CoachZippy is a powerful, all-in-one business platform that allows you to make and sell beautiful courses online. Absolutely NO coding, design or technical skills are required. Your content is protected in beautifully designed, fully customizable members areas for your members to access. Even complete newbies with no design experience can quickly create their own courses online and even charge a recurring fee for their content. Getting recurring customers is the holy grail of any digital / online business, and CoachZippy allows your subscribers to achieve exactly that.
Create your online school, record lectures and share your knowledge worldwide. Add video, image, text, quizzes, and PDF files. Easily import content directly from Dropbox, Google Drive, or OneDrive
You’ll receive a number of premade templates that will help you make sales day in and day out. Instead of having to build from scratch (you can also do that), we’re going to put you on the fast track to making sales. From landing pages, to sales pages, to checkout pages, and more, you’ll find a template to fit your every need. Best part is that they’re all optimized to get you results.
Easily build a beautiful course website, share your knowledge, and be rewarded for it with just a few clicks, you’ll get a fully functioning school with learning management, payment gateways, and sales & marketing tools.
When you setup your course, you’ll be given the option of going through CoachZippy’s setup wizard which makes getting started seamless. From there, CoachZippy will automatically generate a sales page for you for your course or product which you can edit and customize to your liking.
You’ll be able to build membership sites with total ease. There’s nothing like having a membership that you create once and people pay for over and over again. Everything you need is already included. From templates, to customizing login screens, membership themes, and more
You don’t have leads in hand to sell to. But you really need the leads to earn to bear investment and business floating expenses.Every Markerter, Entrepreneur suffer with the fact that they can’t find enough skilled people or they can’t get enough budget. There just aren’t enough of us around that have brains for both technical and marketing.
If you are creating but not promoting then its hard to reap the benefits of your business. You’re going to have to put yourself out there to promote what you believe in but you lack the Know-how or the tools to market and promote your product or service.
If you ignore the analytics, there’s no way to know what works. Once you’ve set your goals, you need modes to measure your success. But you lack the Tools to measure the metrics to review the marketing data or evaluating the product or service itself.
The content is flat out boring. Don’t know what kind of content to create for their business. Content has no special area for target audience. If you’re creating but not promoting, your content marketing will become a flop.
Use Coachzippy to turn all of your knowledge altogether into lectures. Create a teaching marketplace where your customers can buy your lectures and courses with just one click.From landing pages, to sales pages, to checkout pages, and more, you’ll find a template to fit your every need. Best part is that they’re all optimized to get you results.
Make your site just the way you want to make it look. Choose a theme for your site from our library of amazing fully-customizable themes.Coachzippy presents straightforward Product Creation Tools For Your Online Business, create your Website, Courses, Add lectures to your courses, Membership Sites, Quizzes and Surveys and what not.
Merit claims that 73 percent of B2B buyers today are Millennials, who prefer buying online—this is a large part of why B2B eCommerce growth has occurred at such lightning speed.
According to the latest publication from Meticulous Research, the global e-commerce market is expected to grow at a CAGR of 11.1 percent from 2018 to 2025, reaching $24,265.12 billion by 2025.
This can be attributed to factors including:
Rising mobile and internet penetration
Technological advances such as big data and cloud-based e-commerce platforms
Advanced shipping and payment options
Rise in disposable incomes.
The Push for Amazon Businessmazon Business is the B2B marketplace on Amazon, providing business customers with the pricing, selection, and convenience of Amazon, with features and benefits designed for businesses of all sizes.
Not Another Student Loan Piece
It’s designed to make purchasing easy and cost-effective by combining Amazon’s familiar one-stop shopping with quantity discounts, price comparisons, approval workflows, and multi-user accounts.
Its competitive annual membership program means that, similar to Prime members, Amazon Business members get perks including free two-day shipping. It also includes business-tailored features, such as multi-user business accounts, approval workflow, payment solutions, tax exemptions, dedicated customer support, and more.
How B2B Brands Build Relationships with Clients and UsersAs retailers become more selective in choosing the brands they want to carry, B2B sites must give brands the platform to not only sell the products they offer but promote the image they’ve built.
So how can you engage the majority of consumers—whether B2B or B2C—with a straightforward marketing strategy? Here are five steps to take which, if implemented over time and with consistency, can help you reach success.
1. Create A Blog About Your Niche
Your eCommerce store is for other business people. They want information that will help them make rational decisions. When you create a blog for your niche, you’re supporting your community while also gaining valuable SEO.
2. High-Quality Backlinks: Reach Out To Develop B2B Connections And Content
Backlinks, or links from other pages leading back to your website, help build your web page’s authority within your domain. They’re also an excellent B2B marketing strategy for eCommerce pages.
This is a key part of telling both humans and search engines what to expect to find on the page. Good URLs are related to the page they represent, and are essential for good user metrics.
4. Improve Site Speed: B2B Clients Get Impatient Too
People hate to wait for an eCommerce page to load. Whether you’ve got a B2C or B2B page, you need to do everything you can to deliver a speedy experience—otherwise, you’ll be losing business by the second.
5. Set Goals For Your B2B Ecommerce Site And Track With Analytics
On average, B2B clients do more research than B2B consumers because they are making business decisions. Understand what your clients need and offer them the services that will make finding business opportunities easier for them.
Learn to Support Brands in B2B EcommerceEven in B2B, your brand matters! You’ve got to act like a B2C while operating as a B2B in order to generate demand, build better relationships, and ultimately drive sales. Here are four key branding factors to consider that B2B often forget.
Constant Consumer Communication
Manufacture demand by communicating all the time, not just in high season for your industry or high buying times in the calendar year. This includes utilizing all social media channels and keeping them updated with fresh content.
Oftentimes, B2B sites don’t consider their user experience a high priority, which can affect how often retailers frequent and use their portal. Just as consumers prefer websites with engaging content, graphics, and character, online ordering portals can and should offer more than just utilitarian lists of SKUs.
Optimize for Mobile
Millennials are picking up the B2B eCommerce market and want it on the go. B2C sites recognize this and are constantly optimizing their websites across desktop, tablet, and mobile. This should be no different for B2B sites.
Provide the same ability for buyers to learn about brands. Enabling brands to share their stories is a crucial part of the wholesale process, both for selling to new buyers and strengthening relationships with existing buyers.
Top B2B Platforms, Technologies, and FunctionalitiesSelecting a shopping platform is the foundation of any eCommerce business operation. Most of the leading platforms are not industry-specific, and all of them competently provide core shopping cart, payment, shipping, and store management features.
For B2B, choosing the right eCommerce platform is not a decision to be taken lightly.
Some big names are always popping up like Magento, Shopify, Enterprise, and BigCommerce. When looking at the array of options, it is important to ask yourself if they have the following:
Mobile Compatibility—More and more B2B decision-makers are using their mobile devices to search for solutions. Not being mobile-friendly can prove costly today.
Compliance—The platform should be able to accommodate GDPR, ADA, and other mandatory user privacy and accessibility guidelines that are in effect today.
B2B eCommerce Functionality—Your B2B eCommerce platform should ideally have b2b eCommerce functionality features directed at B2B buyers like bulk ordering and pricing, account management, and multiple shipping/payment capabilities.
Optimal User Experience—The user should have a customizable marketplace template to choose from to create an intuitive and user-friendly experience.
24/7 Availability—Unlike the traditional method where clients need to wait for your response, eCommerce platforms are always open for business.
Marketing functionality—With more and more online searches being made via web and mobile, SEO-optimized eCommerce platforms boost your visibility.
Automation and Machine Learning—Humans are error-prone. Automated platforms offer a consistent solution.
Customer Communications—Not only does the client get an instant response, but he can also select their desired product/s with just a few clicks.
The predominance of B2B eCommerce means that B2B businesses must improve and simplify their shopping journey, channeling the B2C ordering experience. However, the B2B shopping experience is a lot more complicated than that of a B2C customer.
Because of the nature of the transaction, B2B buyers usually need to go through various steps, including sales representative interaction, negotiations, and approvals before they can make a successful purchase.
That’s why it’s crucial for B2B eCommerce businesses to provide a more seamless transaction, building in advanced functionality to their sites for quote management, price negotiation, easy ordering, and inventory management.
Consider hiring the right experts to manage your platforms as B2Bs have enough to consider with running their businesses. Custom programming, development, and functionality require consistent and careful planning, strategy, and great execution.
There are even companies that create custom functionality projects for any eCommerce platform such as Volusion, Bigcommerce, Shopify, 3DCart, Americommerce, Magento, Netsuite, Ecwid, Bigcartel, Zencart, Virtuemart, Prestashop, CoreCommerce, WooCommerce, WordPress, OSCommerce, Infusionsoft, Podio and X-Cart.
If you’ve been told that a certain functionality is not possible, it’s worth getting a second opinion. Even for mobile, your eCommerce store needs to in top shape to convert the sale. If you follow these guidelines, you’ll be ready for the next wave of B2B eCommerce growth opportunities.
Shama Hyder is a visionary strategist for the digital age, a web and TV personality, a bestselling author, and the award-winning CEO of Zen Media – a b2b communications firm. She has been named the “Zen Master of Marketing” by Entrepreneur Magazine and the “Millennial Master of the Universe” by FastCompany.com. Shama has also been honored at both the White House and The United Nations as one of the top 100 young entrepreneurs in the country.
Shama is the bestselling author of The Zen of Social Media Marketing, now in its 4th edition and Momentum: How to Propel Your Marketing and Transform Your Brand in the Digital Age. An acclaimed keynote speaker, Shama has delivered keynotes in over 20 countries and spoken for recognized brands including Movado, Chase, Tupperware and Inc 5000.
As a result of her success, Shama has been the recipient of numerous awards, including the prestigious Technology Titan Emerging Company CEO award. She was named one of the “Top 25 Entrepreneurs under 25” by Business Week in 2009, one of the “Top 30 Under 30” Entrepreneurs in America in 2014 by Inc. Magazine, and to the Forbes “30 Under 30” list of movers and shakers for 2015. LinkedIn has named Hyder one of their “Top Voices” in Marketing & Social Media for four years in a row. Her online videos were awarded the “Hermes Gold award for Educational Programming in Electronic Media” and most recently she was given the “Global Empowerment award for Marketing and Technology” by Anokhi Media.
As the CEO of Zen Media, she and her team help b2b companies succeed in the digital age
With the Simple Product, you select General tab. You add a Sale Price and click the Schedule button to set up date.
With the Variable Product, after setting up Product Attributes in the Attributes tab, you can go to the Variations tab and add New Variation. With each Variation Product, you also click the Schedule button next to the Sale Price field. Please note that product only displays the time of first Variation Product.
Adding Additional Information: You go to the Shipping tab. You set value of Weight and Dimensions options. You can change the unit by going to WooCommerce > Settings > Products tab
Enable/Disable Product Review: You go to the Advanced tab. You will see Enable reviews option. Just check/uncheck it.
The WooW works well with Visual Composer, the popular drag and drop page builder plugin with intuitive interface to build your content at ease. If you plan to use Visual Composer Plugin for your site, check out these source.
The jury is out on whether corporate social responsibility (CSR) programs will one day make the world a better place. But this much is pretty clear: They’re already benefiting the companies that have implemented them. And in some unexpected ways.
Specifically, CSR has become the weapon of choice for what is known as, in corporate speak, the three R’s: Investor Relations, Human Resources, and Public Relations.
But before we dive into details, a CSR mini-lesson is in order. First off, CSR isn’t an overnight sensation. Over the past couple of decades, companies have been embracing the idea that they need to do more than just make a profit for shareholders. Do-good efforts slowly evolved from passive and limited corporate philanthropy programs—giving to the United Way, for example—to broader and more active CSR programs. Those would take on major social issues like Goldman Sachs’ 10,000 Women program, which in partnership with the International Finance Corporation (World Bank) has delivered $1.45 billion in loans to women-owned businesses in developing countries.
Now, they have evolved even more. Many companies are now incorporating impact-on-society considerations into core business activities. For example, Starbucks only uses “ethically-sourced coffee.” Programs like these are often focused on “sustainability.” In August, 181 CEOs of the country’s largest corporations signed a Business Roundtable statement committing to managing their companies not just for shareholders, but also for customers, employees, suppliers, and communities.
The idea behind all of these efforts is the well-worn slogan “doing well by doing good,” which means that being a positive force in the community will enhance a company’s reputation, which in theory will pay off in more sales, lower costs and over the long term, more money for shareholders.
Can you even measure something like this? Stephen Hahn-Griffiths, chief reputation officer of the Reputation Institute in Boston, says you can. He reels off a string of statistics, like “40% of the reputation of a company is related to corporate responsibility” and says his organization’s research proves that reputation is a leading indicator of stock market capitalization, or the total value of a company’s shares. In other words, he adds, “CSR has a multiplier effect” when it comes to a company’s value. But CSR can be risky. And take a little guts.
According to analysts, CVS’s 2014 decision to stop selling tobacco products cost it $2 billion a year in sales and caused the stock price to drop. (Investors took a $1.43 billion hit that year according to Martin Anderson of UNC Greensboro.) In 2010, Campbell Soup announced it was reducing the salt levels in many of its soups, a decision they reversed the following year when sales fell by 32%.
Meanwhile, in 2018, Dick’s Sporting Goods stopped selling assault rifles. On a panel at this year’s Aspen Ideas Festival, CEO Ed Stack said that decision cost them customers and employees. He notes that many of the customers who applauded the decision at the time seem to have forgotten, but those who were in opposition have not. “Love is fleeting,” he says. “But hate is forever.”
But many companies feel the do-gooder dividend outweighs the risks, both in relations with consumers and in day-to-day operations.
Brad McLane, who recruits high-level positions at RSR Partners, says, “Companies aren’t doing it just to say they have it. My clients are incorporating it into how they do business—what ingredients they use, where they source, how they design products.” Megan Kashner, clinical professor at the Kellogg School of Management’s Public-Private Interface agrees. She’s says that we’ve moved from “greenwashing programs that mimic CSR” to an era of “authentic CSR.” Greenwashing is the practice of making misleading claims that make a company appear more environmentally or socially conscious than it is, for example, when BP began touting itself as being environmentally conscious through a $200 million public relations campaign, only to have a string of environmental disasters—some of which, according to a government report, were caused by corporate cost-cutting to boost profits.
Simon Lowden, Pepsico chief sustainability officer, says, “It’s woven into how we operate as a business. For instance, we need to maintain our license to operate in water-stressed regions, so we’d better focus on being responsible stewards of water. It’s not only the right thing to do, it’s important to our business.”
CSR is particularly useful in human resources. Rebecca M. Henderson, holds the John and Natty McArthur Chair at Harvard and is finishing a book on this topic, Reimagining Capitalism in a World on Fire. She says: “CSR has a tremendous impact on the morale of employees. Authentic purpose, which may mean occasionally sacrificing profits, accesses a whole range of emotions difficult to get at otherwise, like trust and engagement.”
In other words, it gets through. And that is a good thing. It leads to higher levels of productivity and employee retention.
CSR can also be a big factor in recruiting, particularly for younger employees, says Eric Johnson, executive director of graduate career services at the Kelley School of Business at Indiana University. He says, “Social impact is a big piece of the recruiting process. Probably 50 percent of that initial conversation is about what the company is doing to make the world better.”
“Beer companies used to talk about fun and sports. Now they talk about their programs to save water in the world. Social impact can tip the scales. Is a student going to choose an $85,000-a-year job over a $125,000 job because of social impact? I doubt it. But my observation is that jobs heavy in social impact often pay up to 10 percent less than comparable jobs that don’t.”
Professor Kashner adds, “These newly minted MBAs care and they care about the type of work they’re going to be doing. Maybe previous generations drew a line between work and personal life and values, but those boundaries no longer exist.” Korn Ferry, the giant executive recruiting firm, recently surveyed the professionals in its network. “Company mission and values” was the No. 1 reason (33 percent ) they’d choose to work for one company over another.
CSR is increasingly part of the conversation with individual shareholders and investors, like the world’s largest investment firm, BlackRock, which manages $6.5 trillion dollars for its clients. In his last two annual letters, CEO Larry Fink has called on companies to do more and said that BlackRock will evaluate companies on more than just financial numbers. His 2018 letter said, “As divisions continue to deepen, companies must demonstrate their commitment to the countries, regions, and communities where they operate, particularly on issues central to the world’s future prosperity.” Many investment firms now have someone in charge of building portfolios around companies based on their performance on Environmental, Social and Governance or ESG. (Measuring which companies are woke is an industry in and of itself.)
One aggregator of ESG ratings, CSRhub.com, lists 634 data sources. They range from the very broad (for example, Alex’s Guide to Compassionate Shopping) to the very specific (for example, the Alliance for Bangladesh Worker Safety).
For public relations, CSR is both an offensive and a defensive weapon. CSR can be used to pre-empt the conversation in areas where companies have been criticized. Procter & Gamble’s “Ambition 2030 program is heavy on recycling and biodegradability.
But CSR can also be a useful defense. It not only builds up a stock of goodwill with the media and the public, but it generates good news that crowds out the bad. Large corporations are going to get a certain amount of press and awkward questions each day—better that press and those questions be about CSR than, say, worker safety or GMOs. For example, in 2018 when Johnson & Johnson was accused of knowingly selling baby powder with harmful levels of asbestos, Harvard professor Bill George wrote a stirring defense of the company, focusing not on the merits of the claim, but on J&J’s “Our Credo,” a commitment to integrity and customers written in 1943 (and likely the first CSR document ever produced.)
Still, not everyone is convinced. There are many who adhere to the late economist Milton Friedman’s argument that the sole purpose of the corporation is to make more money for shareholders, who can then choose for themselves whether or not they want to save the world.
Judith Samuelson, vice president of Aspen Institute and founder of their Business and Society Program, who’s worked with many of the companies currently leading the way in CSR, says, “The shareholder primacy viewpoint hasn’t gone away. And even if attitudes have changed, measures haven’t. Many executives, including CEO’s, are still paid in stock, and those who manage portfolios for institutional investors are still bonused on the value of those portfolios.”
Samuelson worries that “Companies may think these (current) programs are enough and not make fundamental change.” Kashner is more optimistic. She cites work that says large public companies are increasingly incorporating CSR metrics into executive compensation contracts.
Those who oppose CSR programs argue that trying to do two things at once, like making a profit and serving society, will destroy the effectiveness of companies.
Samuelson scoffs at this. “Of course companies can do more than one thing. Public companies have to manage multiple objectives all the time. No public company in the world would last a week if the only people they cared about were shareholders. What about customers? Employees?”
She believes that CSR really boils down to responsible decision making, doing what it takes for companies to succeed in the long term. Whatever, CSR is here to stay. It’s become part of the fabric of investing, company operations, and business school curricula.
It’s now being tracked and measured, and in business, what gets measured gets done.
Alex Edmans talks about the long-term impacts of social responsibility and challenges the idea that caring for society is at the expense of profit. Alex is a Professor of Finance at London Business School. Alex graduated top of his class from Oxford University and then worked for Morgan Stanley in investment banking (London) and fixed income sales and trading (NYC). After a PhD in Finance from MIT Sloan as a Fulbright Scholar, he joined Wharton, where he was granted tenure and won 14 teaching awards in six years. Alex’s research interests are in corporate finance, behavioural finance, CSR, and practical investment strategies. He has been awarded the Moskowitz Prize for Socially Responsible Investing and the FIR-PRI prize for Finance and Sustainability, and was named a Rising Star of Corporate Governance by Yale University. Alex co-led a session at the 2014 World Economic Forum in Davos, and runs a blog, “Access to Finance” (www.alexedmans.blogspot.com), that aims to make complex finance topics accessible to a general audience. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at http://ted.com/tedx
Let us take a minute to salute the international companies, those that have gone multi-market or are on that path. They deserve our applause and respect. When I led market entry programs , I observed that these international firms tended to outperform the purely domestic firms, but for a reason you might not expect.
Companies that were operating in many markets tended to do better than those that had a presence only in their home market, but this had more to do with the international journey than the additional revenue.
The process of going international forced a company to adapt for each new market. As a result, the international firm became a learning organization which encompassed several different successful models, and the lessons from each new market could be applied in other markets. So the international company tended to develop a feedback mechanism and process improvements more readily than the purely domestic company.
Indeed, if you ask the leadership of that purely domestic firm what they want to do tomorrow, you are more likely to hear that they want to do tomorrow what they did yesterday. In other words, many business people (like all of us) have a bias for the familiar. We all like patterns of behavior and we like to stay in our comfort zone. I see this regularly when I discuss China opportunities. We will have a nice conversation with a lovely mid-size company, but unless it has an international culture it will have an overwhelming focus on building out a successful domestic model. The management philosophy at these firms tends to be:
— Reliant on the organic growth that has served them well over the years;
— Highly structured organization, task-driven, with people looking at monthly and quarterly results;
— Heavily product-focused.
These companies tend to dominate their space or be a segment leader. All of this means these companies have a strong incentive not to expand their current set of activities, and not to think about what changes might be in order. The key principle at these firms is MOTS – More of the Same. We do what we did last year, but we do more.
More revenue, more customers, more market share, more net. A pretty common-sense approach. But this is not a strategy. This is a behavior pattern. Let’s do what we have always done, presumably because it has more-or-less worked. This approach makes sense if the world is static. If the world is standing still, if society is standing still, if technology is standing still, and if competitors are standing still– then it is ok if the business stands still as well. But there are moving pieces out there, so you had better move as well. Unless the business incorporates a bit of a change culture, it risks falling behind.
Therefore, some sort of strategy is in order. Strategy can mean the allocation of resources without the normal formula for a return, displaying some capacity for experimentation. Strategy can mean you are doing something different, and the constituency for this change has not yet been established. Strategy can mean clearer costs than benefits.
Strategy can mean a journey into the unknown. You are taking steps that require you to stretch beyond current capabilities. A new product launch could represent a strategy. A new sales channel. Or a new market.
For most companies, the decision to go into a new market is a matter of strategy, because growth is no longer MOTS. The best expression of this might be a decision to go to China. On any given day it might not make sense to have a strategy. It makes sense to do what you did yesterday. But cumulatively, this could lead to a disaster.
On any given day, it might not make sense to go into a new market. But over the long run it could cripple the company to stay only in its home market. I caught up with Jack Ma recently at the Forbes Global CEO Conference. Jack has stepped down as Alibaba ($BABA) chairman, but he is still fiercely passionate about helping companies enter the China market. I had not seen him in almost a year, but we immediately saw this issue eye-to-eye.
Sooner or later, every company needs an international strategy. Sooner or later, every company needs a China strategy. Strategy is possible. Cost-free strategy is not. Those companies that are taking the international journey, we salute you.
Whether in banking, communications, trade negotiations, or e-commerce, my professional life is helping companies enter and succeed in new markets, with a particular focus on China. As Founder and CEO of Export Now, I run the largest international firm in China e-commerce. Export Now provides turn-key services for international brands in China e-commerce, including market strategy and competitive analysis, regulatory approval, store operations and fulfillment, financial settlement and remittance. Previously, I served as Asia Pacific Chair for Edelman Public Affairs and in my last role in government, I served as Undersecretary for International Trade at the U.S. Department of Commerce. Previously, I served as U.S. Ambassador to Singapore. Earlier, I served in Hong Kong and Singapore with Citibank and Bank of America and on the White House and National Security Council staff. New market book: http://amzn.to/2py3kqm WWII history book: http://amzn.to/2qtk0wK
Welcome to the Vodcasts of the IUBH correspondence courses. (http://www.iubh-fernstudium.de). In this video of the course “Managing in a Global Economy”, part of the “Master of Business Administration” program, Jürgen-Mathias Seeler discusses the topic “Strategy Development in International Business”. By the end of this lecture you will be able to understand the meaning of strategy in international business, the potential benefits from global strategies, the most important strategic choices in globalized business operations and how to manage strategy development and strategy adoption successfully. To find out more about the “Master of Business Administration” program, please visit http://www.iubh-fernstudium.de/unsere….
The bankers you work with may seem like great men and women, and they probably are truly nice people. They greet you by name, ask about your spouse and kids and appear to take a real interest in how well your enterprise is doing. Their financial products may be meeting your needs to a T.
But how strongly do you feel about your relationship with your bank? How do you think they’ll cooperate with you when the stuff hits the fan — which it most certainly will at some point? That’s the real test.
Here’s a true-life example: I’ve been working with an entrepreneur who finds himself in a down cycle. The company’s business plan is sound, the management team is experienced, and the product remains viable, so the problem isn’t terminal. But it may be awhile before the company’s prospects brighten.
The company works with a popular bank, which is starting to get nervous about its loans and is considering adding demanding conditions or even calling the loans.
The entrepreneur, however, feels a sense of loyalty to the bank, which has worked with him for several years. I have counseled him to consider other options. The reality is that bankers seven states away that he’s never met, not his local team — are the ones making the decisions.
He’s holding fast– and that’s a big mistake.
The entrepreneur has the opportunity to move to a smaller, regional bank. That bank’s rates may be slightly higher, but they’re more interested in a relationship.
And there’s certainly value in being in the room with the actual decision-makers — for both sides. Yes, your financials are going to be the primary determinant in lending decisions, but the human element can sway an on-the-fence lender to your team. Meantime, you’ll be able to tell a lot about the banker by meeting in person. Sometimes, it’s okay to trust your gut.
Loyalty only takes you so far
I get why entrepreneurs are loyal to bankers that have brought them success, but passing up the opportunity for a better financial situation is a kin to resting on your laurels.
As an entrepreneur, your best chances for success are by finding every possible edge you can. Incremental gains add up nicely over time, you should be taking advantage of them.
As for your spurned banker — they will get over it. Yes, that’s cynical, but that’s the way the business world works, especially with the larger banks. Remember also that your financial needs are a living, changing thing. What worked for you at one point may not be the most appropriate thing for you now.
The most successful entrepreneurs and companies are never satisfied with the status quo. Neither should you.
Are you struggling in your business? Does each month feel like it’s a mad dash to figure out who’s going to get paid? I want to teach you what I do to turn around businesses to make them profitable again. Are you an entrepreneur? Get free weekly video training here: http://www.danmartell.com/newsletter + Join me on FB: http://FB.com/DanMartell + Connect w/ me live: http://periscope.tv/danmartell + Tweet me: http://twitter.com/danmartell + Instagram awesomeness: http://instagram.com/danmartell I’m the guy that gets the call when a business is in trouble… … when a business is on the verge of bankruptcy. Friends call me. Banks call me. If I’m lucky, the entrepreneur calls me before it’s too late. The truth is, it’s always challenging for me to see another entrepreneur failing… … especially when they have major debt owed, personal guarantees and their biggest dreams hanging in the air as collateral. It’s even more heartbreaking when kids are involved. It crushes me inside. That being said, the game plan to turn things around is ALWAYS the same. The #1 thing it takes is uncomfortable discussions, honest assessments and quick decisions. Hard? You have no idea. However, staring at the light waiting for the train to hit you isn’t the right move either. Recently I was able to take a company losing tens of thousands each month, to profitable in 14 days. In this week’s video I provide a step by step process for getting you off the tracks, and pulling a sharp 180 regardless of the challenges you’re facing. When it comes to the steps and process they go like this: 1) Get clarity on the numbers (scary as hell, but necessary) 2) Test the business model 3) Cut deep but not the bone 4) Focus on the customers 5) Write the rules 6) Build it back up The truth is, this strategy is something most companies should use to evaluate their real success. Too many times I’ve had founders tell me their business is doing “GREAT” only to ask a few questions and have them realize they’re way below the market norm. Stop being romantic about your business and get serious about how you’re measuring your progress. Leave a comment below with your business, industry and top question you have about your business model or challenges and I’ll be sure to provide some insights to help you evaluate your progress! Dan “saving businesses daily” Martell Don’t forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/JyfE6jzcOGI ===================== ABOUT DAN MARTELL ===================== “You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses: Clarity.fm, Spheric and Flowtown. You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force. An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away. Get free training videos, invites to private events, and cutting edge business strategies: http://www.danmartell.com/newsletter
Over the past few years, societal impact has been growing as an area of interest for businesses. Business leaders, myself included, have voiced the belief that businesses should have a purpose beyond profits, and uphold a responsibility to society and the environment.
Although this school of thought is sometimes met with skepticism from those who doubt the commitment of businesses to do good, there is new research suggesting that businesses are actually taking significant action to improve their impact on society and the environment.
According to a new report from Deloitte Global, societal impact has become the most important factor organizations use to evaluate their annual performances, outranking financial performance and employee satisfaction. These findings are based on a survey of more than 2,000 C-suite executives across 19 countries. This shows a shift, even just from last year’s survey report, in which executives expressed uncertainty about how they could influence the direction of Industry 4.0 and its impact on society.
What is driving this change? There is no one answer. Almost half of executives surveyed (46 percent) reported that their efforts have been motivated by the quest to create new revenue streams, and a similar percentage said that initiatives that have a positive societal impact are necessary for sustaining or growing their businesses. An organization’s cultures and policies were also cited as motivation (43 percent).
External pressure continues to be a major driver as well. According to Deloitte Global’s series of inclusive growth surveys, some of this drive comes more from public sentiment, which is increasingly influencing business leaders’ decisions related to societal impact by encouraging them to reevaluate their strategies.
Purpose in action
When it comes to societal impact, businesses are beginning to put actions behind their words. Seventy-three percent of surveyed CXOs report having changed or developed products or services in the past year to generate positive societal impact. What’s more, 53 percent say they successfully generated new revenue streams from these socially conscious offerings.
While some leaders have started to see profits from positive societal goods and services, there is disagreement over the question of whether initiatives meant to benefit society also benefit bottom lines. Fifty-two percent see societal initiatives as generally reducing profitability; 48 percent said that such initiatives boost the bottom line.
Despite these concerns, leaders report a commitment to initiatives that benefit society. There’s probably a short term vs longer term element in this regarding the sustainability of business which may have influenced the answers.
Beyond products, services, and new revenue streams, leaders are integrating societal impact into their core strategies. Executives say they have been particularly effective preparing for the impact that Industry 4.0 solutions will have on society. They’re also building external partnerships and joint ventures, and strengthening ecosystem relationships to make a greater impact.
Whether driven by finding new sources of revenue, or the need to respond to external pressures, businesses across all industries seem to be moving towards improving their societal impact. It is heartening to see that leaders are incorporating these considerations into their strategies, as well as operations. When societal impact is seen to be an integral part of a business’s makeup, the most meaningful results can be achieved.
David Cruickshank was elected into the role of Chairman of Deloitte’s global organization, Deloitte Touche Tohmatsu Limited, in June 2015 having served on its Global Board for eight years from 2007. Prior to this, he was Chairman of the UK member firm from 2007-2015. He is a Chartered Accountant and a graduate in business and economics from the University of Edinburgh. David is co-chair of the World Economic Forum’s Partnering Against Corruption Initiative and a Board Member of the Social Progress Imperative.
Today, many firms are active on social media, but not all of them are experiencing transformational change and return on investment. Why do some businesses succeed, while others fail? Join us for a fireside chat on why Social Business has become too important to delegate completely to a junior social marketing team and why going forward, CEOs, CMOs, management teams, and boards must personally own and drive Social Business strategy and re-architect traditional business models and client engagement models.
Fireside chat with Clara Shih, CEO and Co-Founder, Hearsay Social and Kristin Lemkau, CMO, JPMorgan Chase.
I never had access to money during my childhood, or even as I grew into a teenager and young adult. Both of my parents lived paycheck-to-paycheck and struggled with debt, so that’s really all I knew.
As a result, I was never really exposed to the investing world, nor did I learn to think of entrepreneurship as a viable career option. My parents were busy trying to keep the lights on and food on the table — the thought of having extra money to invest and build wealth would have been completely foreign to them.
Eventually though, I got my first introduction to the concepts behind investing and building wealth. I majored in finance in college, learned about mutual funds and ETFs, and found out how the stock market really works.
As I began my career as a financial advisor and transitioned to entrepreneurship, I was always looking for ways to increase my base of knowledge. I read books like Rich Dad, Poor Dad andCrush It: Why NOW is the Time to Cash In On Your Passion by Gary Vaynerchuk. However, books like these didn’t teach me how to invest my money. Instead, they taught me how to invest in myself and my personal growth.
5 “Non-Investment” Investments Rich People Learn to Make
The thing is, these are areas where rich people really do invest time and time again. That’s because they know something most people don’t — they know that growing wealth is about more than throwing money into the stock market, becoming an entrepreneur, or taking big risks to fund a promising startup.
Building wealth is just as much about becoming the best version of yourself, staying in constant learning mode, and building a network of like-minded people who can help you reach your goals.
Want to know exactly what I’m talking about? Here are some of the most common non-financial investments rich people love to make:
Most rich people read a lot of books written by people who inspire them in some way or have unique experience to share. I’ve always been a big reader too, diving into books like The4-Hour Workweek by Tim Ferriss andThe Millionaire Messenger by Brendon Burchard.
Reading is such a smart and inexpensive way to fill some of your free time and increase your knowledge, which is something the wealthy already know. If reading a few hours per week could help you stay mentally sharp while you learn new things, why wouldn’t you make that decision over and over?
But there are other ways to accelerate learning that don’t involve reading or books. You can also take online courses in topics that relate to your career. As an example, I’ve personally taken courses on YouTube marketing, productivity, search engine optimization, and affiliate marketing.
Going to conferences to learn new skills from others in your field is also a smart move rich people make. FinCon is a conference for financial bloggers I attend each year that I can attribute making millions of dollars from — mostly from meeting brands, learning new skills, and networking with my peers.
Personal coaching is another smart investment rich people make when they know they need some help reaching their potential. Morgan Ranstrom, who is afinancial planner in Minneapolis, Minnesota, told me he wholeheartedly suggests a high-quality coaching program for anyone who needs help taking that next step in their business.
Ranstrom has worked with various life and business coaches that have helped him understand his values and clarify his goals, become a published author, and maximize his impact as a professional and business owner.
“For individuals looking to break through to the next level of success, I highly recommend investing in a coach,” he says.
Personally, I can say that coaching changed my life. I signed up for a program called Strategic Coach after being in business for five years, and this program helped me triple my revenue over the next three years.
The thing that scares most people off about coaching is that it’s not free; in fact, some coaching programs cost thousands of dollars. But wealthy people know the investment can be well worth it, which is why they’re more than willing to dive in.
Mentorship can also be huge, particularly as you are learning the ropes in your field. One of the best mentors I had was the first financial advisor that hired me. He was a million-dollar producer and had almost a decade of experience under his belt. I immediately gained access to his knowledge since his office was just next door and, believe me, I learned as much as I could.
Todd Herman, author ofThe Alter Ego Effect, shares in his book how he mentored under the top mindset coach in his industry when he couldn’t really afford it. He lived in a Motel 6 for almost a month to make the program fit in his budget though. Why? Because he knew this investment was crucial for his career. And, guess what? He was right.
Over the last year, I’ve participated in mentoring with Dr. Josh Axe, an entrepreneur who has built a $100 million health and wellness company. Just seeing how he runs his business and his personal life have been instrumental to my own personal growth.
It’s frequently said that Dave Ramsey was in a mastermind group called the Young Eagles when he first started his business. Entrepreneurs such as Aaron Walker and Dan Miller were also in the group, and they leaned on another for advice and mentorship to get where they are today. Ramit Sethi, bestselling author ofI Will Teach You to Be Rich, is in a mastermind group with Derek Halpern from Social Triggers.com and other successful entrepreneurs.
I also lead a mastermind group for men. Believe it or not, one of our members has been able to increase his recurring annual revenue over $300,000 because of advice he has received.
These are just a few examples of masterminds that have worked but trust me when I say most of the wealthy elite participate in some sort of mastermind group or club.
Mastermind groups are insanely helpful because they let you bounce business ideas off other entrepreneurs who may think differently than you but still have your best interests at heart. And sometimes, it’s a small piece of advice or a single statement that can make all the difference in your own business goals — and your life.
When it comes to the top tiers of the business world, there’s one saying that’s almost always true:
“It’s not always what you know, but who you know.”
“The right connections can help land better jobs, accelerate promotions, or start lucrative businesses,” he says.
But it’s not about cheesy networking events. To get the most value, focus on meeting people at professional conferences, mastermind groups, and high-quality membership communities, says Whitehouse.
This is a strategy most successful people know — meet other people who you admire and build a relationship that is beneficial for everyone.
But, there’s a catch — and this is important. When you meet someone new who could potentially help you in your business, you can’t just come out of the gate asking for favors. I personally believe in the VBA method — or “Value Before the Ask.” This means making sure you provide value before asking a favor from anyone.
In other words, make sure you’re doing your share of the work to make the relationship a win for everyone. If you try to build relationships with other entrepreneurs just so you can ride their coattails, you’ll be kicked to the curb before you know it.
I am a certified financial planner, author, blogger, and Iraqi combat veteran. I’m best known for my blogs GoodFinancialCents.com and LifeInsurancebyJeff.com and my book, Soldier of Finance: Take Charge of Your Money and Invest in Your Future. I escaped a path of financial destruction by being a college drop out and having over $20,000 of credit card debt to eventually become a self-made millionaire. My mission is help GenX’ers achieve financial freedom through strong money habits and unleashing their entrepreneurial spirit. My work has been featured in The Wall Street Journal, USA Today, Reuters and Fox Business.
Warren Buffett is the godfather of modern-day investing. For nearly 50 years, Buffett has run Berkshire Hathaway, which owns over 60 companies, like Geico and Dairy Queen, plus minority stakes in Apple, Coca-Cola, and many others. His $82.5 billion fortune makes him the third richest person in the world. And he’s vowed to give nearly all of it away. The Oracle of Omaha is here to talk about what shaped his investment strategy and how to master today’s market. I’m Andy Serwer. Welcome to a special edition of “Influencers” from Omaha, Nebraska. It’s my pleasure to welcome Berkshire Hathaway CEO Warren Buffett. Warren, welcome. WARREN BUFFETT: Thanks for coming. ANDY SERWER: So let’s start off and talk about the economy a little bit. And obviously, we’ve been on a good long run here. WARREN BUFFETT: A very long run. ANDY SERWER: And does that surprise you? And what would be the signs that you would look for to see that things were winding down? WARREN BUFFETT: Well, I look at a lot of figures just in connection with our businesses. I like to get numbers. So I’m getting reports in weekly in some businesses, but that doesn’t tell me what the economy’s going to six months from now or three months from now. It tells me what’s going on now with our businesses. And it really doesn’t make any difference in what I do today in terms of buying stocks or buying businesses what those numbers tell me. They’re interesting, but they’re not guides to me. For more of Warren Buffett’s interview with Andy Serwer
Following the news that Chevron had agreed to pay a nearly 40% premium to acquire Anadarko Petroleum, investors quickly bid up the shares of other potential acquisition targets.
As I argued in the previous article, I believe the Permian was the key to the Anadarko acquisition, but there are plenty of other targets in the region. There are also several companies with the capability of making acquisitions.
In recent years, the few mergers and acquisitions in the oil and gas industry have been largely focused on the Permian Basin. The supermajor integrated oil and gas companies have been increasingly making forays into the Permian.
In addition to Chevron’s new acquisition, in 2017 ExxonMobil paid $6.6 billion to acquire Permian acreage from the Bass family of Fort Worth, Texas. ExxonMobil also spent $41 billion in 2009 to acquire XTO, which has a major presence in the Permian.
Today major acreage holders in the Permian Basin include the supermajors Chevron and ExxonMobil, as well as Occidental, Apache and Concho Resources. Occidental, in fact, reportedly attempted to acquire Anadarko prior to Chevron sealing the deal. But Occidental may now find itself in the crosshairs of a bigger player looking to shore up their Permian portfolio.
But there are many other major producers in the region, including ConocoPhillips, EOG Resources, Pioneer Natural Resources, Noble Energy, Devon Energy, and Diamondback Energy. Smaller producers in the region include WPX Energy, Parsley Energy, Cimarex Energy, Callon Petroleum, Centennial Resource Development, Jagged Peak Energy and Laredo Petroleum.
Let’s first take a look at the largest companies operating in the Permian according to enterprise value. This metric is preferred over market capitalization, because it includes a company’s debt. In the case of a potential acquisition, the acquiring company would be responsible for this debt in addition to the purchase price. Hence, it is a more comprehensive representation of a company’s market value.
I have included the integrated supermajors that could have the ability to make major acquisitions, three of the larger exploration and production companies (which could make an acquisition or be a target themselves), and Anadarko for comparison. All data were retrieved from the S&P Capital IQ database.
Metrics for major oil companies operating in the Permian Basin.
EV – Enterprise value at the close on April 12, 2019 in billions of U.S. dollars
EBITDA – TTM earnings before interest, tax, depreciation, and amortization in billions of U.S. dollars
TTM – Trailing 12 months
FCF – Free cash flow in billions of U.S. dollars
Debt – Net debt at the end of the previous fiscal quarter
2018 Res – Total proved oil and gas reserves in billion barrels of oil equivalent at year-end 2018
EV/Res – The value of the company divided by its proved reserves
Based on their size and debt metrics, ExxonMobil and Chevron still appear to be the most capable of pulling off a major deal. Shell has been moving in the direction of becoming a natural gas company, and has already made major capital expenditures in this area in recent years. Further, in 2016 they made their own major acquisition — a $70 billion deal for BG Group. Meanwhile, Total hasn’t shown much interest in the Permian.
BP may not have an appetite for an acquisition as it continues to be weighed down by its obligations from the 2010 Deepwater Horizon oil spill. As an aside, the continued fallout from that disaster has also resulted in BP having the cheapest reserves on the books by far of any company listed in the table. Also note that the EV/Res metric for integrated supermajors isn’t directly comparable to pure oil producers like Anadarko, as the former also have midstream and refining assets.
ConocoPhillips appears to be the most attractive target for an acquisition from a pure valuation perspective, but as the largest pure oil company it would be a large bite for even ExxonMobil. With respect to making an acquisition, ConocoPhillips CEO Ryan Lance stated earlier this year that the company isn’t feeling any pressure to do so.
Occidental also falls into the category of potentially making an acquisition or of being acquired. On a relative basis, they are more expensive than ConocoPhillips, but on an absolute basis the price would be more manageable.
What about smaller players like Parsley, WPX Energy, or Cimarex Energy? Based on the price movement following the announcement of the Chevron-Anadarko deal, investors are clearly betting that more deals will follow. Below are some of the metrics of potential acquisition targets (with Anadarko for comparison), including some of the large players listed in the previous table:
Metrics for smaller oil companies operating in the Permian Basin.
1-Day Change – Change in share price on April 12, 2019, the day the Chevron-Anadarko deal was announced
Note that the double-digit gains of both Pioneer Natural Resources and Parley Energy imply that investors believe they could be next on the acquisition list. Parsley looks attractively priced according to its enterprise value and total reserves. Several other companies stand out, such as Devon Energy and Cimarex, although all of these companies outspent their cash flow in 2018. An acquisition by one of the larger players could give them the efficiencies and economies of scale to rectify that.
Another name on the list that stands out is Diamondback Energy, which has long been one of my favorite Permian Basin oil companies. Diamondback has been an outstanding performer in recent years, but now looks to be the most richly valued according to several metrics following its 2018 acquisition of Energen.
The biggest challenge with the smaller players is that they may not have enough reserves to really move the profit needle for the biggest players. Laredo Petroleum’s 200+ million barrels of oil and gas reserves might not be sufficiently appealing to ExxonMobil, which had 24 billion barrels of reserves at the end of 2018. But it could be appealing to a company like EOG Resources, which closed the year with 2.8 billion barrels of reserves.
Ultimately, price and valuation are only part of the equation. Anadarko wasn’t the cheapest acquisition target for Chevron, but Chevron liked the synergies of Anadarko’s locations. Thus, every major operator in the Permian is more likely to acquire companies whose properties are adjacent to their own. A deeper dive thus becomes an exercise in not only value, but in studying maps of the Permian producers — large and small.
Robert Rapier has over 25 years of experience in the energy industry as an engineer and an investor. Follow him on Twitter @rrapier or at Investing Daily.
Challenge: Make a 60-year-old hamburger chain into something cool. Daniel Schwartz accepted that assignment six years ago after 3G Capital took over Burger King and named Schwartz chief executive. He was 32.
Burger King was a tired outfit, with a confusing menu and sales going sideways. Its restaurants averaged half the revenue of McDonald’s. But where there is underperformance, there is opportunity. Schwartz slashed overhead at the Miami headquarters. He streamlined food preparation. He dished out stock to middle managers. He shrank the payroll and the capital budget by selling company-owned stores to franchisees.
In the years since, Burger King has become Restaurant Brands International (following some more classic 3G dealmaking). Restaurant Brands is now a growth stock. Burger King opened up 1,000 restaurants around the globe last year, to 600 for McDonald’s. McDonald’s stores still have a bigger average volume, but Burger King’s are gaining on them; in the U.S., BK boosted its average volume per outlet by 30%, to $1.4 million, while McDonald’s had a gain of only 20%. All of Burger King’s success is, of course, in stark contrast to what’s going on at Kraft Heinz, another 3G turnaround that went the other way. In February, Kraft Heinz said it was taking a $15.4 billion write-down, a signal that its classic food brands were losing value.
The situation is different at Burger King. At the parent-company level, where revenue consists mostly of franchise fees, Restaurant Brands took in $5.4 billion last year, up 17% from 2017. McDonald’s revenue was off 8%.
“How many companies that have been around since the 1950s grow the top line at 10%?” says Schwartz, 38.
For a fast-food conglomerate that oversees 26,000 locations with combined sales of $32 billion, Restaurant Brands is quite agile. Three months ago the company introduced the Whopper Detour promotion, in which Burger King offered its signature item for a cent if the customer ordered food on the BK phone app within 600 feet of a McDonald’s location. In February came the 45-second Super Bowl ad featuring historic footage of Andy Warhol slowly unwrapping and methodically eating a Whopper. The BK app topped the charts in Apple’s App Store during the campaign; throughout the Super Bowl, “Andy Warhol” was the most searched term on Google.
Maybe Schwartz can even make his hamburger chain cool enough for New Age customers. Plans are under way to introduce a plant-protein patty from Impossible Foods, the startup backed by investors like Bill Gates and the venture capital arm of Alphabet. This is a big deal for Impossible, with an expected rollout in 7,000 Burger Kings soon.
The past decade has been a whirlwind for Schwartz, who combined a certain amount of luck—in the right place at the right time—with a large amount of energy. A lanky guy who has a big smile and a tendency to speak with his hands, Schwartz left Cornell in 2001 with a degree in applied economics. Four years later, he landed a job at 3G Capital, the private equity firm that became famous for engineering the Anheuser-Busch InBev merger (and later infamous for the sickly Kraft Heinz merger).
Schwartz became a 3G partner at 27. “The group believes in investing in young people and giving them opportunities,” he says. “I worked hard and proved that I really cared. More so than anything else, I put the business and the firm ahead of myself.” His wife tolerated the long hours, perhaps because, as a physician in residency, she worked late too.
Schwartz went hunting for deals. Burger King looked intriguing. “I’d ask my wife or my mom, ‘If McDonald’s is worth $70 billion, what do you think Burger King is worth?’ They’d say, ‘$30 billion?’ ” Schwartz recalls.
Paying a 46% premium for the publicly traded shares, 3G acquired the chain for $4 billion, including debt. Schwartz then raised his hand to help run it. “I wanted to be part of this. And I didn’t want to just sit in an office and get monthly reports.”
At 29, Schwartz became BK’s chief financial officer. He sold the corporate jet. He told employees to use Skype to make free international calls. And to get a feel for the whole business, he worked shifts off and on at Miami Burger Kings, cleaning toilets, cooking burgers and manning the drive-thru.
Focused as he was on selling hamburgers, he hadn’t left behind his deal-making instincts. Rechristened Restaurant Brands, his company acquired Canadian coffee chain Tim Hortons in 2014. In 2017 it spent $1.8 billion in cash to get the Popeyes chicken chain.
Warren Buffett is a fan, having put up $3 billion in equity to help finance the Hortons deal. So is Bill Ackman, whose Pershing Square hedge fund owns 5% of the stock; 3G owns 41%.
The second-largest shareholder: the employees, with more than 5% of stock. Thanks to a match for those who invest their bonuses in RBI shares, nearly all 300 middle managers (average age: 37) own shares; at least 100 have become millionaires. Schwartz is sitting on about $100 million in stock and options.
“I’m comforted as an owner when all of the key employees own a lot of stock,” Ackman says. “It makes them much less focused on short-term things. They’re much more focused on ‘Will this make the business more valuable in five years, ten years?’ ”
Recently, Schwartz was moved up to executive chairman, and longtime Burger King exec Jose Cil, 49, became CEO. “We take bets on people,” Cil says. “When they are ambitious and willing to work harder than anybody because they’re driven by something beyond a paycheck, they want to do something big.”
Schwartz lives in Florida with his wife and three kids. He has been working out of RBI offices in Miami and Toronto, but now he’s going to be spending more time at the 3G office in New York, with assignments that range beyond the restaurant chains. “I’m not gonna be CEO at another company,” he says. “But we aspire to do more, and over time we can buy another business down the road.”
Or perhaps repair some of the businesses that 3G already owns. Could someone who has engineered a turnaround at Burger King work some magic on old ketchup and cheese brands? His diplomatic answer: “Maybe you could ask me that question in six months, when I hopefully get a little bit closer to the business of Kraft Heinz.”
3G’s business is as much about building as buying and selling. Schwartz says: “Most traditional investment firms, if they were in our shoes, probably would have sold [RBI] many years ago. Not only did we not sell, we bought more brands along the way. We are building this into a big company with a long-term mindset.”
Many entrepreneurs seem to struggle with following what they are passionate about, versus creating startups just for the money.
Mohit Aron went with passion, co-founded a company that successfully completed an IPO with a valuation of more than $6 billion today, and has raised more than $400 million for a second venture which has already surpassed the billion dollar valuation.
After getting his Ph.D. from Rice University in Houston, Mohit made the move to the Valley. After a stint at Google where he was one of the early employees, he has gone on to create highly impactful ventures that have become a large part of the DNA of our tech today.
In a recent appearance on the DealMakers podcast, he shared his take on following your gut, when to go solo (and not), why you should sleep more, how to incubate a winning startup idea and the algorithm for hiring great leaders (listen to the full podcast episode here).
Google, Hyper-Convergence & Taking Time to Think
Mohit was one of Google’s early tech guys and received, as a result, Google shares at $2 per share. He was responsible for managing a team that had the goal of innovating in the file storage space. Selling those shares gave him financial freedom, and refusing just to stay comfortable he ventured out into building companies from the ground up himself.
Mohit takes a very different approach to cultivate startup ideas than most. Rather than jumping on the first idea, running with it and then getting an office, he has taken the time to build the architecture of those ideas and really get clarity before diving in.
For Nutanix, which became one of the early unicorns, hitting a $6 billion valuation and going public, he first rented office space just to develop and crystallize the idea.
Again, avoiding the seductiveness of getting too comfortable, he began working on his next venture, Cohesity, even before his previous company went public. There he repeated the brainstorming process before creating a new tech success, which raised $15 million in Series A funding from Sequoia in just two days.
Cohesity, a modern data management company, empowers enterprises to back up, manage, store and derive insights from their data and apps, has now raised more than $400 million, including $250 million from its latest Series D round. Investors in the company include Accel, Sequoia, Battery, Cisco Investments, Hewlett Packard Enterprise, Google Ventures, Foundation Capital, Trinity Ventures, Qualcomm Ventures, and the SoftBank Vision Fund to name a few.
The Algorithm for Hiring Great Leaders
Cohesity just celebrated hitting 1,000 employees. Mohit has found huge respect for the recruiting process and putting teams of great leaders in place.
He went into Nutanix with cofounders and then went solo on his second venture, a move he only recommends after you’ve had the experience of launching a startup with others.
Still, he admits it was a steep learning curve, especially when it came to hiring. Most notably there is a big difference in hiring technical and business staff. Today, he says if he started a new venture he would raise $1 million, and use the first $300k of that to use an executive recruiter to source three great executives.
Mohit says he learned the hard way on how to hire leaders. Now he uses a three-tiered process that starts with a comprehensive checklist. This outlines who you want from a resume perspective, the type of leader you need for this stage in your company, and the experience they should have. Maybe you want the person coming from a startup. Maybe you want a person who has done zero to $200 billion in revenue before. Then you have a list of candidates that meet your pre-interview checklist.
Then you go through an interview looking for specific things and asking specific questions. One thing you look for in an interview is that this leader is a great people-person and is a great culture fit. Once the person meets at least 80% of the checklist you have formed for the interview, then comes the post-interview checklist.
The post-interview checklist is all about references. Specifically from either people who reported to that leader or people who’ve been peers of that leader, because those are the one who tells you the truth. They will tell you any red flags.
Go with Your Gut
Mohit warns that “when you hire the wrong person, especially when that person is a wrong leader, that sets the company back at least six months if not more. The damage done is immense.”
He believes the body has a way to tell you if something bad is about to happen, and strongly recommends people listen to their gut. If everything else is pointing in one way, but your gut is saying something else, he says listen to your gut. Don’t hire the leader, and go with your gut and look for the next one. Conversely, sometimes the gut says that this is a great hire, and that’s where, as long as they’ve sort of met the checklists and there’s not a huge red flag there, then go with the gut.
Look at their enthusiasm. Look at the person’s willingness to learn. Those bets can be very rewarding.
What Do You Do With All That Wealth?
Mohit no longer does companies for money. He does it for passion. Along the way, he says it ’s also very gratifying to give back. That starts with what you’ve learned. He says “knowledge is free. Knowledge should not be for sale. So, I freely distribute to anyone who comes to me for advice on how to do companies.”
He gives lectures to share this information. The other part of giving is just financially. He’s given to charitable organizations. He and his wife have a structure set up that when they pass away, a bulk of their wealth is actually going to go into a charity.
As a company, his firm gives to a local foundation in San Jose that takes care of providing jobs to young people. He’s also given to Rice University and the Institute of Technology in Delhi which he attended.
He says “life is about giving, and I think giving brings you pleasure. Unlike what people believe, accumulation isn’t always very pleasing, but giving can be very fulfilling.”