Founded Founder Fridays: E5 From Ideation to Exit

and welcome to our fifth episode of and welcome to our fifth episode of Funded Founder Fridays. Uh this month Funded Founder Fridays. Uh this month Funded Founder Fridays. Uh this month we'll be talking about uh funding and we'll be talking about uh funding and we'll be talking about uh funding and fundraising and deploying funds. Um fundraising and deploying funds. Um fundraising and deploying funds. Um welcome. Uh this is Founder Founder welcome. Uh this is Founder Founder welcome. Uh this is Founder Founder Fridays where we create space for Fridays where we create space for Fridays where we create space for founders to ask honest questions about founders to ask honest questions about founders to ask honest questions about the startup journey. Every Friday, we're the startup journey. Every Friday, we're the startup journey. Every Friday, we're exploring one theme that impacts every exploring one theme that impacts every exploring one theme that impacts every founder, investor, mentor, and builder founder, investor, mentor, and builder founder, investor, mentor, and builder in an innovation system. I am Rosa in an innovation system. I am Rosa in an innovation system. I am Rosa Leanos, CEO and co-founder of Leanos, CEO and co-founder of Leanos, CEO and co-founder of Creattopia, Inc., where we are centered Creattopia, Inc., where we are centered Creattopia, Inc., where we are centered on exploring the relationship between on exploring the relationship between on exploring the relationship between safety and creativity. We know that safety and creativity. We know that safety and creativity. We know that without safety, we are not capable of without safety, we are not capable of without safety, we are not capable of creating original creative thoughts. And creating original creative thoughts. And creating original creative thoughts. And my co-host is Ben Gigabati. my co-host is Ben Gigabati. my co-host is Ben Gigabati. >> Yeah. >> Yeah. >> Yeah. >> Is that how you say? >> Is that how you say? >> Is that how you say? >> Yeah. Hi everybody, my name is Ben >> Yeah. Hi everybody, my name is Ben >> Yeah. Hi everybody, my name is Ben Kubati. Welcome to the fifth episode of Kubati. Welcome to the fifth episode of Kubati. Welcome to the fifth episode of Funded Founder Friday. The theme of this Funded Founder Friday. The theme of this Funded Founder Friday. The theme of this month is how to get money and how to month is how to get money and how to month is how to get money and how to deploy money. Just very simple. Um I'm deploy money. Just very simple. Um I'm deploy money. Just very simple. Um I'm the founder of uh Noble Founder and Red the founder of uh Noble Founder and Red the founder of uh Noble Founder and Red Ruby Capital. We are here building an Ruby Capital. We are here building an Ruby Capital. We are here building an ecosystem uh for startups and everybody ecosystem uh for startups and everybody ecosystem uh for startups and everybody in the startup ecosystem to make a in the startup ecosystem to make a in the startup ecosystem to make a greater impact on the real problems in greater impact on the real problems in greater impact on the real problems in the world. So today uh joining us Julie the world. So today uh joining us Julie the world. So today uh joining us Julie Rocky from Austin Rocky from Austin Rocky from Austin um and I was introduced to Julie by our um and I was introduced to Julie by our um and I was introduced to Julie by our good friend Ken from Iron Grove. Thank good friend Ken from Iron Grove. Thank good friend Ken from Iron Grove. Thank you Ken. Really appreciate that. This is

you Ken. Really appreciate that. This is you Ken. Really appreciate that. This is the power of ecosystem. This is the the power of ecosystem. This is the the power of ecosystem. This is the power of people coming together and power of people coming together and power of people coming together and doing great things. doing great things. doing great things. >> So Julie joins us from Austin but she's >> So Julie joins us from Austin but she's >> So Julie joins us from Austin but she's actually uh from close to Houston and actually uh from close to Houston and actually uh from close to Houston and she could talk a little bit about that she could talk a little bit about that she could talk a little bit about that once she starts talking. Um, and she has once she starts talking. Um, and she has once she starts talking. Um, and she has spent more than 20 years helping spent more than 20 years helping spent more than 20 years helping companies navigate some of the most companies navigate some of the most companies navigate some of the most exciting and challenging stages of exciting and challenging stages of exciting and challenging stages of growth. Her career has been focused on growth. Her career has been focused on growth. Her career has been focused on startups, high- growth companies, startups, high- growth companies, startups, high- growth companies, private equity, and venture-backed private equity, and venture-backed private equity, and venture-backed businesses, turnarounds, and mergers and businesses, turnarounds, and mergers and businesses, turnarounds, and mergers and acquisitions. She's been the operator acquisitions. She's been the operator acquisitions. She's been the operator brought in by investors and founders at brought in by investors and founders at brought in by investors and founders at funding to build the infrastructure, funding to build the infrastructure, funding to build the infrastructure, systems, teams, and operational systems, teams, and operational systems, teams, and operational foundation needed to scale successfully. foundation needed to scale successfully. foundation needed to scale successfully. Over the past several years, Julie has Over the past several years, Julie has Over the past several years, Julie has also led turnaround initiatives for also led turnaround initiatives for also led turnaround initiatives for companies across the country, helping companies across the country, helping companies across the country, helping struggling businesses identify what's struggling businesses identify what's struggling businesses identify what's holding them back, making the tough holding them back, making the tough holding them back, making the tough decisions and getting them back on path decisions and getting them back on path decisions and getting them back on path toward growth. Those experiences have toward growth. Those experiences have toward growth. Those experiences have given her a unique perspective on the given her a unique perspective on the given her a unique perspective on the common oversightes founders make and how common oversightes founders make and how common oversightes founders make and how they can avoid them. She's also been on they can avoid them. She's also been on they can avoid them. She's also been on the front lines of numerous the front lines of numerous the front lines of numerous acquisitions, leading due diligence, and acquisitions, leading due diligence, and acquisitions, leading due diligence, and helping companies prepare for successful helping companies prepare for successful helping companies prepare for successful exits. So today, we're going beyond the exits. So today, we're going beyond the exits. So today, we're going beyond the typical fundraising conversation to talk typical fundraising conversation to talk typical fundraising conversation to talk about something every founder should be about something every founder should be about something every founder should be thinking about from day one. How to thinking about from day one. How to thinking about from day one. How to build a company that's not only build a company that's not only build a company that's not only investable, but ultimately acquirable.

investable, but ultimately acquirable. investable, but ultimately acquirable. >> Julie, welcome to the show, and we are >> Julie, welcome to the show, and we are >> Julie, welcome to the show, and we are so excited that you're with us today. so excited that you're with us today. so excited that you're with us today. >> Thank you very much. Thank you very >> Thank you very much. Thank you very >> Thank you very much. Thank you very much. Yes. Uh, as you mentioned, I was much. Yes. Uh, as you mentioned, I was much. Yes. Uh, as you mentioned, I was actually raised in Richmond Rosenberg, actually raised in Richmond Rosenberg, actually raised in Richmond Rosenberg, not too far from here. So, went to high not too far from here. So, went to high not too far from here. So, went to high school there, left, went to college school there, left, went to college school there, left, went to college at&m, and then, as any good Aggie does, at&m, and then, as any good Aggie does, at&m, and then, as any good Aggie does, I moved to Austin and, uh, thought I'd I moved to Austin and, uh, thought I'd I moved to Austin and, uh, thought I'd only be there a year or two, but, uh, only be there a year or two, but, uh, only be there a year or two, but, uh, here we are 25 plus years later and love here we are 25 plus years later and love here we are 25 plus years later and love it. So, still there. Yay. Still there. it. So, still there. Yay. Still there. it. So, still there. Yay. Still there. But it afforded me an opportunity when I But it afforded me an opportunity when I But it afforded me an opportunity when I got there to break into the startup got there to break into the startup got there to break into the startup space. And that was a space I didn't space. And that was a space I didn't space. And that was a space I didn't even know I wanted to be in at the time. even know I wanted to be in at the time. even know I wanted to be in at the time. Um, but as I got into it and learned Um, but as I got into it and learned Um, but as I got into it and learned more and got connected and so forth, more and got connected and so forth, more and got connected and so forth, it's been a blessing of a career and a it's been a blessing of a career and a it's been a blessing of a career and a place to be with all of the high-tech place to be with all of the high-tech place to be with all of the high-tech startups and all the stuff going on startups and all the stuff going on startups and all the stuff going on there. Um, it's been a really, really there. Um, it's been a really, really there. Um, it's been a really, really neat ride.

neat ride. neat ride. >> I'm excited to just hear about your >> I'm excited to just hear about your >> I'm excited to just hear about your experience because I'm sure everything experience because I'm sure everything experience because I'm sure everything that you'll be talking about today, I that you'll be talking about today, I that you'll be talking about today, I mean, you have stories and you have key mean, you have stories and you have key mean, you have stories and you have key points. points. points. >> We do have stories that you're going to >> We do have stories that you're going to >> We do have stories that you're going to get some giggles out of, but hopefully get some giggles out of, but hopefully get some giggles out of, but hopefully you take something away and go, I don't you take something away and go, I don't you take something away and go, I don't want to be that person in that next want to be that person in that next want to be that person in that next podcast. So, podcast. So, podcast. So, >> yes, feel free to take notes. Um, and we >> yes, feel free to take notes. Um, and we >> yes, feel free to take notes. Um, and we do have a studio audience and we do do have a studio audience and we do do have a studio audience and we do remind our studio audience that this is remind our studio audience that this is remind our studio audience that this is going to be interactive throughout. So, going to be interactive throughout. So, going to be interactive throughout. So, if you have questions at any point, feel if you have questions at any point, feel if you have questions at any point, feel free to come up to the booth and or that free to come up to the booth and or that free to come up to the booth and or that little stool there, grab the mic and ask little stool there, grab the mic and ask little stool there, grab the mic and ask a question. We usually have a Q&A, but a question. We usually have a Q&A, but a question. We usually have a Q&A, but we want to keep it conversational and we want to keep it conversational and we want to keep it conversational and interactive throughout the show. Uh, so interactive throughout the show. Uh, so interactive throughout the show. Uh, so feel free to ask questions at any time. feel free to ask questions at any time. feel free to ask questions at any time. Um, do you want to just start? Um, do you want to just start? Um, do you want to just start? >> I can kick it off. I can kick it off. I >> I can kick it off. I can kick it off. I >> I can kick it off. I can kick it off. I wanted to a after speaking with Ben at wanted to a after speaking with Ben at wanted to a after speaking with Ben at length and just kind of understanding length and just kind of understanding length and just kind of understanding what you're doing. I know that you have what you're doing. I know that you have what you're doing. I know that you have had episodes already that speak to how had episodes already that speak to how had episodes already that speak to how to raise money, why you want to raise to raise money, why you want to raise to raise money, why you want to raise money, all the steps you need to go money, all the steps you need to go money, all the steps you need to go through to ensure that you're through to ensure that you're through to ensure that you're investable. And I want to add another investable. And I want to add another investable. And I want to add another layer to that today of if you're a layer to that today of if you're a layer to that today of if you're a founder that's looking to pick up founder that's looking to pick up founder that's looking to pick up investment money, that means you're investment money, that means you're investment money, that means you're looking for an exit at some point, looking for an exit at some point, looking for an exit at some point, typically an acquisition, merger, typically an acquisition, merger, typically an acquisition, merger, something like that. And if you're going something like that. And if you're going something like that. And if you're going down that path, it's really, really down that path, it's really, really down that path, it's really, really smart as a founder to start from day one smart as a founder to start from day one smart as a founder to start from day one understanding what that acquisition is

understanding what that acquisition is understanding what that acquisition is going to look like, what's going to be going to look like, what's going to be going to look like, what's going to be required of you, and what's going to be required of you, and what's going to be required of you, and what's going to be important to have and be able to get important to have and be able to get important to have and be able to get your hands on down the road. Um, so it's your hands on down the road. Um, so it's your hands on down the road. Um, so it's critically important. And like I said, critically important. And like I said, critically important. And like I said, I've got some pretty funny stories. Um, I've got some pretty funny stories. Um, I've got some pretty funny stories. Um, I can laugh now, but not so funny in the I can laugh now, but not so funny in the I can laugh now, but not so funny in the midst of it all. midst of it all. midst of it all. >> Um, but yeah, what one of the things >> Um, but yeah, what one of the things >> Um, but yeah, what one of the things that founders typically that founders typically that founders typically assume is that a buyer down the road, assume is that a buyer down the road, assume is that a buyer down the road, whether this be in three years, 5 years, whether this be in three years, 5 years, whether this be in three years, 5 years, 10 years, whatever your exit plan looks 10 years, whatever your exit plan looks 10 years, whatever your exit plan looks like, um, they assume that buyers care like, um, they assume that buyers care like, um, they assume that buyers care about customers and revenue. And that is about customers and revenue. And that is about customers and revenue. And that is true, but it's not the whole truth. Um, true, but it's not the whole truth. Um, true, but it's not the whole truth. Um, the truth is that especially the truth is that especially the truth is that especially institutional buyers, they're looking institutional buyers, they're looking institutional buyers, they're looking for things like predictability, for things like predictability, for things like predictability, scalability, scalability, scalability, leadership, what systems you have, your leadership, what systems you have, your leadership, what systems you have, your customer base, your data integrity, all customer base, your data integrity, all customer base, your data integrity, all the things that help them feel the things that help them feel the things that help them feel comfortable to know that you've reduced comfortable to know that you've reduced comfortable to know that you've reduced their risk in your investment if they their risk in your investment if they their risk in your investment if they move forward with purchasing your move forward with purchasing your move forward with purchasing your company.

company. company. um that all of those things collectively um that all of those things collectively um that all of those things collectively are referred to as your enterprise value are referred to as your enterprise value are referred to as your enterprise value and that's really what founders should and that's really what founders should and that's really what founders should be honing in on from day one. be honing in on from day one. be honing in on from day one. And so in talking about what what an And so in talking about what what an And so in talking about what what an acquisition looks like, as I was putting acquisition looks like, as I was putting acquisition looks like, as I was putting an outline together for this, it dawned an outline together for this, it dawned an outline together for this, it dawned on me that we may have people in the on me that we may have people in the on me that we may have people in the audience or listening to this that have audience or listening to this that have audience or listening to this that have never gone through an acquisition. never gone through an acquisition. never gone through an acquisition. They've never sat at the table and been They've never sat at the table and been They've never sat at the table and been handed the due diligence list and as a handed the due diligence list and as a handed the due diligence list and as a result they have no idea what that looks result they have no idea what that looks result they have no idea what that looks like. So they don't know how to prepare. like. So they don't know how to prepare. like. So they don't know how to prepare. >> So do a little survey to see if >> So do a little survey to see if >> So do a little survey to see if >> let's do it. Let's do it. Who who here >> let's do it. Let's do it. Who who here >> let's do it. Let's do it. Who who here today has ever been the lead on the due today has ever been the lead on the due today has ever been the lead on the due diligence in any kind of acquisition or diligence in any kind of acquisition or diligence in any kind of acquisition or merger piece? merger piece? merger piece? >> Um not surprising. it it's usually not a >> Um not surprising. it it's usually not a >> Um not surprising. it it's usually not a lot of people involved when this goes lot of people involved when this goes lot of people involved when this goes on. But what I want to do is take a just on. But what I want to do is take a just on. But what I want to do is take a just a second to talk about what that looks a second to talk about what that looks a second to talk about what that looks like. And from an institutional like. And from an institutional like. And from an institutional standpoint, I'm just going to talk today standpoint, I'm just going to talk today standpoint, I'm just going to talk today about private equity purchasing your about private equity purchasing your about private equity purchasing your company. You could always run across an company. You could always run across an company. You could always run across an individual that wants to buy it and individual that wants to buy it and individual that wants to buy it and doesn't care to ask questions. They just doesn't care to ask questions. They just doesn't care to ask questions. They just need to see your bank balance and need to see your bank balance and need to see your bank balance and they're good to go. Well, if that works they're good to go. Well, if that works they're good to go. Well, if that works for you and that works for them, great.

for you and that works for them, great. for you and that works for them, great. But that's not anything I've ever been But that's not anything I've ever been But that's not anything I've ever been part of. part of. part of. >> Would you say that's due diligence? >> Would you say that's due diligence? >> Would you say that's due diligence? >> No. No, I don't think so. I think it's a >> No. No, I don't think so. I think it's a >> No. No, I don't think so. I think it's a lot of luck is what that is. But, um, lot of luck is what that is. But, um, lot of luck is what that is. But, um, no. At any rate, what it looks like is no. At any rate, what it looks like is no. At any rate, what it looks like is an overwhelming, an overwhelming, an overwhelming, very somewhat chaotic mess of a request very somewhat chaotic mess of a request very somewhat chaotic mess of a request of data and information from you. Um, of data and information from you. Um, of data and information from you. Um, one of the things, the first, you know, one of the things, the first, you know, one of the things, the first, you know, thing that we're going to talk about thing that we're going to talk about thing that we're going to talk about here has to do with building systems here has to do with building systems here has to do with building systems from day one. And one of the things that from day one. And one of the things that from day one. And one of the things that you're going to note when you have you're going to note when you have you're going to note when you have private equity sitting across the table private equity sitting across the table private equity sitting across the table handing you your due diligence paperwork handing you your due diligence paperwork handing you your due diligence paperwork is they want everything that you give is they want everything that you give is they want everything that you give them to be system generated. And that is them to be system generated. And that is them to be system generated. And that is maybe one of the biggest takeaways that maybe one of the biggest takeaways that maybe one of the biggest takeaways that people should um take away today as as people should um take away today as as people should um take away today as as far as what to expect because it might far as what to expect because it might far as what to expect because it might change your mind on how you go about change your mind on how you go about change your mind on how you go about building your business and some of the building your business and some of the building your business and some of the systems, resources, and tools you use to systems, resources, and tools you use to systems, resources, and tools you use to build it.

build it. build it. >> Um so yeah, the system generated piece >> Um so yeah, the system generated piece >> Um so yeah, the system generated piece is huge. Um and so let's just jump into is huge. Um and so let's just jump into is huge. Um and so let's just jump into it. What does that mean for you? That's it. What does that mean for you? That's it. What does that mean for you? That's that's the question I have. What I think that's the question I have. What I think that's the question I have. What I think when I think systems generated I I when I think systems generated I I when I think systems generated I I >> A couple things come to mind. >> A couple things come to mind. >> A couple things come to mind. >> What what it means is exactly what it >> What what it means is exactly what it >> What what it means is exactly what it sounds like. They do not if they ask you sounds like. They do not if they ask you sounds like. They do not if they ask you for your financials for the last six for your financials for the last six for your financials for the last six years and they want them your financials years and they want them your financials years and they want them your financials sliced and diced 14 different ways, sliced and diced 14 different ways, sliced and diced 14 different ways, which they will. Um you do not want to which they will. Um you do not want to which they will. Um you do not want to hand them a PDF of something you typed hand them a PDF of something you typed hand them a PDF of something you typed up in Word. they want to see the system up in Word. they want to see the system up in Word. they want to see the system date and time stamp of when you pulled date and time stamp of when you pulled date and time stamp of when you pulled that data out of your system um so that that data out of your system um so that that data out of your system um so that they can cross reference over time as they can cross reference over time as they can cross reference over time as they're going through their piece of it. they're going through their piece of it. they're going through their piece of it. So as far as accounting softwares, your So as far as accounting softwares, your So as far as accounting softwares, your CRM, your ERPs, your inventory control, CRM, your ERPs, your inventory control, CRM, your ERPs, your inventory control, your manufacturing, all of that piece, your manufacturing, all of that piece, your manufacturing, all of that piece, project management, product road maps, project management, product road maps, project management, product road maps, KPIs and dashboards, all of these things KPIs and dashboards, all of these things KPIs and dashboards, all of these things need to be in a system need to be in a system need to be in a system from day one.

from day one. from day one. >> And the reason for that, I I've run >> And the reason for that, I I've run >> And the reason for that, I I've run across founders that think that, well, I across founders that think that, well, I across founders that think that, well, I can save $60 a month if I just don't get can save $60 a month if I just don't get can save $60 a month if I just don't get QuickBooks yet. My accounting is really QuickBooks yet. My accounting is really QuickBooks yet. My accounting is really simple. I can just keep it on a post-it simple. I can just keep it on a post-it simple. I can just keep it on a post-it note over here and I can check my bank note over here and I can check my bank note over here and I can check my bank balance every day. And so I should be balance every day. And so I should be balance every day. And so I should be good, you know, at least for a year or good, you know, at least for a year or good, you know, at least for a year or so. You know, I can get by with it. so. You know, I can get by with it. so. You know, I can get by with it. >> And that's just a huge huge no no. >> And that's just a huge huge no no. >> And that's just a huge huge no no. >> And I I'll explain why in just give you >> And I I'll explain why in just give you >> And I I'll explain why in just give you a perfect example. But at at the end of a perfect example. But at at the end of a perfect example. But at at the end of the day, you want to ensure that you are the day, you want to ensure that you are the day, you want to ensure that you are buying. It doesn't matter if it's a $20 buying. It doesn't matter if it's a $20 buying. It doesn't matter if it's a $20 a month pipe drive. You don't need to go a month pipe drive. You don't need to go a month pipe drive. You don't need to go get Netswuite for six figures right out get Netswuite for six figures right out get Netswuite for six figures right out of the gate. But if you know you're of the gate. But if you know you're of the gate. But if you know you're going to be evolving to Netswuite over going to be evolving to Netswuite over going to be evolving to Netswuite over time and that's one of your milestones time and that's one of your milestones time and that's one of your milestones maybe in your business plan, then maybe in your business plan, then maybe in your business plan, then perhaps get a lesser ERP to start with. perhaps get a lesser ERP to start with. perhaps get a lesser ERP to start with. that you can export data into Netswuite that you can export data into Netswuite that you can export data into Netswuite with and still have everything system with and still have everything system with and still have everything system generated. Um, so I'll tell you a story generated. Um, so I'll tell you a story generated. Um, so I'll tell you a story and this is a sad but true story. um and this is a sad but true story. um and this is a sad but true story. um walked into a company about a decade ago walked into a company about a decade ago walked into a company about a decade ago and they had uh they had been around for and they had uh they had been around for and they had uh they had been around for 15 years or so, very successful company 15 years or so, very successful company 15 years or so, very successful company revenue-wise, revenue-wise, revenue-wise, two founders, and they were wanting to two founders, and they were wanting to two founders, and they were wanting to exit. I got the call and I met with them exit. I got the call and I met with them exit. I got the call and I met with them and they said, "We have the weirdest

and they said, "We have the weirdest and they said, "We have the weirdest thing going on. thing going on. thing going on. What's happened is we've always done our What's happened is we've always done our What's happened is we've always done our business kind of on paper and not really business kind of on paper and not really business kind of on paper and not really legit. Um, for years, decades, and we legit. Um, for years, decades, and we legit. Um, for years, decades, and we moved to this huge enterprise software. moved to this huge enterprise software. moved to this huge enterprise software. We paid $90,000 for it last year. We're We paid $90,000 for it last year. We're We paid $90,000 for it last year. We're good to go, and this is going to be good to go, and this is going to be good to go, and this is going to be great. But the funny thing is, we keep great. But the funny thing is, we keep great. But the funny thing is, we keep asking our accountant for financials out asking our accountant for financials out asking our accountant for financials out of it. and our accountant is telling us of it. and our accountant is telling us of it. and our accountant is telling us that uh what we get back is a bank that uh what we get back is a bank that uh what we get back is a bank balance or a single PDF page that balance or a single PDF page that balance or a single PDF page that doesn't look like it came out of the doesn't look like it came out of the doesn't look like it came out of the system. system. system. >> And I said, "Well, when you log in, why >> And I said, "Well, when you log in, why >> And I said, "Well, when you log in, why don't you pull the finan what what are don't you pull the finan what what are don't you pull the finan what what are you getting when you pull the you getting when you pull the you getting when you pull the financial?" Well, we don't know how to financial?" Well, we don't know how to financial?" Well, we don't know how to do it. We didn't go through training. do it. We didn't go through training. do it. We didn't go through training. >> Oh, wow. >> Oh, wow. >> Oh, wow. >> I said, "Oh, okay." Um, >> I said, "Oh, okay." Um, >> I said, "Oh, okay." Um, so the next thing I I asked I I said so the next thing I I asked I I said so the next thing I I asked I I said then they admitted that they decided to then they admitted that they decided to then they admitted that they decided to save a couple of bucks and not spend the save a couple of bucks and not spend the save a couple of bucks and not spend the $14,000 it was going to take to train $14,000 it was going to take to train $14,000 it was going to take to train all of their team on this enterprise all of their team on this enterprise all of their team on this enterprise software when they got it. They just software when they got it. They just software when they got it. They just expected everybody to, I think, watch expected everybody to, I think, watch expected everybody to, I think, watch YouTube videos for a while.

YouTube videos for a while. YouTube videos for a while. That didn't work out too great for them That didn't work out too great for them That didn't work out too great for them because we ended up getting into the because we ended up getting into the because we ended up getting into the system and the system was empty. Nobody system and the system was empty. Nobody system and the system was empty. Nobody had been using their system that they had been using their system that they had been using their system that they wrote a check for $90,000 a year ago for wrote a check for $90,000 a year ago for wrote a check for $90,000 a year ago for >> and they were devastated and they wanted >> and they were devastated and they wanted >> and they were devastated and they wanted to fire everybody. And you know, it was to fire everybody. And you know, it was to fire everybody. And you know, it was a thing. And a thing. And a thing. And my first reaction was my first reaction was my first reaction was a y'all didn't check this before now, a y'all didn't check this before now, a y'all didn't check this before now, but b but b but b your people didn't come to you and say, your people didn't come to you and say, your people didn't come to you and say, "Hey, I know we're supposed to be "Hey, I know we're supposed to be "Hey, I know we're supposed to be working in the system, but we're not." working in the system, but we're not." working in the system, but we're not." And well, these guys had a decision. We And well, these guys had a decision. We And well, these guys had a decision. We had, you know, they wanted to get had, you know, they wanted to get had, you know, they wanted to get acquired. They had some interested acquired. They had some interested acquired. They had some interested parties at the time, and they said, parties at the time, and they said, parties at the time, and they said, "What do we need to do?" and everyone "What do we need to do?" and everyone "What do we need to do?" and everyone told them, "No one's even going to talk told them, "No one's even going to talk told them, "No one's even going to talk to you unless or until you've got all to you unless or until you've got all to you unless or until you've got all your data somewhere where they could your data somewhere where they could your data somewhere where they could review it and so forth." So, we ended up review it and so forth." So, we ended up review it and so forth." So, we ended up taking their existing team, taking their existing team, taking their existing team, putting them all in that $14,000 putting them all in that $14,000 putting them all in that $14,000 training immediately, but we hired some training immediately, but we hired some training immediately, but we hired some industry veterans as part of this industry veterans as part of this industry veterans as part of this turnaround project. I hired a handful of turnaround project. I hired a handful of turnaround project. I hired a handful of industry veterans that had that industry veterans that had that industry veterans that had that particular software expertise so that particular software expertise so that particular software expertise so that they could be our in-house resource when they could be our in-house resource when they could be our in-house resource when when we had questions, but they also when we had questions, but they also when we had questions, but they also wouldn't need any handholding to do wouldn't need any handholding to do wouldn't need any handholding to do their job.

their job. their job. >> I had them handle all current and future >> I had them handle all current and future >> I had them handle all current and future business and just sit on the floor and business and just sit on the floor and business and just sit on the floor and do that. the existing employees. do that. the existing employees. do that. the existing employees. We got to do what ended up being almost We got to do what ended up being almost We got to do what ended up being almost a 12month project a 12month project a 12month project of completely recreating history for of completely recreating history for of completely recreating history for that company in that system. And as part that company in that system. And as part that company in that system. And as part of that, I would tell you that we all of that, I would tell you that we all of that, I would tell you that we all got to add something to our resume. got to add something to our resume. got to add something to our resume. We're we're all now considered in my We're we're all now considered in my We're we're all now considered in my mind crime scene investigators mind crime scene investigators mind crime scene investigators because because because we had every single I want you to think we had every single I want you to think we had every single I want you to think about this. Th this was a $12 million about this. Th this was a $12 million about this. Th this was a $12 million business. business. business. every single customer interaction. Wow. every single customer interaction. Wow. every single customer interaction. Wow. >> Bank transaction, credit card >> Bank transaction, credit card >> Bank transaction, credit card transaction, transaction, transaction, um, new business, um, new business, um, new business, e vendors, e vendors, e vendors, every single piece of everything that every single piece of everything that every single piece of everything that business did, it existed in 80 email business did, it existed in 80 email business did, it existed in 80 email accounts, accounts, accounts, about 10 phones with text messages.

about 10 phones with text messages. about 10 phones with text messages. Um, they had they weren't using the Um, they had they weren't using the Um, they had they weren't using the accounting software, so there was a accounting software, so there was a accounting software, so there was a bunch of yellow legal pads. we got to bunch of yellow legal pads. we got to bunch of yellow legal pads. we got to screenshot and it was screenshot and it was screenshot and it was >> it was something but we had to use bank >> it was something but we had to use bank >> it was something but we had to use bank statements, commission statements, statements, commission statements, statements, commission statements, vendor invoices. I mean, you can't even vendor invoices. I mean, you can't even vendor invoices. I mean, you can't even imagine the amount of work that went imagine the amount of work that went imagine the amount of work that went into tracking down the information into tracking down the information into tracking down the information and getting it into the system dated and getting it into the system dated and getting it into the system dated properly, closed out properly, audited properly, closed out properly, audited properly, closed out properly, audited in the system properly. It was it was a in the system properly. It was it was a in the system properly. It was it was a giant giant undertaking giant giant undertaking giant giant undertaking >> and all of it could have been avoided if >> and all of it could have been avoided if >> and all of it could have been avoided if a they would have just been on a system a they would have just been on a system a they would have just been on a system any system that had the capability to any system that had the capability to any system that had the capability to export data from the beginning. Um or if export data from the beginning. Um or if export data from the beginning. Um or if they would have forced their team to use they would have forced their team to use they would have forced their team to use the software they purchased, you know, a the software they purchased, you know, a the software they purchased, you know, a year prior would have made a big year prior would have made a big year prior would have made a big difference. So, if you want to be a difference. So, if you want to be a difference. So, if you want to be a crime scene investigator, I've got some crime scene investigator, I've got some crime scene investigator, I've got some tips for you and you can put that CSI tips for you and you can put that CSI tips for you and you can put that CSI thing on there and, you know, put it thing on there and, you know, put it thing on there and, you know, put it after your name and feel all important.

after your name and feel all important. after your name and feel all important. But, um, I don't recommend it. I don't But, um, I don't recommend it. I don't But, um, I don't recommend it. I don't recommend it. So, that that would be my recommend it. So, that that would be my recommend it. So, that that would be my first point is understand that every first point is understand that every first point is understand that every piece of data that a buyer is going to piece of data that a buyer is going to piece of data that a buyer is going to ask from you must be system generated. ask from you must be system generated. ask from you must be system generated. So because of that, you need to be So because of that, you need to be So because of that, you need to be thinking from day one of what systems thinking from day one of what systems thinking from day one of what systems can I get and what's going to work for can I get and what's going to work for can I get and what's going to work for me now pricewise, functionalitywise, me now pricewise, functionalitywise, me now pricewise, functionalitywise, etc., and what can I grow into, etc. And etc., and what can I grow into, etc. And etc., and what can I grow into, etc. And that that's the way you need to be that that's the way you need to be that that's the way you need to be approaching your systems. But to ignore approaching your systems. But to ignore approaching your systems. But to ignore it and think, oh, I can just our it and think, oh, I can just our it and think, oh, I can just our accounting is so simple. It's no big accounting is so simple. It's no big accounting is so simple. It's no big deal. My tax accountant is fine with deal. My tax accountant is fine with deal. My tax accountant is fine with napkins, you know? That's not a good way napkins, you know? That's not a good way napkins, you know? That's not a good way to plan. Not a good way to plan for to plan. Not a good way to plan for to plan. Not a good way to plan for sure. sure. sure. >> I can see lots of heads are nodding. So >> I can see lots of heads are nodding. So >> I can see lots of heads are nodding. So I think the biggest takeaway is if you I think the biggest takeaway is if you I think the biggest takeaway is if you wanted to get that done, you need to wanted to get that done, you need to wanted to get that done, you need to build organization. I think it just gets build organization. I think it just gets build organization. I think it just gets into the people. Exactly.

into the people. Exactly. into the people. Exactly. >> Culture uh aspect of building a startup. >> Culture uh aspect of building a startup. >> Culture uh aspect of building a startup. >> Yep. And your tech stack, right? Like >> Yep. And your tech stack, right? Like >> Yep. And your tech stack, right? Like that's essentially your tech stack. that's essentially your tech stack. that's essentially your tech stack. >> And understanding what that tech stack >> And understanding what that tech stack >> And understanding what that tech stack is going to look like from day one. what is going to look like from day one. what is going to look like from day one. what you can get away with, um, what you can you can get away with, um, what you can you can get away with, um, what you can cheap out on and get the lesser price cheap out on and get the lesser price cheap out on and get the lesser price because it still has these four pieces because it still has these four pieces because it still has these four pieces of functionality that you require, etc. of functionality that you require, etc. of functionality that you require, etc. Um, Um, Um, all of that is is fine, but it should be all of that is is fine, but it should be all of that is is fine, but it should be considered right out of the gate because considered right out of the gate because considered right out of the gate because you're going to be in a world of hurt if you're going to be in a world of hurt if you're going to be in a world of hurt if you have to recreate history down the you have to recreate history down the you have to recreate history down the road. Let me just tell you, it's not try road. Let me just tell you, it's not try road. Let me just tell you, it's not try to like integrate a system once you've to like integrate a system once you've to like integrate a system once you've already built already built already built >> Exactly. Right. >> Exactly. Right. >> Exactly. Right. >> Exactly. Yeah. So that leads us into our >> Exactly. Yeah. So that leads us into our >> Exactly. Yeah. So that leads us into our second our second topic which is people. second our second topic which is people. second our second topic which is people. Now in the example I just gave Now in the example I just gave Now in the example I just gave you know those two founders a they you know those two founders a they you know those two founders a they weren't managing their people. Clearly weren't managing their people. Clearly weren't managing their people. Clearly they didn't have the right people. If they didn't have the right people. If they didn't have the right people. If not one single person on that team and not one single person on that team and not one single person on that team and there was about 12 of them on the team.

there was about 12 of them on the team. there was about 12 of them on the team. Not one of them ever raised their hand Not one of them ever raised their hand Not one of them ever raised their hand and said we're still doing it the old and said we're still doing it the old and said we're still doing it the old way. You know does anybody need to know? way. You know does anybody need to know? way. You know does anybody need to know? So that was a problem in and of itself. So that was a problem in and of itself. So that was a problem in and of itself. But one of the other things that you But one of the other things that you But one of the other things that you need to understand that a buyer will be need to understand that a buyer will be need to understand that a buyer will be looking at down the road is your people looking at down the road is your people looking at down the road is your people around you, your leadership team, your around you, your leadership team, your around you, your leadership team, your mentors, your advisors. mentors, your advisors. mentors, your advisors. They're also going to look at how you've They're also going to look at how you've They're also going to look at how you've created culture with your people and created culture with your people and created culture with your people and what that culture is. Is it a positive what that culture is. Is it a positive what that culture is. Is it a positive culture? Is it one they're going to have culture? Is it one they're going to have culture? Is it one they're going to have to fix or or maybe completely undo and to fix or or maybe completely undo and to fix or or maybe completely undo and redo type thing. redo type thing. redo type thing. >> Um, all of these things super super >> Um, all of these things super super >> Um, all of these things super super important. And as far as that goes, important. And as far as that goes, important. And as far as that goes, by getting the hiring right, and that's by getting the hiring right, and that's by getting the hiring right, and that's a whole other topic, can of worms we we a whole other topic, can of worms we we a whole other topic, can of worms we we could talk about on another day. But the could talk about on another day. But the could talk about on another day. But the hiring piece, people are not born just hiring piece, people are not born just hiring piece, people are not born just knowing how to screen for hires. That's knowing how to screen for hires. That's knowing how to screen for hires. That's not a skill set that you typically get not a skill set that you typically get not a skill set that you typically get taught in a college class even, per se.

taught in a college class even, per se. taught in a college class even, per se. >> Um, and so it's very very nuanced by the >> Um, and so it's very very nuanced by the >> Um, and so it's very very nuanced by the company, the environment, the industry, company, the environment, the industry, company, the environment, the industry, etc. But the good news is as a founder, etc. But the good news is as a founder, etc. But the good news is as a founder, you get to dictate that. you get to you get to dictate that. you get to you get to dictate that. you get to decide what your culture is going to be decide what your culture is going to be decide what your culture is going to be and then you hire for that culture. Very and then you hire for that culture. Very and then you hire for that culture. Very very important. And so know that the very important. And so know that the very important. And so know that the people around you um your lead, like I people around you um your lead, like I people around you um your lead, like I said, your leadership team has to be said, your leadership team has to be said, your leadership team has to be top-notch. top-notch. top-notch. I I tell people one of the biggest I I tell people one of the biggest I I tell people one of the biggest hiring mistakes that I see regularly hiring mistakes that I see regularly hiring mistakes that I see regularly with founders, especially new founders, with founders, especially new founders, with founders, especially new founders, is you're sitting at a table, they're is you're sitting at a table, they're is you're sitting at a table, they're sharing, and they're so excited to let sharing, and they're so excited to let sharing, and they're so excited to let you know that their best friend from you know that their best friend from you know that their best friend from high school who has been the number one high school who has been the number one high school who has been the number one pest control door salesperson. He's pest control door salesperson. He's pest control door salesperson. He's great at sales. therefore I've made in great at sales. therefore I've made in great at sales. therefore I've made in my VP of sales for my enterprise my VP of sales for my enterprise my VP of sales for my enterprise software company and they don't even software company and they don't even software company and they don't even understand the magnitude of of what a understand the magnitude of of what a understand the magnitude of of what a mistake that could be. Um certainly if mistake that could be. Um certainly if mistake that could be. Um certainly if your best friend from high school sold your best friend from high school sold your best friend from high school sold enterprise software for your competitor, enterprise software for your competitor, enterprise software for your competitor, hey, run with it. But do think through hey, run with it. But do think through hey, run with it. But do think through some of the most obvious hiring some of the most obvious hiring some of the most obvious hiring decisions and choices and make sure that decisions and choices and make sure that decisions and choices and make sure that as a founder you're self-aware enough to

as a founder you're self-aware enough to as a founder you're self-aware enough to be able to find and figure out what your strengths find and figure out what your strengths and your weaknesses are. and your weaknesses are. and your weaknesses are. >> And with that you can then hire to >> And with that you can then hire to >> And with that you can then hire to complement your skill sets and fill in complement your skill sets and fill in complement your skill sets and fill in the gaps that you recognize about the gaps that you recognize about the gaps that you recognize about yourself. So, that's really the biggest yourself. So, that's really the biggest yourself. So, that's really the biggest piece on people and how to make sure piece on people and how to make sure piece on people and how to make sure that you've got a very well-rounded that you've got a very well-rounded that you've got a very well-rounded presence to present to a buyer later on. presence to present to a buyer later on. presence to present to a buyer later on. >> My my bachelor's in psychology, so I >> My my bachelor's in psychology, so I >> My my bachelor's in psychology, so I love the psychology of of putting teams love the psychology of of putting teams love the psychology of of putting teams together. Um, and just I I mean I follow together. Um, and just I I mean I follow together. Um, and just I I mean I follow a lot of like founder accounts and just a lot of like founder accounts and just a lot of like founder accounts and just like business development accounts on like business development accounts on like business development accounts on Instagram and there's something that I Instagram and there's something that I Instagram and there's something that I keep seeing um recurringly that it's keep seeing um recurringly that it's keep seeing um recurringly that it's it's not the business you're building it's not the business you're building it's not the business you're building but who you have to become in order to but who you have to become in order to but who you have to become in order to build that business. build that business. build that business. >> So true. And so the the amount of like >> So true. And so the the amount of like >> So true. And so the the amount of like self-awareness and and in self-awareness and and in self-awareness and and in self-awareness, the introspection that self-awareness, the introspection that self-awareness, the introspection that that requires, the just ability to be that requires, the just ability to be that requires, the just ability to be like ruthfully honest with yourself um like ruthfully honest with yourself um like ruthfully honest with yourself um with where you are and where your team with where you are and where your team with where you are and where your team is. And so yeah, the the is. And so yeah, the the is. And so yeah, the the self-development part is Thank you for self-development part is Thank you for self-development part is Thank you for mentioning that. It's huge.

mentioning that. It's huge. mentioning that. It's huge. >> Totally. Very very very much so. I get a >> Totally. Very very very much so. I get a >> Totally. Very very very much so. I get a lot of questions too on do I have to lot of questions too on do I have to lot of questions too on do I have to have a mentor? do I have to have an have a mentor? do I have to have an have a mentor? do I have to have an advisory board or member or what have advisory board or member or what have advisory board or member or what have you? And the truth is no, you don't. Um, you? And the truth is no, you don't. Um, you? And the truth is no, you don't. Um, but will that be an asset that could but will that be an asset that could but will that be an asset that could catapult you and speed up your growth catapult you and speed up your growth catapult you and speed up your growth and your ability to scale? Thousand% a and your ability to scale? Thousand% a and your ability to scale? Thousand% a thousand%. If you can go and seek out thousand%. If you can go and seek out thousand%. If you can go and seek out people that are experts in your people that are experts in your people that are experts in your industry, have, you know, expertise that industry, have, you know, expertise that industry, have, you know, expertise that they bring to the table, skill sets, do they bring to the table, skill sets, do they bring to the table, skill sets, do they have a rolodex? Do they have a they have a rolodex? Do they have a they have a rolodex? Do they have a network that you'd like to access, network that you'd like to access, network that you'd like to access, whether it's from a customer referral whether it's from a customer referral whether it's from a customer referral type base or just from, hey, who do you type base or just from, hey, who do you type base or just from, hey, who do you use for your taxes since this is so use for your taxes since this is so use for your taxes since this is so weird, you know, or what have you. um to weird, you know, or what have you. um to weird, you know, or what have you. um to be able to send a text at 10:00 on a be able to send a text at 10:00 on a be able to send a text at 10:00 on a Tuesday night and say, "This just Tuesday night and say, "This just Tuesday night and say, "This just happened. Now, what do I do?" And get a happened. Now, what do I do?" And get a happened. Now, what do I do?" And get a response from somebody who's been there response from somebody who's been there response from somebody who's been there and done that, the the value is is huge.

and done that, the the value is is huge. and done that, the the value is is huge. So, I I encourage people and I actually So, I I encourage people and I actually So, I I encourage people and I actually have a little methodology where I help have a little methodology where I help have a little methodology where I help people find who a perfect mentor might people find who a perfect mentor might people find who a perfect mentor might be for them be for them be for them >> and then help them do the reach out >> and then help them do the reach out >> and then help them do the reach out because nine times out of 10, you don't because nine times out of 10, you don't because nine times out of 10, you don't know them already. know them already. know them already. >> Yeah. I mean, it's huge. there's so much >> Yeah. I mean, it's huge. there's so much >> Yeah. I mean, it's huge. there's so much you don't know. you don't know. you don't know. >> If you're if you're just like >> If you're if you're just like >> If you're if you're just like >> starting as a founder, I mean, personal >> starting as a founder, I mean, personal >> starting as a founder, I mean, personal experience, I don't have an MBA. Um, I experience, I don't have an MBA. Um, I experience, I don't have an MBA. Um, I started just learning and wanting to started just learning and wanting to started just learning and wanting to build uh something because of impact. build uh something because of impact. build uh something because of impact. So, I had a few I I went into a few So, I had a few I I went into a few So, I had a few I I went into a few cohorts, met a few investors, mentors, cohorts, met a few investors, mentors, cohorts, met a few investors, mentors, but I've just kind of been learning and but I've just kind of been learning and but I've just kind of been learning and teaching myself in different ways. And teaching myself in different ways. And teaching myself in different ways. And when you when I started just having when you when I started just having when you when I started just having conversations with Ben or other people conversations with Ben or other people conversations with Ben or other people in the ecosystem, in the ecosystem, in the ecosystem, like how much more you can learn with like how much more you can learn with like how much more you can learn with just a conversation. just a conversation. just a conversation. >> 100%. 100%. >> 100%. 100%. >> 100%. 100%. >> And and how applicable it is to where >> And and how applicable it is to where >> And and how applicable it is to where you are. you are. you are. >> Um so yeah, >> Um so yeah, >> Um so yeah, >> so think it thinking through who your >> so think it thinking through who your >> so think it thinking through who your people, your team, and those that people, your team, and those that people, your team, and those that surround you and influence you in your surround you and influence you in your surround you and influence you in your business. thinking that through early on business. thinking that through early on business. thinking that through early on and making sure that that's always in and making sure that that's always in and making sure that that's always in the back of your mind as you're making the back of your mind as you're making the back of your mind as you're making hires and so forth.

hires and so forth. hires and so forth. >> You'll never regret it. >> You'll never regret it. >> You'll never regret it. >> Never regret it. >> Never regret it. >> Never regret it. >> Um >> Um >> Um the next topic would be financial the next topic would be financial the next topic would be financial readiness. So, readiness. So, readiness. So, >> can we take a little tiny break? >> can we take a little tiny break? >> can we take a little tiny break? Totally. Totally. Totally. >> We want to do >> We want to do >> We want to do >> Yeah. >> Yeah. >> Yeah. >> Uh we want to do a raffle um so we can >> Uh we want to do a raffle um so we can >> Uh we want to do a raffle um so we can get some audience participation. get some audience participation. get some audience participation. Um, shout out to Apollo, I think he's in Um, shout out to Apollo, I think he's in Um, shout out to Apollo, I think he's in the audience somewhere, for sponsoring the audience somewhere, for sponsoring the audience somewhere, for sponsoring our our raffle items. Um, our our raffle items. Um, our our raffle items. Um, um, if you look under your seat, um, if you look under your seat, um, if you look under your seat, somebody has a sticky note under the somebody has a sticky note under the somebody has a sticky note under the seat. >> They're all laying on the floor. >> They're all laying on the floor. >> Wow. >> Wow. >> Wow. >> Just kidding. We just wanted to move you >> Just kidding. We just wanted to move you >> Just kidding. We just wanted to move you around. around. around. >> Yeah. >> Yeah. >> Yeah. >> Did you Did we find it? >> Did you Did we find it? >> Did you Did we find it? >> Yeah. >> Yeah. >> Yeah. >> Oh, yeah. >> Oh, yeah. >> Oh, yeah. >> What's it What's it say on the sticky >> What's it What's it say on the sticky >> What's it What's it say on the sticky note?

>> What did you win? So, can you come up to >> What did you win? So, can you come up to the camera? There's a mic right on the the camera? There's a mic right on the the camera? There's a mic right on the stool. stool. stool. Ryan, you want to give it to him so he Ryan, you want to give it to him so he Ryan, you want to give it to him so he can tell us what he won? Congratulations. Congratulations. Thank you for coming. Thank you for coming. Thank you for coming. >> You can just leave the sticky note. >> You can just leave the sticky note. >> You can just leave the sticky note. >> Thank you. >> Thank you. >> Thank you. >> Yeah. Thank you. >> Yeah. Thank you. >> Yeah. Thank you. >> Uh again, shout out to Apollo uh for >> Uh again, shout out to Apollo uh for >> Uh again, shout out to Apollo uh for sponsoring. Uh we'll have more of those sponsoring. Uh we'll have more of those sponsoring. Uh we'll have more of those um as we continue. um as we continue. um as we continue. >> That's awesome. That's awesome. It was >> That's awesome. That's awesome. It was >> That's awesome. That's awesome. It was the box was the size of a Rolex or the box was the size of a Rolex or the box was the size of a Rolex or something. So, I was getting excited for something. So, I was getting excited for something. So, I was getting excited for you guys. I flipped it over. But, you guys. I flipped it over. But, you guys. I flipped it over. But, >> you know, it's just like a startup. Like >> you know, it's just like a startup. Like >> you know, it's just like a startup. Like the idea startups like you know when you the idea startups like you know when you the idea startups like you know when you look at it just like shiny big and when look at it just like shiny big and when look at it just like shiny big and when you open it just like you open it just like you open it just like >> what is in there. >> what is in there. >> what is in there. >> Hey, a raffle's great no matter what. No >> Hey, a raffle's great no matter what. No >> Hey, a raffle's great no matter what. No matter what. matter what. matter what. >> But yeah, thank you Apple. I really >> But yeah, thank you Apple. I really >> But yeah, thank you Apple. I really really appreciate that. really appreciate that. really appreciate that. >> That is awesome. So the third point that >> That is awesome. So the third point that >> That is awesome. So the third point that I would make to everybody in this effort I would make to everybody in this effort I would make to everybody in this effort is financial readiness. So every founder is financial readiness. So every founder is financial readiness. So every founder that's out there that's looking for that's out there that's looking for that's out there that's looking for institutional money has already figured institutional money has already figured institutional money has already figured out that they've got to build a out that they've got to build a out that they've got to build a performer. They've got to have all of performer. They've got to have all of performer. They've got to have all of their sales projections. They've got to their sales projections. They've got to their sales projections. They've got to have their opex. They've got to have their opex. They've got to have their opex. They've got to understand the milestones and the understand the milestones and the understand the milestones and the schedule that they're uh looking to hit schedule that they're uh looking to hit schedule that they're uh looking to hit those milestones on and they've got to

those milestones on and they've got to those milestones on and they've got to be able to prove their use of funds for be able to prove their use of funds for be able to prove their use of funds for their investment. And with that, it's their investment. And with that, it's their investment. And with that, it's always assumed that a founder needs to always assumed that a founder needs to always assumed that a founder needs to know their numbers. know their numbers. know their numbers. Very great assumption. Um, in case in Very great assumption. Um, in case in Very great assumption. Um, in case in case anybody out there was wondering, case anybody out there was wondering, case anybody out there was wondering, here's the rundown of the things that here's the rundown of the things that here's the rundown of the things that you must have memorized and you must you must have memorized and you must you must have memorized and you must know these monthly at a minimum. And know these monthly at a minimum. And know these monthly at a minimum. And that's your burn rate, the runway. that's your burn rate, the runway. that's your burn rate, the runway. >> This is when you take out your your >> This is when you take out your your >> This is when you take out your your notepad or something if you want to take notepad or something if you want to take notepad or something if you want to take notes. notes. notes. >> You just need to stand in front of the >> You just need to stand in front of the >> You just need to stand in front of the mirror at night and memorize them. Not mirror at night and memorize them. Not mirror at night and memorize them. Not that's all I have to say. You're going that's all I have to say. You're going that's all I have to say. You're going to look mighty dumb uh to a lot of to look mighty dumb uh to a lot of to look mighty dumb uh to a lot of people if you can't just spew these out people if you can't just spew these out people if you can't just spew these out off the top of your head. Right. off the top of your head. Right. off the top of your head. Right. >> But no, no. Your gross margins, your >> But no, no. Your gross margins, your >> But no, no. Your gross margins, your revenue by source or product, your revenue by source or product, your revenue by source or product, your customer acquisition costs, your customer acquisition costs, your customer acquisition costs, your lifetime value, your MR ARR, uh your lifetime value, your MR ARR, uh your lifetime value, your MR ARR, uh your churn, and your IBIDA. Those are the churn, and your IBIDA. Those are the churn, and your IBIDA. Those are the obvious ones that everyone tells you. obvious ones that everyone tells you. obvious ones that everyone tells you. Oh, make sure that you always have these Oh, make sure that you always have these Oh, make sure that you always have these numbers. It's very, very important. And numbers. It's very, very important. And numbers. It's very, very important. And it is. There's one other thing though as it is. There's one other thing though as it is. There's one other thing though as it relates to your original performer it relates to your original performer it relates to your original performer and plan for your business. You need to and plan for your business. You need to and plan for your business. You need to be tracking your variance between actual be tracking your variance between actual be tracking your variance between actual and that plan.

and that plan. and that plan. >> And to track it monthly, >> And to track it monthly, >> And to track it monthly, you're too late. It needs to be tracked you're too late. It needs to be tracked you're too late. It needs to be tracked daily or weekly at the biggest interval. daily or weekly at the biggest interval. daily or weekly at the biggest interval. And the reason for that is really And the reason for that is really And the reason for that is really obvious if you think about it. It's so obvious if you think about it. It's so obvious if you think about it. It's so that as a founder, you can watch your that as a founder, you can watch your that as a founder, you can watch your plan. You can see your actuals. You can plan. You can see your actuals. You can plan. You can see your actuals. You can see where you're over and under and you see where you're over and under and you see where you're over and under and you can make course corre course course can make course corre course course can make course corre course course corrections and tweak on the fly if corrections and tweak on the fly if corrections and tweak on the fly if you're aware of a trajectory that's gone you're aware of a trajectory that's gone you're aware of a trajectory that's gone on the last three days and you know what on the last three days and you know what on the last three days and you know what happened three days ago and you could happened three days ago and you could happened three days ago and you could flip that switch again or turn that ad flip that switch again or turn that ad flip that switch again or turn that ad back on or whatever the case might be. back on or whatever the case might be. back on or whatever the case might be. If you can identify that in 72 hours as If you can identify that in 72 hours as If you can identify that in 72 hours as if as opposed to let's wait until the if as opposed to let's wait until the if as opposed to let's wait until the 15th of the month to look back at that 15th of the month to look back at that 15th of the month to look back at that last month, well, you're already ahead last month, well, you're already ahead last month, well, you're already ahead of 90% of all the other founders out of 90% of all the other founders out of 90% of all the other founders out there that are kind of hanging tight and there that are kind of hanging tight and there that are kind of hanging tight and going by the seat of their pants.

going by the seat of their pants. going by the seat of their pants. >> So, very very important that your data >> So, very very important that your data >> So, very very important that your data integrity be right, which kind of leans integrity be right, which kind of leans integrity be right, which kind of leans back to that whole system conversation. back to that whole system conversation. back to that whole system conversation. Um, but once you have that, you're going Um, but once you have that, you're going Um, but once you have that, you're going to need an accountant or somebody on to need an accountant or somebody on to need an accountant or somebody on your team to run your variance reporting your team to run your variance reporting your team to run your variance reporting in real time every day or a few days or in real time every day or a few days or in real time every day or a few days or week for you as a founder. Really, week for you as a founder. Really, week for you as a founder. Really, really important to know how you're really important to know how you're really important to know how you're tracking to your own plan. Very, very tracking to your own plan. Very, very tracking to your own plan. Very, very important. So you know if somebody is u important. So you know if somebody is u important. So you know if somebody is u just you know in ideation or if somebody just you know in ideation or if somebody just you know in ideation or if somebody has a potential customer right you know has a potential customer right you know has a potential customer right you know like I I'm like I'm just I'm having this like I I'm like I'm just I'm having this like I I'm like I'm just I'm having this conversation with this big customer conversation with this big customer conversation with this big customer they're going to give me this big they're going to give me this big they're going to give me this big business right this is my accounts business right this is my accounts business right this is my accounts receivable I haven't got the money yet receivable I haven't got the money yet receivable I haven't got the money yet >> the company is not making any money but >> the company is not making any money but >> the company is not making any money but you know I'm having this really uh uh you know I'm having this really uh uh you know I'm having this really uh uh certain conversation with certain people certain conversation with certain people certain conversation with certain people that I'm going to receive the money. So, that I'm going to receive the money. So, that I'm going to receive the money. So, I don't have any of those uh numbers I don't have any of those uh numbers I don't have any of those uh numbers yet. If I go to like a buyer or like an yet. If I go to like a buyer or like an yet. If I go to like a buyer or like an investor, then what is the strategy?

investor, then what is the strategy? investor, then what is the strategy? >> Well, if you're early on and that's >> Well, if you're early on and that's >> Well, if you're early on and that's happening early on, you've probably got happening early on, you've probably got happening early on, you've probably got a a real reason for that. Maybe you've a a real reason for that. Maybe you've a a real reason for that. Maybe you've got a pilot customer that you're not got a pilot customer that you're not got a pilot customer that you're not charging them because you're getting charging them because you're getting charging them because you're getting their feedback and they're helping you their feedback and they're helping you their feedback and they're helping you work out kinks in your software or work out kinks in your software or work out kinks in your software or something like that. And if that's the something like that. And if that's the something like that. And if that's the case, that's perfectly explainable. So case, that's perfectly explainable. So case, that's perfectly explainable. So now you're looking at your variance now you're looking at your variance now you're looking at your variance reporting and as long as you can reporting and as long as you can reporting and as long as you can explain, do you know why you're trending explain, do you know why you're trending explain, do you know why you're trending away from plan? And if so, and you know away from plan? And if so, and you know away from plan? And if so, and you know that it's going to correct itself with that it's going to correct itself with that it's going to correct itself with the next customer contract or whatever the next customer contract or whatever the next customer contract or whatever that looks like, then you're probably that looks like, then you're probably that looks like, then you're probably fine. Carry on. You know, keep going. Um fine. Carry on. You know, keep going. Um fine. Carry on. You know, keep going. Um I wouldn't make a big you know tweak to I wouldn't make a big you know tweak to I wouldn't make a big you know tweak to anything if you know exactly why the anything if you know exactly why the anything if you know exactly why the variance is there is my point variance is there is my point variance is there is my point >> you know how about people that they have >> you know how about people that they have >> you know how about people that they have just a promise right you know it's just just a promise right you know it's just just a promise right you know it's just a contract that is coming it's a a contract that is coming it's a a contract that is coming it's a customer that is coming but it's just a customer that is coming but it's just a customer that is coming but it's just a promise you know I have seen many promise you know I have seen many promise you know I have seen many founders they have a full business plan founders they have a full business plan founders they have a full business plan on you know I met like five people on you know I met like five people on you know I met like five people they're going to tell they're going to they're going to tell they're going to they're going to tell they're going to give me each promise me is going to give me each promise me is going to give me each promise me is going to like each, you know, 20 grand I'm like like each, you know, 20 grand I'm like like each, you know, 20 grand I'm like in the trajectory to earn 100K, but they in the trajectory to earn 100K, but they in the trajectory to earn 100K, but they don't even have the contract yet. So now don't even have the contract yet. So now don't even have the contract yet. So now they're looking for funding. So how does they're looking for funding. So how does they're looking for funding. So how does that work? Like if somebody come to you that work? Like if somebody come to you that work? Like if somebody come to you as an investor or somebody like wanted as an investor or somebody like wanted as an investor or somebody like wanted to seek advice, how do you advise them?

to seek advice, how do you advise them? to seek advice, how do you advise them? >> Well, I think there's other things you >> Well, I think there's other things you >> Well, I think there's other things you can do. If you don't have a signed can do. If you don't have a signed can do. If you don't have a signed contract, do you have a letter of contract, do you have a letter of contract, do you have a letter of intent? intent? intent? >> Okay. Can you get them to sign a letter >> Okay. Can you get them to sign a letter >> Okay. Can you get them to sign a letter of intent saying if if this software of intent saying if if this software of intent saying if if this software gets to this point and has this gets to this point and has this gets to this point and has this functionality, I will absolutely pay functionality, I will absolutely pay functionality, I will absolutely pay this amount for it. You know, those type this amount for it. You know, those type this amount for it. You know, those type of things are the way you could get of things are the way you could get of things are the way you could get around that as you're presenting to an around that as you're presenting to an around that as you're presenting to an investor to help them understand where investor to help them understand where investor to help them understand where you are. you are. you are. And I think those would be very well And I think those would be very well And I think those would be very well received. if you're that far down the received. if you're that far down the received. if you're that far down the path and in those conversations that path and in those conversations that path and in those conversations that would be a really easy way to do that. would be a really easy way to do that. would be a really easy way to do that. >> Just one more question on financials. >> Just one more question on financials. >> Just one more question on financials. Like a lot of people um when I started Like a lot of people um when I started Like a lot of people um when I started my company I was just like this is the my company I was just like this is the my company I was just like this is the biggest um idea ever. It's a billion biggest um idea ever. It's a billion biggest um idea ever. It's a billion dollar company u this is a billion dollar company u this is a billion dollar company u this is a billion dollar idea and it is like if you even dollar idea and it is like if you even dollar idea and it is like if you even look at Shark Tank a lot of companies look at Shark Tank a lot of companies look at Shark Tank a lot of companies get there and you know it's just like a get there and you know it's just like a get there and you know it's just like a $ 1.5 billion dollar $ 1.5 billion dollar $ 1.5 billion dollar >> company. I I'm just selling 2% for I >> company. I I'm just selling 2% for I >> company. I I'm just selling 2% for I don't know 500k and everybody's whoa don't know 500k and everybody's whoa don't know 500k and everybody's whoa whoa like you know how do you feel about whoa like you know how do you feel about whoa like you know how do you feel about a billion dollar opportunity a billion dollar opportunity a billion dollar opportunity that is not yet captured? How do you that is not yet captured? How do you that is not yet captured? How do you like if I come to you and say like you like if I come to you and say like you like if I come to you and say like you know I need 500k for a billion dollar know I need 500k for a billion dollar know I need 500k for a billion dollar opportunity in exchange for 2% of my opportunity in exchange for 2% of my opportunity in exchange for 2% of my company. How do you respond to that? I company. How do you respond to that? I company. How do you respond to that? I think the valuation that a founder puts think the valuation that a founder puts think the valuation that a founder puts on their company, it just needs to be on their company, it just needs to be on their company, it just needs to be backed up with metrics and data and

backed up with metrics and data and backed up with metrics and data and math. And if you can back that up and math. And if you can back that up and math. And if you can back that up and explain your valuation and why you're explain your valuation and why you're explain your valuation and why you're looking for what you're looking for and looking for what you're looking for and looking for what you're looking for and what percent you're willing to give up what percent you're willing to give up what percent you're willing to give up for that, um, more power to you. But if for that, um, more power to you. But if for that, um, more power to you. But if it's just coming straight out of the sky it's just coming straight out of the sky it's just coming straight out of the sky and it's because you've always wanted to and it's because you've always wanted to and it's because you've always wanted to be a billion-dollar company founder, um, be a billion-dollar company founder, um, be a billion-dollar company founder, um, not not s super smart. But if you've got not not s super smart. But if you've got not not s super smart. But if you've got the data, if you've got the metrics, and the data, if you've got the metrics, and the data, if you've got the metrics, and the math is mathing, then you've got the the math is mathing, then you've got the the math is mathing, then you've got the conversation. conversation. conversation. >> Awesome. >> Awesome. >> Awesome. >> It's all about the numbers. >> It's all about the numbers. >> It's all about the numbers. >> Totally. Totally. All >> Totally. Totally. All >> Totally. Totally. All >> know your numbers. >> know your numbers. >> know your numbers. >> Definitely know your numbers. Memorize >> Definitely know your numbers. Memorize >> Definitely know your numbers. Memorize them. Say them in your bathroom mirror them. Say them in your bathroom mirror them. Say them in your bathroom mirror with your hairbrush. whatever you need with your hairbrush. whatever you need with your hairbrush. whatever you need to do. to do. to do. >> It's going to be my morning routine now. >> It's going to be my morning routine now. >> It's going to be my morning routine now. >> Too funny. So, speaking about customers, >> Too funny. So, speaking about customers, >> Too funny. So, speaking about customers, the next thing that I would point out as the next thing that I would point out as the next thing that I would point out as something that is crucially vital is something that is crucially vital is something that is crucially vital is your customer base. And I have another your customer base. And I have another your customer base. And I have another crazy story for you with this one. Um, crazy story for you with this one. Um, crazy story for you with this one. Um, so your your customers are absolutely so your your customers are absolutely so your your customers are absolutely the lifeline of your business.

the lifeline of your business. the lifeline of your business. Obviously, that's where you're going to Obviously, that's where you're going to Obviously, that's where you're going to collect your revenue and that's where collect your revenue and that's where collect your revenue and that's where you're going to get your referral you're going to get your referral you're going to get your referral sources. That's the accounts you're sources. That's the accounts you're sources. That's the accounts you're going to be able to grow over time. And going to be able to grow over time. And going to be able to grow over time. And so, your customers are your lifeline. so, your customers are your lifeline. so, your customers are your lifeline. With that being said, I would add that With that being said, I would add that With that being said, I would add that you can have a customer you can have a customer you can have a customer and it could be meaningless because if and it could be meaningless because if and it could be meaningless because if you don't have the right engagement and you don't have the right engagement and you don't have the right engagement and traction with that customer, you don't traction with that customer, you don't traction with that customer, you don't actually have one. And I I'll I'll kind actually have one. And I I'll I'll kind actually have one. And I I'll I'll kind of share what I'm talking about here. of share what I'm talking about here. of share what I'm talking about here. Um, Um, Um, I was part of a software company. We I was part of a software company. We I was part of a software company. We were a SAS company years ago and we were a SAS company years ago and we were a SAS company years ago and we spent about a year in R&D developing spent about a year in R&D developing spent about a year in R&D developing this software and it was killer. It was this software and it was killer. It was this software and it was killer. It was the billion-dollar unicorn. It was going the billion-dollar unicorn. It was going the billion-dollar unicorn. It was going to change the world. to change the world. to change the world. >> And um our two founders >> And um our two founders >> And um our two founders had gotten themselves in and had started had gotten themselves in and had started had gotten themselves in and had started a sales cycle with both General Mills a sales cycle with both General Mills a sales cycle with both General Mills and Annheiser Bush.

and Annheiser Bush. and Annheiser Bush. And it took them about 12 months. and we And it took them about 12 months. and we And it took them about 12 months. and we had to get to proof of concept and our had to get to proof of concept and our had to get to proof of concept and our MVP had to be standing up and all this, MVP had to be standing up and all this, MVP had to be standing up and all this, but we ended up getting both of them as but we ended up getting both of them as but we ended up getting both of them as our first two customers. We thought, we our first two customers. We thought, we our first two customers. We thought, we are on our way. Just hold the phone are on our way. Just hold the phone are on our way. Just hold the phone because this is going to be huge. We because this is going to be huge. We because this is going to be huge. We sign up these guys. They're paying about sign up these guys. They're paying about sign up these guys. They're paying about 30,000 a month for about a hundred seats 30,000 a month for about a hundred seats 30,000 a month for about a hundred seats each. each. each. And we truly just were like, "This is And we truly just were like, "This is And we truly just were like, "This is amazing." We put together the amazing." We put together the amazing." We put together the onboarding. We did all of the training onboarding. We did all of the training onboarding. We did all of the training with each of their hundred users. We with each of their hundred users. We with each of their hundred users. We gave them all of the documentation. We gave them all of the documentation. We gave them all of the documentation. We created, you know, handbooks and tools created, you know, handbooks and tools created, you know, handbooks and tools and resources and trrenuuals and all the and resources and trrenuuals and all the and resources and trrenuuals and all the things. And uh then we sat back, we were things. And uh then we sat back, we were things. And uh then we sat back, we were like, "This is fabulous." Now we're on like, "This is fabulous." Now we're on like, "This is fabulous." Now we're on to Nestle and like Miller Kors, I think, to Nestle and like Miller Kors, I think, to Nestle and like Miller Kors, I think, at the time. And um we're sitting in a at the time. And um we're sitting in a at the time. And um we're sitting in a leadership meeting one Friday morning leadership meeting one Friday morning leadership meeting one Friday morning and somebody pulls the dashboard up and and somebody pulls the dashboard up and and somebody pulls the dashboard up and we're clicking around in it and we we're clicking around in it and we we're clicking around in it and we opened up this one tab and we noticed opened up this one tab and we noticed opened up this one tab and we noticed that only about 20% that only about 20% that only about 20% of each of their user base had even of each of their user base had even of each of their user base had even logged in in the last 30 days.

logged in in the last 30 days. logged in in the last 30 days. And we all sat in the room looking at And we all sat in the room looking at And we all sat in the room looking at the same piece of data for a few seconds the same piece of data for a few seconds the same piece of data for a few seconds just about to die. just about to die. just about to die. And then we thought it was wrong, but And then we thought it was wrong, but And then we thought it was wrong, but that was a whole another rabbit hole. It that was a whole another rabbit hole. It that was a whole another rabbit hole. It wasn't wrong. It was right. So we wasn't wrong. It was right. So we wasn't wrong. It was right. So we quickly like that afternoon quickly like that afternoon quickly like that afternoon put together a customer success triage put together a customer success triage put together a customer success triage if you will and knew that if we lose our if you will and knew that if we lose our if you will and knew that if we lose our first two huge pilot customers paying us first two huge pilot customers paying us first two huge pilot customers paying us this much money giving us this kind of this much money giving us this kind of this much money giving us this kind of proof of concept for future investors proof of concept for future investors proof of concept for future investors and future customers and so forth that and future customers and so forth that and future customers and so forth that we were doomed. you know, that was not we were doomed. you know, that was not we were doomed. you know, that was not going to work long term. So, we ended up going to work long term. So, we ended up going to work long term. So, we ended up uh doing this triage. We put together uh doing this triage. We put together uh doing this triage. We put together our customer success division and we our customer success division and we our customer success division and we sent a couple of our engineers and we sent a couple of our engineers and we sent a couple of our engineers and we were specific about sending engineers. were specific about sending engineers. were specific about sending engineers. We sent them out on site to shadow these We sent them out on site to shadow these We sent them out on site to shadow these users that were not using it for like a users that were not using it for like a users that were not using it for like a week week week >> and they came back and said, "I got it.

>> and they came back and said, "I got it. >> and they came back and said, "I got it. I know why they're not using it." No, I know why they're not using it." No, I know why they're not using it." No, they understand how to log into the they understand how to log into the they understand how to log into the software. They understand how to get the software. They understand how to get the software. They understand how to get the data out, but they don't understand how data out, but they don't understand how data out, but they don't understand how it's going to help them do their job any it's going to help them do their job any it's going to help them do their job any better or faster or or what have you. better or faster or or what have you. better or faster or or what have you. Nor do they understand why their boss Nor do they understand why their boss Nor do they understand why their boss wants them to use our data and not their wants them to use our data and not their wants them to use our data and not their old way of doing it. old way of doing it. old way of doing it. And so we quickly revamped and put And so we quickly revamped and put And so we quickly revamped and put together some sub five minute little together some sub five minute little together some sub five minute little cartoon videos showing here's your job cartoon videos showing here's your job cartoon videos showing here's your job Joe in customer support or whatever he Joe in customer support or whatever he Joe in customer support or whatever he was in and this is what you do all day was in and this is what you do all day was in and this is what you do all day and here's how you do it today and and here's how you do it today and and here's how you do it today and here's what it would look like if you here's what it would look like if you here's what it would look like if you did it using our software. And once we did it using our software. And once we did it using our software. And once we conveyed that and did that for each conveyed that and did that for each conveyed that and did that for each department and each little work department and each little work department and each little work functional area of theirs, the light functional area of theirs, the light functional area of theirs, the light bulbs all went on. And so our adoption bulbs all went on. And so our adoption bulbs all went on. And so our adoption started getting higher and higher and started getting higher and higher and started getting higher and higher and higher, faster and faster. And it took higher, faster and faster. And it took higher, faster and faster. And it took us about 90 days to build up to what we us about 90 days to build up to what we us about 90 days to build up to what we thought was an acceptable between 70 and thought was an acceptable between 70 and thought was an acceptable between 70 and 80% uh of all the users logging in, you 80% uh of all the users logging in, you 80% uh of all the users logging in, you know, on a regular basis.

know, on a regular basis. know, on a regular basis. But it was it was definitely a lesson But it was it was definitely a lesson But it was it was definitely a lesson for us that we had the customer, we had for us that we had the customer, we had for us that we had the customer, we had their payment, we had their signed their payment, we had their signed their payment, we had their signed contract, but at the end of the day, contract, but at the end of the day, contract, but at the end of the day, there was no way we were going to be there was no way we were going to be there was no way we were going to be able to use them for proof of concept to able to use them for proof of concept to able to use them for proof of concept to talk to Millard Kors for us or with us. talk to Millard Kors for us or with us. talk to Millard Kors for us or with us. they weren't going to be able to be they weren't going to be able to be they weren't going to be able to be anybody that could tout how great our anybody that could tout how great our anybody that could tout how great our product was and refer us anywhere product was and refer us anywhere product was and refer us anywhere because they they didn't have their own because they they didn't have their own because they they didn't have their own adoption at the time. So I share that adoption at the time. So I share that adoption at the time. So I share that your customer relationships your customer relationships your customer relationships vital vital vital >> vital whether you realize it or not and >> vital whether you realize it or not and >> vital whether you realize it or not and don't just take orders and put them don't just take orders and put them don't just take orders and put them aside. You need to monitor Are your aside. You need to monitor Are your aside. You need to monitor Are your customers using your product? Are they customers using your product? Are they customers using your product? Are they using it properly? Are they using it to, using it properly? Are they using it to, using it properly? Are they using it to, you know, it's it's its biggest power. you know, it's it's its biggest power. you know, it's it's its biggest power. Are they doing all the things that you Are they doing all the things that you Are they doing all the things that you expect them to do? And do they expect them to do? And do they expect them to do? And do they understand why? And if so, great. If understand why? And if so, great. If understand why? And if so, great. If not, get yourself a customer success not, get yourself a customer success not, get yourself a customer success division that that's their only job.

division that that's their only job. division that that's their only job. >> And that's just ongoing research for >> And that's just ongoing research for >> And that's just ongoing research for you. Totally. you. Totally. you. Totally. >> Right. and data and and improvements for >> Right. and data and and improvements for >> Right. and data and and improvements for the company and your your product as a the company and your your product as a the company and your your product as a whole. whole. whole. >> 100%. >> 100%. >> 100%. >> Yeah. And I think it's going to affect >> Yeah. And I think it's going to affect >> Yeah. And I think it's going to affect your churn rate. It's going to affect your churn rate. It's going to affect your churn rate. It's going to affect your retention. your retention. your retention. >> That's right. All of that. >> That's right. All of that. >> That's right. All of that. >> Yeah. That's right. That's right. So, >> Yeah. That's right. That's right. So, >> Yeah. That's right. That's right. So, you want to create raving fans out of you want to create raving fans out of you want to create raving fans out of your customer if you can. That that's your customer if you can. That that's your customer if you can. That that's the end goal for any business, any the end goal for any business, any the end goal for any business, any industry. You want your customers to industry. You want your customers to industry. You want your customers to tell everybody they know, to bring on tell everybody they know, to bring on tell everybody they know, to bring on their competitors, the whole nine yards. their competitors, the whole nine yards. their competitors, the whole nine yards. Um, and I get founders that ask me all Um, and I get founders that ask me all Um, and I get founders that ask me all the time. They say, "Well, I I hired I the time. They say, "Well, I I hired I the time. They say, "Well, I I hired I hired a VP of sales. He's great. I don't hired a VP of sales. He's great. I don't hired a VP of sales. He's great. I don't think I need to talk to customers think I need to talk to customers think I need to talk to customers anymore." Wrong. Yes, you do. Um, the anymore." Wrong. Yes, you do. Um, the anymore." Wrong. Yes, you do. Um, the founders need to be customerf facing and founders need to be customerf facing and founders need to be customerf facing and have, if not the primary relationship have, if not the primary relationship have, if not the primary relationship with your initial customers, you need to with your initial customers, you need to with your initial customers, you need to be one of the primary relationships be one of the primary relationships be one of the primary relationships right out of the gate. The reason for right out of the gate. The reason for right out of the gate. The reason for that is in this acquisition phase down that is in this acquisition phase down that is in this acquisition phase down the road, the road, the road, the buyers are going to talk to your the buyers are going to talk to your the buyers are going to talk to your customers and they're probably not going customers and they're probably not going customers and they're probably not going to talk to the customers that you give to talk to the customers that you give to talk to the customers that you give them the name and number to call.

them the name and number to call. them the name and number to call. >> They're they're going to get in all the >> They're they're going to get in all the >> They're they're going to get in all the data they collect from you and call data they collect from you and call data they collect from you and call whoever they want. And so if they call whoever they want. And so if they call whoever they want. And so if they call some of your oldest or biggest accounts some of your oldest or biggest accounts some of your oldest or biggest accounts and the leadership team doesn't have a and the leadership team doesn't have a and the leadership team doesn't have a personal relationship, they can't speak personal relationship, they can't speak personal relationship, they can't speak to ever having met that founder or that to ever having met that founder or that to ever having met that founder or that VP of sales, they didn't know you had a VP of sales, they didn't know you had a VP of sales, they didn't know you had a help desk and so forth, that's a really help desk and so forth, that's a really help desk and so forth, that's a really bad look for you. So I tell founders, bad look for you. So I tell founders, bad look for you. So I tell founders, get right in front of all of those get right in front of all of those get right in front of all of those customer relationships as you can. you customer relationships as you can. you customer relationships as you can. you know that that's possible but certainly know that that's possible but certainly know that that's possible but certainly your critical and key ones right out of your critical and key ones right out of your critical and key ones right out of the gate the gate the gate >> right and so balancing because we we >> right and so balancing because we we >> right and so balancing because we we talk about working on the business as talk about working on the business as talk about working on the business as opposed to working in the business um opposed to working in the business um opposed to working in the business um and just how you balance that right and just how you balance that right and just how you balance that right >> it is a balance >> it is a balance >> it is a balance >> stay integrated and >> stay integrated and >> stay integrated and >> at the same time grow and >> at the same time grow and >> at the same time grow and >> have the high level view of everything >> have the high level view of everything >> have the high level view of everything >> absolutely I think I think there's a >> absolutely I think I think there's a >> absolutely I think I think there's a time and a place and I would even argue time and a place and I would even argue time and a place and I would even argue that those founders building those that those founders building those that those founders building those relationships with those key accounts relationships with those key accounts relationships with those key accounts early on. I don't think that's working early on. I don't think that's working early on. I don't think that's working in the business. I think that is working in the business. I think that is working in the business. I think that is working on the business because you are doing on the business because you are doing on the business because you are doing what we're talking about right now. You what we're talking about right now. You what we're talking about right now. You are ensuring that three, five, 10 years are ensuring that three, five, 10 years are ensuring that three, five, 10 years from now when a buyer wants to talk to from now when a buyer wants to talk to from now when a buyer wants to talk to that customer base, that customer can that customer base, that customer can that customer base, that customer can immediately say, "Yeah, Ben, he was immediately say, "Yeah, Ben, he was immediately say, "Yeah, Ben, he was great. He was wonderful. He was integral great. He was wonderful. He was integral great. He was wonderful. He was integral when we were getting started." Blah blah

when we were getting started." Blah blah when we were getting started." Blah blah blah blah. That's what you want, blah blah. That's what you want, blah blah. That's what you want, >> right? >> right? >> right? >> And so very very important um to do >> And so very very important um to do >> And so very very important um to do that. that. that. >> I think the the the fan base of your >> I think the the the fan base of your >> I think the the the fan base of your customers, I think that's the most customers, I think that's the most customers, I think that's the most important thing, right? Yeah. important thing, right? Yeah. important thing, right? Yeah. >> You want them to be your >> You want them to be your >> You want them to be your >> advocate, you know, go out and you know >> advocate, you know, go out and you know >> advocate, you know, go out and you know uh start advocating for you rather than uh start advocating for you rather than uh start advocating for you rather than you know becoming your biggest you know becoming your biggest you know becoming your biggest complainers, right? complainers, right? complainers, right? >> 100%. >> 100%. >> 100%. >> United Airlines just you know destroyed >> United Airlines just you know destroyed >> United Airlines just you know destroyed my guitar. That's a really famous uh my guitar. That's a really famous uh my guitar. That's a really famous uh story, right? story, right? story, right? >> Y >> Y >> Y >> but then you have other customers that >> but then you have other customers that >> but then you have other customers that they had really good experience with they had really good experience with they had really good experience with United. So um some of them are United. So um some of them are United. So um some of them are advocates, some of them are complainers, advocates, some of them are complainers, advocates, some of them are complainers, but I think important is how you balance but I think important is how you balance but I think important is how you balance these two like you said these two like you said these two like you said >> it's the balance and it's a balance for >> it's the balance and it's a balance for >> it's the balance and it's a balance for the founder working on the business, the founder working on the business, the founder working on the business, working in the business, working aside working in the business, working aside working in the business, working aside from the business. from the business. from the business. >> Yep. Absolutely. Absolutely. >> Yep. Absolutely. Absolutely. >> Yep. Absolutely. Absolutely. Um, so the last two the last two Um, so the last two the last two Um, so the last two the last two functional areas that we'll talk about functional areas that we'll talk about functional areas that we'll talk about that should be addressed right out of that should be addressed right out of that should be addressed right out of the gate are the ones that I typically the gate are the ones that I typically the gate are the ones that I typically get the eye rolls for. And I have to get the eye rolls for. And I have to get the eye rolls for. And I have to admit I was one of the people that used admit I was one of the people that used admit I was one of the people that used to eye roll this. Um, but it's to eye roll this. Um, but it's to eye roll this. Um, but it's documentation. The documentation for documentation. The documentation for documentation. The documentation for everything for your processes everything for your processes everything for your processes internally.

internally. internally. A lot of founders A lot of founders A lot of founders their eyes glaze over. They look at you their eyes glaze over. They look at you their eyes glaze over. They look at you like, "Yeah, I'm going to get to that." like, "Yeah, I'm going to get to that." like, "Yeah, I'm going to get to that." Uhhuh. Uhhuh. Uhhuh. And let me help you Uhhuh. Uhhuh. Uhhuh. And let me help you Uhhuh. Uhhuh. Uhhuh. And let me help you understand now how important it is um to understand now how important it is um to understand now how important it is um to have everything in your company have everything in your company have everything in your company processwise processwise processwise documented and not only documented once. documented and not only documented once. documented and not only documented once. A lot of founders or companies will hire A lot of founders or companies will hire A lot of founders or companies will hire people, their operations first hire will people, their operations first hire will people, their operations first hire will come in and do all that documentation in come in and do all that documentation in come in and do all that documentation in August of 2026 and then nobody ever August of 2026 and then nobody ever August of 2026 and then nobody ever looks at it again. looks at it again. looks at it again. >> Kind of a problem. >> Kind of a problem. >> Kind of a problem. >> So I I would tell you as far as your >> So I I would tell you as far as your >> So I I would tell you as far as your documentation goes, it's absolutely documentation goes, it's absolutely documentation goes, it's absolutely required because future buyer is going required because future buyer is going required because future buyer is going to want to see what your intellectual to want to see what your intellectual to want to see what your intellectual property has looked like the whole life property has looked like the whole life property has looked like the whole life of your business essentially. So, you of your business essentially. So, you of your business essentially. So, you need to be documenting everything that need to be documenting everything that need to be documenting everything that you do, how you do it, and then what you do, how you do it, and then what you do, how you do it, and then what that's going to do is allow you to that's going to do is allow you to that's going to do is allow you to delegate over time. That takes away from delegate over time. That takes away from delegate over time. That takes away from the founder dependency that buyers do the founder dependency that buyers do the founder dependency that buyers do not want to see at all. Um, they want to not want to see at all. Um, they want to not want to see at all. Um, they want to see that the founder can come, go, be see that the founder can come, go, be see that the founder can come, go, be there or not. The company is stable and there or not. The company is stable and there or not. The company is stable and fine. and everyone knows what to do and fine. and everyone knows what to do and fine. and everyone knows what to do and how to do it whether they're there or how to do it whether they're there or how to do it whether they're there or not. And so at the end of the day, that not. And so at the end of the day, that not. And so at the end of the day, that documentation actually serves a few

documentation actually serves a few documentation actually serves a few purposes. I get people ask all the time, purposes. I get people ask all the time, purposes. I get people ask all the time, how how on earth am I supposed to how how on earth am I supposed to how how on earth am I supposed to remember to go, you know, update my remember to go, you know, update my remember to go, you know, update my documentation on this? And it's actually documentation on this? And it's actually documentation on this? And it's actually I I I have a perfect answer for it. Um, I I I have a perfect answer for it. Um, I I I have a perfect answer for it. Um, in my experience, I put an operations in my experience, I put an operations in my experience, I put an operations meeting on the calendar once a month. meeting on the calendar once a month. meeting on the calendar once a month. Sometimes we did it once every quarter, Sometimes we did it once every quarter, Sometimes we did it once every quarter, but once a month for an hour. The first but once a month for an hour. The first but once a month for an hour. The first 15- 20 minutes of that meeting is 15- 20 minutes of that meeting is 15- 20 minutes of that meeting is everyone that's responsible for any everyone that's responsible for any everyone that's responsible for any piece of documentation for the company piece of documentation for the company piece of documentation for the company has to be there. In the first 15 or 20 has to be there. In the first 15 or 20 has to be there. In the first 15 or 20 minutes, everyone has to read through minutes, everyone has to read through minutes, everyone has to read through and take notes on their own and take notes on their own and take notes on their own documentation, their own department's documentation, their own department's documentation, their own department's stuff, take notes and make notes if stuff, take notes and make notes if stuff, take notes and make notes if anything's been changed over the last 30 anything's been changed over the last 30 anything's been changed over the last 30 days, if they have an idea for a tweak days, if they have an idea for a tweak days, if they have an idea for a tweak they could make to this step right here. they could make to this step right here. they could make to this step right here. Could they eliminate that step to save Could they eliminate that step to save Could they eliminate that step to save X, Y, and Z? All of these things. They X, Y, and Z? All of these things. They X, Y, and Z? All of these things. They make all these notes in the first 15 or make all these notes in the first 15 or make all these notes in the first 15 or 20 minutes of the meeting. the rest of 20 minutes of the meeting. the rest of 20 minutes of the meeting. the rest of the meeting is spent discussing what the meeting is spent discussing what the meeting is spent discussing what they made note of. So if they've got an they made note of. So if they've got an they made note of. So if they've got an idea and they'd like to change a process idea and they'd like to change a process idea and they'd like to change a process for 30 days and see how this works or if for 30 days and see how this works or if for 30 days and see how this works or if you have a new software that you're you have a new software that you're you have a new software that you're looking into and that would change this looking into and that would change this looking into and that would change this whole piece of documentation.

whole piece of documentation. whole piece of documentation. As long as everyone in the room approves As long as everyone in the room approves As long as everyone in the room approves this is the direction or this is the this is the direction or this is the this is the direction or this is the thing we're going to try or what have thing we're going to try or what have thing we're going to try or what have you. Change that documentation, date it, you. Change that documentation, date it, you. Change that documentation, date it, move on. It's an hour a month. Nobody move on. It's an hour a month. Nobody move on. It's an hour a month. Nobody dies, you know. Um, and you're able to dies, you know. Um, and you're able to dies, you know. Um, and you're able to keep that documentation current. And keep that documentation current. And keep that documentation current. And with that, you're able to use it for with that, you're able to use it for with that, you're able to use it for things like new hire training. Now, all things like new hire training. Now, all things like new hire training. Now, all your new hires, nobody has to sit and your new hires, nobody has to sit and your new hires, nobody has to sit and handhold them. You can point them to handhold them. You can point them to handhold them. You can point them to once they've been trained. Here's your once they've been trained. Here's your once they've been trained. Here's your backup resource for if you forgot any backup resource for if you forgot any backup resource for if you forgot any piece of that where you go to remember piece of that where you go to remember piece of that where you go to remember all the steps to this process and so all the steps to this process and so all the steps to this process and so forth. So definitely worth the time. forth. So definitely worth the time. forth. So definitely worth the time. >> Would you recommend also having I mean I >> Would you recommend also having I mean I >> Would you recommend also having I mean I know everything's digital nowadays. know everything's digital nowadays. know everything's digital nowadays. Would you recommend physical Would you recommend physical Would you recommend physical documentation of anything? documentation of anything? documentation of anything? >> Um I think there's definitely a place >> Um I think there's definitely a place >> Um I think there's definitely a place for that. I have not personally for that. I have not personally for that. I have not personally even seen handbooks and stuff printed in even seen handbooks and stuff printed in even seen handbooks and stuff printed in decade.

decade. decade. >> Um everything is digital now. So I think >> Um everything is digital now. So I think >> Um everything is digital now. So I think it's personal preference. If there's it's personal preference. If there's it's personal preference. If there's something that you feel strongly about, something that you feel strongly about, something that you feel strongly about, maybe you're hiring an entire department maybe you're hiring an entire department maybe you're hiring an entire department for customer success and they all need for customer success and they all need for customer success and they all need access to a three- ring binder that they access to a three- ring binder that they access to a three- ring binder that they can flip through on a desk that they're can flip through on a desk that they're can flip through on a desk that they're sharing. sharing. sharing. >> I can see that being a really perfect >> I can see that being a really perfect >> I can see that being a really perfect example of when you might want to do example of when you might want to do example of when you might want to do that. But otherwise, that. But otherwise, that. But otherwise, pretty much all okay to be electronic. pretty much all okay to be electronic. pretty much all okay to be electronic. pretty much. And then the piece that pretty much. And then the piece that pretty much. And then the piece that goes handinhand with this is your goes handinhand with this is your goes handinhand with this is your corporate governance, your legal corporate governance, your legal corporate governance, your legal >> and your compliance areas. >> and your compliance areas. >> and your compliance areas. You need to start You need to start You need to start a document repository from day one a document repository from day one a document repository from day one because because because that buyer is going to need to see just that buyer is going to need to see just that buyer is going to need to see just short list customer and vendor short list customer and vendor short list customer and vendor contracts, NDAs, any intellectual contracts, NDAs, any intellectual contracts, NDAs, any intellectual property documentation, patents, source property documentation, patents, source property documentation, patents, source code and the ownership of it, employment code and the ownership of it, employment code and the ownership of it, employment agreements, cap tables, investor agreements, cap tables, investor agreements, cap tables, investor documentation, documentation, documentation, Every document you could possibly think Every document you could possibly think Every document you could possibly think of that a company of that a company of that a company gets signed gets signed gets signed will be asked for will be asked for will be asked for >> if it gets signed.

>> if it gets signed. >> if it gets signed. >> So because of that >> So because of that >> So because of that best practice on how to handle that and best practice on how to handle that and best practice on how to handle that and be prepared for it from day one is to go be prepared for it from day one is to go be prepared for it from day one is to go ahead and create a document repository. ahead and create a document repository. ahead and create a document repository. Set your folder system up. Get a naming Set your folder system up. Get a naming Set your folder system up. Get a naming convention. put a process to that and convention. put a process to that and convention. put a process to that and then initially I would recommend you then initially I would recommend you then initially I would recommend you have one single person in the whole have one single person in the whole have one single person in the whole company responsible for all of it for a company responsible for all of it for a company responsible for all of it for a short period of time short period of time short period of time >> and then when you have confidence that >> and then when you have confidence that >> and then when you have confidence that that person has it under control um that person has it under control um that person has it under control um maybe has a table of contents that you maybe has a table of contents that you maybe has a table of contents that you can double check things on and you feel can double check things on and you feel can double check things on and you feel very comfortable then start adding in very comfortable then start adding in very comfortable then start adding in some administrative help to maybe scan some administrative help to maybe scan some administrative help to maybe scan stuff for that person later or what have stuff for that person later or what have stuff for that person later or what have you. But um there's no reason And you you. But um there's no reason And you you. But um there's no reason And you need every employee responsible for some need every employee responsible for some need every employee responsible for some piece of this. Um, but it's critical piece of this. Um, but it's critical piece of this. Um, but it's critical that you have it because to have to go that you have it because to have to go that you have it because to have to go back and search for this stuff, back and search for this stuff, back and search for this stuff, you can't imagine. You're now you're you can't imagine. You're now you're you can't imagine. You're now you're getting back to your CSI designation and getting back to your CSI designation and getting back to your CSI designation and have to be a crime scene investigator to have to be a crime scene investigator to have to be a crime scene investigator to go search for that NDIA you signed four go search for that NDIA you signed four go search for that NDIA you signed four years ago. You know, years ago. You know, years ago. You know, >> we don't have time for that.

>> we don't have time for that. >> we don't have time for that. >> Yeah. Nobody has time for that. So with >> Yeah. Nobody has time for that. So with >> Yeah. Nobody has time for that. So with all of that being said, I think it's all of that being said, I think it's all of that being said, I think it's really really really really really really critical, you know, just to kind of wrap critical, you know, just to kind of wrap critical, you know, just to kind of wrap this up that founders of course do this up that founders of course do this up that founders of course do everything that is standard and typical everything that is standard and typical everything that is standard and typical that would get them the investment. that would get them the investment. that would get them the investment. That's a whole another checklist. these That's a whole another checklist. these That's a whole another checklist. these things today in just helping to allow things today in just helping to allow things today in just helping to allow founders to understand what the future founders to understand what the future founders to understand what the future may look like. may look like. may look like. You don't want to hit the walls and have You don't want to hit the walls and have You don't want to hit the walls and have these hurdles and be delayed a year these hurdles and be delayed a year these hurdles and be delayed a year because you're having to create history because you're having to create history because you're having to create history in your software system um and so forth. in your software system um and so forth. in your software system um and so forth. You want to be able to move when the You want to be able to move when the You want to be able to move when the time is right. You never know when time is right. You never know when time is right. You never know when you're going to get that phone call of, you're going to get that phone call of, you're going to get that phone call of, "Hey, we'd like to talk." And you don't "Hey, we'd like to talk." And you don't "Hey, we'd like to talk." And you don't want to scramble. You don't want to have want to scramble. You don't want to have want to scramble. You don't want to have to be in scramble mode and shut down to be in scramble mode and shut down to be in scramble mode and shut down maybe momentum that you're working on, maybe momentum that you're working on, maybe momentum that you're working on, you know, with your sales team or you know, with your sales team or you know, with your sales team or whatever so that you can try to get whatever so that you can try to get whatever so that you can try to get yourself together for this other. So my yourself together for this other. So my yourself together for this other. So my advice is to always build that business advice is to always build that business advice is to always build that business as if you're looking to get it acquired as if you're looking to get it acquired as if you're looking to get it acquired any day now and you're going to have all any day now and you're going to have all any day now and you're going to have all your ducks in a row your ducks in a row your ducks in a row >> on the way.

>> on the way. >> on the way. >> That's great. >> That's great. >> That's great. >> Yeah. >> Yeah. >> Yeah. >> So yeah. So >> So yeah. So >> So yeah. So >> yeah, it's just like early stage >> yeah, it's just like early stage >> yeah, it's just like early stage startups. If you want to go and raise startups. If you want to go and raise startups. If you want to go and raise fund from investors or any investor, fund from investors or any investor, fund from investors or any investor, >> you need to have everything that you >> you need to have everything that you >> you need to have everything that you said. said. said. >> You know, it's just not just like mature >> You know, it's just not just like mature >> You know, it's just not just like mature startups, just like early stage startups, just like early stage startups, just like early stage startups, you need to have your data startups, you need to have your data startups, you need to have your data room, room, room, >> everything in place. Otherwise, you need >> everything in place. Otherwise, you need >> everything in place. Otherwise, you need to put your hat and get your magnifier to put your hat and get your magnifier to put your hat and get your magnifier and just dig deep and dig. and just dig deep and dig. and just dig deep and dig. >> Yeah. Yeah. Count the hours. Like that's >> Yeah. Yeah. Count the hours. Like that's >> Yeah. Yeah. Count the hours. Like that's going to be a late one then. Late one going to be a late one then. Late one going to be a late one then. Late one for sure. So, we can say that this is for sure. So, we can say that this is for sure. So, we can say that this is day one for anybody that doesn't have day one for anybody that doesn't have day one for anybody that doesn't have any of these things in place. any of these things in place. any of these things in place. >> That's right. That's right. >> That's right. That's right. >> That's right. That's right. >> We discussed together, >> We discussed together, >> We discussed together, >> we discussed >> we discussed >> we discussed um building systems before you need um building systems before you need um building systems before you need them, people influencers, your financial them, people influencers, your financial them, people influencers, your financial readiness, uh customers, engagement and readiness, uh customers, engagement and readiness, uh customers, engagement and traction, and documentation of your traction, and documentation of your traction, and documentation of your processes. Um do we have any questions processes. Um do we have any questions processes. Um do we have any questions from the audience? This is the time we from the audience? This is the time we from the audience? This is the time we we're going to extend the show 15 we're going to extend the show 15 we're going to extend the show 15 minutes to allow for questions. Uh we minutes to allow for questions. Uh we minutes to allow for questions. Uh we can take a little bit so you guys can can take a little bit so you guys can can take a little bit so you guys can think about the questions. Um thank you think about the questions. Um thank you think about the questions. Um thank you so much. Um I have homework for sure.

so much. Um I have homework for sure. so much. Um I have homework for sure. >> We are actively integrating all of our >> We are actively integrating all of our >> We are actively integrating all of our systems because we moved into this space systems because we moved into this space systems because we moved into this space about three months ago now. So we are about three months ago now. So we are about three months ago now. So we are having to pivot and reddo a lot of having to pivot and reddo a lot of having to pivot and reddo a lot of internal everything. Um, but that is a internal everything. Um, but that is a internal everything. Um, but that is a huge thing that Benjamin and I have been huge thing that Benjamin and I have been huge thing that Benjamin and I have been super focused on in the last couple of super focused on in the last couple of super focused on in the last couple of weeks. And it does take time. weeks. And it does take time. weeks. And it does take time. >> It does. >> It does. >> It does. >> There's no way around it. >> There's no way around it. >> There's no way around it. >> And and it's your and it's essentially >> And and it's your and it's essentially >> And and it's your and it's essentially your brain dumping everything into your your brain dumping everything into your your brain dumping everything into your systems so that you can continue to systems so that you can continue to systems so that you can continue to engage with it because otherwise you're engage with it because otherwise you're engage with it because otherwise you're just trying to remember things and just trying to remember things and just trying to remember things and trying to like work from just what from trying to like work from just what from trying to like work from just what from or your puny little brain can handle. or your puny little brain can handle. or your puny little brain can handle. >> Totally. That's it's a lot of >> Totally. That's it's a lot of >> Totally. That's it's a lot of information that you have to that you information that you have to that you information that you have to that you have to be aware of. have to be aware of. have to be aware of. >> And even like your banking information, >> And even like your banking information, >> And even like your banking information, most founders early on, they're using most founders early on, they're using most founders early on, they're using personal credit cards, dad's credit card personal credit cards, dad's credit card personal credit cards, dad's credit card that, you know, so you've got that, you know, so you've got that, you know, so you've got transactions coming from all directions transactions coming from all directions transactions coming from all directions and to have to recreate all of that at a and to have to recreate all of that at a and to have to recreate all of that at a later date and prove, you know, I use later date and prove, you know, I use later date and prove, you know, I use this charge for this thing and it here's this charge for this thing and it here's this charge for this thing and it here's why it's on my P&L. It's a nightmare. It why it's on my P&L. It's a nightmare. It why it's on my P&L. It's a nightmare. It is a nightmare. So, word to the wise, is a nightmare. So, word to the wise, is a nightmare. So, word to the wise, just start out, keep it clean.

just start out, keep it clean. just start out, keep it clean. >> Keep it clean. >> Keep it clean. >> Keep it clean. >> Yeah. >> Yeah. >> Yeah. >> And I think it gives us like a good >> And I think it gives us like a good >> And I think it gives us like a good layout of the data room layout of the data room layout of the data room >> because it doesn't matter which stage >> because it doesn't matter which stage >> because it doesn't matter which stage you are, you need to have the data room. you are, you need to have the data room. you are, you need to have the data room. >> You do. >> You do. >> You do. >> If you are uh asking for uh investment >> If you are uh asking for uh investment >> If you are uh asking for uh investment >> because investors basically they're >> because investors basically they're >> because investors basically they're buying a portion of the company. buying a portion of the company. buying a portion of the company. >> That's right. when now it gets like the >> That's right. when now it gets like the >> That's right. when now it gets like the to the like the the the mas they're to the like the the the mas they're to the like the the the mas they're buying the whole company. So I think buying the whole company. So I think buying the whole company. So I think from like a small pieces to like the from like a small pieces to like the from like a small pieces to like the whole company the founders should be whole company the founders should be whole company the founders should be ready and like you know so now there's a ready and like you know so now there's a ready and like you know so now there's a common question we get if somebody common question we get if somebody common question we get if somebody doesn't wanted to sell if somebody doesn't wanted to sell if somebody doesn't wanted to sell if somebody doesn't wanted to exit do they need to doesn't wanted to exit do they need to doesn't wanted to exit do they need to incorporate like as a C corp in Delaware incorporate like as a C corp in Delaware incorporate like as a C corp in Delaware and if somebody wanted to sell and have and if somebody wanted to sell and have and if somebody wanted to sell and have investors is there like a mandate to um investors is there like a mandate to um investors is there like a mandate to um uh incorporate as a C corp in Delaware uh incorporate as a C corp in Delaware uh incorporate as a C corp in Delaware in your experience because it's just in your experience because it's just in your experience because it's just like they say this is kind of like the like they say this is kind of like the like they say this is kind of like the norm. norm. norm. >> It is. It is. And the institutional >> It is. It is. And the institutional >> It is. It is. And the institutional investments, they're typical. They're investments, they're typical. They're investments, they're typical. They're registered in Delaware. They've got RAS registered in Delaware. They've got RAS registered in Delaware. They've got RAS out there and um that's what they do.

out there and um that's what they do. out there and um that's what they do. But here's the thing. If you are set up But here's the thing. If you are set up But here's the thing. If you are set up as an LLC in Texas today and you're as an LLC in Texas today and you're as an LLC in Texas today and you're operating and you grow and you get to a operating and you grow and you get to a operating and you grow and you get to a certain point and you're looking to take certain point and you're looking to take certain point and you're looking to take on investment dollars, they can change on investment dollars, they can change on investment dollars, they can change your corporate entity structure, your your corporate entity structure, your your corporate entity structure, your legal entity structure at any time. legal entity structure at any time. legal entity structure at any time. >> So, if that's very very important to >> So, if that's very very important to >> So, if that's very very important to them, it might cost you 1,500 bucks to them, it might cost you 1,500 bucks to them, it might cost you 1,500 bucks to get all the paperwork and legal stuff get all the paperwork and legal stuff get all the paperwork and legal stuff done to make that happen, but they can done to make that happen, but they can done to make that happen, but they can make that happen when the time is right. make that happen when the time is right. make that happen when the time is right. So you're not necessarily doing anything So you're not necessarily doing anything So you're not necessarily doing anything wrong, not starting out in as a legal wrong, not starting out in as a legal wrong, not starting out in as a legal entity that you think they would like to entity that you think they would like to entity that you think they would like to see later on. see later on. see later on. >> So have you seen ever like investors >> So have you seen ever like investors >> So have you seen ever like investors invest in an LLC? invest in an LLC? invest in an LLC? >> Sure. >> Sure. >> Sure. >> Absolutely. >> Absolutely. >> Absolutely. >> Absolutely. Um they depending on what >> Absolutely. Um they depending on what >> Absolutely. Um they depending on what type of investment you're going to take type of investment you're going to take type of investment you're going to take and so forth. Um, and so forth. Um, and so forth. Um, a a lot of them it matters. The a a lot of them it matters. The a a lot of them it matters. The corporate structure really matters. They corporate structure really matters. They corporate structure really matters. They want C or S corps for a very specific want C or S corps for a very specific want C or S corps for a very specific reason. Even if you're an LLC filing as reason. Even if you're an LLC filing as reason. Even if you're an LLC filing as an S corp or something, they still want an S corp or something, they still want an S corp or something, they still want that's still not right. They want it that's still not right. They want it that's still not right. They want it changed. But like I said, the truth is changed. But like I said, the truth is changed. But like I said, the truth is they can change their legal entity at they can change their legal entity at they can change their legal entity at any time.

any time. any time. >> So it's just more depend depending on >> So it's just more depend depending on >> So it's just more depend depending on the investor. the investor. the investor. But the norm of the the industry is uh But the norm of the the industry is uh But the norm of the the industry is uh do like the C the the C corp in do like the C the the C corp in do like the C the the C corp in Delaware. So when you invest as like an Delaware. So when you invest as like an Delaware. So when you invest as like an angel investor, do you look for C corp angel investor, do you look for C corp angel investor, do you look for C corp in Delaware as an angel investor or you in Delaware as an angel investor or you in Delaware as an angel investor or you just don't care? just don't care? just don't care? >> I don't care. Um I we've done angel >> I don't care. Um I we've done angel >> I don't care. Um I we've done angel investments with sole proprietors that investments with sole proprietors that investments with sole proprietors that we ask them the next calendar year in we ask them the next calendar year in we ask them the next calendar year in January, go ahead and set up your escort January, go ahead and set up your escort January, go ahead and set up your escort type thing. So um I I don't care at that type thing. So um I I don't care at that type thing. So um I I don't care at that level. Institutional cares though that level. Institutional cares though that level. Institutional cares though that they have to have everything in set up they have to have everything in set up they have to have everything in set up very differently very differently. very differently very differently. very differently very differently. >> So if somebody is looking for going from >> So if somebody is looking for going from >> So if somebody is looking for going from uh angel investors then the exit uh angel investors then the exit uh angel investors then the exit strategy is to go raise um uh you know strategy is to go raise um uh you know strategy is to go raise um uh you know institutional money and go public then institutional money and go public then institutional money and go public then they need to think about that ahead of they need to think about that ahead of they need to think about that ahead of time. time. time. >> Absolutely. Okay. Yeah. at least check >> Absolutely. Okay. Yeah. at least check >> Absolutely. Okay. Yeah. at least check into it at a minimum.

into it at a minimum. into it at a minimum. >> Yeah, >> Yeah, >> Yeah, >> for sure. Um, but it's not much harder >> for sure. Um, but it's not much harder >> for sure. Um, but it's not much harder to do. You can do it on online. You can to do. You can do it on online. You can to do. You can do it on online. You can do it. You don't even need an attorney. do it. You don't even need an attorney. do it. You don't even need an attorney. Um, you've got to get a bunch of legal Um, you've got to get a bunch of legal Um, you've got to get a bunch of legal documentation done with it and be able documentation done with it and be able documentation done with it and be able to file everything appropriately, but to file everything appropriately, but to file everything appropriately, but you can do it very inexpensively you can do it very inexpensively you can do it very inexpensively yourself. yourself. yourself. >> Great. Thank you. >> Great. Thank you. >> Great. Thank you. Do we have any questions from the Do we have any questions from the Do we have any questions from the audience? Yes. Uh if you could please audience? Yes. Uh if you could please audience? Yes. Uh if you could please come up to the purple circle uh and grab come up to the purple circle uh and grab come up to the purple circle uh and grab the mic from the stool and then tell us the mic from the stool and then tell us the mic from the stool and then tell us who you are. who you are. who you are. >> Good afternoon. My name is Navidid >> Good afternoon. My name is Navidid >> Good afternoon. My name is Navidid Kadami. I'm with Big S and we build a Kadami. I'm with Big S and we build a Kadami. I'm with Big S and we build a microclimate vertical growing system. My microclimate vertical growing system. My microclimate vertical growing system. My question is uh the ERPs. Uh so what I've question is uh the ERPs. Uh so what I've question is uh the ERPs. Uh so what I've tried to do so far I'm the CO for it and tried to do so far I'm the CO for it and tried to do so far I'm the CO for it and uh we have basically incorporated all uh we have basically incorporated all uh we have basically incorporated all the items that you have mentioned on the the items that you have mentioned on the the items that you have mentioned on the operation side and we also have the operation side and we also have the operation side and we also have the financial side on the QuickBooks financial side on the QuickBooks financial side on the QuickBooks >> and uh I've looked at the ODU and a >> and uh I've looked at the ODU and a >> and uh I've looked at the ODU and a couple other products and um we don't couple other products and um we don't couple other products and um we don't have all the things that they offer to us. we don't have it they offer to us. we don't have it doesn't apply to us even though we have doesn't apply to us even though we have doesn't apply to us even though we have vendors we have customer base and all vendors we have customer base and all vendors we have customer base and all that stuff we have set that up uh the that stuff we have set that up uh the that stuff we have set that up uh the reason one of the reasons that I looked reason one of the reasons that I looked reason one of the reasons that I looked at odo is uh that um uh they do support

at odo is uh that um uh they do support at odo is uh that um uh they do support thirdparty apps very well and so we thirdparty apps very well and so we thirdparty apps very well and so we don't have to go ahead and reinvent the don't have to go ahead and reinvent the don't have to go ahead and reinvent the wheel like our website or retail and all wheel like our website or retail and all wheel like our website or retail and all that stuff uh would that my question is that stuff uh would that my question is that stuff uh would that my question is uh would uh would uh would our excel sheets on operation all that our excel sheets on operation all that our excel sheets on operation all that stuff. Would that satisfy u an early um stuff. Would that satisfy u an early um stuff. Would that satisfy u an early um investment? investment? investment? >> We have to have that uh system. >> We have to have that uh system. >> We have to have that uh system. >> You can provide it. You can provide it >> You can provide it. You can provide it >> You can provide it. You can provide it and they'll need to verify it. So and they'll need to verify it. So and they'll need to verify it. So there's ways of doing that. So let's say there's ways of doing that. So let's say there's ways of doing that. So let's say that you're providing inventory status that you're providing inventory status that you're providing inventory status or something like that. Um, if you've or something like that. Um, if you've or something like that. Um, if you've got uh things like invoices to back that got uh things like invoices to back that got uh things like invoices to back that up and sales and so forth, if you can up and sales and so forth, if you can up and sales and so forth, if you can show a dashboard and then have the show a dashboard and then have the show a dashboard and then have the backup for it, yes, you could probably backup for it, yes, you could probably backup for it, yes, you could probably get away with that in a very early stage get away with that in a very early stage get away with that in a very early stage startup um as you're looking for money.

startup um as you're looking for money. startup um as you're looking for money. Longterm it won't work. No, we Longterm it won't work. No, we Longterm it won't work. No, we understand on the long-term basis on the understand on the long-term basis on the understand on the long-term basis on the dashboard. What you're referring to is dashboard. What you're referring to is dashboard. What you're referring to is what? what? what? >> Well, it it depends if you're on an ERP >> Well, it it depends if you're on an ERP >> Well, it it depends if you're on an ERP like ODO has a dashboard. like ODO has a dashboard. like ODO has a dashboard. >> Oh, so you're still talking about an >> Oh, so you're still talking about an >> Oh, so you're still talking about an ERP. No matter what, we need to get on ERP. No matter what, we need to get on ERP. No matter what, we need to get on ERP. Excel sheets will not do. I think ERP. Excel sheets will not do. I think ERP. Excel sheets will not do. I think if you're in manufacturing of any kind if you're in manufacturing of any kind if you're in manufacturing of any kind like that, I think you absolutely need like that, I think you absolutely need like that, I think you absolutely need to be on some kind of ERP right out of to be on some kind of ERP right out of to be on some kind of ERP right out of the gate and a lesser expensive one like the gate and a lesser expensive one like the gate and a lesser expensive one like ODO. Um you don't need to go and bite ODO. Um you don't need to go and bite ODO. Um you don't need to go and bite off Netswuite or something right out of off Netswuite or something right out of off Netswuite or something right out of the gate. the gate. the gate. >> No, we don't. But um to have the >> No, we don't. But um to have the >> No, we don't. But um to have the inventory control mechanisms, the supply inventory control mechanisms, the supply inventory control mechanisms, the supply chain oversight and all of that where chain oversight and all of that where chain oversight and all of that where you can export data and send reports out you can export data and send reports out you can export data and send reports out of the system. That's perfect. of the system. That's perfect. of the system. That's perfect. >> Uhhuh. >> Uhhuh. >> Uhhuh. Thank you, Debbie.

>> Yeah. And please hold the the mic >> Yeah. And please hold the the mic up when you're speaking. Thank you. up when you're speaking. Thank you. up when you're speaking. Thank you. Hi uh good afternoon guys. My name is Hi uh good afternoon guys. My name is Hi uh good afternoon guys. My name is Vir um just a question about like so in Vir um just a question about like so in Vir um just a question about like so in this modern age of AI where you can this modern age of AI where you can this modern age of AI where you can build anything software like any build anything software like any build anything software like any software with just a few prompts. Do you software with just a few prompts. Do you software with just a few prompts. Do you see acquisitions continuing to happen see acquisitions continuing to happen see acquisitions continuing to happen for just IP or is it more so like are for just IP or is it more so like are for just IP or is it more so like are companies acquiring users? Are they what companies acquiring users? Are they what companies acquiring users? Are they what what are they acquiring? what are they acquiring? what are they acquiring? >> That is a fabulous question and I I >> That is a fabulous question and I I >> That is a fabulous question and I I don't even know if I'm qualified to don't even know if I'm qualified to don't even know if I'm qualified to answer it to be honest with you. I I answer it to be honest with you. I I answer it to be honest with you. I I think we are in the wild wild west is think we are in the wild wild west is think we are in the wild wild west is what I think. Uh so all things could be what I think. Uh so all things could be what I think. Uh so all things could be true and possible at the same time. I true and possible at the same time. I true and possible at the same time. I just really don't know. Do you guys have just really don't know. Do you guys have just really don't know. Do you guys have a big opinion on that? a big opinion on that? a big opinion on that? >> You know I think the the way the >> You know I think the the way the >> You know I think the the way the industry everything is moving forward. industry everything is moving forward. industry everything is moving forward. The problem is you don't know even the The problem is you don't know even the The problem is you don't know even the company exist company exist company exist in few months right? So you just build in few months right? So you just build in few months right? So you just build something and then open AAI and something and then open AAI and something and then open AAI and Microsoft are building much more better Microsoft are building much more better Microsoft are building much more better and that's the problem. A lot of VCs now and that's the problem. A lot of VCs now and that's the problem. A lot of VCs now are paddling back. Most of them are you are paddling back. Most of them are you are paddling back. Most of them are you know losing money on the you know the know losing money on the you know the know losing money on the you know the initial investment when it was like oh initial investment when it was like oh initial investment when it was like oh my god you know AI we need to do it. Now my god you know AI we need to do it. Now my god you know AI we need to do it. Now they are paddling back. So with AI and they are paddling back. So with AI and they are paddling back. So with AI and everything moving super fast everything moving super fast everything moving super fast everything is just like uncertain right everything is just like uncertain right everything is just like uncertain right now. So, it's just a lot of things that now. So, it's just a lot of things that now. So, it's just a lot of things that needs to figure be figured out moving

needs to figure be figured out moving needs to figure be figured out moving forward. It's just a lot of questions to forward. It's just a lot of questions to forward. It's just a lot of questions to be answered. be answered. be answered. >> Something that I've been aware of too is >> Something that I've been aware of too is >> Something that I've been aware of too is that we're going back to in-person that we're going back to in-person that we're going back to in-person experiences a lot more because of the experiences a lot more because of the experiences a lot more because of the like the AI schlop and like what we're like the AI schlop and like what we're like the AI schlop and like what we're seeing. Um, so we're I've heard that seeing. Um, so we're I've heard that seeing. Um, so we're I've heard that we're going to go back to more physical we're going to go back to more physical we're going to go back to more physical things, more in-person type of things. things, more in-person type of things. things, more in-person type of things. So, it's definitely interesting to to So, it's definitely interesting to to So, it's definitely interesting to to watch that happen in real time and like watch that happen in real time and like watch that happen in real time and like be part of the ecosystem, right? Be be be part of the ecosystem, right? Be be be part of the ecosystem, right? Be be witnessing it. witnessing it. witnessing it. >> I think depending on who you follow >> I think depending on who you follow >> I think depending on who you follow online and the their investment strategy online and the their investment strategy online and the their investment strategy and everything, they're all different. and everything, they're all different. and everything, they're all different. They're all they're all saying not the They're all they're all saying not the They're all they're all saying not the same thing. So, it you really just have same thing. So, it you really just have same thing. So, it you really just have to lean into who you feel best about, to lean into who you feel best about, to lean into who you feel best about, honestly. Um, that's a fantastic honestly. Um, that's a fantastic honestly. Um, that's a fantastic question though. That that makes sense. question though. That that makes sense. question though. That that makes sense. And just a very quick followup like I And just a very quick followup like I And just a very quick followup like I know you said that different investors know you said that different investors know you said that different investors and different founders have like and different founders have like and different founders have like different views on whether they acquire different views on whether they acquire different views on whether they acquire for just IP. Would you acquire a for just IP. Would you acquire a for just IP. Would you acquire a software startup for just IP in this age software startup for just IP in this age software startup for just IP in this age of AI?

of AI? of AI? >> Me I guess it depends on how far along they I guess it depends on how far along they are what what their revenue and customer are what what their revenue and customer are what what their revenue and customer base looks like. base looks like. base looks like. would acquire their customers as well, would acquire their customers as well, would acquire their customers as well, not just the promising looking. not just the promising looking. not just the promising looking. >> I would, if I'm writing a check for your >> I would, if I'm writing a check for your >> I would, if I'm writing a check for your company, I would want every piece of company, I would want every piece of company, I would want every piece of data about your company that I could data about your company that I could data about your company that I could pull out of it and extract because pull out of it and extract because pull out of it and extract because nowadays the data is worth as much as a nowadays the data is worth as much as a nowadays the data is worth as much as a lot of the others. So, um, but yeah, I lot of the others. So, um, but yeah, I lot of the others. So, um, but yeah, I would I would have to see what stage would I would have to see what stage would I would have to see what stage you're in. Have you not launched yet and you're in. Have you not launched yet and you're in. Have you not launched yet and you've got two customers and no revenue? you've got two customers and no revenue? you've got two customers and no revenue? Maybe maybe that would be okay. Maybe maybe that would be okay. Maybe maybe that would be okay. >> Okay, makes sense. Thank you guys so >> Okay, makes sense. Thank you guys so >> Okay, makes sense. Thank you guys so much. much. much. >> Thank you. We have one more uh time for >> Thank you. We have one more uh time for >> Thank you. We have one more uh time for one more question. one more question. one more question. >> All right, thank you. This was uh very >> All right, thank you. This was uh very >> All right, thank you. This was uh very informative. Um so I've been in informative. Um so I've been in informative. Um so I've been in corporate for many many years and corporate for many many years and corporate for many many years and decided to go and be a founder about six decided to go and be a founder about six decided to go and be a founder about six years ago. Uh so I loved this listening years ago. Uh so I loved this listening years ago. Uh so I loved this listening to the PPT story uh which was very easy to the PPT story uh which was very easy to the PPT story uh which was very easy to execute when I was in the corporate to execute when I was in the corporate to execute when I was in the corporate world. However, it is extremely hard and world. However, it is extremely hard and world. However, it is extremely hard and I've got my direct advisor and two I've got my direct advisor and two I've got my direct advisor and two adviserss at large sitting here adviserss at large sitting here adviserss at large sitting here listening to me say this. It's very listening to me say this. It's very listening to me say this. It's very difficult for me to execute the PPT in difficult for me to execute the PPT in difficult for me to execute the PPT in the um in my company right now in Zraus.

the um in my company right now in Zraus. the um in my company right now in Zraus. Um, Um, Um, so leaving that aside, so leaving that aside, so leaving that aside, if I was to start building my data if I was to start building my data if I was to start building my data repository, which I mentioned that I am, repository, which I mentioned that I am, repository, which I mentioned that I am, can you tell me how I would share that can you tell me how I would share that can you tell me how I would share that information? Because we get all kinds of information? Because we get all kinds of information? Because we get all kinds of different ideas on how that information different ideas on how that information different ideas on how that information should be shared with investors. should be shared with investors. should be shared with investors. >> So there's all kinds of platforms. >> So there's all kinds of platforms. >> So there's all kinds of platforms. Obviously, if you're a Microsoft shop, Obviously, if you're a Microsoft shop, Obviously, if you're a Microsoft shop, you can put it on one drive, you can put you can put it on one drive, you can put you can put it on one drive, you can put it on Google. Um, at the end of the day, it on Google. Um, at the end of the day, it on Google. Um, at the end of the day, I don't think any of that matters how I don't think any of that matters how I don't think any of that matters how you are able to share it unless or until you are able to share it unless or until you are able to share it unless or until you get into confidential information you get into confidential information you get into confidential information and you need encrypted encryption and and you need encrypted encryption and and you need encrypted encryption and things like that. things like that. things like that. >> Um, that gets a little diceier. >> Um, that gets a little diceier. >> Um, that gets a little diceier. A lot of the ERPs or at least like the A lot of the ERPs or at least like the A lot of the ERPs or at least like the big ones have all of this built in for big ones have all of this built in for big ones have all of this built in for you with the ability to share your you with the ability to share your you with the ability to share your document repository, share a specific document repository, share a specific document repository, share a specific files only, you know, all the things.

files only, you know, all the things. files only, you know, all the things. Um, but even Google Drive and you know, Um, but even Google Drive and you know, Um, but even Google Drive and you know, Microsoft one, one drive, they've all Microsoft one, one drive, they've all Microsoft one, one drive, they've all got the got the got the all of the security and stuff that you all of the security and stuff that you all of the security and stuff that you would need for that. My recommendation would need for that. My recommendation would need for that. My recommendation on the whole document repository and on the whole document repository and on the whole document repository and having this data room is just keep it having this data room is just keep it having this data room is just keep it simple. You know, I have gone into simple. You know, I have gone into simple. You know, I have gone into companies where they made their naming companies where they made their naming companies where they made their naming convention be all numbers with four convention be all numbers with four convention be all numbers with four letters at the end and the four letters letters at the end and the four letters letters at the end and the four letters meant something that you had to meant something that you had to meant something that you had to memorize. And I just thought, could we memorize. And I just thought, could we memorize. And I just thought, could we just name the document what it is? I just name the document what it is? I just name the document what it is? I don't know. How about NDA and the last don't know. How about NDA and the last don't know. How about NDA and the last name of the person that signed it? I name of the person that signed it? I name of the person that signed it? I mean, can we just get really basic here? mean, can we just get really basic here? mean, can we just get really basic here? Yeah. A date. Put a date at the end of Yeah. A date. Put a date at the end of Yeah. A date. Put a date at the end of everything so it'll be in order. Um, at everything so it'll be in order. Um, at everything so it'll be in order. Um, at any rate, yeah, these are just things any rate, yeah, these are just things any rate, yeah, these are just things that you can get as fancy as you like, that you can get as fancy as you like, that you can get as fancy as you like, but I think there's definite value in but I think there's definite value in but I think there's definite value in just keeping it simple. And um, if you just keeping it simple. And um, if you just keeping it simple. And um, if you do have some technology needs to be able do have some technology needs to be able do have some technology needs to be able to encrypt files and things like that, to encrypt files and things like that, to encrypt files and things like that, there's software out there that'll do there's software out there that'll do there's software out there that'll do it.

it. it. >> Okay. So go with an ERP to be the >> Okay. So go with an ERP to be the >> Okay. So go with an ERP to be the safest, right? safest, right? safest, right? >> Might it might be. >> Might it might be. >> Might it might be. >> Okay. And in uh reference to the data >> Okay. And in uh reference to the data >> Okay. And in uh reference to the data that we keep there um agreements right that we keep there um agreements right that we keep there um agreements right with uh different uh people that you've with uh different uh people that you've with uh different uh people that you've had if uh those people if those had if uh those people if those had if uh those people if those agreements are no longer um in you being agreements are no longer um in you being agreements are no longer um in you being used right the person's left or used right the person's left or used right the person's left or something's happened do we still keep something's happened do we still keep something's happened do we still keep those for a trajectory of where you those for a trajectory of where you those for a trajectory of where you started from and where you are or do you started from and where you are or do you started from and where you are or do you not need to keep those then not need to keep those then not need to keep those then >> I would I mean there's different laws >> I would I mean there's different laws >> I would I mean there's different laws with regards to HR files with regards to HR files with regards to HR files So, you'll want to check the laws So, you'll want to check the laws So, you'll want to check the laws relevant in your state and area for what relevant in your state and area for what relevant in your state and area for what you're required to keep and for how long you're required to keep and for how long you're required to keep and for how long as it relates to, you know, HR stuff. As as it relates to, you know, HR stuff. As as it relates to, you know, HR stuff. As it relates to customer contracts, if the it relates to customer contracts, if the it relates to customer contracts, if the contract has been replaced or the contract has been replaced or the contract has been replaced or the customer left or whatever the case might customer left or whatever the case might customer left or whatever the case might be, archive it, but keep it just keep it be, archive it, but keep it just keep it be, archive it, but keep it just keep it in a separate archive folder. in a separate archive folder. in a separate archive folder. >> Okay. All right. Thank you. And I think >> Okay. All right. Thank you. And I think >> Okay. All right. Thank you. And I think uh we asked my AI question and I I think uh we asked my AI question and I I think uh we asked my AI question and I I think about it a little differently but uh about it a little differently but uh about it a little differently but uh I'll leave that one alone now. Thank I'll leave that one alone now. Thank I'll leave that one alone now. Thank you.

you. you. >> No problem. >> No problem. >> No problem. >> Thank you. >> Thank you. >> Thank you. >> Thank you. >> Thank you. >> Thank you. >> And we have >> And we have >> And we have >> Do you have time for one more? >> Do you have time for one more? >> Do you have time for one more? >> Sure. >> Sure. >> Sure. >> Yeah, sure. >> Yeah, sure. >> Yeah, sure. >> It's going to be quick >> It's going to be quick >> It's going to be quick >> for you. We do. Giio. >> for you. We do. Giio. >> for you. We do. Giio. >> Okay, cool. >> Okay, cool. >> Okay, cool. >> You got to tell us who you are though >> You got to tell us who you are though >> You got to tell us who you are though and what you're doing. and what you're doing. and what you're doing. >> Yeah. Yeah. Yeah. Uh hello. My name is >> Yeah. Yeah. Yeah. Uh hello. My name is >> Yeah. Yeah. Yeah. Uh hello. My name is Giioani and I have a company called Giioani and I have a company called Giioani and I have a company called Token Roster. Uh my company specifically Token Roster. Uh my company specifically Token Roster. Uh my company specifically uh does a lot of the things that you had uh does a lot of the things that you had uh does a lot of the things that you had uh you had mentioned are important for uh you had mentioned are important for uh you had mentioned are important for investors. Uh we provide a data room as investors. Uh we provide a data room as investors. Uh we provide a data room as well where they can load their well where they can load their well where they can load their documentation. Uh and essentially the documentation. Uh and essentially the documentation. Uh and essentially the platform itself does uh investor platform itself does uh investor platform itself does uh investor readiness reports. So it goes through readiness reports. So it goes through readiness reports. So it goes through all the documentation that somebody has all the documentation that somebody has all the documentation that somebody has like uh if you have a business plan, you like uh if you have a business plan, you like uh if you have a business plan, you have your pitch deck, you have all you have your pitch deck, you have all you have your pitch deck, you have all you have information about your particular have information about your particular have information about your particular team. It will do the analysis and then team. It will do the analysis and then team. It will do the analysis and then provide that report to an investor and provide that report to an investor and provide that report to an investor and basically say okay well we've done the basically say okay well we've done the basically say okay well we've done the analysis. Uh here you go. This it's like analysis. Uh here you go. This it's like analysis. Uh here you go. This it's like a pre-screening for you know due a pre-screening for you know due a pre-screening for you know due diligence. So we say hey we we went diligence. So we say hey we we went diligence. So we say hey we we went through all their documentation. This is through all their documentation. This is through all their documentation. This is what they this is what we've uh what they this is what we've uh what they this is what we've uh gathered. Um it also gives them gathered. Um it also gives them gathered. Um it also gives them information about what they could do information about what they could do information about what they could do moving forward. like if they don't have moving forward. like if they don't have moving forward. like if they don't have a system that helps them, you know, a system that helps them, you know, a system that helps them, you know, manage their documentation or uh or or manage their documentation or uh or or manage their documentation or uh or or anything like that, it also gives them anything like that, it also gives them anything like that, it also gives them recommendations. If their team uh is recommendations. If their team uh is recommendations. If their team uh is just a one person uh CTO, then it says, just a one person uh CTO, then it says, just a one person uh CTO, then it says, okay, well, you know, you need to have okay, well, you know, you need to have okay, well, you know, you need to have somebody a little bit more focused on somebody a little bit more focused on somebody a little bit more focused on that. So, it does all this analysis and that. So, it does all this analysis and that. So, it does all this analysis and then it provides it to them. Um my then it provides it to them. Um my then it provides it to them. Um my question is specifically because my my question is specifically because my my question is specifically because my my framework is composable. So each framework is composable. So each framework is composable. So each investment groups they they can investment groups they they can investment groups they they can basically come up with their own thesis basically come up with their own thesis basically come up with their own thesis their own focus and the reports once the their own focus and the reports once the their own focus and the reports once the the data room is on the platform uh they

the data room is on the platform uh they the data room is on the platform uh they can run a customized report for that can run a customized report for that can run a customized report for that particular investor. So my question is particular investor. So my question is particular investor. So my question is yeah so basic basically what I'm doing yeah so basic basically what I'm doing yeah so basic basically what I'm doing right now is I'm going to uh my go to right now is I'm going to uh my go to right now is I'm going to uh my go to market strategies I focus on uh market strategies I focus on uh market strategies I focus on uh incubators accelerators VCs all these incubators accelerators VCs all these incubators accelerators VCs all these different uh angel investor groups and different uh angel investor groups and different uh angel investor groups and so I try to customize their framework so so I try to customize their framework so so I try to customize their framework so they have to have a so just like the they have to have a so just like the they have to have a so just like the startups they have to have their own startups they have to have their own startups they have to have their own documentation on what they on what documentation on what they on what documentation on what they on what they're trying to do and what they're they're trying to do and what they're they're trying to do and what they're trying to achieve and what the minimums trying to achieve and what the minimums trying to achieve and what the minimums are. are. are. >> So just to be clear your customer is the >> So just to be clear your customer is the >> So just to be clear your customer is the investor or the startup? Uh it's it's investor or the startup? Uh it's it's investor or the startup? Uh it's it's primarily the c the the the investors primarily the c the the the investors primarily the c the the the investors the investor groups the incubators and the investor groups the incubators and the investor groups the incubators and things like that. Uh even though I do things like that. Uh even though I do things like that. Uh even though I do provide services for the uh the startup provide services for the uh the startup provide services for the uh the startup like every time they run a report they like every time they run a report they like every time they run a report they basically get a full description of what basically get a full description of what basically get a full description of what they need to do. Uh I also have a they need to do. Uh I also have a they need to do. Uh I also have a template that I just created that template that I just created that template that I just created that basically creates a framework for uh you basically creates a framework for uh you basically creates a framework for uh you know a questionnaire that asks the know a questionnaire that asks the know a questionnaire that asks the startup founder hey do you you know startup founder hey do you you know startup founder hey do you you know what's your business and it it organizes what's your business and it it organizes what's your business and it it organizes all their their internal documentation all their their internal documentation all their their internal documentation so it could be submitted to the platform so it could be submitted to the platform so it could be submitted to the platform and sent to an to an investor and sent to an to an investor and sent to an to an investor to this is a long-winded way of saying to this is a long-winded way of saying to this is a long-winded way of saying so for me I'm here so for me I'm here so for me I'm here >> I'm I'm doing my go to market strategy >> I'm I'm doing my go to market strategy >> I'm I'm doing my go to market strategy I'm I'm hitting people up but what do I'm I'm hitting people up but what do I'm I'm hitting people up but what do you uh how do you find deals like when you uh how do you find deals like when you uh how do you find deals like when you go out and do do you do you find you go out and do do you do you find you go out and do do you do you find deals because people hit you up deals because people hit you up deals because people hit you up individually? Do you do it through an individually? Do you do it through an individually? Do you do it through an investor group? And what kind of process investor group? And what kind of process investor group? And what kind of process do you have individually?

do you have individually? do you have individually? >> Me personally, I'm part of a 12 person >> Me personally, I'm part of a 12 person >> Me personally, I'm part of a 12 person very small angel investment group. very small angel investment group. very small angel investment group. >> Um and we do one to three deals a year >> Um and we do one to three deals a year >> Um and we do one to three deals a year and they're not our our biggest ticket and they're not our our biggest ticket and they're not our our biggest ticket deal we ever did was in 2022 for about deal we ever did was in 2022 for about deal we ever did was in 2022 for about 260,000. Mhm. 260,000. Mhm. 260,000. Mhm. >> So, um I'm not some big high dollar >> So, um I'm not some big high dollar >> So, um I'm not some big high dollar person roaming around out there, but the person roaming around out there, but the person roaming around out there, but the way that we get our deals way that we get our deals way that we get our deals >> is we have one person in our group >> is we have one person in our group >> is we have one person in our group that's in charge of that's in charge of that's in charge of vetting any inquiries that come in and vetting any inquiries that come in and vetting any inquiries that come in and he takes those and he runs through about he takes those and he runs through about he takes those and he runs through about 10 steps with them and figures a bunch 10 steps with them and figures a bunch 10 steps with them and figures a bunch of stuff out, pulls a bunch of number of stuff out, pulls a bunch of number of stuff out, pulls a bunch of number and mainly does the market research. to and mainly does the market research. to and mainly does the market research. to understand what's already out there and understand what's already out there and understand what's already out there and that sort of thing. that sort of thing. that sort of thing. >> And then if he thinks it's hot and >> And then if he thinks it's hot and >> And then if he thinks it's hot and something everybody else should take a something everybody else should take a something everybody else should take a look at, then we get called in and we we look at, then we get called in and we we look at, then we get called in and we we see it for the first time at that point. see it for the first time at that point. see it for the first time at that point. >> Um so that's how ours works. As far as >> Um so that's how ours works. As far as >> Um so that's how ours works. As far as where these come from, word of mouth where these come from, word of mouth where these come from, word of mouth primarily, we're part of a small little primarily, we're part of a small little primarily, we're part of a small little angel network um central Texas area. And angel network um central Texas area. And angel network um central Texas area. And so at any rate, yeah, it's it's so at any rate, yeah, it's it's so at any rate, yeah, it's it's literally that simple. But there's all literally that simple. But there's all literally that simple. But there's all kinds of networks. I definitely need to kinds of networks. I definitely need to kinds of networks. I definitely need to talk to you after this meeting, though.

talk to you after this meeting, though. talk to you after this meeting, though. I I need to learn more about your I I need to learn more about your I I need to learn more about your product. product. product. >> That sounds great. >> That sounds great. >> That sounds great. >> Sounds amazing. Sounds amazing. >> Sounds amazing. Sounds amazing. >> Sounds amazing. Sounds amazing. >> Just one follow-up question. If you got >> Just one follow-up question. If you got >> Just one follow-up question. If you got more deal flow, like if you were able to more deal flow, like if you were able to more deal flow, like if you were able to see more deals and process them in a in see more deals and process them in a in see more deals and process them in a in a scalable way, uh would that improve a scalable way, uh would that improve a scalable way, uh would that improve your business? your business? your business? >> Probably. Yeah. >> Probably. Yeah. >> Probably. Yeah. >> Oh, okay. All right. Well, thank you so >> Oh, okay. All right. Well, thank you so >> Oh, okay. All right. Well, thank you so much. I appreciate your time. much. I appreciate your time. much. I appreciate your time. >> Absolutely. Absolutely. Thank you. >> Absolutely. Absolutely. Thank you. >> Absolutely. Absolutely. Thank you. >> Thank you, Jojo. Jojo is going to be >> Thank you, Jojo. Jojo is going to be >> Thank you, Jojo. Jojo is going to be starting his own show sometime soon. starting his own show sometime soon. starting his own show sometime soon. We're waiting on it. We're waiting on it. We're waiting on it. >> Yeah. Yeah. Absolutely. >> Yeah. Yeah. Absolutely. >> Yeah. Yeah. Absolutely. >> And you know, like uh it's just it's >> And you know, like uh it's just it's >> And you know, like uh it's just it's just my fault uh being super busy, but just my fault uh being super busy, but just my fault uh being super busy, but uh we're going to partner with Giorgio uh we're going to partner with Giorgio uh we're going to partner with Giorgio and his platform for our um deal because and his platform for our um deal because and his platform for our um deal because awesome. awesome. awesome. >> It's going to get, you know, get much >> It's going to get, you know, get much >> It's going to get, you know, get much more easier when you have a partner that more easier when you have a partner that more easier when you have a partner that does all the, you know, does all the, you know, does all the, you know, >> all that. Yeah. Yeah, >> all that. Yeah. Yeah, >> all that. Yeah. Yeah, >> just like you know everything that you >> just like you know everything that you >> just like you know everything that you want is just there want is just there want is just there >> and >> and >> and >> very exciting. >> very exciting. >> very exciting. >> He's building every day more features. >> He's building every day more features. >> He's building every day more features. >> So it's just like heaven for investors >> So it's just like heaven for investors >> So it's just like heaven for investors >> and he's out there. You see him >> and he's out there. You see him >> and he's out there. You see him everywhere. He's connecting to all the everywhere. He's connecting to all the everywhere. He's connecting to all the startup founders and the investors and startup founders and the investors and startup founders and the investors and the and the ecosystems. Um so yes um the and the ecosystems. Um so yes um the and the ecosystems. Um so yes um thank you for that question. Thank you thank you for that question. Thank you thank you for that question. Thank you everybody for your questions. Uh Julie everybody for your questions. Uh Julie everybody for your questions. Uh Julie will be here for a little bit after the will be here for a little bit after the will be here for a little bit after the show so we can continue to ask questions show so we can continue to ask questions show so we can continue to ask questions but we should close the episode out. Um but we should close the episode out. Um but we should close the episode out. Um any final words you want to say?

any final words you want to say? any final words you want to say? >> Oh no. Thank you so much for being here. >> Oh no. Thank you so much for being here. >> Oh no. Thank you so much for being here. I really appreciate it was great I really appreciate it was great I really appreciate it was great understanding what is the endgame understanding what is the endgame understanding what is the endgame >> and planning from the day one and the >> and planning from the day one and the >> and planning from the day one and the value of putting things together to be value of putting things together to be value of putting things together to be ready at any moment for that day that ready at any moment for that day that ready at any moment for that day that you get that phone call. Yeah. Thank you you get that phone call. Yeah. Thank you you get that phone call. Yeah. Thank you so much. so much. so much. >> Absolutely. >> Absolutely. >> Absolutely. >> Yeah. Yeah. I want I want to >> Yeah. Yeah. I want I want to >> Yeah. Yeah. I want I want to >> Sorry. Go ahead. >> Sorry. Go ahead. >> Sorry. Go ahead. >> No, I'm good. >> No, I'm good. >> No, I'm good. >> Um, we I I we should have called this >> Um, we I I we should have called this >> Um, we I I we should have called this episode day one. I like I like that this episode day one. I like I like that this episode day one. I like I like that this is day one for everybody. is day one for everybody. is day one for everybody. >> Totally. Totally. >> Totally. Totally. >> Totally. Totally. >> And we can plan with the end in mind. >> And we can plan with the end in mind. >> And we can plan with the end in mind. Um, thank you anybody that's here in Um, thank you anybody that's here in Um, thank you anybody that's here in person. We have a full house today. Uh, person. We have a full house today. Uh, person. We have a full house today. Uh, thank you for anybody listening online. thank you for anybody listening online. thank you for anybody listening online. We're on YouTube and Instagram. Um, and We're on YouTube and Instagram. Um, and We're on YouTube and Instagram. Um, and and maybe LinkedIn. I don't think and maybe LinkedIn. I don't think and maybe LinkedIn. I don't think LinkedIn made it today. Um, but we're on LinkedIn made it today. Um, but we're on LinkedIn made it today. Um, but we're on YouTube and Instagram. Thank you for YouTube and Instagram. Thank you for YouTube and Instagram. Thank you for listening digitally. Uh, thank you to listening digitally. Uh, thank you to listening digitally. Uh, thank you to 801 Travis and the Innovation Hub and 801 Travis and the Innovation Hub and 801 Travis and the Innovation Hub and Iron Grove as our sponsors and partners. Iron Grove as our sponsors and partners. Iron Grove as our sponsors and partners. Um, and come back next week um, as we Um, and come back next week um, as we Um, and come back next week um, as we continue uh, innovating um, within continue uh, innovating um, within continue uh, innovating um, within Houston system within Houston's Houston system within Houston's Houston system within Houston's innovation system and creating this this innovation system and creating this this innovation system and creating this this ecosystem one conversation at a time. um ecosystem one conversation at a time. um ecosystem one conversation at a time. um follow um funded or noblefounder.com.

follow um funded or noblefounder.com. follow um funded or noblefounder.com. You can look up noblefounder.com to You can look up noblefounder.com to You can look up noblefounder.com to learn more about the ecosystem that learn more about the ecosystem that learn more about the ecosystem that we're building and everything that it we're building and everything that it we're building and everything that it entails. Um and thank you again. entails. Um and thank you again. entails. Um and thank you again. >> Yeah. And today we are going to have our >> Yeah. And today we are going to have our >> Yeah. And today we are going to have our first ecosystem hangout after this show. first ecosystem hangout after this show. first ecosystem hangout after this show. This is what we call it. This is what we call it. This is what we call it. >> Yes. There's food and juice. >> Yes. There's food and juice. >> Yes. There's food and juice. >> Awesome. Thank you. >> Awesome. Thank you. >> Awesome. Thank you. >> Thank you guys. >> Thank you guys. >> Thank you guys. >> Bye. >> Bye. >> Bye. >> Bye. Well, you guys made that painless. Thank Well, you guys made that painless. Thank you very much. you very much. you very much. >> Thank you.