MicroVee: Day 1 at VaynerMedia | Leap Academy [BONUS]

Summary

Summary of "MicroVee: Day 1 at VaynerMedia | Leap Academy [BONUS]"

Introduction

In this bonus episode of The GaryVee Audio Experience, host Gary Vaynerchuk delves into the foundational days of VaynerMedia, offering listeners an intimate look into the company's inception, the challenges faced, and the strategic decisions that shaped its early trajectory. Through a candid conversation, Gary and his guest explore themes of entrepreneurship, financial management, and personal accountability.

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Establishing the Foundation

The episode kicks off with a discussion about the initial setup of VaynerMedia's office space, highlighting the boldness and vulnerability involved in those early days.

• Guest (B) shares the origin of his partnership with Mike, emphasizing the importance of genuine connections:

  "Mike and I met because an employee of his was fascinated by my content and we hit it off in our meeting. He offered wow because he's such a mensch." (00:09)

• The modest beginnings are underscored by the size of the original office:

  "It was half the size of this for context." (00:36)

This segment underscores the company's humble start and the strong relationships that contributed to its foundation.

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Choosing to Bootstrap Over Raising Capital

A pivotal moment in VaynerMedia's early days was the decision to forgo external funding, a choice that brought its own set of financial fears and challenges.

• Host (A) probes into the anxieties associated with limited financial resources:

  "Did you have moments of oh my God, I don't have salary this month?" (00:45)

• Guest (B) provides insight into their disciplined financial strategy:

  "Every time we got money, including that first $30,000, we spent only 15,000 of it." (01:19)

• This frugality allowed the company to sustain operations without accruing unnecessary expenses. Notably, they didn't pay rent for the first 18 months and engaged in bartering to secure workspace:

  "We did not pay rent for the first 18 months of the company... they wanted marketing and we bartered us marketing the space for room in this fake office." (01:19)

This approach not only extended their financial runway but also fostered a sustainable growth model unburdened by external financial pressures.

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Navigating Growth and Escalating Challenges

As VaynerMedia began to scale, the nature and magnitude of problems evolved, introducing more significant and costly challenges.

• Host (A) observes the transition:

  "As you grow, the problems just change. It's not less problems, the problem is more expensive." (02:54)

• Guest (B) reflects on the increasing complexity of issues:

  "Little children, little problems, big children, big problems. No, no. The problems are bigger." (02:58)

This segment highlights the inevitable escalation of challenges that come with scaling a business and the importance of adapting to these changes.

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Embracing Fear and Accountability in Entrepreneurship

A core theme of the conversation revolves around the relationship entrepreneurs have with fear and the importance of personal accountability.

• Guest (B) articulates a profound relationship with fear:

  "I believe the definition of a purebred entrepreneur is having a much better relationship with that fear than most humans." (03:12)

  "I prefer it not to happen. I don't want it to happen, but if it happened, it would feel as though it was because I deserved it." (03:21)

• He emphasizes the necessity of being willing to lose and taking full responsibility:

  "If you really love this game, you have to be in a position where you're willing to lose. And if you lose, you must take 100% of the blame." (03:38)

  "I'm willing to have the humility and the shame and the pain because I chose this course." (03:57)

This portion of the episode delves deep into the psychological fortitude required to sustain an entrepreneurial journey, highlighting the emotional and ethical dimensions of business leadership.

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Notable Quotes

• "Every time we got money, including that first $30,000, we spent only 15,000 of it." — Guest (B) (01:19)

• "I believe the definition of a purebred entrepreneur is having a much better relationship with that fear than most humans." — Guest (B) (03:12)

• "If you really love this game, you have to be in a position where you're willing to lose." — Guest (B) (03:38)

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Conclusion

In this insightful bonus episode, Gary Vaynerchuk and his guest navigate the early challenges of building VaynerMedia, emphasizing the importance of financial discipline, resilience in the face of fear, and unwavering personal accountability. Their candid discussion serves as a valuable blueprint for aspiring entrepreneurs, illustrating that success stems not just from strategic decisions but also from the mindset and ethical stance one adopts throughout their entrepreneurial journey.

Transcript

[A]

So take me there. So you're basically asking Mike and Cass for their office, which is very bold and very, very scary.

[B]

And very honestly, because I want to tell the story. In truth, Mike and I met because an employee of his was fascinated by my content and we hit it off in our meeting. He offered wow because he's such a mensch. But you know, and that's pretty incredible.

[A]

Because they're not in a big spot by then. You know, they have a small and at that point they're giving you their.

[B]

It was half the size of this for context.

[A]

Okay, so that's your office when you get started. Now you decide, if I'm not mistaken, not to raise capital.

[B]

Correct?

[A]

Right. So take me there. Because at that point, and we're in Leap Academy, decided not to raise capital. But at that point it becomes there's some money fears. Right? Like whatever you bring in, that is the salary. So take me to those moments. Like did you have moments of oh my God, I don't have salary this month? Or like take me there a little bit to the beginning.

[B]

I believe that most companies and most people are unhappy and lose because they don't think in terms of saving money.

[A]

Tell me more.

[B]

I will. The reason we worked was every time we got money, including that first $30,000, we spent only 15,000 of it. Like I wasn't hiring ahead of our capacity. I didn't care how long it would take me to build this company. I wasn't in a rush. So how did it go? I think that first year we did well. I mean we did like three or four hundred thousand dollars and that was enough to cover my 180,000 in overhead and whatever T and E traveling expenses and like, you know, computers or just like stuff. But we did not pay rent for the first 18 months of the company. We stayed there for six months. And then there was a co working space down in De Brosa street by the Holland Tunnel called Sunshine Suites. They had this weird little non office office and they wanted marketing and we bartered us marketing the space for room in this fake office. And so by keeping my expenses down, the reason I never feared it is pretty quickly we had months worth of Runway plus I still had some savings personally and I was willing to dip into it.

[A]

Got it. But talk to me in the beginning, there's still some. And again, it's interesting because I'm sure you see it like as you grow, the, the problems just change. It's not less problems, the problem is more expensive.

[B]

Yeah. Little children, little problems, big children, big problems. Like. No, no. The problems are bigger.

[A]

Right. And more scary because there's a lot more to lose also.

[B]

Yeah. I think for some people, I would tell you that I believe the definition of a purebred entrepreneur is having a much better relationship with that fear than most humans.

[A]

Yeah.

[B]

So I'm really okay with losing it all. Oof.

[A]

That scares me right now.

[B]

Look, I prefer it not to happen. I don't want it to happen. I don't do behaviors that would make it happen, but if it happened, it would feel as though it was because I deserved it.

[A]

And you can build something great again. I think that's what you're saying.

[B]

But not even that. Yes, I am saying that. But let me say something more important. I do not believe you're allowed to love entrepreneurship for just the good stuff. If you really love this game, you have to be in a position where you're willing to lose. And if you lose, you must take 100% of the blame.

[A]

Yeah.

[B]

If I was to lose everything or get really hurt financially, that would be my fault. And I'm willing to die on that sword. I'm willing to have the humility and the shame and the pain because I chose this course.