Edward Segal for inviting me as Sr. Policy Advisor in the #Kansas House of Rep. Who knew the Good Senator Bob Dole as a Jr. Political personality.
And as a fellow Veteran, and Conservative from the Sunflower State of Kansas, I shared a #leadership lesson we all can take from the good Senator.
Excerpt from todayās articleā¦..
March Forward
Jameson Sharp is a former senior policy advisor in the Kansas House of Representatives and now an investment group partner at Neptune Capital. He observed that, āBob Doleās heroism and leadership to serve his fellow Americans did not stop on the battlefield of World War II. It continued onto the Senate and onto when he ran for President of the United States.
āEvery business executive in Corporate America could certainly take this single important leadership lesson and put it to work right away. And that lesson is to keep marching forward through the fear, uncertainty and the painful result of defeat. Because on the other side is what we call personal growth.ā
I learned about the Bond Market Today and now I must share what the Bond market is and how the Bond Market operates. Questions that come up about the current Bond Markets? Is all this Cash Debt toxic? Will Interest rates be going up? How many Companies were Downgraded in 2020? Since this post will probably be very dry and boring to most who read about Wall Street? I might as well spice it up with a little flavor. LOL I must remember a Hilarious Jewish Comedian whom I literally Idolized as a young man and still love to this day. “Rodney “No Respect” Dangerfield” The king of one liners. LOL
Rodney Dangerfield was born Jacob Rodney Cohen in the Village of Babylon, in Suffolk County, Long Island, New York, on November 22, 1921. Here is a one liner from Mr. Dangerfield to get you in the mood of talking big Money and Big Debt in the Bond Market. “Sir. I talked to your wife today and I must share I really don’t like you.” Rodney respond’s “Good! Great!! Congratulations….I don’t like myself sometimes. You can keep her!!!” Cue the symbols background noise! LOL Oh, By the way! I would love to take this opportunity to share Happy Hanukkah with everyone on this last day of the celebration.
I must share it is really fantastic to have Sidley & Austin associates here on location. And especially for these Attorneys being my very own Professors or better yet personal tutors. Since I am apart of the fabric here now, I must share with them a little something I learned while serving in the Military. As a type of affection and camaraderie I developed incredibly creative nicknames for each professor. Interestingly I was assured anything I do will be used against me. All things considered. I am happy to report. I will be pushing my luck with these younger Associates.
Let’s get started. I assume most professional writers who are reading this will CRINGE!!! LOL But since this blog is written by a real business guy and not a Professional writer some trade offs must happen.
What is the Bond Market?
If I am being transparent most people have no idea what the Bond market is and also that it is shrouded in mystery. It really isn’t that complicated. The Bond market is comparatively like the Stock market but it’s for Corporate Fortune 500 Companies. Generally Wall Street has 2 markets. The Stock Market and the other side “The Bond Market”. Most fortune 500 Companies gain access to the Bond market and borrow Cash from this Market that is similar to the Stock Market. Individual investors Bonds in smaller amounts from Big Companies. And these individuals are issued interest payments called coupon’s. Currently the Bond Market has been estimated at a staggering and dangerous 11 trillion dollars in Debt. This debt all belongs to corporate America.
How the Bond Market Functions?
Experts all say the Corporate Bond market is hanging on by a thin string. The reason is likely that super low Interest rates left over from the 2008 Financial Crisis is likely the reason. Made it very easy for Companies to borrow cheap money. Experts also believe the next Economic Crisis and collapse could result from the Bond market itself. I guess we will hopefully avoid catastrophe. The Federal Reserve Chairman has publicly stated they do keep an eye on the Bond Markets activity.
What are the two Bond Types?
It is said that some of the most influential Fortune 500 Companies like Kraft Hienz, Ford, and Macy’s are already junk bond status and currently issuing IOU’s to Bond holders. Meaning they are having trouble paying. Junk Bond Status means they are the riskiest types of bonds. And that these Bond Issuers have failed in the past to pay their bond coupon holders. Meaning they have defaulted. Which really begs the simple question. “How long can Corporate America’s Junk Bond Defaulters continue to do this circle of using debt for the Companies Operations with no growth?
What are two types of Grades for Companies Issuing Bond’s
Investment Grade Bonds – These are the highest rated Bond Types
High Yield Bond’s – Are considered Bonds that have been downgraded because of past default. “JUNK BOND’S”
Please do watch Investing with Rose Youtube Channel. It’s fantastic. Here is a video that explains the Bond Market and Investing 101 Basics.
I would love for you to imagine we are standing on a plateau with a cliff lookind down into the Grand Canyon. This drop-off the cliff represents the fall a company from defaulting on their debt or coupon or interest payments they must make to bond holders. Once a company falls off the cliff. They are downgraded to Junk Bond high risk status. CNBC reports that right now there are literally hundreds of companies that are on the cliff of Default from the Markets low interest rates being downgraded to Higher Rates. When this happens all these Investment Grade Bonds will be forced off the cliff. And be downgraded to Junk Bond’s if they can not pay their Bond Holders payments. Once a company goes over the cliff they are in trouble. I hope that makes sense? Good.
There is a ton of pressure on Asset Managers to sell the Bonds which cross over to Junk Bonds and fall off the cliff.
Fallen Angels = Any company in the Bond Market that get’s downgraded by rating companies.
Will Interest rates be going up soon? If Interest rates do go up and they eventually will, the economy will turn worse than the Great Depression is what I keep hearing. I guess we will see.
It was reported that over 50 Large Fortune 500 Companies were downgraded to Junk Bond Status in 2020. That is really scary to think about.
Back to the Associates who helped me understand the Bond Market today.
Back to my substitute Bond Market Professors. There are 2 associates and one Partner from a very well known law firm in Chicago. Now on to the nicknames I have given them in an attempt to be humorous with these very serious personalities.
I would like to take this opportunity to Thank my new Professors. They are rockstar Transaction Attorneys from a very well known Transaction Services Law Firm Sidley & Austin. It’s honestly very generous of my good Friend who has arranged this education and experience being around these Attorneys.
I gave my new professors 3 Nicknames. Because in all honesty when you serve in small teams in the Military you become use to working as a team and along the way you will earn a nickname of some sort. That is the history of creating nicknames for people you work closely with.
The Big Partner of this Firm and has been the head honcho of this operation is Nicknamed “Professor Debt Collector” In all likely hood if your a company president and you receive a letter from this Partner? It’s likely your going to pay. So after hearing a few stories from this Law Firm Partner. I quickly assigned him this nickname.
Senior Associate Mr. X – is usually the lead on transactions for this Law Firm and is great about covering all his bases and researching who you are. LOL In the Holiday spirit of him not liking Holiday Decor or Christmas. We shall give this Professor the Moniker “Professor Grinch!” It seemed fitting. Since his Kids loved the idea. When asked if he agree’s with his new nickname “Professor Grinch” Snarled at me and commented…. “You do not have the right to give me such names”. Sharing a evil sinister laugh while walking away.
Then we have the Junior Associate Attorney & Professor who has been at my side this entire time. She is fantastically generous and could honestly make a Grumpy Bear laugh. So with this information she is able to explain the markets with precise accuracy and adding political scope. “Which I love by the way.” We gave her the Name of Madam Secretary. Which was fitting given her personality.
Thank you for reading this Post. I do recognize I will not ever be a professor. But at least I can bring a smile to someone who needs a little entertainment while reading about business which clearly can be boring.
It seems more and more Business Journalists and Reporters/Writers are asking for my Expert Opinion as a Source. Business Mergers and Acquisitions, Investments and Analyzing the Markets future and current state is a interesting subject.
Thank you for the privilege to look over the Horizon in business and provide an Opinion of what comes next.
Robert Kyosaki “Rich Dad Poor Dad” best selling author teaches Entrepreneurs to look at 100 properties if your in Real Estate, or look at 100 Business’s if your in Private Equity before making a decision to buy. Why would I share expert advice from the ultra successful Investor Robert Kyosaki? Because I have used his advice and won! It’s that simple. Here is another reason I follow Roberts teachings and listen intently. Robert and myself are both USMC Veterans and trained Pilots, we literally have many things in common with each other like seeing the world through entrepreneur lenses. Not to mention a laundry list of other interests that intersect. His advice is 100% rock solid. This is why I listen to his advice and share his fantastic wisdom. Im going to share why this business rule and strategy could be useful for all areas of your life and how it has worked for me. And since I am naming Business Heavy Weights I personally watch. Do you know who Noah Kagan is? Look him up! I feel Noah would most likely agree a 100% with my post.
What is the 100 Rule?
Here’s the problem I see most of the time with Entrepreneurs. They expect results way to quickly and they have no strategy at all. Or they just have no patience and are quick to move on to the next project without really giving their best. However if you do decide to use this information in this blog post? It’s likely you may be impressed with the results. And this information may just change your entire life!
Many month’s ago I was driving my usual circuit of pit stops and making my way to the Plaza’s Barnes & Nobles Book store. While driving an interview video popped up of Noah Kagan the CEO of App SUMO & OK DORK and Ryan Holiday author of “Trust Me Im Lying” . If you don’t know who these fellow Entrepreneurs are? You should go watch some of their Content and Read Noah’s book. 100% They get it!! And we have similar experiences of knocking on thousands of doors and learning rejection is just apart of the process and will make you stronger. This is one thing I really love about Noah videos. He is transparent about his battles. I can relate to his experiences 100%
While Noah and Ryan were sitting at a Table on this video interview their conversation veered to a subject about the The One Hundred Rule. Your probably asking yourself What is the One Hundred rule? Im happy your thinking ahead. The One Hundred Rule is exactly this in it’s definition. Say your writing a Blog or starting a Youtube Channel or even Selling a product you made to the open market. The One Hundred rule makes it clear that in order to know if your Blog, Youtube Channel, or Product is worth pursuing and not quitting? You must write One Hundred Blog Posts, create One Hundred Youtube Videos or even Pitch the product you made to One Hundred Executives before deciding if this was worth your time to keep going? Or to quit. This same rule can be applied to Finance, M&A, and especially Business Strategy!!
The One Hundred Rule Used By Warren Buffett and Charlie Munger
If you watch Warren Buffett and Charlie Munger’s videos from the Berkshire Hathaway Annual Meetings Q&A sessions. You will hear in their answers how Warren and Charlie have both referred to looking at One Hundred Businesses before deciding which business they would like to invest in and take a official position. There must be only one explanation. They use the One Hundred Rule. I have even heard Warren Buffett refer to reading a Hundred different Annual reports in order to begin his deliberation on which company to invest in when the market was bearish. Fascinating stuff right? Yep!
How Im Using the One Hundred Rule in Mergers & Acquisitions?
If your in the Big leagues of Business your definitely not ever going to just rush into a decision of buying a business. It’s been my experience that many people will openly lie to you. They will waste your time, and they will try and deceive you along the way for their own gain. Here’s a great example. While searching for Vineyards in the Midwest as Targets to buy it became very clear very fast almost all the vineyards in the midwest are small family run farms with a very small section of vineyards on these remote country estates. They do have make great small income streams from their cash flow.
The revenue streams from these Vineyards and Wine tasting businesses relies heavily on traffic from the city’s. They rely on this traffic so they are able to stay in business. And then Corona Virus hit! That basically destroyed this cottage industry literally overnight. And many of these country vineyards and estates were put on the market by online Business and Real Estate Brokers. I had inquired about a few of these vineyards or estate’s because I could see these vineyards repurposed for maximum returns on investment. But almost every Broker I spoke with wanted to highlight the Vineyards history of profit. And market these real estate properties as turn key businesses. I don’t know about you. But investing in a business that relies on a market that has gone bust is not a attractive investment opportunity. LOL I did not buy an estate vineyard. Because I looked at One hundred Wine and Beverage opportunities. That decision and using this strategy saved me from making a bad decision.
How the One Hundred Rule is shaping my Business & Finance Blog?
As this blog continues to grow and continues to introduce new Business Strategies in Entrepreneurship, Finance, Business Strategies and more. We see I am using the One Hundred Rule to evaluate the optimal direction I as the writer and content producer should travel. The input and support this blog is receiving from the Business community is truly a blessing and humbling at the same time. Especially considering I am not a professional writer.
So at the end of the day if you want to test an idea, a business strategy or an idea in your personal and professional life? I would recommend to try using the One Hundred Rule when deciding if something is worth pursuing or not. It gives you metrics, it gives you data and results to look on and ask yourself? This is interesting or it isn’t interesting. Should you put more time into this idea or shouldn’t you? Because realistically at the end of the day If you have followed this rule and pushed through the roadblocks and challenges. I feel your likely to agree you accomplished something amazing and surprised yourself. All because you took the time to use this fantastic little rule. Thank you for reading and thank you for your thoughts and comments below.
Do you agree using the One Hundred rule give you an advantage when most people in our society are likely to quit when they don’t see results after attempting a task or goal once or twice? Let me know.
Are Entrepreneurs looking for Partners and Investors in all the wrong places?
Often times Entrepreneurs do not stay curious, they become masters at limiting their own growth and Investing is not a priority. This post will share why you should always keep learning and keep expanding in your own business space. There’s always another level if your willing to take the time and learn. If you are a serious entrepreneur, managing partner of a fund or apart of a Investment Group? There are qualifying questions you must ask to justify the start of a Business relationship with sophisticated investors. And just so people realize this point. Me or my Partners do not just talk to anyone with a few hundred thousand bucks. But if your a serious entrepreneur that has a interest in financial services and joining the Major Leagues of Business investing this is an article you will want to definitely read.
Interestingly last week I met with a Kansas City Accountant from BKD which is a large Transaction advisory Accountant firm in Kansas City. We spoke to each other about attractive investment assets to buy. And must use personal discernment and be very selective and understand the business before investing. If a Investor brings to the table One Hundred Thousand or Fifty Thousand Dollars with no background as a Professional subject matter expert, Accountant, Attorney, or Enterprise Board Member? The answer is a fast but gentle “No Thank you I would not be a good fit to partner with you.” The reality is there are people who have money. But are not accredited investors. Choose your partners wisely.
Their are Non Accredited investors and then Accredited investors. There’s a big difference. And that’s one reason I am writing this guide to share the 3 levels of Accredited Investors for serious entrepreneurs. We will get more into this later.
I must be share there are literally many Con-Artists and Fraudsters in Financial Services. So you must pay close attention to who you consider a professional inside Financial Services & Investing. This article will also give you incredible insights on what to look for when looking for qualified Investors as partners.
Unspoken Rules in Professional Investing
Ok in the Big Leagues of Professional Investing it’s likely that if your not referred by a trusted friend, Board Member, or Corporate Officer/Executive or someone who has a Professional Investment Track record? You don’t entertain any conversation with this person. It honestly is a closed society and sort of Mafioso.
Investors are anything but alike
This will honestly probably disappoint many people in my community. I do not partner or accept money from Non Accredited Investors. But the truth is there are only 3 types of Investors I would choose to partner and work with. I will absolutely go more into detail about these 3 types of Investors. You may want to know this interesting fact from DQYDJ.com This potential investor group is not as small as you think.
We estimate in 2020 there were 13,665,475 accredited investor households in America. Roughly 10.6% of all American households were accredited in 2020. Further, accredited investor households controlled roughly $73.3 trillion in wealth in 2020. They controlled around 76.3% of all private wealth in America measured by the 2019 SCF.
DQYDJ Investment Homepage.
3 Investors Who Should Be On Your Radar
But first let’s look at some basic guidance to keep you safe along your journey. Fund managers live by this guidance, and so should Entrepreneurs. Even though your preferable investors are High Net Worth Families and Individuals, you should keep this at the forefront of your responsibility as a Professional Investor or Entrepreneur.
Never accept one dollar from Grandma’s One hundred and Fifty Thousand Dollar life savings.
It’s your fiduciary duty to ensure the person who partners with you has a level of sophistication to understand the risks of start-up investing.
It’s preferable to avoid Start-Up Capital Intensive Businesses as a Entrepreneur
It is also very important that you do screen out and disqualify Investors who are not Financially Literate
It is imperative Entrepreneurs must study and get familiar with Federal Securities Law
Have a Business Attorney as someone who can watch your back and advise you along your career.
Have Advisors you can turn to as a Professional who can introduce you to someone or give you pro guidance.
BE A COMMUNITY LEADER – Take responsibility for people who don’t understand what they are asking.
Don’t be a FRAUD, ALWAYS BE TRANSPARENT, and NEVER EVER BE DISHONEST!!
The Accredited Investor
The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
If your a Entrepreneur, Executive, or Professionally savvy Investor you will recognize and most likely appreciate I am taking the time to detail what exactly the definition of an Accredited Investor is. And it is a small population when compared to the United States Population as a whole.
What is a Qualified Purchaser? A Qualified Purchaser has a Five Million Dollar Net-Worth excluding their primary residence. QP could also be a Entity with Twenty Five Million in Assets and their primary business is not investing. It’s an actual separate company or entity.
Here is the Thomson Reuters Practical Law Definition in detail to keep things on the up and up and legit!
Keep yourself moving through the roadblocks that deny you access
Are Entrepreneurs looking for Partners and Investors in all the wrong places?
In conclusion,
It feels like I should share the reality I faced as an Entrepreneur who had no financial reputation seeking influential mentors. I was literally meant to fail and go away to do whatever Entrepreneurs who fail go and do. But I didn’t fail. I kept going and being curious. Here is a quick story and reality I faced not knowing that everything I faced was rigged and stacked against me. If it wasn’t for my curiosity and my tenacious ability to withstand punishment and pain? I would have surely never discovered the next level in business finance and the strategy to get their. Please read on!
When I first became an Entrepreneur I had a suspicion that I should go seek out and talk to professional fund raisers. Most of these fund raisers viewed me as a waste of time and not worth a call back nor worthy of a personal meeting. They ignored me, disrespected me in the open. I took all this mistreatment on the chin. I in return did not play their dirty passive aggressive games. They reacted to my calls and visits as if I was a threat and unworthy of their valuable time.
But now these day’s I am not easily dismissed any longer! My market value has gone way up. All because I put in the personal work and received a real financial education. I have done all this by experimenting, researching, and having great teachers inside the Real Estate and Private Equity Fund space. These same Attorneys and Fund Raisers now openly ask me to collaborate on projects and campaigns with Investors. I have proven myself as a fierce competitor. The goal of today’s post, was to share with you. Even though you may feel you know everything about your business space? I promise you most likely should stay curious and stay insanely competitive.
Thank you for reading everyone. Id be happy to hear your thoughts below. Have a wonderful Holiday Weekend.
It’s Thanksgiving and I am sitting here wondering to myself if I hadn’t chosen my current path in Business would I have been assigned to a Eastern European Country as a Diplomat with the State Department like a few of my fraternity Brothers? Would I have been an Airline Captain and Pilot if I had not gotten seriously ill? All good questions. Normally on previous Thanksgivings in the past, I would have usually spent this Holiday with fellow Navy & Marine Shipmates who could not leave to go home and were stuck on Duty. Down in Pensacola Florida. But for the past several years I was attached and repurposed in a way. It seems like honestly I never ever will be able to have a stable and solid home life or have a foundation like I have always wanted. It’s a sad reality that there is a personal price you must pay for choosing to pursue your own ambitious life goals regardless of who criticizes you or even excommunicates you for doing so. Let’s do this since it’s Thanksgiving. Let’s post some weird and funky Thanksgiving facts and recipe’s I have come to love. HA!! That should due for today’s post.
Did you know 50 million pumpkin pies are eaten each Thanksgiving? Want to make it more yummy? Add Sugar Cookie Crust!
A personal memory of Thanksgiving with Kiddos
I would like to share a personal story of how Kids bring JOY and comfort to old gouch’s like me on Holiday’s. First let me ask you? Do you know the best thing about Children and little Kiddos who are your buddies? They love to climb all over you, wrestle you, and throw out any rule and behavior books and just have fun! Two years ago while sitting on the floor with 4 little loving kiddos, we decided to play a favorite Board Game “Monopoly”. All of a sudden to my utter disbelief and wild amusement a fast shock and awe campaign commenced. An aggressive little mongrel chose to attack ME!!
2. On average a individual consumes at minimum (3,000) Three Thousand Calories during Thanksgiving dinner.
I immediately found out I needed to be proactive and deflect the larger than life WWE Wrestling moves from a aggressive and hilariously confident little big wrestler named Ms. O. She was committed to taking no prisoners in this attack. She was using my head & shoulders as monkey bars! It was sheer craziness! All this was happening so fast as I sat Indian style on the floor next to the crowded board game. In a picturesque comfy living room in central Nebraska.
3. On average nearly the entire American population scarfs down Seven Hundred Three Hundred Six pounds of Turkey on Thanksgiving Day alone. Thats a lot of Turkey considering we are having a Turkey Shortage this year. LOL That’s said to be about the weight of the Empire State Building. LOL WOW!
The Attack Was Strategic
I did not know this until a few minutes later. But they all were in on the plot & hit job to bankrupt me from playing the game any further! LOL These conspiring little cheaters, were loudly and uncontrollably giggling and playing to my strategic weakness. LOL It dawned on me minutes later after deflecting attack after attack that they were surreptitiously snatching my Monopoly MONEY! They were Robbing me with Smiles and sneak attacks! It wasn’t a fair fight at all! But they were not trying to hurt or injure me. LOL Kids do have a heart of gold.
4. Did you know Turkey doesn’t make you sleepy? The reason you feel sleepy after is not because of the chemical Tryptophan in the meat is released inside your body. It’s likely the beer and wine has caused this effect. Hmm..??
Kids Bring Adults Joy & Direction
Im honestly dying laughing thinking of the memory. Kids really do make life better. Thats what these kiddo’s taught me. I miss these munchkins.
5. Ok! I admit I actually plagiarized this fact from an Article. It was too good not to share. I hope you can not blame me? LOL
-According to the Guinness Book of World Records, the largest pumpkin pie ever baked weighed 2,020 pounds and measured just over 12 feet long. It was made with 900 pounds of pumpkin, 62 gallons of evaporated milk, 155 dozen eggs, 300 pounds of sugar, 3.5 pounds of salt, 7 pounds of cinnamon and 2 pounds of pumpkin spice. Anyone care to recreate it this year? Info Credit SpoonUniversity
Nebraska Home Grown Franken-Patch Pumpkins in the image below.
Image Credit… named Ms.K.M.W.O.
6. 40 million green bean casseroles are made each year! How about a big Thank you Campbellās Soup for making this possible and this gift and contribution to society? BRAVO!! LOL
7. The most delectable dish on Thanksgiving dinner table is none other in my opinion the wonderful Cranberry and Orange dish’s. I love this stuff. It’s slightly different. And the flavor is incredible! Please for the fantastic recipe visit. HERE!
8. One last thing. I love Wassel with a zip! If I can not have Wassel with a tart clove ZIP? Thanksgiving is just not the same. I hope you agree. So here is a recipe that is sure to knock your socks off. GREAT RECIPE HERE!
I do hope you enjoyed this personal post. My Thanksgiving is on the Road this year. So that means personal Sacrifice to the mission. And that folks is going to be all for now.
Thank you for reading and please stay tuned. We will get back to business. Given I have had to become a quick study in Structuring Equity, Debt, and Capital for Business Finance. I am writing a Post about Capital Stacks, Debt Structure and more about Transactions coming up next! Stay tuned!!
If your not sitting down with your Business Partners to collaborate on direction, agreements, leadership and other terms once a year? Your likely setting your business partnership up for certain failure and possible major disagreements. If your willing to ask hard questions up front and use my suggestions in this post? You will walk away with a impressed Business Partner and a solid relationship foundation moving forward.
Accounting is Accountability
I am very aware most Entrepreneurs in small business more than likely are Financial illiterate. They have no way of knowing what they are doing right and what they are doing seriously wrong. The first step in building a Financial Foundation is to take a Accounting class online or at a local community college immediately. Having trouble absorbing the information? Take it two times if need be. Learning these lessons are the foundation for business literacy. Education will begin your financial knowledge foundation. This simple task is often over looked and sadly dismissed as unnecessary. Usually by ignorant and or over confident entrepreneurs doomed from the beginning.
Your Accounting course will begin shaping your thoughts and questions in finance and business. Meaning you will become curious and personally teachable like myself. Figuring out through extended time and gaining more experiences “How business really works.” You need to be aware of when you may be getting robbed in a Board room and a fancy pen with unforgiving businessmen who have blank unemotional faces. I know what your thinking? Harsh? Yep! But I have to prepare you for the reality. I know you probably think I am completely nuts! Because of me slipping that in there. But truth is I have to keep you on your toes.
Being able to take raw numbers and data organize them in excel spreadsheets. Is how you make sense of business numbers and Profit Loss P&L Statements and more projections. Most entrepreneurs fail to consider metrics and numbers. When you can evaluate and know the numbers. This undoubtedly makes you more valuable and attractive as a Business partner. Speaking of partners and investors in business? Your bound to have disagreements. But most times its easily negated by active listening and personal collaborating.
Are You Creating Your Own Business Disasters?
Maybe you have been building your business, maybe you have spent your life savings and built a nice little business with a income stream to match. But you have one problem. Your margins are not allowing your business growth. What do you do? You have a few options. Keep growing at a small rate over time. Risking possible bankruptcy. Or B. Recruiting a Business Partner who can invest Capital or other possibilities to help you grow it fast. Example: Let’s say hypothetically your sitting at a table across from your new capital partner and She or He offers you $150,000 dollars to begin scaling the business. Do you take the money? Or do you ask more questions and try to collaborate? It seems likely many Small Business owners have difficulty in situations like this. If you go look at Business Equipment Financing websites? It’s littered with confused entrepreneurs who have made poor capital decisions. They just did not ask enough questions and did not use metrics.
I would first ask A.”How can we grow this together as a qualifying collaborative question? And B. “What are you looking for in return for investing this money?” Asking these starter Questions are great because they take you deep into collaborating together. Building a solid partnership. But for now let’s hypothetically say you do not take my advice. And you end up….Smiling at your new partner, take the check shake hands. Leave the meeting. And get busy scaling your business to new heights.
But! There is a problem. YES!! YOU HAVE A HUGE PROBLEM!! You have have no mutual understanding. And you have “NO PARTNER or Terms AGREEMENT!”
Agreement’s Mean Collaborating.
Ok let’s say you left that meeting deposited the 150 thousand dollar check in to your business account and began scaling your business right away. A little time goes by and your small business is honestly becoming bigger than you ever thought. The stream of cash flow coming in to your business accounts receivable. It’s powerful. LOL It’s wonderful. Then you get a call out of the blue. It’s your Partner. He or she is confused and annoyed and down right borderline furious. Your partner wants to know “WHY THEY HAVE NOT GOTTEN ANY INTEREST’S PAYMENTS?”
You assume you have been a responsible business owner and think to yourself “No problem. I got you!” And ask your partner “How much do you need for interest payment?”. Your partner responds “I need 25.00% percent on the principal.” And just like that! Your life and future business starts to crumble and spiral out of control all from the fact you failed to negotiate terms on the money. And you failed to negotiate your Partnership Agreement. Whoops. Shaking my head. Now you begin seeing doing a little prep work goes along ways.
The Sit Down
There is a reason the Italian Mafia or Cosa Nostra was very effective in business. They were great because they had the sit down! They had behavior Guidelines. Michael Franzese has some genuinely great content. I would highly suggest reading his books.
In the video above your gonna learn some invaluable business advice. And I mean invaluable. So pay attention Capeche? Good! Im gonna stand on my soap box for a second here and share with you some invaluable advice and experience. So pay attention please. In the Military you learn real fast that you will be punished severely for not taking responsibility for anything and everything and everyone as a team. So I suggest you take responsibility for your partnership and team. Recruit a Business Attorney to help you negotiate and prepare your interests for success. Instead of ending with headaches and certain failure.
Did you miss my Post about Creating Trust in Business Negotiations? It is a must read for anyone in business.
Back to military service punishments for a second. This is funny in a dark way. Their is a underlying theme to being punished in the military. And this transfers to almost every other part of your life. You are responsible for your behavior and all your future outcomes. This means taking responsibility for anyone, everything, and everyone associated with a goal in mind as you move to that objective as a team. If something falls short. Your mission is disrupted by a mechanical failure. Something breaks? Doesn’t work correctly? Even if something isn’t your fault? Step right up! Spin the wheel of certain misfortune. Guess what? It’s your failure! No one else’s. lol It’s 100$ definitely a cruel way to learn. But it does work.
The Knapkin Contract In Business
If you don’t have a contract or a Agreement written down? Tough Luck! Your Busted Out! Don’t be the victim.
Back when you first sat down and your Partner offered to give you $150,000 dollars to invest in your business. You should have taken the initiative to draw up a knapkin agreement. Negotiate favorable and collaborative investments terms while writing these terms out on a piece of paper at the table with the person offering you the money. You can do this in a Restaurant or anywhere a knapkin is available. At the end of your desired agreement you both sign this binding ad hoc legal document. Then take this document and have your Business Attorney finalize it as a formalized, and signed. This is how you should have done it in the first place.
Capitalize on this opportunity. Don’t ever feel the need rush things and always make counter offers. And do your best to prepare questions and what if’s to protect yourself and your new partnership moving forward. I hope you did gain something or some foresight with this post tonight. Thank you for reading everyone. Please do suggest a topic you would like for me to cover. I would be happy to do so. Email me at [email protected]
Prominent Kansas City area philanthropist and financier G. Kenneth Baum Passes Away Tuesday at the age of 91.
Mr. Baum is a Financier, Philanthropist and Business leader in the Kansas City Finance Community. Mr. G. Kenneth Baum passed away Tuesday at the Mayo Clinic in Rochester Minnesota from health complications.
Mr. Baum is the former Chief Executive Officer of Kansas City Investment Bank George K. Baum & Co. If there was one thing Mr. Baum was genuinely fantastic at? It was making you feel personally valued as a entrepreneur and person. Mr. Baum served on many Boards related to Education and the Arts. Philanthropy was his special interest and Mr. Baum and his wife Ann Baum have been very involved with our amazing local Art Gallery and Museum The Nelson Atkins Museum of Art. Read more about Mr. Baums activities with the Museum in the link provided. A celebration of life will be held at the Museum. Link provided
How did I meet this legendary Kansas City Financier & Investment Banker?
Let me set the stage for you. About 3 or 4 years ago a non assuming taller, older, smartly dressed gentleman walked up to me at the Nelson Atkins Museum one afternoon. He had stop to ask me if my smartphone had internet on it? I said yes Sir. He asked me if I could pull up a certain phone number and make a phone call because the Museums help desk phone wasn’t an option or working correctly.
After he had finished his phone call, he began just chit chatting with me about how Business sometimes needs to be a priority in a person’s life. I agreed. And before I knew it he was asking about my entrepreneur background. Given I really had no clue who this nice older gentleman was, I began explaining communications and using strategy to push your message through art and film. Mr. Baum recognized I was a go getter and slipped me his Phone number if I ever needed a favor or personal advice related to finance and business. He was a genuine and authentic good man.
He was unforgettable and kind to me during a time when most people I called in business were not. And since he did give me the time of day and did share actionable business advice with me. He earned my personal loyalty and genuine friendship. But most importantly. I appreciated that he would always take and return my calls to share his personal stories and challenges he successfully negotiated as a professional transaction Businessman. Mr. Baum even was inducted to the Kansas City Business Hall of Fame in 2010. His professional experiences and stories in my humble of opinion should be captured in a written memoir. It seems I may make this personal suggestion to his family. As this idea is a real opportunity for them as well. Cementing the legendary positive legacy Mr. Baum and his family deserves in the literary world.
May he rest in peace and his family find grace from their grief. And I do hope his family knows I too share in the sadness of their loss. I have only good words to share. He was and always will be a very good good man.
Godspeed Mr. G. Kenneth Baum. Thank you for the Privilege Sir. Jameson Sharp
We would like to Thank Feedspot for naming my Business Blog 97 of the Top 100 Business Blogs Online!
This is a pretty unique opportunity to be included with Business Websites like Entrepreneur and INC.com. I appreciate the opportunity to be taken seriously as a Businessman and Business Blogger to watch. Thank you Anuj Agarwal and his team at Feedspot Blog. Blog.Feedspot.com
Did you catch me on International Business TV 2 weeks ago? If not? Click here for the full story and video.
Most Business Professionals are going to find creating Proprietary Deal Flow on their own without help ridiculously difficult. But if you have a good attitude and use your own professional networks. You may just have a fighting chance. How does a entrepreneur become known as someone that will look at your deal? It just kind of develops on it’s own and happens. Here is a story how I was approached by a Veteran Brother to look at a deal.
How can a Entrepreneur create Proprietary Deal Flow?
If your running a Search Fund, or if your a accomplished Investment Banker, or even Hedge Fund manger creating streams of Proprietary Deal Flow is no easy task. Here’s some fundamentals that will help you along in your search. Let’s get busy.
Some Entrepreneurs, VC, and Private Equity Fund Managers are new school. But most are still using the Old School Deal Flow opportunities. Or better put! Business Partners of a certain wealth level, more likely known as “The good Ole Boy’s Network.” Watch this insightful honest insight form Entrepreneur Naval Ravikant. Oh! Click to read his Almanck Book.
Is Proprietary Deal Flow dead as Naval shares? That depends on who you ask.
First we must list the different way’s many Entrepreneurs, VC’s, Private Equity, and other Investors access Deal Flow Opportunities. And the truth is this. It comes down to your track record, credibility, who you know, and people you currently do business with.
Who do you know?
Angel Investors?
Professionals in your Industry or Space?
Successful Entrepreneurs & Other Business Personalities?
The Good Ole Boy’s models as I like to say?
All great questions of who? Now what actual tangible useful advice can I share with you to begin building that network of Deal Flowing opportunities? This is where it pay’s to be a shrewd networker and belong to certain communities. Truth is I am always strategically looking to develop my network and deal flow opportunities. I must share this particular post will be about being a member of a group that is across the world. Yes I do belong to a few networks that involve groups of men that have served our Country in the Elite Special Operations community. Its a fantastic community to be involved with. Their is always someone who served in Uniform that ended up being a Professional in business somewhere. This community Is packed full of professionals that are great to know!
For purposes to share how opportunities happen. I would like to share with you this short story. A good friend and Veteran Brother who is a newly retired Army Special Forces Green Beret. Let’s call him John.
John is undoubtedly a professionally trained Bad Ass Guerrilla who served in Afghanistan and also has a Business MBA. He was up until recently the Chief Operations and Development Officer for a Harley Davidson Product company. This business is growing because of who John is and the groups of men he knows and activities he does on the weekends. This company manufactures a part for all new Factory Harley Davidson Motorcycles.
Listen to this. We follow each other on Instagram and have known each other for sometime prviously in the SOF community. I ended up doing some professional work with a former Team Mate of Johns. And we got to know each other online over time and through friends of friends. John had messaged me he was moving on in life from his position at his company. And the team who built this company wanted to sell. Interestingly this Business has a impressive Hockey Stick sales profile. And is growing literally quarterly. Annual Revenue was right at about 20 million dollars. The owners were motivated to sell. Since they are ready to retire and move on with life.
At the end of this opportunity it was fast turning into a Broker pursuit. And my mentor and business partner was persuasive enough to share with me we needed to stick with our own industry and strategy. But it was neat to look at this company.
With this story complete you can see having a personal network or belonging to a member only club that expands across the world is ideal for deal flow opportunities. It seems I should probably go into more strategies and developing business relationships to expand on this a very wide subject. I do hope you received something from this moderately long post. Because in the end it’s gonna most likely be people who know you and your business reputation that will approach you. And they will come from all walks in life as Naval Ravikant shares in the Video.
