Entrepreneur Myths (23 page)

(Q1)
Take the money, take the money, take the money — should you take the money as long as it’s honest money?

(Q2)
Have you ever been sued by an investor? Did you settle or have to deal with all the legal bullshit?

(Q3)
Should you take any money that comes along? What about Mafia money or hard lender money?

Entrepreneur
Myth 34
| The check’s in the mail

Everybody knows the classic line, “The check’s in the mail.” This belief is abundant among entrepreneurs today. I could write an entire book on this subject alone, full of stories about investors’ broken promises. You know, the one (investor) that got away.

It’s a tough world, so you have to stay optimistic, especially when raising capital, but you have make sure the damn check cashes. Wishing for the check to come is not helpful. Sure, you need to be a positive thinker in order to be an entrepreneur. However, there’s a difference between being positive about your entrepreneurial activities, and expecting money to come into your hands and to your bank.

I was influenced by Napoleon Hill’s phenomenal book,
Think and Grow Rich
. Every entrepreneur should read it daily — even if it is only a few pages. This book gives you the secret formula for training and reframing your mind (consciously and subconsciously) to believe you will be successful, that you will receive the money, and that the check is in the mail. You just have to believe. The formula is basically as follows:

Step 1:
Write down the amount of money you intend to accumulate, the time limit for the accumulation, and a description of the service or merchandise you intend to give in return for the money.

Step 2:
Go to some quiet spot where you will not be disturbed or interrupted, close your eyes, and repeat aloud your entire written statement. As you carry out these instructions, visualize yourself already in possession of the money.

Step 3:
Look at yourself in the mirror as you repeat the written statement. I added this step because visualization in a mirror accelerates the process of making your subconscious believe. I call this an “inspiration amplifier.”

Step 4:
Repeat Step 2 or 3 each morning and night until you can clearly visualize the money you intend to accumulate. (Please make sure you don’t visualize that stupid Geico money with eyeballs. It could get creepy.)

Step 5:
Place a written copy of your statement where you can see it morning and night, and read it until you memorize it.

You have to truly believe and see that your goal is going to happen. You have to feel as if you’re already in complete possession of the money in your hands. You have to couple emotion with your personal goal.

I have used this process often. It works. However, I have one addition to Napoleon Hill’s process:

No matter how clearly you visualize, believe and feel the money coming to you and arriving in your hands, once the investor gives a verbal commitment to send the money — check your bank account to confirm the new balance. Verify the check has cleared or the money has actually been wired. Verbal promises and commitments by investors don’t pay the bills.

I’m not trying to be a smartass, although you know I am from reading Myth 32. I am one of Napoleon Hill’s biggest fans, but I learned throughout the years that unless the money is actually in your bank account, the check in the mail does not count. You can take it a step further by also visualizing the actual bank account statement or, even better, your banker smiling at you for depositing the damn money in their bank.

Another cool visual is seeing yourself driving to the bank in your new Ferrari, Eminem’s music cranked up loud, laughing all the way to the bank. You made it. You made it BIG. You’re laughing all the way to the bank. Visualize it. Feel it. Hear it. Luagh.

“The check’s in the mail” is symbolic.

This myth represents a flaw that most entrepreneurs experience at one time or another — which is being overly optimistic about a certain transaction, investor, sales revenue opportunity or business partnership. The entrepreneur counts on it to happen, only for it to disappear at the last moment. I am guilty of believing in this myth myself, more than once.

Being an eternal optimist, I make sure I am influenced by positive people around me, as well as by inspirational characters. One character that stands out in my mind is Job from the Old Testament. If you haven’t read the story of Job, you should. Job had it all, and then everything started going downhill for him when God allowed Satan to test his belief in God, his character, his spirit, his mental attitude and his enthusiasm.

That motherfucker Satan started taking everything from Job. But Job would didn’t budge one iota. He kept his optimism up. Job believed the check was in the mail. And no matter how bad it got, he always saw the cup half full. Even when his health went downhill, he refused to give in. Job never lost faith in himself and God.

I’m not going to be a Bible thumper here, but you can learn a lot from the story of Job. Keeping a positive attitude, and seeing the world from a standpoint of the cup being half full instead of half empty, is critical to your success. But, remember, you have to make sure the cup runneth over — all the way to your bank account.

And when you find the right investor, who promises to invest into your ass, ask for a wire instead of a check. Wires hit your bank account faster. And they don’t bounce. I had investors promise to send the investment money and then flake out at the last minute, or their check bounced. You can never be sure until the money is actually in your bank account and it clears.

Long ago, I had a friend interested in investing into one of my deals. He flew down to see me, which I considered a pretty good indication that he was interested. We went through the due diligence for hours and hours until way past the midnight. The bastard was starting to fall asleep. He shook my hand and agreed to wire me the money as soon as he returned from the trip. Yippee, the check’s in the mail.

He left the following morning, and when he got back to his office I followed up with him. He again promised to wire the money, then just disappeared without any fucking explanation. I thought perhaps he’d been kidnapped. I called numerous times for weeks and the bastard refused to take my calls. His administrative assistant brushed me off and said he was busy. And I had known this fucker for years. We partied together. I guess he reconsidered and didn’t have the balls to turn me down so he hid behind his assistant. Weird shit, I tell you. He called me 10 years later, out of the blue, wanting to do a transaction after he heard I was running a venture capital fund. The first words out of my mouth were, “Are you fucking kidding me?”

Not long ago, I was involved in a transaction where the contract was signed, and the last step was for the buyer to send his documentary letter of credit (DLC). We waited for weeks for that DLC to arrive. I heard more excuses than you can imagine as to why it had not been sent. The only excuse that I did not hear was, “My dog ate it.” It was complete bullshit. Some of my partners were already counting the money. The deal never happened because the buyer flat-out lied. It’s that simple.

My advice: Be positive and expect the check in the mail, but don’t count on it until the bank has confirmed the money in your account. This is not negative thinking — it’s thinking smart.

I don’t care what kind of a transaction it is — don’t count on it until the fucking money is in the bank.

I don’t give a shit what someone promised you — don’t count on it until the fucking money is the bank.

I don’t give a rat’s ass if you have signed subscription agreement documents or physical trading sales contracts — don’t count on it until the fucking money is in the bank.

Even if you have the check in your hot little hand — don’t count on it, and don’t spend a penny of it until the check has cleared your bank.

However, do follow Napoleon Hill’s instructions on getting rich. It works. Got it?

Brain Candy: Questions to consider and ponder

(Q1)
What do you think when you hear, “The check’s in the mail”?

(Q2)
Have you ever had a legally binding, signed contract go sour? What happened? Were you immediately counting on the money when the contract was signed?

(Q3)
Has an investor ever promised to send you the money and then disappear?

(Q4)
Have you had someone send you a check, for a product or service, that bounced at your bank while you were already spending your money for the project?

(Q5)
How do you minimize “the check is in the mail” scenarios? Do you ask for wires instead?

(Q6)
If you read Napoleon Hill’s book,
Think and Grow Rich
, what did you think about it?

(Q7)
Do you use Napoleon Hill’s formula for getting rich?

Entrepreneur
Myth 35
| Raising big money is harder than small money

Experienced entrepreneurs as well as newbie entrepreneurs fall into the trap of believing “the big money” myth.

Let’s practice together:

Say “one thousand dollars.”

C’mon, go ahead. You can do it. Good.

Say “one hundred thousand dollars.”

C’mon, you can do it. Very Good.

Say “one million dollars.”

See, it’s actually quicker to say than “one thousand dollars.”

You’re doing really well. Let’s keep going.

Say “ten million dollars.” Excellent!

Wow, you’re a capital-raising pro.

Say “one hundred million dollars.”

Not any harder, right? It just takes a little longer. And finally…

Say “one billion dollars.”

See, that wasn’t even as hard.

What did you notice when you were saying these numbers? Sure, the numbers changed, but did you notice that the dollar amounts rolled off your tongue just as easily saying “one thousand” as saying “one million”? Actually, it is easier to say “one million” than “one thousand.” Don’t you think?

Entrepreneurs are bashful about asking for the right amount of money. Many have come to me, nervously pitching me for money. And when it came to that magic moment of asking me for the money, hesitancy set in, and they chickened out by asking for less money than they needed.