My Worst Investment Ever Podcast

BIO: Rise, fall, rise again. Along the way, get divorced, get turned over by a friend on a new business idea, get ripped off in the sale of another. Get married again, become a father again, build again.STORY: David had this excellent novel business that he shared with a trusted friend who went on to stab him in the back by taking the idea and making it hers.LEARNING: Always have an NDA or any other formalized document before sharing your proprietary ideas with anyone. Be careful when doing business with friends; it is best to avoid it altogether. Do not be afraid of competition; keep reinventing yourself to stay ahead. “Opportunities and choices come along all the time. It depends on the ones we take.”David Ward Worst investment everDavid was traveling through Asia when he met a friend from London at an airport lounge. They talked, and David shared a business idea with her in the sustainability space he was quite passionate about. His friend expressed interest in doing business with David, but nothing was put on paper at the time. David went ahead and shared the first outline of the business with her.Keeping the conversation goingDavid and his friend continued talking about the business idea for the next six weeks or so. However, they did not come to any sort of agreement. David was really passionate about starting this business, so he launched his first sustainable products brand in Asia. The launch went well, and he further launched the products in the US market eight months later.Getting stabbed by his friendAll this while, David was still communicating with his friend who was now in London. David would share many details regarding his newly launched brand as he always hopes to go into business with his friend.Two years after David launched his product, he saw some details on the internet about his friend that devastated him. David’s friend had taken his idea and started a company on her own. She claimed to have thought up the business idea on her own.David was not angry that his friend had started a business without him, but because she had taken something that was shared with her in good faith and turned it to hers.Lessons learnedGo into a partnership with your eyes openIf you are going to share something fairly proprietary, make sure that you have an NDA in place. Do not leave it all to trust, especially if you are dealing with friends.Andrew’s takeawaysCompetition is inevitable and never endsWe are all going to face competition in our business, but the real entrepreneur is the one who keeps fighting to stay ahead of the competition.NDAs are not a sign of mistrust; they are just a securityWhen a prospective business partner asks you to sign an NDA, it does not mean that they do not trust you, it is just a formal way of keeping your interests, and theirs protected.Actionable adviceDo not start businesses with your friends because your relationship with them can suffer if something goes wrong. If you go into business with your friends, do not be afraid of setting things out on paper. Be clear about who has proprietary over the idea and ensure you protect yourself through an NDA or other formalized documents that give clarity to whose role is what.No. 1 goal for the next 12 monthsDavid’s number one goal for the next 12 months is to see his products launched into at least four more markets, including the US and the UK. David’s business objective is to reduce the use of as much plastic as possible around the world. This means entering new markets and extending reach to as many people as possible so that they have the choice of sustainable, lower impacting alternatives.Parting words “You can’t keep a good person down. They will fall to their knees, but they will get back up again.”David Ward [spp-transcript] Connect with David WardLinkedInTwitterWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Scott Buss lives his life and runs his business based on the principles of TRUST and TRANSPARENCY. He is an aviation expert who explores and connects the synergies between the private jet industry and the unlimited number of luxury lifestyle VIP brands.STORY: Scott found himself on the wrong side of Arizona’s law and landed in jail for four months. During his time in jail, Scott chose to focus on his life after prison. It was while in prison that he came up with his business idea, a business that is now thriving.LEARNING: Do not let your past mistakes define you. Always try to make the best out of a bad situation. Be kind and supportive to those going through a rough patch. “With every negative, there is a positive. It is up to you to figure that out the positive.”Scott Buss Worst investment everMaking the best out of a bad situationScott found himself on the wrong side of Arizona’s law and landed in jail for four months. Being locked up left Scott with lots of time on his hands. He decided to put this time into good use.Scott would read magazines, newspapers, and books. He would then write notes of CEOs and executives worldwide from Entrepreneur, Businessweek, and Wall Street Journal. Scott knew he wanted to be a CEO after finishing his jail term.Hatching a business ideaScott would also read quotes on entrepreneurship and keep himself motivated. In the process, Scott got an idea of starting his private jet business. He had been in private aviation for about four years.When Scott was done with his four months, he was fully prepared to build his business, and so he hit the ground running.Leaving with life’s lessonsThe four months Scott was in jail taught him a lot, mentally and physically, and also about what one can do with limited resources. It also taught him about trust and transparency.Lessons learnedIf you are a spiritual person, draw your strength from prayersThe best form of energy is prayer energy, so renew your strength by praying.Make the most out of your bad situationIf you are in a bad situation, focus on the positives. Do not wallow in self-pity and just count down the days. Know that the only one who can control the person you will be once the storm is over is you. So make the most out of your horrible situation.If you have been shown kindness, pay it forwardYou never know what someone could be going through. So pay kindness with kindness and bring a smile to someone’s face.Andrew’s takeawaysSupport those who are struggling with the consequences of their bad decisionsIf you know somebody struggling with the consequences of their mistakes but is trying to make up for them, do not give up on them. Identify someone who is at their most painful point and reach out to them. It could be a short phone call, a quick visit, or a short talk. This simple gesture could change that person’s life.Own up to your mistakes but do not let them define youOwn up to your mistakes, apologize and make amends. However, do not let the bad decisions you have made in life define you; instead, learn from them.No. 1 goal for the next 12 monthsScott’s number one goal for the next 12 months is to continue scaling his private travel business and to launch other businesses.Parting words “No matter what you’re going through, if you need somebody to talk to, reach out; I’ll be happy to be a lending hand.”Scott Buss [spp-transcript] Connect with Scott BussLinkedInTwitterWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

BIO: Paulina Tenner is an entrepreneur, angel investor, TEDx speaker, and author. Her company, GrantTree, specializes in research and development tax credits and grants. She is passionate about burlesque and used to perform as a showgirl!STORY: Paulina’s company ventured into a new business area of renting out office space, a venture that almost killed the company.LEARNING: Focus on your core business. Check-in whenever you delegate a project and ensure you put controls in place. Do not fall prey to overconfidence bias. “Focus on what you are good at instead of trying to break into new territories.”Paulina Tenner Worst investment everAbout five years ago, Paulina’s company reached a point where the team was too big for their current office, so they needed a new one. They had the option to get an office that was a perfect fit for them, slightly bigger than the current one, so that they could grow into it. But there was also this genius idea of taking over an entire building, renovate it, and sublet to other companies with a similar culture to theirs.Taking a votePaulina’s instinct told her to go with the smaller option instead of an entire building. But when the two options were put into a vote, there were two or three votes more for the building. So they decided to go with the idea of an entire building.One colleague in Paulina’s company had big ambitions and a clear vision of what he wanted that building to be. So he found one. The company took over the building and paid a hefty deposit of about £300,000 or so. Then they started renovating it.The costly mistake of delegationPaulina and her co-founder decided to put the colleague with the big vision in charge of the entire project. They were not paying too much attention to the management of the project and thought because this particular colleague was in charge, everything would be fine.So much money was spent on renovating the building. By the time Paulina and her co-founder put a hard stop to it, the company had spent over £600,000 on renovating that building. It was over the top and way more than they needed.The desperate struggle to make a return on investmentAfter they were done with the renovations, they started advertising the building and looking for companies to take up the office spaces. That is when they realized that they knew nothing about the office rental space, it was not their specialty. Their specialty is finding government funding schemes to fit in with what their clients do.It took many months, more than they anticipated, to find companies to use the space. At some point, they got truly desperate to get people into the building and share their ongoing costs with them, so they decided to rent it out at cost. So no profit whatsoever.And as if that was not enough, when the company decided it was time to wrap up this crazy idea and get out of the building, they were charged enormous amounts of money for dilapidation. The landlord wanted the building in its previous state, even though they had made it better with all the renovations.Paulina’s company lost so much money on the entire operation, it almost died.Lessons learnedFocus on your core businessFirst, focus on what you are good at because it is tough to diversify and break into an entirely new industry before you get good at what you are doing. If you are a relatively small startup company, do not take on projects that cost a lot of money upfront.Mistakes are part of learning; embrace themEvery founder will, at some point, make a costly mistake. It’s part of the learning process.Do not wholly delegate a new projectIf there is a big project that is important for you, do not delegate it to just one person. Make sure you put controls in place on how much money is to be spent and how the whole thing is to be managed. As a founder, you need to get involved in that project or at least have oversight of it if it is significant for your company.Andrew’s takeawaysLimit yourself to your core businessUnderstand what your core business is and focus your energy there instead of trying to venture into an area you are not good at.Be careful of overconfidence biasDo not fall prey to overconfidence bias where you think you can do anything and everything because you will end up losing it all.Do not make the wrong mistakeThe most important thing when starting a business is not to make the wrong mistake. But the hard part is that you don’t know what’s the wrong mistake. Unfortunately, the wrong mistake is the one that knocks you out of business.Actionable advicePut controls in place and monitor your investment, particularly when investing in a new project.No. 1 goal for the next 12 monthsPaulina’s number one goal for the next 12 months is to see her upcoming book, Laid bare: what the business leader learnt from the stripper become a success. The book will be out in July 2021.The book talks about the innovative company culture Paulina implemented in her business (such as financial transparency and self-set pay) and wholesome leadership, all inspired by her showgirl adventures. Join her book’s waiting list and receive a surprise—and naughty—digital gift!Parting words “If you’re thinking about renting a building, think twice. But if you’re thinking about starting a burlesque course, don’t think twice. Just do it.”Paulina Tenner [spp-transcript] Connect with Paulina TennerLinkedInTwitterBlogWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Christopher Elliott is an award-winning consumer advocate, multimedia journalist, and customer service expert. He is known for his practical advice and creative solutions to customer-service problems.He’s the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals and How to Be the World’s Smartest Traveler (and Save Time, Money, and Hassle).Christopher is a nationally syndicated columnist through King Features Syndicate, which distributes his work to publications from the Seattle Times to the Miami Herald.He writes a weekly column for The Washington Post and USA Today and is the founder of Elliott Advocacy, a consumer advocacy organization. “If you are not going to be in one place for more than five years, do not buy a house, just rent.”Christopher Elliott Worst investment everChristopher bought his first house in 2001 after resisting the homeowner bug for so long. But he found a great place in the Florida Keys, and he loved being there. And at $175,000, the price was just right. This was before the big housing boom.A few weeks after moving into the new house, Christopher’s partner got pregnant as luck would have it. Now the two-bedroom home was not going to cut it for long.Selling in a booming marketBy the time Christopher’s son was a year and a half, they started getting very serious about selling. At the time, the housing market had exploded. He did a couple of renovations on the house and ended up selling it for $350,000.Buying another home when he really should have rentedChristopher took all the money he made from selling his house and moved to Central Florida. Here he paid $235,000 cash for his new home. The house needed a little tender loving care, but Christopher did not mind; he still had some money left. So he renovated the house.Being a nomad, he started getting restless and thought maybe they should sell the house and move into something a little bit bigger in a different area. And just as they were having that discussion, the bottom fell out of the housing market. They ended up staying in the house for about 12 years because they could not get a reasonable price for it.Finally selling the houseEventually, Christopher could no longer stay in the house, so he decided to sell it for the best price possible. Selling the home was a massive undertaking for Christopher. He got several buyers that came in and fell through. Others kept renegotiating the price down.They finally settled for $285,000. Once the real estate agent took her cut and adding the money he had put into the house for renovations, he ended up losing a significant amount of money on that house. Christopher made a resolve never to buy a home as an investment again.Lessons learnedDo not listen to conventional wisdom when buying a houseStop assuming that what everyone says about owning a home is the best investment you can make, to be true. It is never a guarantee that you won’t lose money from buying a home. The American dream of being a homeowner is overrated.Andrew’s takeawaysA house is not always an investmentIt is never a guarantee that you will always be able to buy low and sell high when dealing with real estate.Be careful when listening to marketing messagesMarketing messages are intended to hook you in. It is not always that you will gain from what is being sold. Remember that whoever is putting out that marketing message is looking to gain and not necessarily help you.You do not have to get into debt just because loans are availableSeriously contemplate your options before you get sucked into a mortgage just because there are facilities that can offer you the loan. Be sure that this is a debt that you can comfortably bear.Actionable adviceThink carefully before you buy that house. If you are not going to be in one place for more than five years, do not buy a house just rent, because you’ll have more flexibility.No. 1 goal for the next 12 monthsChristopher’s number one goal for the next 12 months is not to get infected with the Corona Virus. [spp-transcript] Connect with Christopher ElliottLinkedInTwitterBlogWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Lou Adler is the CEO and founder of Performance-based Hiring Learning Systems – a consulting and training firm helping recruiters and hiring managers around the world source, interview, and hire the strongest and most diverse talent.Lou is the author of the Amazon top-10 best-seller, Hire With Your Head (John Wiley & Sons, 3rd Edition, 2007), The Essential Guide for Hiring & Getting Hired (Workbench Media, 2013), and the Lynda.com Performance-based Hiring video training program (2016).His current “Diversity Hiring without Compromise” initiative is focused on developing a color-blind hiring process that ensures the best people get hired regardless of race, religion, age, sexual preference, and physical challenges.Lou is one of the top bloggers on LinkedIn’s Influencer program writing about the latest trends in hiring, employment, and recruiting. His articles, quotes, and research can now be found in Inc. Magazine, Business Insider, Bloomberg, SHRM, and The Wall Street Journal.The company’s new mobile-ready learning platform—TheHiring Machine—provides instant access to all of the tools needed to find and hire outstanding talent. “Do not take money from your friends unless you want to lose them.”Lou Adler Worst investment everLou was running a company with 300 people in it when he was 32 years old. He hated his boss, and they would argue every other week. Lou would quit every other month. One day he just left for good.Becoming a recruiterIn his old job, Lou would work with recruiters who were making so much money. This enticed him to become a recruiter after he quit his job.When Lou became a recruiter, he realized that hiring was just like any other business process. You just had to do it right. There were so many things being done wrong, and if he did them right, he could make a lot of money. And that is precisely what he did.Winning the recruitment gameAfter year two, Lou tripled and then quadrupled his income. He could not believe his luck. After riding on this wave of success for about 25 years, Lou decided to try something different. He decided to automate his recruitment process. This was during the dot-com boom.Losing his business and his friendsLou invested a million dollars and borrowed another million dollars from his friends and used the money for his new business venture.While Lou’s idea was a smart one, the market was just not ready for it. For this reason, everything fell apart. He lost his company and the friends he had borrowed money from.Lessons learnedRaising capital by borrowing from your friends is a bad ideaBe very careful when asking friends for money to run your business. When you take someone’s money, you got to deliver. If you do not, you will undoubtedly ruin the friendship.Learn how to manage your cash flowCash flow is vital in running a successful business. Do not ignore it. Learn how to manage your cash flow, and everything else will fall into place.Andrew’s takeawaysBeing skilled in something does not necessarily make you a good businessmanYou may be very good at doing something, for instance, a great technician, then you decide to start a business as a technician. Soon enough, you will realize that the job of running a business is very different from the position of being a technician.Sometimes the problem is just your timingJust because a business fails to succeed does not mean it was a bad business. Sometimes, it is just the timing that is wrong. Great idea, but at the wrong time.Cash flow is kingIt is not cash that is king; it is cash flow that is king. Raising money is easy. The real challenge comes in creating the cash flow to build a profitable business.Do not mix friendship with businessIf you have to borrow money from your friends to run your business, make sure that you do it professionally. Do not let friendship get in the way, because if the company fails, so will the friendship.Actionable adviceLife is not all about money. Think about what is important to you and let that drive you.No. 1 goal for the next 12 monthsLou’s number one goal for the next 12 months is to finish writing his fourth edition of his book  Hiring With Your Head: Using Performance-Based Hiring to Build Outstanding Diverse Teams.Parting words “Be good and be safe.”Lou Adler [spp-transcript] Connect with Lou AdlerLinkedInTwitterWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever PodcastFurther reading mentionedMichael E. Gerber (1988), The E Myth: Why Most Businesses Don’t Work and What to Do About It

Eric Siu is the CEO of content intelligence software ClickFlow, which helps you grow your traffic while looking like a genius. He also owns ad agency Single Grain and has worked with companies such as Amazon, Airbnb, Salesforce, and Uber to acquire more customers.He hosts two podcasts: Marketing School with Neil Patel and Leveling Up, which combined have over 48 million downloads to date.He also speaks frequently around the world on marketing and SaaS. “If you keep chasing the money, you are going to run out of steam at a certain point, and you will not want to keep working at it anymore.”Eric Siu Worst investment everEric was in the first year of running his ad agency, and things were not going too well. So he decided to look for something else he could venture into. He ended up settling on the senior living niche that he believed would blow up in a few years.Partnering with his high school matesAt the time, two of Eric’s friends from high school were interested in Eric’s idea. They made a power team. One had a finance and operations background, another was a developer, and Eric had a marketing background.Together, they started a company called CareSprout. They each contributed $80,000 to start the company.Focusing on too many things at onceWhile the team was great, their heads were not in the game. Each partner had other things they were focusing on simultaneously, so they could not give their business the full attention it needed.Needless to say, the business did not work out even after going at it for two years. When they ran out of money, one of the partners suggested they raise more money, but Eric felt it was time to cut their losses, and so they did.Lessons learnedDo not chase the money; chase the opportunityDo not get into a business just because you want to make money. Go into it because there is an opportunity you can benefit from.Focus on one thing until you have it workingDo not be a jack of all trades. Work on one thing and nail it before you try to scale anything else.Make sure that your values and those of your partners alignBefore you get into a partnership, make sure that you vet the people you want to partner with and see if their values align with yours. Make sure that everyone understands their roles and responsibilities, and they are comfortable with them.Andrew’s takeawaysImplementing an idea is more challenging than you imagineImplementing an idea to fruition is such a huge challenge. It is better to work in an area, understand it, and then implement an idea in that area. Start small before you go big.Is your idea worth investing in?Before you turn your idea into a business, ask yourself if it is an idea that people can invest in. Can you confidently ask people to invest in your idea and guarantee them a return on investment?Money is secondary in businessMaking money should not be the primary goal of a business. The idea, the implementation, the passion, and the customers are the primary thing. Money is just a measure of success.Actionable adviceSlow down and think things through so you can have the tool belt to sidestep critical mistakes. So just be very intentional and slow down from time to time.No. 1 goal for the next 12 monthsEric’s number one goal for the next 12 months is to hit the Wall Street Journal bestseller list for his new book Leveling Up.Parting words “Keep going.”Eric Siu [spp-transcript] Connect with Eric SiuLinkedInTwitterYouTubeWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Dr. Britt Andreatta is an internationally recognized thought leader who creates brain science-based solutions for today’s challenges. As CEO of 7th Mind, Inc., Britt Andreatta draws on her unique leadership, neuroscience, psychology, and learning background to unlock the best in people and organizations. Her series of books, The WIRED TO™ Series: Books on the brain science of success, focuses on how we are wired to grow, resist, and connect. “Failure is information, and it helps us get better as long as you know what to do better.”Dr. Britt Andreatta In today’s episode, rather than focus on Dr. Britt’s story, we will focus on what she has learned about failure as a brain science researcher, author, speaker, and consultant. Leaders can apply these lessons to bring out the best from their teams.Lessons learnedBiologically, we are constantly sensing our environment, trying different actions, and trying to maximize our positive results. We are wired to learn through trial and error.Having goals and setting a standard, and achieving that standard is essential. But, it is also important to celebrate progress and effort.Leaders should refrain from focusing on their team members’ faults and instead focus more on their accomplishments. If a leader is all about the numbers, they will have a disengaged workplace.Care about how people feel, their sense of satisfaction, their sense of purpose, and their sense of feeling respected. These are the real performance indicators.When conducting performance reviews, have two scores: individual contributor score and team score.Using fear as a leader will always undermine performance because people cannot perform at their best when they are in a fight or flight state.Competition is excellent for driving performance but be sure to nurture healthy competition instead of a toxic competition.Andrew’s takeawaysThere is a difference between training and education. Training is about acquiring a skill, and education is about expanding the mind and bringing new information into the system.As a leader, it helps develop a common goal rather than giving everybody separate KPIs. Working separately makes it a lot harder for the team to cooperate and achieve a common goal.Actionable adviceEmbrace your true nature as a learning being. Failure is just the first attempt at learning. Therefore, create space for making mistakes, taking risks, failing, picking yourself up, learning from it, trying again, and letting yourself get better at something. Mastery takes time.No. 1 goal for the next 12 monthsBritt’s number one goal for the next 12 months is to launch her Brain Aware Manager training, a program on how managers can use brain science to bring out their teams’ best. She is currently putting the finishing touches on the training and will be launching it soon.Parting words “Go out and learn something fun.”Dr. Britt Andreatta [spp-transcript] Connect with Dr. Britt AndreattaLinkedInTwitterInstagramYouTubeWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Bracken P. Darrell is the president and CEO of Logitech. The company is worth 12x more than when he started there in 2012. “Failure is rarely fatal. But success is never final.”Bracken Darrell Worst investment everBracken once went to lunch with one of his board members at Logitech. His name is Neil Hunt. As they were chatting, Bracken asked Neil what he had worked on. At the time, Bracken did not know anything about the company Neil worked for.Neil told him that he had worked on an algorithm all day. It was an algorithm that was trying to help recommend something to users. He explained to Bracken that they already had a recommendation algorithm, but he was trying to understand why the two algorithms were bringing different results.Impressed by Neil’s curiosityNeil was the head of product at his company. Bracken was so impressed by the level at which Neil and his company were trying to understand their product and user behaviors to give their customers a good experience.Bracken invested in the company as soon as he got back to his office. He put in a lot of money into the company. The stock doubled in two months. In six months it had gone up by 250%.Something just did not sit right with his investment decisionThough Bracken was super impressed by Neil’s company, he had this little voice in his head that made him uncomfortable about the investment he made. Bracken felt uncomfortable because Neil was a member of his board, and he thought that this would be seen as a conflict of interest.Bracken thought that the smart move would be to sell his stock, so he sold half of it.The stock continued to double, and the more the stock went up, the more Bracken felt uncomfortable.He kept thinking that if people knew that Neil was a board member, they would think he had gotten insider information. Eventually, he sold his entire stock. The stock ended up going up 30-fold. The company is Netflix.Bracken should have known betterInstead of selling his stock, Bracken should have gone to his general counsel and inquired if he had done anything wrong. He would have been told that there is nothing wrong with investing in your board member’s companies.But Bracken never asked, so he lost so much money by selling a stock that has continued to grow tremendously over the years.Lessons learnedTrust your instinctsTrust your intuition on things that you feel are good for you. Chances are, they are good.Hold onto your investment for as long as possibleMost people get out of investments too early. When you invest, do not be afraid to hold on to it for as long as you can.Communicate and ask for adviceBefore you sell your investment, seek advice. If you are having doubts about your investment, communicate with the people involved. There might just be a better solution than selling your investment.Andrew’s takeawaysThink long termYou should look at your investing period over decades. So if you are 30 years old, you want to retire when you are 60. That is 30 years, but do not forget, you are probably going to live to be 90, that is another 30 years, so we are talking about 60 years. When you put 60 years into your head, it helps you think long term and not short term.Sometimes all you have to do is askIf there is anything that you do not understand regarding your investment, ask and get the help or advice you need. But do not keep it inside. Ask.Actionable adviceTake a long-term view of everything in your life because you will rarely go wrong if you bet on long-term trends.No. 1 goal for the next 12 monthsBracken’s number one goal for the next 12 months is to make tremendous progress on diversity and inclusion at Logitech.Parting words “Stay focused on the long term, and you will have a long successful life.”Bracken Darrell [spp-transcript] Connect with Bracken DarrellLinkedInTwitterWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

Rachel Beck is the author of “Finding Your Way When Life Changes Your Plans: A Memoir of Adoption, Loss of Motherhood and Remembering Home,” she lives in Des Moines, Iowa, and is a rising voice in the movement of women’s storytelling.Her story is rooted in a cross-cultural, adoptive-family love story unlike any other. Lifted by wings strengthened through struggle, Rachel’s story flies in the face of society’s expectations for women to look a “certain way” and slip comfortably into the American Dream. “Take the time to build relationships because, in business, it is not about what you know; it is about who you know.”Rachel Beck Worst investment everBuilding friendships instead of business relationshipsRachel has always put her heart and soul into every project that she handles. Unfortunately, this has caused her to put emotions first, especially when dealing with business partners. Doing this has cost her a lot as she conducts her businesses.Rachel’s nature of being an empath has led her to make friends instead of building business relationships. Being friends with her business partners has lead her to trust people who have often not kept their part of the bargain.After a couple of mistakes, Rachel has learned how to build healthy business relationships founded on mutual trust.Lessons learnedLook for the red flagsIf something is too good to be true, then it is. Learn to keep your eyes open and look out for any red flags.Learn how to ask for helpFind role models who are successful in your area of interest and let them guide you. Do not let ego stop you from asking for help whenever you need it.Build healthy  business relationshipsTake time to invest in healthy relationships. You have no excuse not to do it because a smart entrepreneur knows that it is not what you know but whom you know that is important in business.Always be professionalJust because we are in a virtual world right now does not mean everything else goes away. This is not the time to stop being professional.Andrew’s takeawaysTrust your intuition but choose logic over emotionAlways listen to your intuition but remember that your intuition is different from your feeling. Your feeling goes longer, deeper, and stronger. But the point is, in business, you must choose logic over emotion. Put your feelings aside and focus on reason.Trust is critical in businessBusinesses should be based upon trust. Build trust with your business partners if you want your business to succeed even when you have contracts in place.Actionable adviceDo the research. Invest time into researching, do it, and then do it more.No. 1 goal for the next 12 monthsRachel’s number one goal for the next 12 months is to keep lifting people. She wants to shine a light on people in her network and give them the platform to get out there and tell their stories. [spp-transcript] Connect with Rachel BeckLinkedInWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast

When Jordan West was 23, he decided to buy a Taco Del Mar restaurant. He knew he had made a huge mistake at 2 pm the first day when only three customers had walked in (and two of them were his parents). For five years, he worked hard to grow sales every way he could think of and, in the end, tripled his revenue, which still didn’t seem to matter on the profit side. (He lost a lot of money).The one thing that he seemed to be the best at in his restaurant endeavor was marketing and getting people in the door. Fast forward to 2014, when his wonderful wife, Carmen, started a modest baby clothing line and was selling at craft markets. He asked Carmen if he could test running a few ads on Facebook, and the rest is history. He learned every up-and-coming strategy and tactic and helped grow her small start-up into a multi-million-dollar company. And it’s still growing to this day!Over the years, he realized what he is good at and what he is not good at. What he’s good at is marketing and helping others scale their businesses, which leads us to now.In 2019 Jordan started the podcast “Secrets to Scaling Your e-commerce Brand,” which is now in the top 50 business/marketing podcasts in multiple countries, including Canada and the United States. “That business idea you have will cost twice as much, and it is going to take four times as much time as you think.”Jordan West Worst investment everIn 2010, Jordan started thinking about going into business. His family was in the milling business, and he wanted to join in, but his family wouldn’t let him. And because he did not want to go to business school, Jordan thought what better thing to do than to purchase some kind of business and learn on the go.Buying a restaurant off CraigslistIn his pursuit to own a business, Jordan looked on Craigslist and found a Taco Del Mar restaurant. This was a Mexican chain restaurant that had had a lot of success in the past but was currently on a bit of a downward trajectory. But the restaurant itself was selling for about USD 25,000.Jordan figured he could afford to lose $25,000 should the business fail. What he did not factor in was all the money he was going to put in to run the restaurant, plus all the time he would have to spend running it.Getting into the real business of owning a restaurantRunning the restaurant was not as easy as Jordan had thought it would be. The biggest problem he faced was getting the restaurant to start making a profit. Year after year, the restaurant kept making losses.Jordan had it so rough that he had to work 60 hours as a paramedic just to try to afford the payroll.Time to call it quitsJordan kept pushing, trying to turn around the restaurant. But when one day he gave his landlord a check of $56,000, and it bounced, Jordan figured it was time to rethink his business venture. He just could not continue living in so much debt because, at this point, he had borrowed so much to keep the restaurant afloat.About six months before the end of the lease, Jordan went to the franchise headquarters and asked them to find someone to buy the restaurant. They found a buyer who could tell right off the bat that Jordan was desperate to sell. He ended up selling it for $25,000.At the end of it all, Jordan had lost $150,000 and five years of his life. This was indeed his worst investment ever.Lessons learnedMake sure you scrutinize all financial reports before buying a businessWhen buying a business, make sure that you scrutinize all possible financial reports to get proper financial projections.Learn how to read financial statementsLearn how to read a financial statement before you buy a business. This way, you will be able to see what the owners have been spending money on. When you can read and understand financial statements, you will see if there is any possible way to make money from that business.Take a look at the cash flow statement as wellWhen making your financial projection, be sure to look at the cash flow statement as well. This will help you figure out how much money you are going to need to keep the business afloat until you can make money.Marketing cannot save a sinking shipGreat marketing cannot save a business that does not have sound financials.Andrew’s takeawaysBe careful when investing in a restaurant because they are a very limited businessIf you are thinking about buying a restaurant, just know that it is a very limited business, and it is tough to scale a restaurant.Buying a small business is a trapThe biggest problem with investing in a small business is that you are limited in your revenue and resources. It takes a lot to get out of that trap.Understand the concept of working capital versus cash flowSeveral working capital items will come up when operating a business. So when you are making your financial projections to determine whether the company you want to buy will bring you enough cash flow, be sure to factor in operating losses as well.Sometimes the best way out is to take get outSometimes, it is best to take the easy exit and get out, even though you make a loss. It may be humiliating, but sometimes it is just better to sell it and count your losses when a business is bleeding money.Actionable adviceWhatever you think it is going to take, just know that it will take longer, and whatever how much you think it is going to cost, it will cost more.No. 1 goal for the next 12 monthsJordan’s number one goal for the next 12 months is to go mountain biking 100 times. So two times a week.Parting words “Do not make that bad investment.”Jordan West [spp-transcript] Connect with Jordan WestLinkedInFacebookWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast