Thread by @Codie_Sanchez

We've ALL had deals go super wrong.

1 Deal did 500% return in 3 years, and this early 1 also went to ZERO

A THREAD about a deal of mine and the dark side of investing in SMB business...

👇👇

Invested in a very small CPG company to take a large minority position.
- $50k invested
-$50k in debt
- $$$$$ in time & stress

This was a TON of $ for me.
(Dang that's still a lot of $, I hate losing $20 bucks)

My Pain in 60 Seconds:
- the company went to $0.
- lost all the $
- ended up ruining my friendship w/ the founder
- wasted a year trying to fix it
- now can’t even look at this type of food 🤢

What I learned?
#1 Trust (kinda) but verify

The founder was a friend
- She said they were doing $1mm ARR
- They really did $1mm lifetime rev over 3 years😩

My fault. - I just took her word. Dumb.

#2 Long term things, long term people
- Like @naval says, this is the goal
- a red flag, humans who don't have long term friends, clients, partners

Short term people = high likelihood of long term f*ckery

#3 No celeb biz's; Sory Kim K
- just my preference BUT
- I want my operators focused on profits not profile clicks

If I see someone seeking fame, I'm out.
Make the $, then chase the crowd.

#4 Like the mob says, it's not personal it's biznass

I always regret when I forget to look at the #'s and focus on narrative

A $100k lesson for a kid who didn't have it

Means - not going to forget it

TL;DR

1. Trust (kinda) but verify
2. Long term things, long term people
3. No celeb biz's; Sory Kim K
4. It's not personal it's biznass.