10 Concepts We Can Learn About Starting Business You Plan to Exit on How2Exit's Interview W/ Serial Entrepreneur And Author Jeff Wald: E115 Watch here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Start Businesses, Take Risks
Starting a business is a risky endeavor, but it can also be incredibly rewarding. Taking the leap to start a business requires a certain level of courage and risk-taking, but it can also be the key to unlocking personal and financial success.
Jeff Wald is the perfect example of someone who took the risks associated with starting a business and reaped the rewards. In his own words, Wald was not an entrepreneurial child and was not interested in starting lemonade stands or snow shoveling businesses. Instead, he began his career as a banker at JP Morgan, working 120 hours a week and sleeping at his desk.
However, Wald eventually found his entrepreneurial spirit and started multiple tech startups. He also became a best-selling author, investor, and keynote speaker. Wald is living proof that taking risks can pay off.
The key to success with starting a business is to be strategic and to plan for success. Wald is a great example of this. He was analytical in his approach, creating spreadsheets and models to ensure that his businesses had the best chance at success. He also thought about the exit strategy for his businesses, which is something he encourages other entrepreneurs to do.
Ultimately, Wald's story is a great example of the rewards that come with taking risks. He took a risk when he left his job at JP Morgan to start his own businesses, and the risk paid off. His success is a testament to the fact that taking risks can be a great way to unlock personal and financial success.
Concept 2: Take Risks to Innovate
Taking risks is a fundamental part of innovation. Without risk-takers, the world would be a much less interesting place. It is risk-takers who have created the technology and products that have revolutionized the way we live. Whether it is the invention of the automobile, the telephone, or the computer, each of these inventions was made possible by someone who was willing to take a risk.
Innovation is also a key part of economic growth. When entrepreneurs take risks and create new products and services, they create jobs and spur economic activity. Without risk-takers, the economy would remain stagnant.
Wald's story also highlights the importance of having a supportive ecosystem for risk-takers. When Wald first started his businesses in New York City, the tech ecosystem was not as developed as it is today. He was able to build a supportive network of fellow entrepreneurs and venture capitalists who provided him with the resources he needed to succeed. This is a testament to the importance of having a supportive environment for risk-takers.
In conclusion, taking risks is an essential part of innovation and economic growth. Wald's story is a great example of the rewards that come with taking risks. He was able to create multiple successful businesses and become financially successful. His story is a reminder that taking risks can be a great way to unlock personal and financial success.
Concept 3: Create Relationships With Buyers
One of the most important lessons that can be taken away from Wald's story is the importance of creating relationships with potential buyers. Wald explains how he always kept a list of potential buyers for his businesses. He was also proactive in reaching out to potential buyers and keeping them updated on the progress of his businesses. This allowed him to stay on their radar and be prepared when the time came to sell.
By creating relationships with potential buyers, Wald was able to increase the chances of a successful exit. He was able to stay informed of the latest developments in the industry and be prepared for the potential of a sale. This allowed him to plan his business accordingly and increase his chances of success.
Creating relationships with potential buyers is a great way to increase the chances of a successful exit. It is important to stay informed of the latest developments in the industry and be prepared for the potential of a sale. It is also important to reach out to potential buyers and keep them updated on the progress of your business. By doing this, you can increase the chances of a successful exit and unlock personal and financial success.
Concept 4: Tech Valuations Rebalancing
Recently, the tech industry has seen a rebalancing of tech valuations. This is due to a combination of factors, including the proliferation of tech skills, open source software, and low-code, no-code platforms. This has drastically lowered the cost of building technology and has changed the “buy versus build” dynamic. Companies such as ADP have taken advantage of this and have acquired companies such as Work Market for well over $100 million.
In the past, tech companies such as Salesforce and Amazon were not profitable for a long time. They believed that once they reached a certain scale, they would be able to generate a huge amount of cash. This has been the case for both of these companies. However, companies such as Uber have burned through tens of billions of dollars and have yet to reach profitability.
The proliferation of tech skills and the availability of open-source software and low-code, no-code platforms have allowed companies to build technology much more quickly and cost-effectively. This has changed the “buy versus build” dynamic, as companies are now able to build technology that is more cost effective than buying it. Additionally, this has caused tech valuations to become more balanced.
In conclusion, the tech industry is undergoing a rebalancing of tech valuations. This is due to the proliferation of tech skills, open-source software, and low-code, no-code platforms. This has caused companies to shift their “buy versus build” dynamic, as they are now able to build technology much more quickly and cost-effectively. As a result, tech valuations are becoming more balanced.
Concept 5: AI Revolutionizing Work Opportunities
The AI revolution is also having a major impact on the job market. With the advent of AI-driven technologies, we are seeing a shift in the labor force. AI is enabling companies to hire a more distributed workforce with access to talent from around the world. This has opened up a much larger talent pool, allowing companies to find the best talent for the job at a fraction of the cost.
At the same time, AI is also making it easier for people to acquire tech skills. People can now take coding boot camps, go to community colleges, or take online courses to learn coding. This has opened up new opportunities for people to get into the tech industry, and to develop the skills necessary to keep up with the changing job market.
Overall, the AI revolution is changing the way we work and the opportunities available to us. It is making it easier for people to acquire tech skills and for companies to access a larger talent pool. As a result, tech valuations are becoming more balanced, and the job market is becoming more competitive.
Concept 6: Technology Changes Jobs
Technology is also having a profound effect on the way we work and the way jobs are structured. For example, the invention of the ATM in 1969 has had a lasting impact on the job market. When the ATM was first released, it was predicted that 500,000 bank tellers would lose their jobs. However, 25 years later, the number of bank tellers had actually increased by 20%. This is because the ATM was able to take on the more repeatable, high-volume tasks, freeing up the human tellers to focus on higher-value-added tasks. This is a trend that is being seen across many industries, as technology is taking on more of the repetitive tasks and allowing humans to focus on the more complex tasks.
Technology is also changing the way we work by making it easier to work remotely. With the advent of the internet, remote work has become much more accessible, allowing people to work from anywhere in the world. This has opened up more opportunities for people to find work, as well as allowing companies to access a larger talent pool. It has also made it easier for people to work flexible hours, allowing them to work around other commitments.
Overall, technology is having a profound effect on the job market. It is making it easier for people to acquire tech skills, and for companies to access a larger talent pool. It is also changing the way jobs are structured, allowing humans to focus on higher-value added tasks, and making it easier to work remotely. As a result, the job market is becoming more competitive and the opportunities available to us are becoming more plentiful.
Concept 7: Jobs Won't Disappear Quickly
Jobs will not disappear quickly. Technology is only one factor in the job market, and it takes a long time for jobs to completely go away. Despite the fact that things are happening much faster than they did 50 years ago, we should not expect jobs to vanish in the next 5 to 10 years. This is because there are many other factors at play, including the need for people to have a good BS meter, the need for content moderation, the need for editors, the need for fact-checking, and the need for new and creative solutions.
Even in the case of Autonomous Vehicles, which has been around for almost a decade, it is still a fallacy that cars can do it. Trucks are much more complicated, and even when the technology is perfected, there are still regulatory issues that need to be ironed out, infrastructure that needs to be developed, and companies that need to buy the trucks. As a result, it would take at least 15 years for Autonomous Vehicles to become commonplace.
In conclusion, although technology is having an effect on the job market, it is important to remember that jobs will not disappear quickly. It takes a long time for jobs to completely go away, and even in the case of Autonomous Vehicles, it would take at least 15 years for them to become commonplace. Therefore, we should not expect jobs to vanish in the next 5 to 10 years.
Concept 8: Sign Nothing Until Ready
When it comes to mergers and acquisitions, it is important to remember that the moment before signing the document is the point of maximum leverage. Once the document is signed, the entrepreneur is no longer in control. Therefore, it is important to be happy with the terms of the deal before signing anything. This means that entrepreneurs should not expect anything to change after the document is signed, and they should take the time to make sure that the document is worded correctly. It is also important to remember that if the ultimate recourse is to sue, this is not a good outcome, as the only person who will make money is the attorney.
Concept 9: Learn From Large Companies
It is also important to remember that when a large company acquires a small one, it is not necessarily a bad thing. It can be a great opportunity to learn from the larger company and gain valuable experience. This is what happened in the podcast transcript we discussed. The founder of the small company, Carlos Rodriguez, was offered a chance to stay with the company for two and a half years after the acquisition. During this time, he was able to learn from the larger company and gain valuable experience.
The founder also encouraged his team to stay with the company, as well. He recognized that they had all just received a large payout, and that their inboxes were full of recruiters from other companies. However, he encouraged them to stay with the larger company for at least two years, so that they could learn from them and gain valuable experience. He said that if they left, they would miss out on the opportunity to watch a large, well-run company “fix” the mistakes that had been made in the small company.
This is a great example of why it is important to learn from large companies. By staying with the larger company, the team was able to gain valuable experience and knowledge. This knowledge and experience can then be used to build something even better in the future. It is important to remember that it is not always a bad thing when a large company acquires a small one, and it can be a great opportunity to learn from them.
Concept 10: Cash Is Key For Success
Cash is key for success. This is especially true for businesses and startups, who often find themselves in a precarious position when it comes to their finances. Without enough cash, businesses are unable to pay their employees, buy materials, and keep the lights on. This is why it is so important for businesses to have a steady stream of cash, and why it is important for startups to find investors or acquirers who can provide them with the necessary cash to keep the business running.
The podcast transcript discusses the acquisition of a startup by a larger company, and how this acquisition provided the startup with the necessary cash to keep running. This is a great example of how cash can be key to success. The startup was able to focus on running the business, rather than worrying about running out of cash. The acquisition also provided the startup with access to a larger customer base, which allowed them to grow even faster.
Concept 11: Examine Data Before Deciding
This is something that Jeff Wall, author of The Future of Work, Wall emphasizes the importance of examining data before deciding. He explains that when it comes to the future of work, it is easy to hear a simple explanation and assume that it is true. However, it is important to look at the history, data, and how companies engage workers to get a more accurate answer. It is vital to be thoughtful and not just accept the first explanation.
The data often tells a different and more accurate story of what happened and what to expect in the future.
Wall also encourages people to reach out to him if they want to work with him, pitch an idea, or need advice. He suggests that they visit his website, JeffWall.com. There, they can find all of his companies, books, talks, and contact information.
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