Welcome back to the Part 2 of frequently asked questions(FAQ) on how to start and build a business. If you haven’t read part 1, click here to access it.
FAQ About Starting And Building A Business (Part 2)
• What are some telltale signs of an amateur businessperson? Doing any of these things:
- Having fights with partners in the first year. Fire them or split before anything gets out of control.
- Worrying about dilution.
- Trying to get Mark Cuban to invest because “this would be great for the Dallas Mavericks.”
- Asking people you barely know to introduce you to Mark Cuban.
- Asking people for five minutes of their time. It’s never five minutes so you are establishing yourself as a liar.
- Having a PowerPoint that doesn’t show me arbitrage. I need to know that there is a small chance I’ll see a hundred-fold return on my money.
- Catch-22: showing people there is a small chance they’ll see a hundred-fold return on their money. The secret of salesmanship is getting through the Catch-22.
- Rejecting a cash offer for your company when you have almost no revenues. Hello Friendster and foursquare.
• What are some signs of a professional?
- Going from bullshit product to services to software as a service (SaaS) product. (Corollary: the reverse is amateur hour).
- Cutting costs every day.
- When you have a billion in revenues, stay focused. When you have zero revenues, staying unfocused and coming up with new ideas every day.
- Saying no to people who are obvious losers.
- Saying yes to any meeting at all with someone who is an obvious winner.
- Knowing how to distinguish between winners and losers (you know in your gut, trust me).
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