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David Grau Sr.

๐Ÿ‘ค Speaker
459 total appearances

Appearances Over Time

Podcast Appearances

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Most entrepreneurs aren't wired that way.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Yeah.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

So, you know, the work that I do, you know, building with the end in mind is if you want to build a business, I'll call it equity centric, right?

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

We have to set up an entity structure as corporate LLC.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

We have to give it shares of stock.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Well, shares of stock have to have a value.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Well, in order to have a value, you have to have profits.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

The business has to grow on the top line, be efficient enough to bring 10%, 15%, 20%, 25% to the bottom line.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

That allows it to be appraised.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

That appraisal gives you a price per share.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

And now we can sell some of that stock.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

But before you can do that, you have to build it.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

with that end in mind.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

And so that's not the treadmill model, right?

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Because nobody invests in the treadmill model.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

It's just you.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

And if something happens to you, you fall off that treadmill, you know, death, disability, or you quit, you lose your licensure.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

What happens to the business?

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

Well, it doesn't last very long.

Escaping the Drift with John Gafford
Building a Business That Outlasts You (David Grau Sr.)

So that business is not investable.