Cam Lanier is a man I respect a great deal. He was recently honored as a Distinguished Entrepreneur. The guy has only been responsible for about 20 new ventures that created 15,000 jobs and an aggregate capital formation of something north of $9 billion.
Cam is not only very successful, he is a true Southern good ‘ol boy.
Here are some of Cam’s rules courtesy of the MIT Enterprise Forum of Atlanta. My comments are below his rules.
“Raising dogs on paper” or “The power of the model will fool anyone, including Bubba!”
Anything can look good on paper. Except when you are training the dogs.
“Big boys and little boys can’t play in the same sandbox” and its corollary “Never do a 50/50 split.”
Large and small companies just have different strategies and values and 50/50 deals rarely work.
“It’s gonna take twice as long and twice as much money.”
Always. Start-up businesses never keep their original business plans.
“Management is everything.”
It’s important to understand your own capabilities and where you fit in a business.
“The first $50 million is the hardest.”
Amen to that.
“You can’t out-crook a crook.”
If you find yourself in business with someone who is dishonest either get them out or get yourself out immediately. Life is too short.
“If the ox is in the ditch, and everybody gathers ’round the ox, it’s time to double up.”
If everyone is still supporting a business during times of trouble then it’s time to buy in to a bargain. If they are not gathering around it might be time to go bottom fishing.
“There are only two things that make the world go ’round: the need to love and the need to be loved.”
You have to care about people or they won’t care about you and your business. And by the way, you can’t fake it.
“If you have recurring revenue, you must understand the ‘rule of 78’.”
I love recurring revenue models. Gotta hit your numbers early in the year and you must understand churn.
“Free cash flow is the only thing that really matters.”
If a business can’t buy itself over time, it isn’t worth owning.
“Everybody’s got a number.”
Entrepreneurs will quit working hard once they reach their number. A smart entrepreneur will know when they hit their number and know that it’s time to move on. My number is written down as a goal. Is yours?
“SPDWUPJCD”
Successful people do what unsuccessful people just won’t do.
