In four years of starting, growing and selling a small tech company, one the most immutable facts tattooed on my brain was the difficulty of overcoming incumbency. "BUT THAT'S HOW WE'VE ALWAYS DONE IT" are some of the most powerful words in the human psyche. Intelligent, thoughtful guys, like David Cummings, will tell you that your solution/product/service must be 10x better than the established, ingrained competition to compel change. That's a tough bar to chin, right?
This fact rattles around my brain all the time, when I see a new product or talk to friends about my/their crazy ideas. HOWEVER, I was hit with the realization this morning that I haven't begun to apply it to my business in real estate finance. Thankfully, it didn't stop me in my tracks, because I had the thought crossing Peachtree Street.
I source capital (generally institutional Limited Partner equity) for real estate deals and strategies. If you're trying to build it or buy it, I'll help you pay for it. How on earth am I supposed to make the case that working with me is 10x better that how you have always done it? How you have always done it has likely already made you wealthy and successful? How am I to unseat what got you this far?
- Is the capital I can access going to change your economics tenfold? - NOPE
- Is the intelligence I/BMP bring to your transaction ten times better than what you know? - UNLIKELY
- Will you be ten times more productive by handing this responsibility to me? - NU UH
- Will access to my world of funds grow your business ten times over? - I HOPE SO
The answer to each of these individually is NO. My task this weekend is to concisely make the case that together the answer is demonstrably YES.
I better get to work. Have a great weekend!