stand before you ready my mom always
said is never a good time to have a baby
and she had 10 I don’t ever remember
they’re not being pregnant she’s always
pregnant my memory pregnant she’s always
pregnant right I practice the same
philosophy with building my business I
found it was never really good time to
expand but I always expanded and the
thing that I practice religiously that
helped me grow my business because you
have to realize you’re the little guy
you got the big guy up here you can’t do
the same you’ve got to do like five
times more to catch up so why I practice
if I had a sales organization with 25
people and I thought you know what I’m
going to hire an office I could hold 50
I’m gonna double the size I never hired
the office so what rented the office
that needed 50 I went out and killed
myself to get an office that held 100 I
doubled my expectation because you know
what I found I found desks face was just
like closet space and never stays empty
for long you get all those desks waiting
for bodies you’re a whole focuses I’m
finally salespeople we all focus on
training them fast and better to get
them productive and I found that I was
able to leapfrog over my competitors
because i was super aggressive and
expanding before i was ready and I
trusted that somehow it would all work
out and always did work out so you have
a gun to your own him you have to run
like crazy to catch up yourself and so
it took a little courage with stupidity
on the front side but without it I could
have never grown and become the number
one fur- it just wouldn’t happen it was
too long and catching up everybody was
in business much too long for me to ever
catch up so that lesson is expand before
you’re ready scale too fast the
foundation of this mistake is the
previous slide so this is how scaling
too fast works so we have now calculated
conservative speaking we’re going to do
one and a half million cans of dog food
per day oh my god we need to really put
in a service infrastructure we need to
have multiple warehouses because we need
the dog food shipping out a million and
a half cans of dog food per day you know
we should have a headquarter we should
have a shipping facility in Northern
California Southern California mean one
in Texas Venus Chicago we need one in
Boston leading them on Miami we need one
in Burlington nor
Carolina we need one everywhere because
damn it we’re going to have great
service and so we need these multiple
warehouses we need support 24 by 7
because people are going to be buying
dog food all over time all the places
one and a half million cans a day
conservatively speaking oh and so what
happens you make your burn rate come out
half a million dollars and guess what
your rock star CTL roommate is late on
the software and so you’re burning half
a million dollars because you have all
this infrastructure your people your
buildings you have all these systems and
all these things in place and the
software is late this goes on for a year
right and so during that year your
investors are now getting a little antsy
but you say to your investors you know
we’ve invested so much training these
people how to sell and support dog food
and these are Rockstar support people
and our CTO says that we’re going to
ship next month so it would be really
stupid to fire these rockstar support
people because in 30 days we’re gonna
have to hire back same kind of people
and I will have to train them because
it’s so hard to sell dog food online we
have so much invested in them so let’s
keep these people on and for the first
three or four board meetings your board
because they’re mostly looking at their
blackberries are not going to even hear
this and they’re gonna sort of not to do
anything all right but by about the 6th
7th 8th board meeting when you’re
burning half a million dollars your
board is going to wake up and I’m going
to say you know something we’re starting
to not to believe you all right and so
the key here is don’t scale too fast I
have never seen a company die because it
could not scale too fast for once in my
life god willing I would like to have a
problem where a company I’m affiliated
with has such demand it cannot keep up
with the demand God please give me that
problem just once in my life okay
so the solution to this problem is my
philosophy that you eat what you kill in
other words you don’t build the kitchen
you don’t build the chef’s you don’t get
the waiters you don’t get the restaurant
you don’t get anything until you
actually kill something and then once
you kill someone once you get the sale
then you build the infrastructure then
you build the support now you’re going
to say well guy you know if you do this
and you’re actually on time then you
might have a bad reputation you can’t
fulfill orders fast enough you can’t do
something like that but again I’ve never
seen it happen so a very good discipline
is you know if you think that you’re
going to get 25 million page views a
month so you need to have two sets of
buildings and you need two sets of IT
and all this customer service I’ll tell
you what when you approach 25 million
let’s just worry about it then okay but
until there because odds are you will be
late odds are will you you will be late
so eat what you kill my intention with
this video was just right understanding
not fighting I want you to see that it’s
not one point of view or the other you
can pull and learn from both especially
the one that you don’t immediately
resonate with embrace the genius of the
end
said is never a good time to have a baby
and she had 10 I don’t ever remember
they’re not being pregnant she’s always
pregnant my memory pregnant she’s always
pregnant right I practice the same
philosophy with building my business I
found it was never really good time to
expand but I always expanded and the
thing that I practice religiously that
helped me grow my business because you
have to realize you’re the little guy
you got the big guy up here you can’t do
the same you’ve got to do like five
times more to catch up so why I practice
if I had a sales organization with 25
people and I thought you know what I’m
going to hire an office I could hold 50
I’m gonna double the size I never hired
the office so what rented the office
that needed 50 I went out and killed
myself to get an office that held 100 I
doubled my expectation because you know
what I found I found desks face was just
like closet space and never stays empty
for long you get all those desks waiting
for bodies you’re a whole focuses I’m
finally salespeople we all focus on
training them fast and better to get
them productive and I found that I was
able to leapfrog over my competitors
because i was super aggressive and
expanding before i was ready and I
trusted that somehow it would all work
out and always did work out so you have
a gun to your own him you have to run
like crazy to catch up yourself and so
it took a little courage with stupidity
on the front side but without it I could
have never grown and become the number
one fur- it just wouldn’t happen it was
too long and catching up everybody was
in business much too long for me to ever
catch up so that lesson is expand before
you’re ready scale too fast the
foundation of this mistake is the
previous slide so this is how scaling
too fast works so we have now calculated
conservative speaking we’re going to do
one and a half million cans of dog food
per day oh my god we need to really put
in a service infrastructure we need to
have multiple warehouses because we need
the dog food shipping out a million and
a half cans of dog food per day you know
we should have a headquarter we should
have a shipping facility in Northern
California Southern California mean one
in Texas Venus Chicago we need one in
Boston leading them on Miami we need one
in Burlington nor
Carolina we need one everywhere because
damn it we’re going to have great
service and so we need these multiple
warehouses we need support 24 by 7
because people are going to be buying
dog food all over time all the places
one and a half million cans a day
conservatively speaking oh and so what
happens you make your burn rate come out
half a million dollars and guess what
your rock star CTL roommate is late on
the software and so you’re burning half
a million dollars because you have all
this infrastructure your people your
buildings you have all these systems and
all these things in place and the
software is late this goes on for a year
right and so during that year your
investors are now getting a little antsy
but you say to your investors you know
we’ve invested so much training these
people how to sell and support dog food
and these are Rockstar support people
and our CTO says that we’re going to
ship next month so it would be really
stupid to fire these rockstar support
people because in 30 days we’re gonna
have to hire back same kind of people
and I will have to train them because
it’s so hard to sell dog food online we
have so much invested in them so let’s
keep these people on and for the first
three or four board meetings your board
because they’re mostly looking at their
blackberries are not going to even hear
this and they’re gonna sort of not to do
anything all right but by about the 6th
7th 8th board meeting when you’re
burning half a million dollars your
board is going to wake up and I’m going
to say you know something we’re starting
to not to believe you all right and so
the key here is don’t scale too fast I
have never seen a company die because it
could not scale too fast for once in my
life god willing I would like to have a
problem where a company I’m affiliated
with has such demand it cannot keep up
with the demand God please give me that
problem just once in my life okay
so the solution to this problem is my
philosophy that you eat what you kill in
other words you don’t build the kitchen
you don’t build the chef’s you don’t get
the waiters you don’t get the restaurant
you don’t get anything until you
actually kill something and then once
you kill someone once you get the sale
then you build the infrastructure then
you build the support now you’re going
to say well guy you know if you do this
and you’re actually on time then you
might have a bad reputation you can’t
fulfill orders fast enough you can’t do
something like that but again I’ve never
seen it happen so a very good discipline
is you know if you think that you’re
going to get 25 million page views a
month so you need to have two sets of
buildings and you need two sets of IT
and all this customer service I’ll tell
you what when you approach 25 million
let’s just worry about it then okay but
until there because odds are you will be
late odds are will you you will be late
so eat what you kill my intention with
this video was just right understanding
not fighting I want you to see that it’s
not one point of view or the other you
can pull and learn from both especially
the one that you don’t immediately
resonate with embrace the genius of the
end
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