CheatCodes - Being uncomfortable, how to raise money without losing control, and avoiding stupidity

Be uncomfortable now

"Be uncomfortable for a few years to be comfortable for the rest of the years to come"

Delayed gratification.

If you don't know this term, you should.

It means that you shouldn't chase the goals / tasks which provide instant gratification (AKA instant success and happiness) and instead should tackle the goals / tasks that provide delayed gratification. (AKA: Later success and happiness)

Why? Simple.

The best rewards NEVER come from instant gratification.

The best rewards usually come from solving hard problems, or doing hard challenges - and both of these take a long time.

So, if you embrace the ability to do hard things with no instant gratification, then you set yourself up for huge rewards in the future.

Be uncomfortable.

You'll grow faster, learn more, and reach higher goals.

Life rewards those who delay their gratification.

How to raise money without losing control of your company

A very, very common mistake that a lot of entrepreneurs make is raising huge sums of money from the wrong people, losing control of their company, and essentially creating a very well paid job for themselves.

It happens every single day and it breaks my heart.

Luckily for you, I have some tips on how to avoid that: (So you don't break my heart too...)

Only raise when you have traction

Far too many people raise purely based on an idea.

This is bad. Very bad.

Not only will you find it harder to raise money, but you will also be given less favourable deal terms and lose a huge chunk of your company purely because you're a riskier bet.

Always secure traction before seeking investment. Always.

2.

Raise once you hit a milestone.

When you hit a milestone you justify the reason for raising money, plus it gives you immense momentum to take forward, which investors love.

Some milestones that are good to raise after include:

• Hitting £10K a month in revenue

• Securing your first 10, 25, 50 customers.

• Achieving product market fit.

There are many more, but these are some concrete markers you can use for your own company.

NOTE: Make sure, when you raise, you talk extensively about the growth opportunities and use these milestones as a springboard to do so. It sets your company on a trajectory in the investors mind and makes them more inclined to take you seriously.

3.

Choose your investors wisely.

DO NOT just raise from anyone.

Make sure your investor:

• Understands your industry. (Ideally they've built a company in your space before)

• Has a good reputation with previous investments. (Don't be backed by a failing investment firm)

• Can actually add value. (Money isn't adding value. Contacts, expertise, etc. IS)

Raising from anyone who will give you money is a risky play.

Sure, it could work out, but it could quite as easily blow up in your face and cause you way more stress than you need.

Take your time, choose wisely, be ruthless about who you let in.

Avoid Stupidity > Seek Brilliance

This excerpt is from the book "The Great Mental Models" by Shane Parrish.

Shane Parrish publishes some incredible material and this here is a perfect example of what I call "logical wisdom."

Logical Wisdom: Advice that sounds straightforward, yet few people follow it.

So, what is Shane referring to when he says "stupidity" and how can you spot it, and avoid it?

Avoid stupidity when making important decisions that can affect your life going forward.

This includes, but is nit limited to: Who you work with, What you do for work, Who your partner is, Where you live, Who your friends are...

It's extremely difficult to seek a brilliant idea, or to befriend a truly brilliant person. They're rare, and finding them often involves more work than they're worth.

However, avoiding the "stupid" people in these decisions is far, far easier. First of all, there are more of them. Second of all, you can spot them a mile away.

So, next time you're tasked with making a major decision, think of Shane. Are the people involved in this decision "stupid" or not?

If not, you're always making the right decision.

NOTE: "Stupid" has nothing to do with intelligence. It takes into account people's habits, ambitions, and character. Intelligence is actually a very small part of whether someone is "stupid" or not. If you disagree, then I have some news for you.....