal can require less “selling” of the deal. Another advantage? Continuity! Relationships in business matter. Clients and customers are often more comfortable when they understand they’ll be able to continue working with the same team and philosophy. They are less likely to completely revisit the relationship when they feel they are still working with the same people.

Also, a majority of deals are done as asset sales. (As opposed to equity deals.) After all, the buyer doesn’t want to take on a huge liability risk. This is often the structure for an internal succession deal as well. However, there are possibly more opportunities to consider an equity deal when you’re dealing with someone who truly knows the ins and outs of the company. They are taking on less unseen risk. This may make an internal buyer more open to the potential heightened risk of an equity sale. This is a huge plus because equity sales can actually be smoother than asset sales.

(Listen to the full episode to hear more about assignment issues, consents, and a note on taxes!)

Finally, consider making it known to key employees that you’re willing to consider an internal succession deal when you reach retirement. You may be able to retain high-level employees who have a desire for ownership. When these employees know that they will have the option to gain majority control, or maybe even 100% ownership in the future, that may be the incentive for them to stay. Even if a larger company offers them more benefits or higher pay, ownership incentives (which can be set up in advance via legal agreements) will often outweigh other benefits and perks offered by larger companies.

Disadvantages of Internal Succession Deals

A possible downside to internal succession is lack of funds. There may not be an ability to pay the purchase price if the internal buyer can’t find the necessary capital. There can be limited funding options, and internal buyers sometimes want the owner to essentially fund the note and get paid over time. Although financial options are increasing in many industries, the lack of capital is sometimes an impediment to internal succession deals. One antidote is to plan in advance. Pre-planning increases the chances that an employee interested in buying the business out will have the ability to finance the deal.

When deals are done internally, there is often a lower valuation. This corresponds with a price discount — even if small. This can be because the deal is easier to get done. It may also be a result of working with people you trust, recognizing their contribution to the growth in value of the company over time, or other reasons. External buyers are often able and willing to pay a bit more for their own strategic reasons. However, they bring other issues and risks that may not exist for an internal sale.

Setting Up the Deal

There are a number of ways this may be done. For example, you may set this deal up where an internal buyer is able to buy the company over time. This could be at 5% a year, or some other breakdown that makes sense. You may also consider how much a buyer would need up front, how much they can pay over time, and whether this is a full buyout or if you’ll retain minority stock or equity in the company.

When you’re allowing employees to buy into a company over time, the owner often does not want to put themselves into a position in which they are still working in the company but now have a minority ownership. This can be remedied by creating legal agreements to ensure that you have control of decision making within the company until the point at which the buyout is going to be completely transitioned. For example, a structure at which the full out buyout occurs after ownership by the buyer reached 49% over time. So while the buyer might have been buying 5% – 10% a year over a period of year, for example, after reaching 49%, the next purchase is for the remaining 51%

Also, remember that you can divide ownership and voting control. So you can give up the majority of the economic benefit of equity ownership while still maintaining decision-making control.

Another consideration: what assets will be used as security for backend payments? In essence, if the buyers don’t pay you, will you be in position to take the company back? What recourse will you have? In reality, most people don’t want to be in a position in which they would be at risk of having to leave retirement in order to reenter the company. For that reason, you may consider other forms of security or protection.

Best of Both Worlds

There can be some frustration here. An employee making the purchase may be trying to have the best of both worlds by taking on ownership of a company without the risks of buying something unknown or starting something new. They may not want to offer a second mortgage on their home or other personal assets as collateral against possible failure. Or they may not have those things as an option.

Although internal succession deals can be wonderful for both parties, it is essential that there are protections in place to protect against worst case scenarios. Be clear about what you’re comfortable with when you show up to the deal table.

In an internal deal, you know who you’re dealing with.

You know if you’re passing the business into capable hands, and ideally you’ll know enough about their work ethic and way of thinking to know that they’ll carry the business forward. However, you don’t know what could happen with all sorts of factors: the economy, global pandemics, unexpected losses, and any number of potentialities could arise that complicate an otherwise solid business deal.

Finally, I would encourage you to truly spend some time pre-planning your own transfer and retirement. Do you have the right people in place? How will you preserve your legacy? Do you want a slow transition or a full stop when you’re ready to be done? Are you dealing with yourself as a single owner, or do you have business partners/founders whose views are important?

Listen in to the full episode for more strategic thinking on internal succession deals.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Deal-Driven Growth

Business Partnerships Deals

Today we’re diving into business partnerships! Many businesses have more than one owner; you can spread the risk, add expertise, double your network, and share necessary tasks. It makes sense!  Adding a partner, however, isn’t as easy as just signing someone new on. From business issues to legal structuring, we’ll talk about the important things you need to know!

Fundamental Business Partnership Considerations

Business partnerships often arise when a new company starts. They might also arise when a new partner joins an existing business owner within their company, or when multiple businesses comes together.

However your partnership starts out, there are a few fundamental “buckets” you’ll want to consider.

Bucket #1 – Decision Making & Control

Who makes the decisions on what kind of things? Who has voting rights?

There are various levels of decisions that occur in any business. There will be distinctions within the partnership for who is in charge of what. For day to day decisions, there is often minimal documentation. Partners usually have tacit agreements about areas of oversight in order to keep things moving.

Once we branch into larger areas, however, clarity becomes key. Imagine one partner is a ⅔ owner and is a ⅓ owner. Does the larger majority holder automatically control all decisions? Do they have the final say? If no agreement has otherwise been made, this will be the default setting. (Possibly with a couple of exceptions under state law.) Alternatively, you may have a supermajority or unanimity requirement. That would impede a majority owner from making decisions without a minority owner’s approval.

Questions of selling equity, hiring/firing key employees, incurring debt or acquiring other companies?

You need to be aware if one partner has more decision making power than the other. All parties within the business partnership should have clarity around the level of decision making control they have.

I provide my clients with a list of extraordinary transactions for the business partners to review as they consider business partnerships. These transactions include large decisions like bringing on new partners, spending a certain amount of money, or otherwise making larger decisions. It’s crucial for business partners to get clarity on these matters from the get go!

Additionally, you’ll want to consider equity. Will everyone in the entity have the same class of equity? It’s not uncommon to create an A Class for founders, and a B Class for others buying in later. However, there are so many equity and capital structure variations that they need to be tailored to your specific needs and desires. Keep in mind that this is something that must be decided and created, not something that automatically happens.

Bucket #2 – Economics & Cash Flow

Who holds the purse strings? How does the money flow?

Just because someone holds a certain percentage of a business does not mean they are entitled to that percentage of the split. (If three people own a company, it is not a given that compensation must be split into even thirds.)

For instance, within a business partnership there may be a consideration given for services or contributions in addition to ownership. Whether this is paid as a salary, as a guaranteed payment, or as an additional distribution, it is important to understand how each member of a business partnership will be compensated for their role in the company.

Will the compensation element be directly tied to ownership elements? Or are there other factors that may be just as important, if not more so?

It’s much better to gain cash flow and economic understandings from the outset, rather than assume that others are in agreement and find out later that there are resentments and confusion.

Bucket #3 – What ifs?

What if someone dies or becomes permanently disabled? If someone retires? What if someone wants to leave the business? 

One important decision you should make within your business partnership is what will happen if a partner passes during their time as an owner.

If a partner dies and there is no written agreement, their share of the company will pass to their next beneficiary from their will. This could be a spouse, child, or relative. In an instant, your business could have a new business partner who, very likely, knows nothing about the business. For this reason, buy/sell provisions should be included in the operating or shareholders’ agreement for the business partnership protect the other living partner/partners from being forced into a business partnership in which they did not intend to be.

A buy/sell gives partners the right and ability to retain equity by purchasing it from the deceased’s estate. This is a powerful form of protection that can prevent a company from moving into the hands of an unintended party. It’s also a gift to the family, who is able to monetize their ownership and be compensated for their family member’s role. Ideally the estate or family receives fair compensation, and it’s a win/win for both parties.

In terms of being able to buy those shares back, we most often recommend a term life insurance policy that has been set up as a cross purchase. As a funding vehicle it won’t hurt the company’s cash flow, and allows partners to quickly compensate the family and retain shares via a buyback.

To hear more about how disability insurance can come into play, listen to the full episode.

Additionally, you’ll want to consider retirement expectations. Along with retirement criteria, you should discuss potential non-compete/non-solicit agreements. These would come into play if a partner leaves without retiring.

If a partner were to leave, what would happen with their clients? Is there a way to divide the business if members want to dissolve the partnership at some point? Are there buyout provisions in place?

The truth is, there are a lot of decisions to make when it comes to business partnerships. There are too many nuances to just pull a pre-formatted agreement off the internet. You can’t just use the one your friend used for their company. Like with the old Fram oil filter commercial: you can pay your attorney and other professionals now, or you can pay them much more later. That’s what happens when things weren’t done right the first time around. You end up having to clean them up or deal with a dispute.

Listen to the full episode on business partnerships here!

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Leadership Deal-Driven Growth

Mindset of a Deal-Maker

Daryle L. Johnson is the president and co-founder of SmartIT Mobility. He’s also the owner of Ideation to Valuation. Daryle is responsible for setting overall sales, partner, and supplier alliance strategies. He’s also empowered to leverage corporate assets to deliver value with integrity and quality. With the mindset of a deal-maker, he is an innovative, energetic, creative, and very charismatic intrepreneur AND entrepreneur. 

He brings over 20+ years of market, business, and solution development experience to the DealQuest show today! Partners and customers include Google, T-Mobile, Sprint, and HP. In addition, he serves on several boards including Doorways, Mobil Trackr, STEMnasuim Learning Academy, and AIS Solutions. 

Mindset of a Deal-Maker

As an entrepreneur, Daryle believes in taking 100% ownership of his destiny and work. This requires effort, passion, and flexibility. It also requires the powerful mindset of a deal-maker. It’s this mindset that enables him to leverage partnerships, relationships, and opportunities within his business.

Daryle notes that being a deal-maker isn’t just a skill. It’s truly a mindset. 

It is absolutely vital that entrepreneurs understand that deals aren’t a one time event that happen. In fact, often amazing deals are disguised as “sales”. Entrepreneurs may not even realize how many deals they make, simply because they don’t think of them that way. They also may not realize how much power they have to create deals all the time. You must recognize that every sale has the potential to be a deal. When you grasp that, you can influence those outcomes with the mentality you bring to the table, and you have more power in your business.

K-12 Deals

Daryle shares about a deal he negotiateted for schools that took all of their needs into account. From pricing to software, he covered every possible problem that could have created issues for the school board. He partnered with T-Mobile (for both software and sales teams). Then, he brought in a training company to work with teachers, and he leveraged long-term marketing strategies to bring up front costs to the school down to $1 per device.

He also anticipated parent issues, teacher frustrations, and student needs. The final deal was the result of dozens of smaller partnerships, leveraged resources, and connections. Also key? His mindset. Rather than seeing the problem as too big, the partnerships as too complicated, or the schools as too difficult to negotiate with, he chose to see the possibility. 

Every challenge was faced, and solutions were created. Why?  Because he believed that it could be done. Ultimately, the program provided technology to over 60,000 students. It also spawned other local deals for Daryle, as a result of ongoing negotiations and collaborations.

In theory, Daryle could have gone into the school and said he had a solution he was selling for X price. If he had, he wouldn’t have been successful. Instead, his deal-maker mindset enabled him to create a full package. He provided a comprehensive solution in a way that made sense for his audience, and they bought it.

At the end of the day, that deal was all about the impact.

When he looks back at that deal, Daryle sees how powerful the subsidy of the carrier commission was for driving down the prices and making the product accessible. He’s the first one to say that they didn’t make much money on it. Instead, they made an impact. Although his strategies could easily be used in a more financially lucrative way, in this case he wasn’t looking for profit.

Follow the Process

In complex deals and negotiations, there are a lot of parties involved. It can become difficult to manage personnel and expectations. Daryle acknowledges that there are challenges. Over the years, he’s developed a process that works for him and keeps things moving forward.

The first thing he focuses on when making a deal is relationships. He wants to know what kind of relationship businesses or possible partners are open to having. Will it be transactional, strategic, temporary?

He’s open to any answer, but he wants to know up front what the situation is.

Next, he wants to know about the budget. If the numbers are off, it’s better to stop up front. It’s vital to have a money conversation before any party is in too deep. 

From there, clarity on what is being solved is key. Daryle also pushes that “what” one step further. He asks: If we solve that, what happens? What is the impact? What changes?

Once clarity is achieved, he finishes his process by asking how others envision this all happening. It’s key that everyone on the team or involved in the deal has an understanding of what it’s going to take to make it happen. They also need to be onboard with doing what needs to be done.

If someone is still standing, then it’s time to get started! And if the process has eliminated other parties? He can walk away and save a lot of time and trouble.

Strategic Deals

In a strategic deal, each party should understand the potential for something larger than just a single transaction. It’s not about just that one agreement; it’s about the potential of what could occur in a continued relationship.

In addition, Daryle shares that strategic deals have a functional fit. Value for value, every party is fully engaged. There is no one making money or getting paid that isn’t providing value as an essential part of the process. There’s also an understanding about who is taking the risks and where the costs lie.

Daryle prefers to keep a few deals moving at all times.

He’s always looking for ways to expand, grow, and build up credibility. Part of this is in building value equations. It’s not about his name, or a partner’s name. It’s about having something that has value on the market and that can be repeatable, scalable, and sustainable. Rather than one off deals that may or may not go anywhere, Daryle works hard to create deals he can leverage in the future to continue building on his past success.

On a closing note, Daryle suggests that audacity and out of the box thinking are key. Always be looking for new ways to add value, and don’t be afraid to push the envelope. You never know what you’ll get when you ask for the mildly ridiculous!

Listen to the full episode to develop the mindset of a deal-maker today!

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

Categories
Authentic Business Relationships Authentic Deal-Making Authentic Negotiating Deal-Driven Growth

Dealing With the Potential Risk of Negotiations

This week’s guest, Henry Daas, is a serial entrepreneur, business and financial coach, screenwriter, avid traveler, golfer and tennis player. He also actively trades the financial markets and is the author of FQ, which is all about financial intelligence. Despite his current success, he also knows what it’s like to see everything fall apart. He’s learned how to assess deals from a standpoint of both ROI and potential risk as a result.

Rough Beginnings

Henry shares that around 2003 he bought a fixer upper and started interviewing contractors. He found one he liked (“Bob”), and they started doing real estate together. Their first deal? They bought a house for over a million dollars, knocked it down, and built a three million dollar house in its place.

Things were going well, and they started doing a lot of deals. However, things went south. The housing market crashed when Henry and Bob were knee deep in a multi-million dollar deal. Huge firms started collapsing, and Bob found himself crumbling. Sadly, he committed suicide and Henry was the last principle investor left holding the bag alone.

Multiple lawsuits ensued, and it wasn’t clear how things would end. Somehow, amidst all the financial turmoil of the time, the property was foreclosed on and Henry was released from his obligations as part of the proceedings. By the time he’d gone through three years of sleepless nights, and had endured extreme stress.

Potential Risk? Don’t Ignore Red Flags!

Henry realized he had deluded himself into thinking he had eliminated risk. In hindsight, he hadn’t put proper controls in place. His partner had controlled the books, and Henry had never asked to audit or review them. There was a lot of potential risk he had been blind too!

Things had been moving fast, and when loan officers and banks were sloppy with their paperwork, he didn’t identify that as a red flag. Now, he looks under every rock to identify risks on every deal. He doesn’t just want to know ROI, he wants to know risk and be able to balance the two.

After his lawsuit ended, Henry was told that one reason the judge had relieved him was because the other side had been slow to respond. They had frequently given the runaround, or made basic communication difficult. Their failure to communicate responsively cost them millions of dollars. If you’re ever in the midst of a deal (whether it’s going well or not), don’t forget how impactful small details are. 

Reach out! Follow up! Be responsive!

You never know what a difference it could make.

Deal-Driven Growth

In order to have a business, you need a product or service you can sell. Sales growth sometimes can be hard! So many companies are banging their heads against the wall as they try to grow their customer and client base organically. What they’re failing to look at, however, is the opportunity for strategic alliances and other forms of deal-driven growth.

Henry works with many remote companies. He’s found that people will spend huge amounts of money trying to build organic sales channels, even if they’re not that great at it. Sometimes they’ll pivot towards a fulfilled-by-Amazon or other drop shipping service. Although that can seem like a good plan, there are challenges when you don’t control the terms or have much power within the relationship.

Another option is to find someone with whom to enter into a joint venture or strategic alliance. Regardless of what you pursue, the multiplier effect is key. If there isn’t something that’s going to synergistically enhance your sales or client base, there isn’t any purpose. Be sure to consider the potential ROI as possible risks prior to entering into one of these relationships.

No matter how you go about your business, always be open to the lessons available to you. When you pay attention, you can always find something to learn that will help take you to the next level. Don’t be afraid to ask for help, invest in coaching, or join a mastermind group. 

True deal-driven growth isn’t something you have to do the hard way by forging your own path. Why not rely on others who have gone before? There are so many resources available for you! 

Protection Within Partnerships

One of Henry’s first partners started as part of a college friendship. He shares their first business ran for about 10 years, and it went great…until it didn’t. In fact, he initially joined Entrepreneurs’ Organization and hired his first business coach because he needed to navigate how to end the relationship. He hadn’t full recognized the potential risk beforehand!

By the time the business was successful, it was operating at the four million dollar mark. However, because their arrangements were verbal and there were no clear buy/sell agreements or other contractual deals, there was a great deal of conflict. Ultimately, Henry left the partnership with nothing.

After things ended poorly with his second partner (earlier referred to as Bob), Henry decided to be a solo-act. Although there are both pros and cons, he’s satisfied with his current position. If he were to enter back into a partnership, he would insist on much greater clarity on partnership terms and obligations.

Again — prepare for risk and take precautions to protect yourself from unnecessary problems.

Regardless of hardships and struggles, Henry is pleased with his outcomes. He’s overcome great losses, and he’s also had huge wins. By believing in himself, investing in coaching and assistance, learning from his experience and mistakes and persevering through hardships, he’s been able to have significant entrepreneurial success despite and, in part, because of the challenges he has faced.

Listen to the full episode here!

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!