07/20/19

The Money Divide

Love may make the world go around, but it is money that pays for the trip. The world is divided between those who consume money (my tribe) and those who provide the money.

Amongst competing tribal loyalties are the classic American entrepreneur (consumer) and the venture capitalist (provider).

Image result for images of men shaking hands on a deal

Entrepreneurs propose an idea that requires a good slapping with a checkbook — a checkbook that, alas, they do not possess — to bring it to reality. The venture capitalist shows up with a checkbook and offers to assist.

This assistance may take many forms, but the most important thing to understand is that the two parties — the consumer of capital and the provider of capital — have, at times, different interests.

[I am being charitable as I believe the interests are not just different, they are many times divergent. When I consult with CEOs, when I coach CEOs, I always ensure they understand this simple fact. There is a money divide.]

In life, in business, one doesn’t get what one deserves, one gets what they negotiate. This is not a hard truth; it is a simple truth that many choose to avoid because it requires a bit of rigor or discipline to employ.

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02/4/15

The Lowly Letter of Intent

Big Red Car here in the ATX — 43F, light rain, ceiling at 300′ and no wind. Will be 64F before the day is over. Saturday will be high 70’s. No mention of snow.

So The Boss is talking to one of his brilliant CEOs and they were trying to figure out how the CEO would make an important change in the capital structure and ownership of his company. It had been bugging the CEO for months. Months. Finally, he brought it to The Boss and they chatted about it.

The Boss said: “Letter of intent.” Continue reading

01/4/13

National Spaghetti and Meatballs Day, an allegorical story about negotiations

Big Red Car here.  Wet, cold day here in the ATX — not convertible weather.  Frankly, I am getting a bit vexed.  I am a bit uncomfortable and want to get out and run a bit.

Which brings me to the issue of comfort food and — will wonders never cease — National Spaghetti and Meatballs Day.

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