Dan Fleyshman

But going from zero to one million, I can't say it that easy. Zero to one million is really hard.

And so going out there and buying your first duplex and fourplex and 16 units and things like that, practice and getting through the paperwork and dealing with banks and building relationships instead of just skipping to what people see online like, oh, I want to be like Grant and go buy a bazillion dollar complex. No, you don't. You don't.

And so going out there and buying your first duplex and fourplex and 16 units and things like that, practice and getting through the paperwork and dealing with banks and building relationships instead of just skipping to what people see online like, oh, I want to be like Grant and go buy a bazillion dollar complex. No, you don't. You don't.

Go literally go look at duplexes, fourplexes and 16 units before you decide to go for the, you know, try to take down the whale. Anyways. Okay. Someone raised $7 million and they did scale their business. They went from 9 million to 20 million. Like we were just talking about. Yeah. Boom. Things are going great, but now they need more money.

Go literally go look at duplexes, fourplexes and 16 units before you decide to go for the, you know, try to take down the whale. Anyways. Okay. Someone raised $7 million and they did scale their business. They went from 9 million to 20 million. Like we were just talking about. Yeah. Boom. Things are going great, but now they need more money.

hmm sometimes that's confusing to people they go see these huge companies like why does fanatics need to raise hundreds of millions of dollars why does this company need to raise tens of millions of dollars why is uber and airbnb and all these big brands that are doing billions of revenue raising more money well scale is expensive and cash flow is hard let me give you a quick example i had my energy drink back in the days we were in 55 000 retail stores

hmm sometimes that's confusing to people they go see these huge companies like why does fanatics need to raise hundreds of millions of dollars why does this company need to raise tens of millions of dollars why is uber and airbnb and all these big brands that are doing billions of revenue raising more money well scale is expensive and cash flow is hard let me give you a quick example i had my energy drink back in the days we were in 55 000 retail stores

And I was in Costco. I was really excited for Costco. But their order, the first one, was only for a couple stores, which is still six figures because their stores are big and they buy it by the truckload. Their next order was $2.2 million. That means I need to come up with a million dollars. So let me give you guys a real example. Let's say they order $2.2 million on January 1st.

And I was in Costco. I was really excited for Costco. But their order, the first one, was only for a couple stores, which is still six figures because their stores are big and they buy it by the truckload. Their next order was $2.2 million. That means I need to come up with a million dollars. So let me give you guys a real example. Let's say they order $2.2 million on January 1st.

That order is for March 1st or April 1st delivery. It's always going to be 90 to 120 days out. I still have to pay $1 million-ish out of the $2.2 million to make the drinks and another $50K to $100K in shipping and storage to get the drinks delivered there. It goes there March 1st or April 1st. Let's just say March 1st to make it even easier.

That order is for March 1st or April 1st delivery. It's always going to be 90 to 120 days out. I still have to pay $1 million-ish out of the $2.2 million to make the drinks and another $50K to $100K in shipping and storage to get the drinks delivered there. It goes there March 1st or April 1st. Let's just say March 1st to make it even easier.

It gets there and now they have net 30 or net 60 terms to pay me. And so now, let's say I get there March 1st, they don't actually have to pay me until May 1st. But wait, there's more. What if my drinks do well and I sell through at like an 18% rate? And they're like, oh, we're going to give you a nationwide order. We're going to expand to a $7 million order. Sounds cool, right, Hunter?

It gets there and now they have net 30 or net 60 terms to pay me. And so now, let's say I get there March 1st, they don't actually have to pay me until May 1st. But wait, there's more. What if my drinks do well and I sell through at like an 18% rate? And they're like, oh, we're going to give you a nationwide order. We're going to expand to a $7 million order. Sounds cool, right, Hunter?

Except they haven't paid me for the first one. So now I'm not due payment until May 1st, right? Five months from the order was January 1st. So I've been out this million dollars for five months. I've been spending money on marketing to help it sell well there, another six figures.

Except they haven't paid me for the first one. So now I'm not due payment until May 1st, right? Five months from the order was January 1st. So I've been out this million dollars for five months. I've been spending money on marketing to help it sell well there, another six figures.

I spent 50K to 100K on the trucking, all my staff, the travel, people setting up the displays and merchandising in all the stores. May 1st isn't even here yet and now they want $7 million. That means I need to come up with $3 million more capital to manufacture for the $7 million order. What am I gonna tell Costco? No.

I spent 50K to 100K on the trucking, all my staff, the travel, people setting up the displays and merchandising in all the stores. May 1st isn't even here yet and now they want $7 million. That means I need to come up with $3 million more capital to manufacture for the $7 million order. What am I gonna tell Costco? No.

If I say no, they're going to be like, okay, well, we'll just buy Monster or Rockstar. Forget you. This is a real-life example, by the way. I went through this. And so if you have a brand or a business and it's going well, you need more money for cash flow. Because you are going to go through this real life. You have a clothing brand, a product brand, a food brand, a beverage brand, whatever.

If I say no, they're going to be like, okay, well, we'll just buy Monster or Rockstar. Forget you. This is a real-life example, by the way. I went through this. And so if you have a brand or a business and it's going well, you need more money for cash flow. Because you are going to go through this real life. You have a clothing brand, a product brand, a food brand, a beverage brand, whatever.

That's a physical product. Your cash flow will be very, very tight because you're always going to get paid on net 30, net 60, or God forbid, net 90 terms. And that is very hard, especially if you do well.