Founder-led companies had a market-adjusted return of 12% over the course of three years and a survival rate of 73%, compared with a return of -26% and a survival rate of 60% for firms that hired a new CEO…
Here’s almost an hour long conversation with David Ogilvy interviewed by John Crighton in 1977. Here’s a great quote, “Most organizations use research as a drunkard uses a lamppost as support and not for illumination.”
”Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skid in broadside, totally worn out and proclaiming, ‘WOW, WHAT A RIDE!!!”
Where the Negro has met with discriminations and with difficulties because of his race, he has invariably tended to get up more steam. When this steam has been rightly directed and controlled, it has become a great force in the upbuilding of the race. If, on the contrary, it merely spent itself in fruitless agitation and hot air, no good has come of it. Booker T. Washington
Startup entrepreneurs are always looking for cash to keep running their business. But here are some smart ways to look at cash in your business.
How to “think cash” in your business:
Sell your stuff – this is the #1 reason to stay in business.
Think cheap market research – ask someone to buy what you currently have, if they don’t, you’ve not wasted a ton of money on market research. If it doesn’t sell well, it’s either you or your product, that’s your market research.
Think less – if you have $1000.00 in the bank, think you have $100.00, you’ll find more efficient ways of spending your money.
Work from home – saves on rent, commuting costs, and you can deduct some of your home costs for tax purposes. Especially with what Virtual Assistants (VA) can bring to any startup table and computing “in the cloud,” it can save you both time and money. If you can wing it, work from your parent’s home (See Hello, my name is Scott, he started in his parent’s basement for a number of months), but pay for what you use at their house, you don’t want to be a freeloader.
Manage cash flow – ensure there’s more coming in than going out, you don’t want to spend what you don’t have.
Manage your time – time is money, but you don’t manage your time, you manage your priorities, we all have the SAME amount of time allotted to our lives. In addition, what is your TIME worth? $10 an hour? $100? $250? Lastly, investing your time wisely into something, think thrifty.
Barter – for your products / services in exchange for something you really need. Lousy entrepreneurs only “take” from others. Be a Go-Giver instead.
Get customers to pay upfront – by selling membership, subscriptions, gift certificates, and other initiatives to get their money now and deliver within 30 days.
Get used – instead of buying new equipment.
Lease or rent equipment – and other major purchases instead of buying, especially if the item “turns over” quickly.” Always try to push off payment to the future, your payment is deductible.
Get free publicity – by contacting reporters with a story idea or work the social media such as Facebook, Twitter, and LinkedIn. Watch for your copyrights, YouTube licensing says they own any content loaded on their servers. Do guest blog posts where your customers might be visiting. Post comments about subjects that you know about around your business subject matter.
Do side work – doing contract work keeps you “in the loop,” but as a last resort you may need to get a part time job. While “jobbers” may think that you’ve failed, startups and entrepreneurs think “raising capital” for your business rather than going into debt.
Sweat equity - for employees instead of paying a salary, but think the above avenues as well, like a used piece of equipment that is no longer needed as payment.
Keep your cash – Take as little as you can out of the business and focus on growing the company so you can bring in more cash in the future.
Pay yours, your neighbor’s, or your friend’s kids – John D. Rockefeller during the late 1800s paid his kids to monitor and turn off the kerosine lamps when they were not in use in his house. He knew precisely what he was paying to light his house. Paying his kids 80% of the oil savings taught his kids the value of earning their money; he was efficient, not wasteful, with his resources; and kept his household costs down.
Pay your parents and siblings – this may not be the best solution, but it’s worth a try if they believe in you. Give them a stake in your new venture.