Turning Setbacks into Success: Navigating Business Growth with Funding Nav's Stephen Sacks

Dive into the interplay between failure and success in this week's episode of The Future of Teamwork podcast. Host Dane Groeneveld engages with Stephen Sacks, founder and CEO of Funding Nav, in a thought-provoking discussion. This episode goes beyond just the transformative power of failure. It delves into Stephen's wealth of knowledge in strategic funding, financial resilience, and innovative business solutions. Learn from Stephen's journey how a setback can set up a major comeback, and gain insights into the art of strategic decision-making and financial acumen in challenging business landscapes. Tune in for an enlightening session that promises not only to redefine your understanding of failure but also to equip you with practical strategies for navigating and thriving through business complexities.

Key Insights:

• [00:00-1:39] Introducing Stephen Sacks, the founder of Funding Nav. with over 30 years of experience solving business challenges. 
• [1:39] Sacks talks about his experience running a furniture import business that failed due to the negative impact of Brexit, and how he struggled to attract external funding for his business. 
• [2:16] Stephen Sacks believes that seeking external funding is a failure in a business's strategy. He advises businesses to explore other solutions before seeking funding, such as putting prices up if the business is losing money. 
• [ 7:00] It's important for businesses to recognize where they might be carrying ego customers or products that aren't supporting the team to be sustainable, and to recognize failure to unlock opportunities. 
• [13: 19] The most successful businesses are confident enough to let go of customers, while the least successful ones lack the confidence or ability to do so. Good businesses quickly replace lost customers and have better outcomes. 
• [14: 57] The process of analyzing customers and product data sets is different from that of banks, who mainly look at financial instruments like P&Ls, LSS, balance sheets, and age debt reports. However, both approaches may be used together. 
• [20:08] The discussion revolves around hiring talent remotely and the challenges that come with it, such as compliance with legal regulations, managing IT, and ensuring the person hired is genuine. 
• [25:34] When evaluating a team, the character of the founder, the team itself, the customer, and the supply chain are all taken into account, with a focus on finding teams with the potential to achieve their growth plans. 
• [28:58] The lack of financial sophistication in small to medium enterprises is a universal challenge, including deficiencies in strategic thinking, cash flow management, and accounting practices. Accounting tends to be backward-looking, focusing on meeting statutory requirements rather than anticipating future challenges and opportunities. 
• [35:08] Stephen Sacks talks about a failed business that didn't work despite being similar to one of the most valuable businesses in the world. It was a huge learning experience and builds community. 
• [37:19] Dane Groeneveld quotes Machiavelli on how entrepreneurs keep trying to get out of trouble, often digging themselves into a deeper hole. Sharing stories of failures helps people learn from mistakes. 
• [38:25] Stephen shared his own story of failure in the furnishing industry and how it inspired him to create a more empathetic and supportive funding platform. Sacks believes that it's important for founders to remain true to their initial purpose and not lose sight of why they started their business in the first place. 
• [39:37] Not only should we embrace the failures of others, but we should also encourage our own teams to anticipate setbacks and learn from them. 
• [40:31] Where to find Stephen Sacks, and ending thoughts.