Sam Trumps

What do you do when a client doesn’t pay you? It happens to everyone eventually. And it always sucks. I want to make it a little easier: Here are my 9 steps to deal with it. 🧵

How do I start multiple companies at once? Earlier this week, we launched Scalepath. It’s a unique CEO peer network for SMBs. Here are the steps I used to do it. (Without making myself a job!) 1st Step: Identify the right partner. Sam joined my Associate program last summer. I hire promising people. Their full-time job is to find their next big thing. We spent 6 months exploring multiple (bad) ideas. And threw away all of them. 2nd Step: Explore a good idea. Inspired by my Twitter DMs, we had an insight: 80% of business problems are universal. But no trusted source for help. We did 50+ interviews with SMB owners. And learned these people had an unfilled want. 3rd Step: Validate a solution. This was a typical Lean Startup move. We mocked up our solution (online community, playbooks, experts). Then ran it by target customers. And sold it to a dozen new members on the spot before launch! 4th Step: Define our partnership. My Associate program is no-strings-attached. They can do whatever they want – with or without me. For this idea, Sam and I each need the other. Sam wants the stability of a salaried job but big ownership upside. I want to be helpful to him but not operate. And trade money for more upside. 5th Step: Write a 1-page memo of understanding. We talk it out. Then write it down. Sam: · Works full-time as founding CEO. · Gets salary (50-60% of market rate) and benefits. · Owns just under half. · Shares vest over 4 years. Michael: · Provides initial funding, network, advice, validation. · Board member. · Owns just over half. · Agrees to a Shotgun Clause. We will engage lawyers later. 6th Step: We’re off! We start on a multi-year/decade journey to $100s of millions in revenue. Sam builds the business as the founding CEO. Signing up customers, team building, and making it happen. I do a Chairman role. We talk daily and meet as a team weekly. And be the best partners we can be. That's all I have! What questions do you have? Ask below. Please retweet/like! Thanks, Michael PS- if you’re an SMB that wants to grow, apply to @joinscalepath!

ANNOUNCEMENT: We’re incubating a new business. It’s a CEO Knowledge Platform and Online Community. For small businesses with $500k-$5mm revenue and <30 employees. With something unique: A set of Playbooks for scaling a small business. We call it Scalepath (@joinscalepath).

We interviewed ~30 small business owners. They said two things: "I am making it up as I go along." "I am struggling to scale." If your business has w/ $500k-$5mm/yr revenue... We want your feedback on our proposed solution. Please DM @Sam_Trumps for details!

2nd hire from this process signed his offer letter today: It's @Sam_Trumps! Starts in June. Welcome, Sam!