The Big Stack Paradox: Why More Money Makes You Worse
Last week I had a poker night, it all started so well. I won the first two hands, then a few more and after a while I was what is known as the Big Stack Bully.
30 minutes later I had lost. I got sloppy. I made calls I wouldn't have made an hour earlier. Because I had more chips I took bigger risks, I chased hands I should have folded. The early success made me play worse.
I don't like losing, but I like learning. Here is what I learnt and why it matters to startups and scaleups with a sudden influx of cash in the bank.
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Why cofounders fall out and how to avoid it
Despite the success of Adidas and Puma, companies that established themselves as two of the world's most dominant sportswear brands, the brothers' conflict was never resolved. Even in death, they would be divided, with the brothers' graves situated at the opposite ends of the main Herzogenaurach cemetery.
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Pass me the knife – how to agree on the equity split amongst cofounders
"A quick, even split suggests that the founders don't have the business maturity to have a tough dialogue."
Splitting the equity in your startup usually sounds like a straightforward task. You incorporate a business, create share capital, give it a nominal value and split the shares equally. If you use a good accountant or online provider, creating the shares is simple enough. The hard and underestimated challenge is precisely how to divide up the equity.
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Black Friday, discounting and eroding your margins
"You don't have a business unless you have a reasonable margin to play with. Without a good margin, you can't surprise and delight your customers, invest in growth or hire exceptional people. We learnt that without a healthy margin, you don't have a business model that works. So we make sure our customers respect that we make a high-quality product and need to charge a fair amount for it." - Dan Mrray-Serter
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How and when to refuse an order
Nothing is more exciting for a startup and scaleup founder than an order. More than a dopamine hit, if your customers are B2B, these orders are often substantial and can make a tough week a great week.
Hence as a founder, I know how hard it is to turn orders down. However, it is sometimes the right thing to do.
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Eight is a lot of legs, David
The Octopus is quite the animal, I keep learning bizarre and impressive facts about them. They are also the namesake of one of the UK's leading green energy providers. Let me spend a moment explaining what that is and why it's important, before telling you why I like Octopus so much.
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What is Earth Day and am I invited?
Yes. Yes, you are invited. We definitely all are.
Today is Earth Day, and Earth Day is for everyone. No matter who or where they are. Now I'm starting to sound like a Miss World contestant, so I'll get to the point.
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Why Tribe first built a community and then a business while on a mission to eradicate modern day slavery
“We would never have considered the product without the community, and vice versa. We saw it as a holistic offering”, Tom Stancliffe, co-founder of Tribe.
Tribe is a business from a boy’s own story, their founders run thousands of miles, traversing though deserts, climbing up volcanos, crossing oceans, rivers and borders. All the while powered on by a mission to end modern-day slavery and child trafficking. To do this they have created a community of people to share in the journey and in turn, built a sports nutrition business to serve this community.
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How Brie Read unearthed a huge problem, hidden in plain sight, and used £100k to set up Snag, one of the fastest growing DTC businesses in the UK.
“Whoa, this is going to work a lot better than we had thought.”
- Brie Read four hours after turning on snagtights.com
This is the blog post to read when you are worried that all the good ideas are gone, and the ones that are left are too niche to consider. Snag is one of the UK’s fastest growing DTC brands, less than three years old and already bringing in £3 million worth of sales a month. And it all started a with a clothing malfunction on Scotland’s busiest shopping street.
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This is how you do it. Lick's ambitious plan for launching a DTC business in the year 2020
"You have to get your brand, product and service spot on and if you still have to rely on paid-for acquisition, you are going to run into problems", Lucas London, CEO and Co-Founder of Lick
Lick launched in 2020 as a multi-product, multi-region, omnichannel, DTC and B2B company. If it sounds ambitious that is because it is, and it is what it is, according to its founders Lucas and Sam, as it is the only way it can succeed.
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Measuring satisfaction at Bloom and Wild
“It was a radical idea, and we have been fortunate that it was even more popular than we expected”.
Aron Gelbard told me how he used Net Promoter Score to find an industry ripe for disruption and how by doing so, he fulfilled his primary goal of making people happy. This is the story of how Bloom and Wild turned the flower industry on its head.
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Things ain't what they used to be. The art of resilience by Cornerstone.
“When he saw me sitting there, he just doubled over in laughter, gave me a pat on the back, took the cash, wrote out the invoice and got two pallets of razors forked around to the car, which my stepfather and I loaded into the boot and back seat. We had our launch stock”.
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