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Authentic Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

Providing Value as an Entrepreneur-in-Residence

Ramon Ray is a leading expert on small business success. He inspires and educates thousands of business owners every year through his content, events and media interviews. He’s also a four-time entrepreneur who has sold two companies, and a best selling author. His latest and fourth book is Celebrity CEO, all about personal branding. Ramon has shared the stage with many leading business thought leaders, including Seth Godin, Simon Sinek, and Gary Vaynerchuk. Most recently, he’s been named as the Entrepreneur-in-Residence for Oracle NetSuite. Ramon has also been married for over 25 years and has two adult children. Listen to our full conversation now, or read the show notes below!

(He also shared about influencer and sponsorship deals back on Episode 3 of the podcast!)

Bit By the Entrepreneurial Bug

Ramon was born in the Midwest. From childhood he loved to tinker, play with electronics, and read books. As a young teen he moved to Brooklyn, New York. You can say Ramon’s part “well-mannered midwestern” and part “action-oriented” New Yorker. He studied business administration in college, and one of his first jobs was as a temp staff member doing clerical work at the United Nations. Ramon went on to serve at the United Nations for over 10 years, and was promoted to administrative officer. There, he managed the administrative functions of the NY Office of a UN Agency headquartered in Asia.

While at the UN, Ramon was bit by the “business bug” and started a few small companies. By day he worked hard at the United Nations and by night he worked on his side businesses. This included attending networking events and producing many of his own successful events. Eventually, he left the UN and became a full time entrepreneur. Although Ramon enjoyed rubbing shoulders with diplomats from around the world, his passion was entrepreneurship. His business education and thirst for entrepreneurship was nurtured through the pages of Inc Magazine, Black Enterprise, and Entrepreneur Magazine. Ramon credits much of his education and business influence to many New York area business owners, including Yacov Wrocherinsky. 

The companies Ramon started include a small tech consulting business, Small Business Summit (an event company co-founded with Marian Banker), and a well-known blog, SmallBizTechnology.com. Ramon eventually sold the Small Business Summit to another event company. In 2019, he sold SmallBizTechnology.com to a publisher. Smart Hustle Media, Ramon’s latest passion, allows Ramon to combine his love of entrepreneurship and small business success.

Entrepreneur-in-Residence: New Opportunities Emerging

Earlier this year, Ramon joined Oracle NetSuite as an Entrepreneur-in-Residence. He notes that many business-related brands are looking for mini-influencers. In commercial spaces, there are a lot of major influencers for products like clothing, makeup, and more. But in the business space specifically, things begin to narrow. There are a few big names that tend to dominate the space, and then a much larger middle ground. That’s where Ramon sees himself; as a small business influencer in that middle ground.

That’s where Oracle comes in. They have a board, of course, and they spend marketing dollars. However, they realized they didn’t necessarily have that strong personal, or human, element. They needed someone who could be themselves and do their own work, while also adding to who they were and how they presented themselves. As they say: As part of our commitment to provide the resources and expert insights needed, we’re excited to partner with Ramon Ray, entrepreneur and founder of SmartHustle Media, as our first Entrepreneur in Residence. In his new role, Ramon will work closely with our team to help us inspire, educate and better serve business owners and entrepreneurs.”

Because Ramon had already built a relationship with Oracle, he was able to identify areas in which it would make sense for them to partner together. In fact, he was the one who proposed the Entrepreneur-in-Residence title as part of the shift in their relationship! There have been huge benefits for both sides — definitely listen in to hear more about these dynamics.

Building the Trust Factor

As Ramon shared about the ways in which his role with Oracle NetSuite had evolved, I was struck by how essential the trust factor had been. He had shown up as a speaker, gone live, offered feedback, and engaged with the organization on many fronts, over time, before taking on this larger, extended position.

Approaching the company and trying to start with where he is now probably wouldn’t have garnered much interest. By finding ways to engage while consistently providing value, Ramon set himself up to broker a larger deal when the opportunity arose.

He also had other strengths on the table, both tangible and intangible. Email lists, social followers, and a list of reputable connections, interviews, and appearances were key parts of demonstrating his value in the marketplace. Intangible components included his reputation, capacity to continue growing and expanding, and passion for entrepreneurship and small businesses.

That trust factor allowed Ramon to negotiate a profitable deal that allowed both sides of the table to feel excited about their future together. (Listen in to hear Ramon’s thoughts on the “perfect deal”. It includes a consideration of the payoff for BOTH sides.)

Structuring the Deal

Ramon’s deal with Oracle is structured annually. As such, it consists of a variety of “buckets”. For instance, he’s been leveraging relationships with other existing brand ambassadors and influencers. That includes actively identifying ways they can work together, collaborate, or otherwise bring something new to the table. Ramon is also actively involved in helping the organization work on utilizing their brand story. And, of course, he’s a major part of events as a speaker and influencer himself.

One major intangible benefit to Ramon is the credibility provided to him through a deal of this nature. He has been able to remain independent as an entrepreneur, while also receiving the backing and support of a larger organization that instantly adds authority to his name. Although he had done quite a bit of work with Oracle NetSuite in the past, becoming their Entrepreneur-in-Residence was a major shift in that relationship. 

At the end of the day, Ramon keeps coming back to the power of showing value. Value, value, value. You can’t beat showing up and providing value to anyone, at any time. 

No matter what negotiation you’re heading into, knowing that you’ve provided value and will continue to do so will set you up for success.

If you’d like to find out more about Ramon, head over to www.smarthustle.com OR check out www.ramonray.com.

Listen in to the full episode to hear more!

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. He is deeply 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!

 

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Authentic Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

Capital Gains Rates and Deals

In this solocast, I talk about how potential increases in capital gains rates can have an impact on deals. Last year we started seeing this, and it’s only continued to grow coming into this year. We don’t know if capital gains rates are going to continue going up. However, we do know the Biden administration is proposing increases. The marketplace, of course, is watching and waiting. Regardless of your politics, you’ll want to be thinking through the business and deal-making implications of capital gains rate increases.

Capital Gains Rates & Deal-Making

When we started seeing the potential significant increases in capital gains rates at the end of last year, many businesses pushed deals through quickly. They were able to get them done in November and December of 2020, just in case the rates did change. It was a very busy time for deal-makers, despite the pandemic.

That acceleration has continued into this year. Now, possible increases in capital gains rates now appear to have been pushed back to 2022. As a result, many deals are occurring, and many businesses are positioning themselves to pursue active deal-making. On the M&A side of things, that means we’re headed for a robust year. Pair that with the reopening economy and the increased gains in Covid vaccinations, and I believe we’ll see deals continuing to move ahead full force in the upcoming months.

Other market factors are driving deals as well, such as valuation trends. However, an awareness of potential increases in capital gains rates is certainly present on everyone’s minds.

Deal-Making Timelines 

If your timeline for selling was about 5 years out (or more), you likely don’t need to make any major adjustments. However, if you were hoping to sell within the next year or two, it would be wise to have some awareness of how things are changing, and how that could impact your plans. It’s wise to be aware of how tax rates will impact you as both a seller and buyer, and it makes sense to mitigate losses when you’re able to.

Something worth noting, however, is that the primary driver of decisions is not tax policy. There are so many other factors impacting deals, including strategic reasons to buy/sell/acquire/merge, that tax policy cannot be considered the primary driver of deals.

When capital gains rates go up, there can be a depression of capital available for people wanting to invest. The increased rate of taxation makes returns less attractive, which can change people’s actions on the market. However, results and trends do show that these rates are not the only factors on the deals and investments people are making. Many factors contribute to deal-making, and taxes are only a single factor.

Should You Accelerate?

If you’re in the position to sell your company and you have a short term horizon, it may make sense to look into accelerating and taking action this year. Although capital gains rates may not increase, we do feel pretty sure they will either stay the same or go higher. They aren’t going down!

I definitely don’t think there is any call for panic though! Just because capital gains rates might be going up, you don’t need to feel pressed into selling if the time isn’t right for you. It’s wisest to make a measured, wise decision that takes both short and long term considerations into mind.

Maximizing net returns on capital is key for investors, for example, and their ability to do so is a more compelling decision-making factor than capital gains rates alone. Again, there are so many complex factors in deal-making that surpass tax rates. Although capital gains rates can impact things, the reality is that investors will be looking to deploy capital and get back multiples on that capital, and they’ll do it via investing.

Now, they may also choose to take the higher tax rates into consideration when coming to the deal table. This may change deal structures and offers, and may be something worth considering. The opportunity for growth within the market, however, will still be the largest factor in whether deals get done.

Overall Impact

There is a knee-jerk logic that says raising capital gains rates will automatically depress investment. I don’t think that is necessarily true, an idea that historical rates supports. Now, if the rates stay high for an extended time, we may see more negative results.

At the end of the day, it may happen or may not happen. In business, we have to deal with what is and minimize adverse impacts as we’re able to. Ultimately, entrepreneurs will keep building companies, investors will keep investing, and deals will be made.

Short-term, deal-growth and acceleration are being spurred by the possibility of capital gain rate increases. In the long-term, we’ll have to see whether the rates increase even gets passed at all. If it happens, I believe most operational business owners will find that there are many other factors that have more primacy than these rates over whether deals happen or not. 

There is honestly so much money out there that is ready to be deployed; deals aren’t going to dry up overnight because of increases to these rates. However, if you are positioned to make a deal this year, it makes the most sense to close it out before the end of the year. This way, you can avoid potential losses as a result of capital gains rate increases. We’ll be ⅓ of the way through the year when this episode goes live. Because deals take time, you’ll want to get moving if you know that you want to complete yours this year. If not, there’s no need to rush into anything based on this one factor.

Those are my thoughts. I’d love to hear from you how you’re choosing to react to the possibility of capital gains rates increases!

Listen in 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!

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

Coaches, Deal-Making, and Buyouts

Remy Blumenfeld is one of the world’s leading business coaches and advisors. He’s contributed more than 50 articles to Forbes. Remy was also listed by an independent newspaper as one of the Top 20 Most Influential LGBTQ People in the United Kingdom. He’s been featured in Forbes, Inc., The New York Times, and more!

Listen to our full interview here.

Getting His Start

Remy shares that, as a kid, he knew he wanted to be in the communication business. He had a little cassette recorder, and he would go around interviewing his friends. (He even found the old tapes from it recently!) His first real job was actually as a reporter for The Wall Street Journal television show in New York City. He didn’t stick with it for his full career, but it was an enjoyable start!

His first deal-making experience was at a school fundraiser. There were all sorts of little booths, and people were selling things to raise money for the school. Remy spent 5 pounds and purchased a set of prints that had been connected to a puppet show theatre. He then resold them for a few hundred! Ebay wasn’t in existence yet, but he was still flipping goods.

Remy and I also discussed the difference between looking 4 years into the future versus a hundred or more years into the future — you can listen in to hear about that!

Later, Remy transitioned into what he’s known for now: coaching and advising. While running multiple businesses, he had found that he was naturally fulfilling a sort of coaching relationship with his employees. (The only difference, he joked, was that he had no coaching training and they hadn’t actually hired him for his input!) 

Now, however, Remy coaches leaders, primarily in the creation sectors. He finds they are usually looking for a combination of coaching and business advice. As a result, he provides a hybrid model based on their needs. 

Early Deal-Making Experiences

Some of Remy’s largest deals include the businesses he’s sold. He started his first production company out of his bedroom in Brixton because he was out of a job. Remy decided he wanted to sell ideas to broadcasters. However, he realized that he couldn’t get companies to invest money into him as an individual person. As a result, he rebranded as a company and kept on trying. Looking back, he notes he was doing many things he now advises his clients to do. At the time, though, he was doing it by accident. In essence, he was making programs about where he lived and what he knew best. At the time, Remy was living in a rough area as a young, gay Jewish man. The shows he was making were often about the edges of society. (Those edges have since become the middle in many ways).

The production company that started in his bedroom made the first Black music show on Terrestrial TV in the UK, the first Asian pop culture show on the BBC, the first gay dating show, and more. He notes they did quite well by doing what they knew best. They understood it, they loved it, and they did it the best.

That lesson holds true in any sort of business and sales endeavor: you’ll do best by doing what you know best. It truly helps to be an expert in whatever you’re doing, as the buyer realizes that you are truly the best choice for them.

Years later, Remy sold his bedroom-started company for a high-multiple figure to a larger production company. Later, they became the company that produced Big Brother!

Leaning Into the End Game

Remy notes that, at a certain point, he understood that the production company had a saleable value that he hadn’t initially recognized. When he had started it, there wasn’t really a true market in the field. 

About 6-7 years into running things, however, independent production companies became something that investors were interested in. Big companies started buying up smaller companies, and he realized he was ready to sell. This required facing many realities about the business that their team had never really thought about before. For instance, Remy and his team realized that if you don’t have processes in place, big companies aren’t interested in buying you. Strangely run companies with weird or lacking systems get overlooked in buyout opportunities. Remy suggests running your small company as if it’s a big company in terms of utilizing systems, procedures, and watching the bottom line. (Watch your growth line!)

Now, Remy always advises people to imagine, from day one, that they are going to sell. He notes that you should be attempting to create a story with numbers — a story of growth, consistency, and profitability.

Remy now works with founders to implement checklists early on so they can create something others would actually want to buy from the beginning. (Rather than trying to “dress the bride on the way to the altar”!)

I noted that it’s possible to get deals done with a last minute scramble, but it’s surely not ideal. Preparing in advance is the best!

The Psychology of Buying a Company

Beyond the numbers, Remy thinks psychology is the most important aspect of the sale of a business. (In fact, he notes that ego tends to get in the way of the best and truest job quite often!)

In the creative sector, Remy notes that people often want to show they’ve done the best possible job tapping into every possible revenue stream and protecting their rights. You won’t feel very proud of yourself if you’ve just “forgotten” to access a revenue stream or market. There is a level of pride involved that can make owners want to emphasize that they’ve done everything.

However, a buyer wants to feel there is room for growth and improvement. If everything has been done that can be done, and growth can’t occur, it will be less attractive to them. A buyer wants to believe they can run the company better than you, or at least that there is room for them to do something bigger and better!

Remy does note, however, that sometimes in show business people forget the business and run the show! In a business deal, it’s key to be able to show that the business elements have been well handled so they can be moved through.

(Listen in to learn more about Remy’s thoughts on how the buyers will be approaching your business just like a home they recently purchased; there will be changes!)

The Power of Coaches & Coaching

I noted that I’ve worked with coaches myself, and asked Remy to share a bit more about the power of coaching. 

Remy noted that one of the things he finds to be most powerful is helping people commit to their own goals and standards, independent of anybody else. It’s key to be able to hold these apart from your partner, parents, clients, or anyone else in your life. As a coach, Remy also finds it useful that he’s not involved in his client’s lives or goals in a personal way. He’s able to provide feedback and accountability that is received differently than that of a friend or colleague would be.

I see that as the deal clients and coaches make between one another, in terms of how they will hold one another accountable and show up.

Listen to our full interview 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 Authentic Negotiating Deal-Driven Growth

Angel Investing & Startups with Dom Einhorn

Dom Einhorn is a French-American social entrepreneur and founder and CEO of UNIQORN, the largest rural incubator-accelerator of its kind in the world. Located in southwestern France (Sarlat-la-Canéda), its mission is to give entrepreneurs and their families their lives back while helping them build game-changing technology startups. Dom has a long history of working with startups and in angel investing, and he shares so much wisdom in our interview!

He is also the founder of multiple other successful startups and businesses, including the Startup Supercup. This is a leading tech conference that unites 1000 carefully vetted angel investors, VCs, private equity funds, technology startups and leading media outlets from around the world. The three-day conference takes place in medieval Sarlat France.

Listen in today to hear all about Dom’s work!

Young Dreams

As a kid, Dom wanted to be like his dad, who worked for the French railway as an engineer. Clearly he ended up going down a different route!

The first deal-making experience he remembers was with his magazine route. Students could get a commission for every issue they sold, and Dom outsold everyone else. It was his first time getting compensated, and it sparked his entrepreneurial dreams.

Now, Dom has several major focuses. One major one is UNIQORN, which he returned to France to launch in 2018 (in German Dom’s last name means “unicorn”!). UNIQORN startups are provided with a complete ecosystem for success. This includes direct access to proven funding sources, top-notch legal and accounting representation, access to the world’s most generous business incentives and, most importantly, a dedicated sales and marketing accelerator. All that combined puts a startup’s product or service on the fast track to success.

Art Auction Adventures

In 1996 Dom created the first online art auction company. It quickly became one of the largest in the world, and he was able to turn around and sell it 5 months later.

At that time, Dom happened to have a lot of artists as clients. They were all “starving artists”, including himself! He decided to build the online art auction in order to solve a problem he saw his clients facing. Selling art on a one-off basis was difficult, and didn’t scale well. His solution? An online auction house.

The first few months saw little activity, but one day a major magazine came in and did a report. They skyrocketed from 150 bidders to 20,000+. Overnight, they were in the art business….which they realized they knew nothing about. They were shipping art uninsured, with glass, and found themselves in a logistics nightmare.

One day they got an email from a buyer willing to buy them out; Dom was ready to move on and do something else! The new buyer had infrastructure to handle logistics and shipping, but were lacking on the technical side. Their weaknesses were Dom’s strengths, and they arranged a 6 month transition period. Once their team had the platform knowledge they needed, Dom was fully out of the business.

The fundamental lesson he learned from the online art auction house was that whatever you launch you should serve a legitimate purpose and respond to a problem in the market.

Vanity Business Models

Dom has noticed there are a lot of companies popping up that don’t solve a new problem or reach a new market. He referred to these as “vanity business models”, and noted that they simply aren’t sustainable.

If you want to become a billionaire, help a billion people. The rest will happen by itself.

Early on, Dom noted that if you wanted to be in e-commerce, you needed an Oracle license that cost $32,000. Raising cash was key, because barriers to entries were extremely high. By 2015, if you had a couple hundred dollars worth of technology you could launch an entire business. That’s both a blessing and a curse; there isn’t a natural economic gatekeeper. That means more opportunity for more people, but can also mean there is no real vetting process pushing people to only bring the best ideas to the table.

Back in the 90’s, you had to be in Silicon Valley if you wanted to get backing or support. Now, however, you can be anywhere. Dom shares that when he’s visited Vietnam with his wife they’ve seen co-working spaces the size of Walmart, with teeneagers building out online games that are worth billions now. The market is expanding, and decentralization has really democratized the process.

Dom foresees that we’re heading “back to the garage”, where things first started for technology.

Moving Away from Cities

Prior to Covid, Dom’s UNIQORN team did a study and found that 12% of young entrepreneurs wanted to move away from large urban centers to launch their businesses. Today, 38% say they want to operate outside of large cities.

He feels that the world is coming to the realization that not only CAN that be done…it probably should be done.

Dom shared some great examples of employees who have new commutes of about 45 seconds on foot. He’s seen this new way of living and working lead to better quality of life, with employees who are fresher, less tired, and able to show up in a different way. Now, more than ever, people see what is possible when it comes to living and working outside of major metropolitan centers of business.

This trend isn’t just in entrepreneurship. Large companies are starting to realize that their people can be just as productive working remotely as from inside the office. Employees are also starting to show up to interviews with more confidence to request remote or flexible work options.

From No Cash to Major Deals

In the first 2-3 years of one of his early startups, Dom was ready to throw in the towel. By 1999, however, the company exploded. They had a leg up on the competition, they were gaining traction for clients, and things were taking off. From a handful of clients to 500+, they grew with amazing speed.

One day Dom realized they had run out of money. Because of their fast growth, they had been burning through cash at a much faster rate than he had thought. It was time for payroll, and the reality was: there wasn’t enough money to pay everyone.

Dom was sitting at his desk, trying to get creative with numbers, when he got a call with an offer: someone wanted to buy the company. Although he first held out on selling, the offer was too good to refuse. The seller was building a new technology, and they needed merchant relationships. When the check was put on the table, he took the offer — then rushed to the bank so he could deposit it and make payroll.

When clients are pouring in and business is booming, entrepreneurs often underestimate the need for cash flow and profit. What Dom learned the hard way was that revenue and profit are not the same thing, and profit margins are an absolute key.

Dom shares that when he looks at a new business now, he doesn’t pay any attention to top line revenue. All he wants to see is actual margin, because that’s where you can see how healthy and sustainable a business is.

Building Value

Dom’s had deal-making success throughout his life because he’s built value again and again. From the outside looking in, buyers were able to see that value, and they came to him. That’s a much different situation then being in a bad place with your business and desperately looking for someone who might be willing to buy.

If you focus on solving a fundamental problem, Dom believes that there will always be people out there looking for what you have. He’s never proactively gone out looking for a buyer, because the people who need the solution he’s created have always been able to find him.

To hear more about the ways in which Dom has leveraged strategy, connections, and deal-making, listen in to the full episode!

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

Family Business

This week I was honored to interview not one, but two amazing guests. Farida and Ramia El Agamy are sisters with phenomenal backgrounds in family business. They bring a global perspective to deal-making opportunities and family businesses. This episode is worth listening to in full.

LISTEN HERE

About Farida

Farida F. El Agamy is a social entrepreneur by conviction, and a lawyer by passion and profession. Since 2008, she’s been the General Manager of the Tharawat Family Business Forum, the first knowledge resource and networking hub for family-owned companies in the Middle East and North Africa. Farida’s main interests lie in the advancement of corporate and family governance systems, the economic impact of family firms on the economy, and the support of individual family members within the family business context.

About Ramia

Ramia Marielle El Agamy is the Editor-in-Chief of Tharawat Magazine, (@Tharawatmag), a global publication for family businesses that attracts over 3 million readers (online and print) per year. The magazine encompasses a library of over 1000 articles. She is also the host of two podcasts: The Family Business Voice and WiFB. Ramia is also a strategic advisor in the Tharawat Family Business Forum as well as a Director in her family business’ board. Since 2017, Ramia is also CEO of Orbis Terra Media, a content studio and an award-winning publisher that stands for the highest standards in content production and omnichannel strategies. With a data-driven approach to content marketing and distribution, OTM specialises in helping brands achieve a consistent narrative across multiple platforms and to reach their audience.

Early Starts for These Citizens of the World

When I asked the pair what they had wanted to be growing up, Ramia nominated Farida to share first, as the older sister. Laughingly, the sisters noted that family businesses require respect for the family hierarchy. 

Farida shared that, early on, she was interested in societal questions. Her father had studied archeology, and he would bring his children on hikes to old dig sites. In addition, they would visit extended family in Cairo and visit ancient sites. These early experiences grew Farida’s interest in archeology as a possible career when she was a girl.

Ramia noted that, even as a child, she could see herself working in the family business. Seeing her father traveling frequently, and missing his presence, she imagined being able to pack a calculator into a bag and travel with him. She also had a very entrepreneurial spirit, and remembers opening a detective agency, a travel agency, and several shops with her sisters.

(Ramia and Farida also noted that they have a third sister in the family business as well. They thought it might be too much to bring all three of them onto the show!)

The sister’s mother is from the Netherlands and their father is from Egypt; they were raised in rural Switzerland and consider it home. However, their international roots and extensive travel histories, including studying in the UK and living in the UAE, have made the world their oyster in many ways!

First Deal-Making Experiences

Culturally, deal-making is perceived differently in various parts of the world. Looking at their father’s generation and work in the business, the sister’s agreed there were fewer activities that may have been directly considered “deals”.

In fact, the first deal-experienced Farida recalled was assisting a family business in getting out of a deal. A nephew was finding himself in a very bad situation with a possible deal involving his uncle. They could see it going south, and needed to intervene.

Ramia notes that both her sisters are lawyers, and often see deals through the legal and business lens. As an entrepreneur herself, she feels she’s been making deals her whole life. When you start a business with nothing, everything is a barter, a trade, and exchange, or some other way of growing and deal-making. She remembers many skill exchanges that grew in size and significance as revenue grew.

She also shares that she thinks the first deal entrepreneurs make is with themselves. Deciding to go into business requires trading time and energy and capital. 

Negotiations in Family Business 

The family business, as a construct, is a constant negotiation. This is true both internally and externally. Every day you enter into your family business, you’re entering into an emotional negotiation with your family. There is a constant need to recalibrate, adjust behavior, and figure out how to incorporate your personal and professional lives.

Part of this is holding people accountable when they are part of your family. It is challenging to have a parent or sibling that you have to challenge, hold to high standards, and question. Handling these ongoing family business negotiations on a daily basis requires you to truly leave your ego (and childhood patterns) at the door.

(There was an amazing conversation about ego here that’s worth listening to!)

The sisters note that family businesses are often stable and thinking long term. In addition, they are perceived as having “skin in the game”, and are often quite regionally embedded. Attributes such as these make family businesses a popular choice for others looking to make a deal.

In addition, the whole family business as an entity is an ongoing deal.

A Major Myth About Family Business

There are many family businesses in the world….and just as many myths about them! Since I had the experts on the line, I decided to ask their thoughts on a major common myth I often hear.

If You’re Not First Generation, You’re Not an Entrepreneur

Some people question whether someone in a family business can truly consider themselves an “entrepreneur”. Many entrepreneurs in the US are first generation entrepreneurs. Even if their parents were also entrepreneurs, they are often not involved in the same business. Across other parts of the world, however, many entrepreneurs are working within multi-generational family businesses.

The sisters noted that there is a difference between a real family business, or enterprise, and an enterprising family. They consider entrepreneurship to be the force that compels any family business to keep growing. They also encourage each generation to think of themselves as founders of a startup, in terms of needing originality, adaptability, and other entrepreneurial skills.

Being part of an entrepreneurial family doesn’t mean you’re not an entrepreneur. It does mean, however, that you have a heritage of entrepreneurship and usually the support of your family.

(Listen in to why they consider family business an “extreme sport” in the entrepreneurial world! This includes the weight of legacy, which can feel like a “backpack full of stones”, and the “ghosts around the table”.)

Layers of Governance

Imagine the most difficult professional situation you’ve ever been in, in your life. Then, imagine the most difficult family relationship you’re currently experiencing. Now, put those two together every day of your professional life.

That’s family business.

The emotional toll that family situations can take on you, and your business, are much greater than you may expect. That’s why governance in family firms is so vital (and so difficult). There are many, many layers to governance within a family business, and often the laws pertaining to family business are less clear than other legal statutes.

For example, there are rarely laws requiring a family business to utilize a family council to learn to regular their behavior as a family. Some families have waited for too long, growing more and more misaligned. Eventually, it can become too late for change.

Families who have aligned decision making as a result of internal deal-making have a much greater chance of making it in the long term. They are also better equipped to handle unexpected challenges, such as Covid-19.

Ramia and Farida share so much valuable insight on family businesses. Listen in 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 Deal-Making Authentic Leadership Deal-Driven Growth

2021 M&A Outlook

This week on the solocast we’re checking out the 2021 M&A deals outlook. It’s been interesting to take a look at what people are seeing, and what might be around the corner. M&A deals tend to be especially easy to find information on, and often give indicators about other deal-based forecasts as well. 

As always, there are no guarantees in the deal-making industry!

2021 Industry Predictions

Many experts are predicting a robust year for 2021 M&A deals. This is in line with what I’ve been experiencing, and other statistics are bearing it out as well.

Big publications and industry newsletters for tech, insurance, pharmaceuticals, biotech, logistics, and more seem to be reporting that trends are looking positive. Why? What’s leading to such a robust 2021 M&A outlook when we’re in the midst of a global pandemic and other economic issues?

Well, in the economy overall we’re seeing few things happening.

  1. More Positive Deal-Making Outlook

We’re seeing our way towards the end of the pandemic. Vaccines are going out, and we’re seeing the light at the end of the tunnel. That may trigger an expectation that the economy will be opening up more, and contribute to the positive M&A deal outlook for 2021.

Also, the second half of 2020 was unbelievably strong. That was mid-Covid, with no end in sight. Although the spring and summer of that year was rough, things really did recover and we were on an upswing prior to 2021. That means there must be other major factors at play here!

  1. Impact of the K Economy

A K-based recovery speaks to the idea of both upstrokes and downstrokes as part of the overall economic repair. This fits 2021 because we’re seeing that some industries, like retail and restaurants, are suffering. Other industries, however, are booming. 

The downstrokes speak to reasons that deals would likely slow down or struggle. The upstroke, however, denotes areas where deals would possibly be growing and seeing massive success. Logistics, tech, pharmaceuticals: these are businesses that have seen robust growth.

I’ve also seen that both the upstroke/downstroke of a K economy can lead to increases in deals. In a boom economy there are major amounts of capital available. In fact, there are trillions of dollars of private equity money available as investment capital right now. That’s significant when it comes to funding deals. On the flip side, in a down economy companies are looking for ways to survive. This can include sales, combining multiple businesses, and major pivots that result in deals. Companies need to consider how they can add more value, alter their business models, and reevaluate what they’re doing.

In a K economy, deals are available for a plethora of reasons, and that may be contributing to the positive 2021 M&A outlook. Regardless of the size of your company, you may find that you can benefit from deal-making in the upcoming months.

What Are the Trends?

Even if you aren’t large enough to be a trendsetter yourself, you can still benefit from looking at current trends. Where are large companies spending money? What deals are they making?

You may find yourself discovering trends within an industry, niche, technology, or platform that you can take advantage of in your own way. Perhaps growth, product/service development, or deals of your own will develop as you identify the trends impacting the market.

At the end of the day, there is no crystal ball. No one knows exactly what’s happening next. All you can do is remain aware, do your own homework, and make informed decisions for yourself and your business. I’m cautiously optimistic, especially as I’m operating in many sectors experiencing an upstroke in the current economy. I’ll continue to stay aware, examine trends, listen to insiders as I make more 2021 deals.

If you’re interested in the 2021 M&A outlook, check out the full episode!

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 Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

Post Merger Integration

Matt Sonnen is the founder and CEO of PFI Advisors. He provides strategic operational consulting in the RIA industry. In addition, he helps existing RIAs tackle various operational and strategic issues that they encounter as they grow. Matt emphasizes how important it is to think through post merger integration as part of deal-making. The work is not done when the deal has been made!

Early Deal-Making Experiences

At age 8, Matt wanted to be the third baseman for the CA Angels. By age 18 he wanted to be Eddy Van Halen. He certainly hadn’t considered being a strategic operational consultant in the RIA industry!

An early deal he remembers is baseball card trading during recess. His deal-making prowess has certainly grown since those days.

Now, Matt is deeply involved in the RIA industry. PFI Advisors first went to market as breakaway specialists helping advisors start RIA’s. Recently, Matt noted that they’ve been receiving a lot of traffic from buyers who have just closed their first large RIA deal, and who don’t know what to do next. Billion+ dollar firms are buying million+ dollar RIAs, and finding they don’t know how to integrate. Systems are difference, specializations are different, and there are many details that aren’t considered until after the deal is done!

This is also the result of diversification. Large firms are looking to bring on RIAs that offer something different….but then find that almost everything is so different that integration becomes challenging. Matt sees this trend continuing into the future.

After The Fact Issues

Many firms report that just getting the deal done is often perceived as the challenge. Unfortunately, however, this means they are prioritizing the “yes” without considering the “how”. Once the deal is done, this leaves all sorts of issues on the table!

Matt notes that the actual work begins when it comes to fully integrating the new acquisitions. I see the integration conversation as being a fundamental part of due diligence, and encourage firms to be forward-thinking when considering possible deal opportunities.

After all, a successful outcome will mean you MUST successfully integrate. It makes sense to consider the logistics of that before you finalize a merger or deal.

Preparing for a Smooth Post Merger Integration

Matt suggests that firms can ask questions on the front end to help minimize back-end problems during a post merger acquisition process. Often, he notes that the buyers avoid in-depth questioning. This is often attributed to not wanting to “scare” the seller away by appearing bureaucratic or demanding.

However, forward thinking firms understand that the two sides do need to get on the same page. A mutual understanding of what changes might be coming around the bend, and what an integration may look like, create a foundation for a strong transition.

Operationally, things like branding, emails, tech stacks and more might all be on the table. Post merger integration really can come down to nitty gritty details. These are things that people hardly think about day-to-day. If asked to change, however, they may feel resistant, even after the deal is done.

Minimize Client Pain Points

Matt notes that core technology changes that are often connected to post merger integration include performance reporting tools, CRMs, financial planning tools, and client portals.

For efficiency’s sake, its preferable to choose a single platform/tool that each company will be using. That way employees and owner of each are familiar with the language and user experience, and are sharing a common experience.

Buyers who want to get in the M&A game really should be in relationship with the major custodians. That way the seller is able to keep their clients in the systems they are already using. (This applies in RIA-to-RIA deals). That prevents the need for the seller to repaper all their clients, which can be a huge sticking point.

Finding out during the post merger integration that repapering is going to be required is extremely frustrating. Ideally, this would be avoided!

Biggest Lessons Learned

Matt shares one major lesson he’s learned is that outsourcing is somewhat of a myth! What he’s found from experience is that, even when outsourcing, it is vital have someone in-house who understands what was outsourced and how it works. Your team needs to know how the data and systems work, and what options you have.

You can save yourself a lot of time by knowing how the major functions that you outsource actually work. Somebody (often the COO) needs to know how every system works! Ensure that an outside firm isn’t the only one who knows what you have going on.

Also, there are somethings that need to happen in-house or on-site. Practical, day-to-day implementation, monitoring, and application shouldn’t be so fully done be an external agency that the COO doesn’t have clarity around what is happening, and how. This is especially true when it comes to compliance and audits.

Strategy & Operations

If you want to get to the next level, your strategy and operations have to evolve. Matt notes that right after launching PFI Advisors, he read The Emyth Revisited. (He wished he had read it BEFORE he launched!) He recommends checking it out. You can listen in to some of his favorite examples from the book by listening to our full interview!

Owning an advisory business is a whole skill set onto its own. From tech stacks to workflows to management – Matt often sees that these areas get pushed to the side in new companies. This is partially because actual revenue generating activities are being prioritized. This is why, at some point, he often recommends bringing in a professional management company to ensure that all angles are covered. Matt finds this is especially key during times of growth.

Feel that administrative tasks are slowing things down, or that client needs are slipping through the cracks? It’s probably time to let your advisors focus solely on client services and business development. Obviously administration and management is still required! That’s where a professional management company comes in.

Sacrifices and Growth

In the RIA space, there is money to be made as a lifestyle business. If that’s your desire, you may not need to reevaluate your management needs. However, if you’re saying you want to grow and you’re serious about it…you may need to make some sacrifices. This is also something to consider if you’re looking to sell down the road.

Matt shares a great example of an owner who described the scrambling of the first year. That was followed by the up-leveled investments (using most of their profits) of the next years. Those were sacrifices that came into play before they finally started seeing huge growth. Short term sacrifices are often required before true, sustainable growth is achieved.

Listen in the full interview for more from Matt Sonnen!

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 Leadership Authentic Negotiating Deal-Driven Growth

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

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 Deal-Making Authentic Leadership Authentic Negotiating Deal-Driven Growth

DealQuest BEST OF: Financing

This week’s guests feature some of DealQuest’s Best OF Financing experts! They share about everything from finding little known funding sources to minimizing taxes, gaining freedom, and funding your next start-up. Listen in here to get a sample from each of them. In addition, you. can click their name to listen to their full featured episode!

BEST OF Financing: [black background with yellow, orange, and green dollar signs scattered about and reflecting on black surface]

Finding Little Known Funding Sources with Kedma Ough

Kedma Ough of Target Funding is a “small business superhero,” who has worked with over ten thousand entrepreneurs and small business leaders in the last two decades, helping them to attain capital and resources to grow their businesses. Kedma is also the author of Target Funding: A Proven System to Get the Money and Resources You Need to Start or Grow Your Business. She is a fifth-generation entrepreneur and small business funding expert who believes in breaking down barriers and leveling the playing field for small businesses and fellow entrepreneurs.

If you bring to mind the image of a pizza, most people see a single funding source as being the whole pie. However, Kedma notes that you need to look at funding sources as being single pieces, all of which make up the whole thing. You can access so many sources, opportunities, avenues and approaches to filling out your “whole pie” — you don’t need to make one source your make or break solution. Many different funding sources create the foundation for successful funding. 

Kedma’s best advice: Target what funding you need, and use variables unique to yourself to make it happen.

LISTEN HERE for all her tips!

Raising Capital and Avoiding Taxes with Joel Block

A money business insider, Joel Block is a long-time venture capitalist and hedge fund manager (gobbledygook for professional investors) who lives in a Shark Tank world like on TV. Since selling his publishing company to a Fortune 500, Joel keynotes conferences worldwide, delivering business strategies and the inside track for money and success to business executives and their teams.

Now, Joel lives in the world of funding and money! He’s amazing at raising capital, and has great insight on how to make it happen. He advises business owners to consider looking for strategic money. Big companies are looking for alignment with startups and new businesses. Often, they are actively seeking innovation, they want access to fresh new ideas, and they’re often much easier to work with than VC firms. You may get better terms, amazing partnerships, and lifelong advantages if you develop these relationships throughout your business’ life.

Raising capital is an art form. It’s an evolving practice that you continually adapt, and you have to look at it that way. Striking a balance between being investor friendly and promoter friendly is a huge key. If terms are onerous to either side of the deal-making table, things aren’t going to work out well!

Joel’s best advice: Big companies operate, small companies innovate. That’s why partnerships between the two can be so powerful! 

LISTEN HERE for all his tips, including taking advantage of tax breaks!

Entrepreneurial Freedom and Community Building with Niles Heron

Niles Heron has been a part of a number of startups — a few exits, a few exciting failures — and has invested heavily in trying to make paths like the one he took more accessible to the under-represented spaces he came from. He also taught and mentored at incubators and accelerators (TechStars, Gener8tor, Detroit’s TechTown), spoken across the country at events about the value of entrepreneurship and startups to founders and the communities they live in, and is a respected voice in the Detroit Startup ecosystem. In addition, he was honored by Crain’s Detroit Business as a 20 in their 20s award winner in 2015.

Niles notes that helping people make their product actually work is essential. He’s found that entrepreneurs are often raising money to solve the wrong problems within their business. After all, it’s easier to say that marketing, organization, or something else is the problem. However, too often there is a reluctance to reexamine your product and the way it is tailored to your client or customer. He notes that even a Tom Ford suit will look bad if it’s not tailored to fit the wearer. Your product is no different.

You have to be able to get honest with yourself about exactly what it is you need. Capital can certainly help you grow your business, but only when it serves the actual needs within your business. Raising money for the sake of “having” it, or to solve any problem other than the real problem, are never going to lead to entrepreneurial freedom and ultimate success.

Some of Niles best advice: Money isn’t the total solution, and it’s not the only problem. It’s never “just” money.

LISTEN HERE for more of his advice!

Launching & Funding Start Ups with Peter Dolch

Peter Dolch is the President and Co-Founder of Thaumaturgix, Inc. (Tgix) which was twice ranked in the Inc. 500 Fastest Growing Private Companies list. Peter also acts as the Managing Partner at Tgix; the CTO of Biospectal SA (a Swiss-based MedTech Startup); the Managing Partner at AEON Foundry, a NYC-based fund investing in and mentoring early-stage startups; is on the Advisory Board of American Diamond Mint, a new way to buy, sell and trade diamond assets; and is a Science Advisory Board member of DietPower.

There is an advantage of being part of a bigger investor group. Larger groups have the ability to pull money and act as a deal lead, which is powerful. An individual or small fund often has to take whatever terms the lead investor negotiated, rather than set your own terms. However, being part of something larger allows you to be at the table, creating the most desirable possible terms. This lets you be part of even better deals!

Over the last 20 years, the industry has dramatically shifted, for both better and worse. Preferred equity, cap notes, and SAFE options are all options now, but they aren’t created equal. Peter counsels entrepreneurs that what investors tend to really want is preferred equity. If you can create that, you’re much more likely to bring in partners who are invested in your success in a deeper way.

Peter’s best advice: When it comes to bringing on investors and gaining funding, alignment is essential.

LISTEN HERE for more of his advice!

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!