Sit down with Clay Clark and Thriver of the Month winner Larry Poor as Clay takes Larry through the necessary steps to build a team and get funding for his business idea and how having the right attitude is key to your success.Sign Up to Watch
[MUSIC PLAYING] udemy for execution, start a business
-What's up, guys? Daniel McKenna here, and today, you get to sit down with Clay Clark and Larry Poor, one of our Thrivers of the month. And they're discussing lazy thoughts versus challenging thoughts after you start a business. It's all about your attitude, how you approach a certain situation, how your attitude relates to that situation, and how that makes all the difference in the world. Very powerful stuff here. Let's get right into it.
-Larry Poor, how are you, my friend?
-Hey. Great, Clay.
-Hey, real quick, for all the Thrivers who are out there watching, what month were you the Thriver of the month?
-It was last month, so that's already November.
-November! Unbelievable. November to remember. What was your strategy to win, just for-- there's people out there who want to win, what was kind of your move? What was your go-to move?
-My go-to move was answering the most questions correctly, because I've watched all of the videos, I've competed every month, and--
-And so I've just tried to absorb what I was hearing and answer it correctly.
-Well today, we're talking about raising capital after you start a business. And specifically you had asked maybe some ways to raise capital and how to do that. And specifically, we're going to talk about kind of the mindset you have to have before you go out there and raise capital. And so it's called lazy thoughts versus challenging thoughts.
Are you from familiar-- do you read a lot of Henry Ford or have you ever read his autobiographies or anything?
-No. Mostly through the Thrive 15 videos.
-I guess it's biographies. But Henry Ford has this quote that I love. He says, "Thinking is the hardest thing there is, that is why so few people engage in it." And here are just a few things that I see all the time that people do, and I'm sure that you don't do, this but I just want to help you because I see a lot of people who say, well, I can't raise capital because of this.
And so one of these they say is they say, I can't get x because of y. So example that we see the most when I work with clients, specifically a few years ago I worked with a doctor who was really struggling to raise capital. And he said, I can't get funding because you're telling me that I have to have a team.
He says because of-- he says basically he doesn't know anyone. So he's saying, hey, look. I can't get funding because I don't know anybody and you're telling me I have to build a team. You see what I mean? So the entire time, the thought doesn't ever get beyond that. So as we go through the training he says, I know I need to have a team.
A great team and my pitch deck. I need to have a great team, but I can't raise-- I can't start a team, because I can't my funding, because I don't have a team. I don't know anybody. And he gets stuck. Another one you see is, you say, I can't do x because of y. So people say, well, because I-- like, example with tech companies.
Because our website doesn't work, I can't do anything else. Or because I don't have capital, I can't do anything else. Or because I don't-- So I wanted to ask you. Like with your business in particular, as you've been looking at trying to raise capital and that kind of thing, has there every been anything there that you've seen in your life or in your business where you say, maybe that's a thought you've had it.
I can't get-- what are some of those things where you said, I can't get this because of that?
-Well, for me, it was certainly I can't get-- I'll call it investment or funding, I guess, is the same word because I am not really aggressive enough.
-I mean, I really-- I have plenty of friends and potential investors--
CLAY: OK. Because not aggressive enough. OK. Now, I think the one thing people deal with in business a lot is, they say, I can't do-- I can't really grow my company until I get the capital. Or I can't begin to raise capital until I have-- that kind of thing. And so today, I want to teach us specifically what we need to do to raise that capital.
But I just want to encourage you to not think this way anymore, OK? Because we want to have a different mentality. So if anybody's watching this, or for you, don't say I can't get x because of y, or I can't do x because of y. Just totally just toss those ideas. So moving forward to say, I can get funding because I am aggressive enough.
And I know it seems like just a little stupid thing, I know it seems like it's a little Jedi mind trick, I know it seems like it might be hacked psychology, but I honestly will tell you all the time when I'm in meetings with investors, or to raise money for a project, or to do a big deal I literally-- just last Friday, I was in a meeting, a crazy meeting. I can't believe that I was in that meeting.
A meeting that was filled with-- the room was filled with unbelievably talented folks who are very, very wealthy who are the process of potentially doing something awesome for Thrive. And when I was there, before I walked in I had to say, I am going to have a great presentation because I'm qualified to be here.
Even though sometimes I revert back to the kid that stuttered, and the guy who didn't have a lot of self-confidence, and somebody who grew up without a lot of money, that's-- I just encourage you to start to make those declarative statements. I would literally frame it and put it above your monitor.
And anybody watching this, if you have a limiting belief, I would take the reverse of it, and frame it, and put it on your monitor, on your mirror. I would being to say, I can get funding because I am aggressive enough. And just saying it-- I promise you, the more you say it, the more you'll believe it. It just works.
-Remove the word not.
CLAY: Yeah. Get rid of it. Just blow it up. Annihilate it.
-Now the next thought-- this was taught to me by Lori Montag, and I'm going to have our program observer put her stats up on the board. But Lori is a mentor who started a company. It's called Slap Watch. She was one of my mentors and she also started this thing called the Zany Bands. And I'll have my program observer put it on the screen. There's an article that appeared online with her on CNNMoney.com.
But she sold over $60 million of Zany Bands and Slap Watches over a four year window of time. And this was a lady who had started a photography business and had done pretty well it. Didn't start it though until she was almost 40 and then she basically put everything into this crazy idea that she was going to-- you know those bands that the kids wore, those rubber bands? She had this belief that you could make them into shapes of pirate ships and houses and alligators and little things and she could sell those. And she sold $60 million of those.
And so one of the things that Lori taught me, early on in my career, and I want to share it with you, is she has these challenging thoughts. And she says here, "If I can't do X, how can I do Y?" And it says, "If I can't do X, how can I still do Y?" And the reason why she would ask these kinds of questions is she would always say, I might not be able to do this, but I can do this.
So let me show you how Zany Bands were funded, without giving away anything that's confidential. I just want to share with you how she did it. She basically said I don't have the money to do it right now and I don't have the connections, but I can still do, right?
So if I can't do X, if I don't have the money, how can I still get this project started? If I don't have the money, how can I still get the project started? If I can't do X, if I can't mass produce it yet, how can I still do something? Don't let the things you can't do stop you from doing what you can do.
So I'm going to show you what she did. So she was working with me at a mortgage company called ZFG Mortgage. And I was working as a consultant and she was working as a consultant as well. And this was in 2007, maybe, 2006, 2007.
And so, she's over there and she says I have the big idea, like so many other entrepreneurs do. I have the big idea, she says, right? Have the big idea. Well, while she has that big idea, she doesn't have the money. She's in her, at that time, I think like mid '40s, and she's like I don't know how to do this.
If you were her, what would you do? Maybe in your situation right now but if you were her, what do you think she did, when she said, I don't have the money to get this going. She recently sold a business. She had some money but she didn't have the $60 million. She had money but not $60 million.
But what do you think she did first? Because she couldn't mass produce them, what do you think that she did first?
-Well, she could've produced a lower quantity. I mean, go ahead and get the product out there and start selling it to some degree.
-Here's what I'm going to show you. That's a great, great guess. I'm going to show you what she did here. She realized and I want you to realize this, too. I'd like you to write this down. She realized that she had to build a team.
Like when you get into investing, the first thing the investors look at, if you give them a pitch presentation, they'll flip and look and go, well, who's on Larry's team here? That's what they're going to do first. So she decided, I'm going to go ahead and start to assemble a team.
So what you did is she researched people who had sold, so she researched success stories. And so basically, she researched the people who had already done what she wanted to do, people had come up with an invention and put it in retail stores. And she found this guy named Jim, Jim Howard is who she found.
Now, how did you find Jim Howard? This is going to blow your mind. She found Jim Howard by going to trade shows. So she literally didn't know where to go, but she knew that she would take her product to the trade shows and begin to just network and to look for people who were big time.
-She finds this guy Jim Howard. Now, real quick, she's over here in Tulsa, Oklahoma, right? She's over here in Tulsa. And somewhere down here by Florida ish, she's over here, she finds this guy in Atlanta, named Jim Howard. She finds him at a trade show.
Now if you find somebody a trade show who's a mega success story, do you feel like they're going to probably call you back or be easy to reach or be wanting to work with you?
-Not less you do something, you wow them or give them some reason.
CLAY CLARK: Yeah, so she says, look, Jim, I realize that I need you on my team to go to the next level, so I am willing to fly to Atlanta, I'm willing to fly out there, meet you, share with you my idea. Well, real quick, when she met Jim, how long do you think it took her to meet this guy from the time she had the big idea right here, this is the big idea moment, the little light bulb. From the time she had the big idea to the time that she met Jim, how long do you think that time was?
How many trade shows do you think she went to? Just telling you, she spent months and months and months, and I believe that she spent a little over six months just going to trade shows trying to find this guy.
Now here's what happens. She meets Jim. And I'm going to have you write this down. OK, so the first thing she did, let's see here. I don't have a degree. Can we have somebody help me on this really quick?
-All right. So once she met Jim, though, what do you think happened? What's the benefit of meeting somebody like Jim and building a team? Why is that so important?
-Because he has contacts and knows the business.
CLAY CLARK: OK. So Jim, let's look at Jim. So Jim Howard is a guy who's been super successful. He invented this feather boa that people wore. It was this gimmicky items.
LARRY POOR: Yeah.
-Do you remember that thing?
LARRY POOR: Sure.
-Well, he sold this thing, and, apparently, he sold millions and millions of them. And so because he was successful, or as I call him a GOAT, he was the greatest of all time at what he did. He's top person. He has a team. Do you feel like it was hard for him to find distributors?
-OK, so do you feel like it was hard for him to find the retail outlets to put these in?
LARRY POOR: No.
-And it wasn't hard for him to have them made overseas. It wasn't hard for him to get PR, he knew what company to use. They got it on The View. And The View is, they got the slap watch on The View with Barbara Walters. Got it on The View, he ended up teaming her up with web marketers who knew what they're were doing. He knew all the buyers to get into the retail stores, but she didn't let the idea that she didn't have enough money or enough connections stop her from going to trade shows.
So was she super prepared? No, but what she did is she literally went to a trade show. And just to give the viewers kind of an idea and to give you an idea, you go to these trade shows, normally when you go to a trade show, it's going to be like this, and it's going to be filled wall to wall with people just like you. And there at one booth in this trade show of hundreds of booths, there is Lori.
But she knew that at this event or some event, she would eventually run into the big boys, because she knew the big boys went to these trade shows. And the way it works in retail is that the big boys, the big buyers who buy for Walmart and they buy for Target, they come to these trade shows and look for products that they can buy and sell and basically put into the stores and sell. But she knew if she got to these trade shows, that she would do it. So she might no have been able to afford the mass production of her product, but she could afford the fee to get into trade shows. You see I'm saying?
And she did these diligently. And I remember I got a phone call from her. And she says, I was at the Kennedy mansion at a friend's wedding, Kevin Rube if you're watching, I was at Kevin Rube's wedding, and right before the wedding started she calls me and she says, "Hey, you remember I always wanted to be a multimillionaire?" And I'm like, yeah. She's like, "Guess what? I am." And her products were just flying off the shelves.
But I say all that to say it all started with asking different questions. Instead of saying I can't get funding, so I can't do this, or I don't have all the connections, so I can't do this, she decided to keep on moving and do what she could do.
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