Understanding your startup's worth and how to present that value to potential. Watch the full video — free, no account needed.
Understanding your startup's worth and how to present that value to potential investors. It emphasizes the importance of knowing your valuation rather than letting others dictate it.
And I said, "Who's the highest paid, if you don't mind me asking, between us, who's the highest paid on the roster?" He said, "Stone Cold Steve Austin." I said, "Okay. If you don't mind me asking, what's his guarantee?" He said, "A million dollars." I went, "Okay. I want two." So, he said, "Two million?" I said, "Yes." "Guaranteed?" "Yes." He said, "I'm just curious, where do you get from? Like, what what are you figuring out in your mind?" And I said, "Well, I love Steve, I respect him, but if he's getting a million dollars, where I see myself going is past a million dollars, I think it should be two." And he went, "Okay, I understand that logic. He said, "Here's what I want you to do. I'm going to put you in contact with one of our executives, and I need you to take a couple of months, if it takes that long, cuz I was on the road." He goes, "I need you to understand the business. I
need you to understand the business, this side of the business, from top to bottom, all the economics. >> Wow. I want you to understand that, I want you to understand our cost, overhead. What a great thing to do. Yes, I want you to take the time and put in the work that you say you're committed to in the ring. Yes, I expect that from you, but now I want you to learn the business. Once you learn this business, then you come back to me with the overhead costs are, what the costs are every venue we go into, what the cost of the venue is, what the state tax is. I didn't take 3 months, I I mean, maybe it was just 2 weeks, and it was baptism by fire, and I learned to absorb as much as I could about the business. I went back to Vince, and I thanked him, I gave him a big hug. I said, "I understand now. I'd like to match it at a million dollars, what Steve is getting. Thank you for taking
me through it." And he said, "How much do you think you're going to make this year?" I said, "Well, if my guarantee is a million, I've been going averaging about 50% over my guarantee, so maybe 1.5." He went, "Okay. Now that you've taken yourself through that, now you understand the business, you're going to make $15 million this year." Are you kidding me? Yes. You're not expecting this. No. But he already did the math, he could see where it goes. >> Wow. >> 50 million. Life changing. What was your reaction when he says that? >> Holy >> From 150 a year to 15 million. That's a 100X in income. >> crazy.