SA: In Chapter 6, you talk about one of the hardest lessons I have had to learn (and still have trouble putting into practice) – the power of saying “no”. Why is that so important? Why is it so difficult?
MM: Saying "no" is so important, because it frees you to say "yes" to the right opportunities. I too struggle with saying “no” because I worry about when and if the “yes” opportunity will come. We as entrepreneurs so often accept something that is not well suited for us because we believe if nothing else we are giving ourselves work. And we fear that if we don’t say yes now, the next opportunity will never come.
In actuality, when we say “yes” to a bad opportunity (one we should have said “no” to), it distracts us from ever seeing the good opportunities. Additionally, it starts building our beliefs and our reputation as someone who is willing to take on the bad stuff. It starts a downward spiral.
But what if my fear is a reality and the good opportunity never comes? That is a blessing, believe it or not. If no “yes” opportunities come your way, then you have a business model that is not supporting what you want. That is a clear indication you should change your model, otherwise you will be working on shit projects your entire entrepreneurial life… and that is misery.
No question, it takes guts to say “no”... but when we do, sure enough, the good “yes” opportunities flow our way and we are ready to grab them by the bullhorns.
SA: Cash flow is so often what kills a business that may otherwise seem to be doing well. In Chapter 8, you share dozens of tips for improving cash flow. What are some of your favorite lesser-known techniques for creative cash flow management?
MM: Cash flow is all about the delta between what is coming in and what is going out. Starting up, you have absolute control over what is going out, and you have influence (you need to persuade customers) over what is coming in. So from day one, the most important technique to cash flow control is determining what lifestyle you are willing to accept in order to get your business off the ground. There are ways to live at basically no cost, but you have to determine the level of sacrifice you are willing to make. Then you need to adjust by cutting costs back immediately.
Once you cut back costs on your lifestyle then you need to control costs for your business. Here is one trick that I love for once you are up and running.... it's called couch surfing. When you need to travel for business, instead of staying at an expensive hotel schedule a stay at someone’s house through an established couch surfing site. These are sites listing people who are willing to lend a room to a traveler... they are background checked and rated so you know it’s safe (and so are you... so they know you are not some psycho killer). You get a free room and often get to do great networking.
The final step to cash flow is then selling. The trick to selling is to NOT to sell to people; we all hate that... but instead to openly talk about your values and the value your product/service offers. The people who become interested will approach you, and then your job is to keep "everything as simple as possible (for the customer to buy from you)..." as Albert would say.
SA: The following passage, for me, really sums up the book (as well as my own entrepreneurial philosophy):
At some point every business will have a dark day, month or, God forbid, an entire year. You are going to struggle for a while. Even the big guys struggled. Gary Erickson, the founder of Clif Bar, maker of organic energy and nutrition foods, had to live in a garage, work a day job, and stay up all night making product. Early entrepreneurial success is defined by surviving, not thriving. Set out with the beliefs, focus, and actions to grow rapidly and strongly, knowing that initially it is all about just getting up off the ground.Expand on that, please. In particular, how do you find the strength to keep going when facing that dark day/month/year?
MM: The key to success is your ability to navigate the dark day (month or year)… because it will come. And the ones who survive are the ones that are pursuing their passion. They are doing what they love. Gary Erickson was, and is, passionate about getting healthy fuels into athletes’ bodies. If he never made a penny, he would still have pursued it because he is that passionate about it. It is this desire, without concern for how much (or even if) it will make money that ironically is the formula to success and making a lot of money.
We all need to be clear on what our passion is and what it isn't. Passion is not a hobby. I like to play guitar, for example, but after three hours of playing I have had my fill for a week or two. That's a hobby. Passion is not a thirst for money. Money simply enables us to do what we want easier, faster and better.
Passion is the thirst you can never quench, it is the thing you do when you have no concerns for time, it is the thing you do more of when you have money, time and freedom. So once you have full awareness of your passion, you will then have the skill and the strength to get through the dark days - and the passion will bring you money, time and freedom. And the money, time and freedom will further enable your passion. It is a beautiful thing!