~Today’s Tip: Sponsors vs. Mentors
“Your heart get tested, and gunplay is only an investment“
Raekwon (Butter Knives ♦ Shaolin vs. Wu Tang)
Takeaway#170: Let’s get disciplined today. CAPEX can be a deceptively large and protracted commitment. Is this machinery with short lifespan and negligible residual value? Is this intellectual property with amortization impacts that shield EBITDA and ATCF for increase total enterprise value? BPM says: Fully understand the impact before stepping into the arena.
EBITDA: Earning Before Interest, Taxes, Depreciation & Amortization
ATCF: After Tax Cash Flow
CAPEX: Capital Expenditures
“Cause we are strictly business and we also got our pride
And if you don’t like it, I suggest you break wide
Suckers steady looking for the m-o-n-e-y and
Thinking that illegal is the best way, so they dying
I ain’t got time to see a fiend fiend out
To give up all his money, and he giving what he got
That’s the way I am, MC Breed cannot be different
Never change my ways for the world or the government“
MC Breed & DFC Ain’t No Future In Yo’ Frontin’ (1995)
Over a decade before we heralded the return of the Motor-City (and its how-we-do culture), Breed and DFC put Michigan on the Hip-Hop map, but also provided touchstones for walking-the-talk. You have to be able to walk away from a deal and keep your “pride.” This ability is critical to make sure that you stay on mission statement and within the organization’s core competency. You have to let people “break wide if they do not fit in your game plan. It is synonymous with the old maxim that you have to stand for something or else you will fall for anything.
Recognize, however, that you cannot change your fundamental DNA as an organization. You can expand and recast your brand, but you cannot completely change the essence. If you are a car maker, you will always be a car maker. You may change the style or the type of cars you make. You may target different demographics but you will still do that fundamental thing. You can be a friendly manager or a difficult manager, but you are the manager, don’t become the customer – just satisfy the customer’s needs, by walking-the-talk.
DON’T BE AFRAID TO WALK ON THE DEAL
DON’T DILUTE THE BRAND