Dealmaking Is Slow then Fast

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I love dealmaking. I agree with Robert Ringer’s observation about dealmaking:

“There are no statistics to prove it, but after years of experience, I’m absolutely convinced that dealmaking is the highest-paid profession in the world.”

I think the creative pieces and bringing ambiguous, and often disparate parties and value together, is exhilarating. Great deals help everyone to win and get what they want.

Designing those deals requires insight and many cycles to drive a win and agreement. It’s why I often tell business partners that dealmaking is about going slow. Then fast.

The slow part of deal making is the art of the deal. Building rapport and relationships. Establishing trust. Putting the ideas forth that might take root. These are the building blocks that go faster with established relationships and much activity, but in the beginning of new ventures and relationships, they are slow to put forth and germinate. Often times, you have to push hard.

Fortunately, deals are everywhere. They need leadership, vision and management to develop. If you sell a known product, then your dealmaking has a lot of the components already set up.

If you have a custom, creative dealmaking offering, then there is a lot of time collaborating, designing and creating something from nothing.

I think that one of the best strategies is to be ready. Mise en Place. Anticipate that new conversations, opportunities, relationships and timing will come in the next weeks and months. Being ready by doing your homework, studying, gathering insights, having fast, efficient systems, and getting smarter are required to support the slow part.

If you have done the work then the fast part tends to take care of itself. The convergence of the details, negotiating, having solid agreements and delivering value transitions the dealmaking over to keeping your commitments.

You can always get better at the fast part. The slow part is where the payoff is if you pay attention to your approach, preparation and cadence. Where can you improve?

Troy Carter of Lady Gaga and Atom Factory Kept Learning and Unlearning

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I like spending the weekends thinking, learning and relaxing. The weeks are such a grind and intensive with deal making and doing business. Today, I was having some reflections on the NPR podcast, How I Build This: Lady Gaga & Atom Factory: Troy Carter. I embedded it above and you can find the transcript here.

Troy Carter managed hip-hop and pop superstars as well as built a venture fund. He is remarkably honest, humble and sober. I respect him as a businessman and how he kept integrating what he learned and unlearned. He kept parlaying his skills and exploring avenues to create opportunities from hip-hop to pop music to social media to investing in startups. Even with his heartaches and successes, as many an entrepreneur goes through, he self-actualized, as he shared,

And just to be honest with you, the thing was I just said I want to wake up every day and do cool [expletive]. That was the mantra for me personally.

I can relate. We have to keep true to our inner compass and find fresh, relevant ways that we fit, apply our value and create opportunities in this fast-changing world.

In sharing this podcast, my friend Joseph over at InDev Capital and I were having some takes on Troy Carter’s podcast. I like what he said based on his work with emerging market real estate and the inherent skill and push it takes in his business,

Most everyone goes through “The Dip” and that is where the learnings are.

Well stated, for sure. Entrepreneurs understand this too well. They do pay the price for everyone else. Those learnings become cash flow, empires and job creation.

If you get a chance, listen to the podcast while driving or hanging out. Share some of your insights in the comments below. I would enjoy hearing your take. Enjoy and keep growing.

Getting Caught Doing the Right Things

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How do you know if you had a solid day or week of output? We can easily get deluded into thinking we were highly productive, but we may have simply stringed together fleeting days of busy activity. Sometimes, simply maintaining that appearance of effort can make us feel justified.

Productivity makes you a reliable person who gets things done that need to be done. There are things we have to keep doing in order to keep tasks and projects moving along because of the commitments we made to ourselves.

However, what about moving the needle on a much larger level? You have to have space to think about such context.

What makes an impact?

Are the projects and people I am involved with helping me get to where I want to go?

Does this project even matter?

It’s that pull between doing things right vs. doing the right things.

When I find myself unenthusiastic or lax in my work and interactions, it’s likely because something does not make sense anymore in the context of what is important. I have to disengage and do a gut check on what I am giving myself to.

With the world moving so quickly and the ease of others pulling on you with requests, I think it’s a trap anyone can find themselves in.

So, if you feel that kind of misalignment, take a breather and pull back rather than push in. Think about where you are headed and cut things that don’t make sense even though they might have been a good idea before.

We are always needing to be dynamic because we are living in a fast changing world.

Maybe it’s less about hard work and much more about hard thinking.

Give Them What They Want

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If you spend most of your time trying to convince people of what they need, you may be in for a highly expensive and wasteful lesson from the marketplace. I get it. When you have an idea that you love, you think others should love it as well. But, we have to take heed of what William Faulkner said, “you must kill all your darlings.”

Your darlings may be the idea of special native plants in your ingredients or how you believe people should socialize. In your mind, this may be the most beautiful, reality-changing screenplay to yet become a part of our everyday lives. But going broke pursuing it is not smart business.

Giving people what they want takes observing, listening and detachment. You observe how people react to your offering and integrate the feedback to refine it further.

You listen when they tell you they like something or dislike something. You read the Google Reviews or Yelp. The painful ones have insight.

You detach from your own idea of what is good for everyone, and simply serve people where they are at.

Even if you are right, you may be creating psychic pain by insisting on something people don’t want or are not ready for.

I think people forget there are another 300M+ people in this country. We get in our own heads wanting to be special or stand out. That’s not likely with that many people and with the ridiculous amount of options. And guess what? We are all connected. A hit quickly gains a ripple effect.

There may be a few people brilliant enough to get people to understand something they did not know they needed and now want. But that stardom, though highly celebrated, is what movies are made of, not necessarily what entrepreneurship and business rewards.

It’s a jungle out there. One of your best senses to develop is paying close attention to what people’s emotions, feelings and expressions are saying about what they want and like. Your job is to give it to them in the easiest or most exquisite way.

Valuable Skills in the Automation Economy

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I have shared about the need to unlearn and reinvent continually because of market forces all around you and the pace of change. Once you see something that was once hard become convenient, commoditized and automated, you have to unlearn and relearn.

I think that the Harvard Business Review has it right with the kind of jobs that will thrive in the midst of automation:

“the only way to create value in a more differentiated and rapidly changing product world will be to redefine work at a fundamental level to focus on distinctly human capabilities like curiosity, imagination, creativity, and emotional and social intelligence.”

Being human stands out. Think about how you react to a simple email that is mass vs. personal. You can tell the difference, regardless of how crafted the mass email was designed. Spamming gets blocked. Personal and authentic creates engagement.

Thus, as HBR references, the creators, composers and coaches will make use of automation, routine tasks and efficiencies to create value.

Creators make highly customized products and services based on tastes and interests of people. They have to anticipate and connect the dots. Depth and personalized products are what they are dialing into.

Composers design experiences from the resources that are available. Themes, tours, and parties, for example, will be designed and guided for participants. It’s an imaginative type of area which can transform otherwise mundane offerings into visceral experiences.

Coaches help people achieve more with knowledge, insight and encouragement within chosen domains. They bring clarity, focus and a path for getting dreams and results.

It’s a practical and focused framework for thinking about where you might move towards. These are valuable professions making use of what is already available, abundant and efficient around you in systems, resources and products.

We already know how to make things in mass, sell it to millions and create sameness. That’s not much of a game. It’s a bygone era of value when we learned to be industrial and industrious. And the price keeps dropping towards the bottom.

Think about your industry or background and ask, “How do I create more value by connecting deeply with meaning for my clients and others?”

It’s a bit of repackaging to start moving in this direction, but more importantly, it’s getting in tune with the times where efficiency is becoming a given.

Learn to Unlearn

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“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ” ~ Alvin Toffler

I often think about that phrase, “What got you here won’t get you there.” It’s a powerful reminder that you can’t rest on your accomplishments for long. Someone out there wants to eat your lunch, or the world around you at large is relentlessly making your achievement meaningless every day.

One strategy if you don’t want to have to keep innovating is to find a commoditized required industry and camp out. Society needs trash removal, utilities, cleaning, bookkeeping and bandages. Cash flows continuously in and out of those boring businesses and the entrenched players don’t have to pivot too much. That is as long as there is not someone reimagining how to lower costs and increase conveniences for customers.

There are things I was an expert in previously that are simply foregone memories now. There’s too many areas where the world has become more efficient that has forced me to have to “learn, unlearn, and relearn.” And that’s fair. Everyone is subject to the requirement to being relevant and valuable. You have to keep proving your place and worth in this world of endless options.

One way to measure ongoing staying power is to think about how much you are personally growing.

How many books per month have you read?

How many people have you met in the last week?

What new ideas are you sharing?

You have to keep learning, testing and sharing. In this mode, you have to think of value as something to apply and discard when the game has changed.

The last thing you want to be is illiterate among so many that are taking initiative every day to become better and offer something timely and powerful. That’s the game today for value creators.

Hell Yeah! or No Works

I read Derek Sivers’ mantra years ago, “Either ‘Hell Yeah!’ or ‘no.” It’s a fantastic way to live and do business. Most things don’t work out. And a lot of time, money and relational equity can be wasted when taking on what appears to be good projects or endeavors, but they are not necessarily the best things for you.

I say, “No,” all the time to projects that have more downside than upside, invitations that feel more dutiful than fun and opportunities that I can tell have a low probability of working out.

Hell Yeah! has a fantastic filter on all the temptations and shiny allures.

It’s a boundary that helps you go big on what really matters. And we need all our energy, focus and attention on things that matter. It’s hard enough trying to make things work when everything is working against you. Why add the drag of mediocre commitments that will likely die on the vine?

Great motto to live into and see if you can get more out of the good stuff and keep all the compromises at bay.

Find the Few and Disregard the Many

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A few projects matter. So do a few relationships and a few tools. It’s so easy to simply accumulate stuff and throw horsepower into everything. While thinking that should cover over any deficiencies, what is often hidden is the cost in the form of waste, unclarity and management overhead.

We don’t have unlimited attention, resources or energy. It’s hard enough to make something work well or achieve success. However, more noise will only add drag to your best intentions and efforts.

Think about how you want to do business and consider inverting your model. What if you chose to focus on the few that matter rather than the many that have diminishing returns? Your process can look something like this:

  1. 10 clients – The absolute number I want to work with at one time.
  2. 20 deals – Because I close half and only 20 matter.
  3. 40 prospects – People I would be happy to work with and that are an ideal fit.
  4. 2 channels – Places that my prospects I like hang out. Strategies I am committed to fully and will refine.

This kind of strategy can work, but you have to be thinking about what you want and focusing your conversations and approach to the few that matter. In a way, it is a form of abundance thinking. You are realizing there are specific, valuable people you want to work with in a vast world and you simply need to connect and get clear with them.

As a side effect, you are avoiding creating a lot of waste, irritation and noise out there for people that are not a fit.

You also ask better questions of yourself:

Who are the 10 people I want to have as friends and spend my time with doing business?

What do the few people I work with have in common?

What don’t I like?

I bet you find yourself more relaxed and easier to work with. I bet you find abundance by focusing on the few. Clarity and focus have a way of bringing that kind of increase and efficiency.

For Those Who Can’t Do

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My kids and I love that Jack Black movie, School of Rock. The other day, we were laughing at a line that Black’s character, Dewey Finn, made a group of his colleagues roll with in a lunchroom scene, “Those that can’t do, teach, and those that can’t teach… teach gym.”

Too funny.

We live in a world where people can hide and not do. They can teach about business, but not do business.

There are brokers that trade for you but don’t do it themselves.

There are professors and pastors that talk about the marketplace but don’t work in the marketplace.

It can save you a lot of trouble to distinguish between doers and talkers. You gain much more value from someone who takes risks and puts their name, money and work out there than pontificators sitting on the sidelines.

I’m not sure we can completely squeeze out safe spaces where talkers can hide and not take risk, but I do think you can pay attention and align with doers that have skin in the game.

Design the Customer Journey

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Yes, I understand you want money. You want people to buy now. The temptation to simply expect and demand cash is so high and blinding that it’s hard for a seller to see why money becomes elusive.

In some cases when the pain is high – root canals, broken transmissions, fallen bridges – the customer goes straight to the answer. They want the full offering because the pain and the cure are clear and needed.

What about cosmetic dental work, upgrading to a Tesla or improving infrastructure for growing populations?

The sale is a bit harder. The pain is low. Your customer’s status quo is fine. And your offering feels like a big commitment. It can be delayed.

Is there a lesser first step you can start with to stir the customer’s thinking? A test drive or a new mirror can get a person thinking about something they haven’t entertained.

There’s the beginning seed.

You have to gain interest, attention and trust at the start. This is hard in a crowded, overwhelming marketplace. This feels daunting when everyone can get what they want with their thumbs and iPhone.

That starting point, not your final sale, is where you have to dig, design and consistently offer yourself. I bet your customer journey could have a bit more courtship involved. I bet you could start and build trust with a few touches that lead your customer through smaller, more comfortable steps.

Yes, you can sell more. But you have to care more first. And that means stepping back and walking that emotional journey your customer feels. You can design the journey and help them towards a bigger yes, the one you want. Caring about where they are at and how they proceed to trust you means going slower so you can go faster.

What’s easy for your customer to say yes to first? How about second?

How could you design the steps with care that lead them to what they eventually need from you?