On raising money

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To build wealth in a short timeframe, it is advised to raise little to no money, especially if the goal is to make the first millions or have an exit between $10-50 million. Raising a couple million dollars can maintain optionality without losing control or dilution. It is recommended to raise one round of funding, ranging from half a million to two million, to hire key team members and accelerate the business. Going beyond $10 million in funding commits to a billion-dollar exit, setting high expectations and risks burning through cash quickly. It is vital to only raise large amounts if a billion-dollar exit is envisioned; otherwise, it is better to aim for a more manageable outcome with lower funding to maintain control and avoid excessive pressure from investors.

Episode 571: Sam Parr (https://twitter.com/theSamParr) talks to Jason Lemkin (https://twitter.com/jasonlk ) talk about the 7 rules of building a $100M business.

Want to see Sam and Shaan’s smiling faces? Head to the MFM YouTube Channel and subscribe - http://tinyurl.com/5n7ftsy5

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Show Notes:

(0:00) Jason Lemkin’s first million

(4:19) The rules of getting to a 9-figure exit

(5:32) Rule 1: New minimum is $400K per employee

(7:58) Rule 2: Go multi-product

(9:40) Rule 3: Your second product must be bigger than your first product

(11:05) Cheat code: Double your prices

(13:48) Rule 4: 30% of your revenue is international

(15:43) Rule 5: Localize your product

(19:05) Cheat code: Remove friction

(22:42) Rule 6: 100% net revenue retention

(29:01) Business models that won’t get you there

(33:38) $100M conferences

(39:35) Rule 7: Don’t raise double digit millions

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Links:

• Saastr - https://www.saastr.com/

• HLTH - https://www.hlth.com/

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Check Out Sam's Stuff:

• Hampton - https://www.joinhampton.com/

• Ideation Bootcamp - https://www.ideationbootcamp.co/

• Copy That - https://copythat.com

• Hampton Wealth Survey - https://joinhampton.com/wealth

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Check Out Shaan's Stuff:

Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd

My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano