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About The Guest
Jared Yellin is CEO & Co-Founder of 10X Incubator. He is a non-technical tech founder who found a way to scale his original tech company with zero dollars invested to over 40,000 paying users from around the world.
After exiting his first venture, he partnered with Grant Cardone to launch the 10x Incubator, with the goal of building, scaling, and selling 10,000 tech companies in 10 years. The 10X Incubator will democratize the tech industry by creating an even playing field for all.
- 00:00 — Jared Yellin’s Origin Story
- 10:42 — What Is The 10x Incubator?
- 26:08 — How Is 10x Fixing Everything That’s Wrong With The VC World Right Now?
- 32:55 — How To Become A Successful Entrepreneur?
- 44:11 — Getting The Right Ideas To Start A Business
- 45:43 — Researching Product Market Fit
- 46:48 — What Is The ‘Pink Ocean’ Concept?
- 50:11 — When Should A New Founder Go All In?
- 53:49 — How To Get Your First 50 Customers?
- 48:36 — Jared’s Advice For Entrepreneurs
- 56:12 — How Can People Connect With Jared Yellin?
- 56:25 — What Was The Biggest Challange Of Jared’s Career?
- 58:00 — What Is An Unpopular Opinion About Startups?
- 59:23A Book Or Podcast Recommendation.
- 01:00:04 — If Jared Could Tell His 20-Year-Old Self One Thing What Would It Be?
- 01:00:30 — What Does Sucess Mean To Jared?
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What is the Success Story Podcast?
On this podcast, you’ll find interviews, Q&A, keynote presentations & conversations on sales, marketing, business, startups, and entrepreneurship.
The podcast is hosted by entrepreneur, business executive, author, educator & speaker, Scott D. Clary.
Scott will discuss some of the lessons he’s learned over his own career, as well as have candid interviews with execs, celebrities, notable figures, and politicians. All who have achieved success through both wins and losses, to learn more about their life, their ideas, and insights.
He sits down with leaders and mentors and unpacks their stories to help pass those lessons onto others through both experiences and tactical strategy for business professionals, entrepreneurs, and everyone in between.
Machine Generated Transcript
people, incubator, founders, company, day, money, build, moment, tech, world, launch, idea, cashflow, product, startup, software development firm, create, called, business, building
Scott D Clary, Jared Yellin
Scott D Clary 00:00
Welcome to success story the most useful podcast in the world. I’m your host Scott D. Clary. The success story podcast is brought to you by the HubSpot Podcast Network. The HubSpot Podcast Network has incredible podcast like the gain grow retain podcast the podcast is hosted by a Jeff Bruns, Bach and J Nathan. Now gain grow and retain is built to inspire SAS and technology leaders who are facing the day to day challenges of scaling hosts, Jeff and Jay share conversations about growing and scaling subscription businesses with a customer first approach. If any of these topics sound interesting to you, you’re going to like the podcast creating more brand advocates SAS as a predominant model for business, customer success at scale, or the challenges of integrating new tools with CSM some of these topics pique your interest, you’re going to love the podcast you’re going to love gain, grow, retain, go check it out wherever you get your podcast remember gain grow retain on the HubSpot Podcast Network. today. My guest is Jared Yellin. He is the co founder of The Tenex incubator. Jared is a seasoned entrepreneur, he built his first companies into it from the ground up with $0 invested from VC. So he did it himself. He grew it to over 40,000 paying users from around the world. After he grew that he eventually moved away from into it. And now he decided to scale and sell 10,000 tech companies in 10 years, he partnered with Grant Cardone to create the 10x incubator, the 10x incubator. His purpose is to democratize the tech industry by creating an even playing field for all and of course, we’re going to get into how exactly he does that. So what are we going to what we spoke about Jared origins story, how he built his first company, how he found the right people, how he scaled it, and some of the failures that he experienced some of the money that he lost. And of course, all the lessons that he’s learned the hard way that now he teaches entrepreneurs that they don’t have to repeat those mistakes. We went into a few different things we spent, we went into a little bit of mindset, so quality of life success as an entrepreneur as a concept. And then we dove into some more tactical things, how to find the right ideas required to start a successful business, how to establish product market fit, how to establish the right business model, what a pink ocean strategy is, and why the perfect business that he looks at when he’s investing or mentoring an entrepreneur, why he looks for a pink ocean business. We spoke about business models, we spoke about founder focused investing, we spoke about finding your first 50 customers, and then some other basically some awesome lessons from both all the tech companies that he’s worked with as part of the 10x incubator, as well as all the lessons that he’s learned over his time scaling his first company to over 40,000 users. So let’s jump right into it. This is Jared Yellen he is the co founder with Mr. Grant Cardone of the 10x incubator.
Jared Yellin 03:16
Scott, I’m fired up to be here. Thank you for this honor. I can’t wait to share with you and your community. To me it all started when I was 20 years old. I remember this day distinctly, I woke up and I realized, eventually I’m going to be a dad. And I knew it wasn’t when I was 20. I don’t know many young men that think about being a dad when they’re 20. But the reason I was was I started to reflect on my childhood, and my parents went through a really intense divorce when I was young. I’m sure there was plenty of more challenging and more difficult divorces than theirs. But it was it was darn intense. And if somebody were to ask me, What’s one word to define your childhood, I would have said loud, like there was just nowhere to go for peace or serenity or or anything. There was perpetual fighting, arguing, moving. And it was it was super intense. And when I was 20, I was thinking to myself, I have to make a decision today that creates a better experience for my children in the future. And as I was thinking about what type of dad I wanted to be, there was this word that showed up for me, Scott, and that word was freedom. I’ll never forget, like the moment when I’m like, Oh my gosh, that’s, that’s my outcome. Like, that’s my non negotiable and like it hit me hard and like, well, what is freedom? And I started breaking it down to these 12 different categories of freedom from from time to career to geographical to financial, and I went really deep relational. And I’m like, Okay, this is amazing. I know exactly what I want for when I’m eventually a dad. But I don’t know anyone that has this. There’s not one person I’ve ever met that I can model that has what I have to have my non negotiable for how become a father and as I started thinking about that, I realized that if you want what no one else has, you have to do what most won’t do. And for me, that was entrepreneurship. So fast forward to this very moment. 16 years later, I’ve committed to entrepreneurship and it produced that outcome. I have a beautiful little daughter who’s five years old. Her name is Tilly and a little rock star son. His name is Riker, and He’s two years old. And I have that freedom, career, financial, geographical. And it’s because I just went all in and immerse myself into entrepreneurship. So I’ve had a really good run. In many ways, I’ve had some big successes along the journey. And I’ve also had some absolute beautiful challenges to 10 years ago, I launched a company called syndicate. And just so everybody knows, I’m what we call a non tech tech founder. That means there’s not one engineering bone in my entire body. I know how to write marketing copy, and I know how to sell the vision for Cinda was to build a SaaS platform software as a service. And specifically, I wanted to build the simplest marketing software in the world that was pre populated with content for every major industry. Now, in my mind, that sounded awesome. Like, I’m like, wow, that will revolutionize the marketing industry, democratize marketing, but I didn’t really know where to begin, and I had the money, but I don’t want to, like throw it at a concept. So I figured, let me buy a little bit of time. So I can get clear on what this will actually be. So I started selling myself as a copywriter, I got to really high profile people’s give me a shot thought leaders in their industry. And we did a performance deal where I would earn 30% of any new business that my campaigns would produce. And I made them millions of dollars, I even surprised myself, like it just really worked. And as a result, I made quite a bit of money. But more than the money, they told everybody about me. And within 14 months, those two clients became 400 clients. And I was running this, this massive digital and creative agency for thought leaders in a big office with a big team, and extraordinary culture, we were making a ton of money. But for me, it was a means to an end, I really want to launch that tech product. And in 2013, I had clarity of the product. And I remember that moment, I’m like, Okay, let’s do it. I’m clear, I know exactly what it needs to do. And I interviewed 12 Different software development firms all throughout the US and I ended up hiring one based out of Boston, they had a really good track record. And they said it would take 10 months, and $750,000 to build the minimum viable product. So I went all in on it. I funded it myself, I was so pumped. 10 months came, it was my moment to see what they’ve built. And they came to me in that meeting. And they said, Jared, we have some really good news for you. And that means they also have some really bad news for me. So I’m like, Okay, what’s the some good news? We’ll start there? And they said, well, there’s some good news is what we’ve built, so far is really stable. I’m like, That’s awesome. Congratulations. I’m like now what’s the some bad news? They said? Well, there’s some bad news is we just completely miscalculated this, it’s gonna require another one and a half million dollars of development to finish it. So in that very moment, I became what we call a statistic, because for non tech tech founders, that is the norm, like that is the norm because you just don’t know what you don’t know. But for me, there was so much silver lining in that moment. And the silver lining was this one engineer on the team. His name is Mani and before Mt. He was working with me, he lived in India, when he lived in India, he started his own software development firm in a little apartment that his entire family lived in. And that firm in three years went from that to 100 employees. And outside of being a wonderful and talented engineer. He is an absolutely extraordinary leader, a mentor to engineers, which is why he was able to grow. In 2011, he sold that company because he wanted to move to the US with his wife and start a family here. And and he did he moved to the US guess where he was living on the end of my street where my original office was. So he could have been anywhere but there and we wouldn’t have met because when he got here, he had no money. He had no car and he had no bikes, we had to walk to work. And when he walked out of his apartment building, my office building was literally right there. Like we just collided. So in 2014, I said, Mani, I’m ending my relationship with this vendor, I want to invite you to become my CTO, and he said, Jared, that would be a dream come true. And that was a defining moment. Because in that moment, I was able to do the right thing by sending and we started building our own tech team, we hired in the US heard a few people in Canada. And then we hired 12 people in India, that Mani previously worked with. And the thing with India, if you’re in tech, if you can crack the code, you’re in extraordinary shape, because the talent is off the charts. The commitment is absolutely extraordinary. And obviously, economically, it works. Well. The only catch Scott was these were all contractors. And it’s hard to retain contractors anywhere. But especially in India, because in India, contractor income is not recognized by banks, so they just can’t get loans for anything. And eventually they quit because they’re gonna want to buy a house or get a car and they literally can’t get it. So I wanted to solve this. This was more than just my engineers. They’re just like my India family and I wanted to retain them because they were really good. So I went through a three year process to set up a company in India that I personally owned and in 2017 I I had it set up, I hired the team, the current team. And I doubled this team that month, because just easier to recruit employees versus contractors. And that was my catalyst from that moment until today, we have well over 40,000 active paying users on the platform. There’s 40 people on our team now, we went remote about five years ago. But really the exciting, and the beautiful part of the story is what happened in 2020. So I’ll pause there, and we can go deeper into notice.
Scott D Clary 10:25
Yeah, dude, it’s good. You don’t need you need my input, man. This is your story. And, and I actually, I actually love how this dovetails into what you’re doing right now at TEDx. Because most people at this point, they would have at least taken a couple months off, but you just jump right into it. So walk me through, walk me through what’s happening with 10x. And why you’re even doing what you’re doing now. Because 40,000 subscribers users, that’s enough to retire most people, you probably could have exited that multiple times over. So what’s what’s happening was into it now. And why did you want to do something else?
Jared Yellin 10:58
Yes, it was actually, it was April of 2020. I woke up one day, and I realized, I’m officially obsolete. It’s into it. Like it was awesome, right? That should be every entrepreneurs dream to see, you know, like, become not needed. Right. So that was me.
Scott D Clary 11:12
I don’t want to become obsolete. Even even that story. I like a lot.
Jared Yellin 11:15
Yeah. So I what I did was I realized I was obsolete, but I wasn’t sure if my team realized I was absolutely I still felt like they thought that they needed me. So I’m like, let me make a declaration right now. So that they recognize that they don’t need me. So I set up a meeting on zoom with my top four people that have been with me pretty much since the beginning. And when they got onto the zoom, they were all there and I said, I have an offer you can’t refuse. And they were excited because I’m a maniac. And I do crazy things. I’ve done things like this before. And I held up for stock certificates. And they went nuts. They were like, Oh my gosh, like, what does it take for us to get those? And I’m like, that’s the wrong question. I’m like, I’ve already assigned them to you. The right question is, what does it take for you to keep them? So I’m gonna answer that question for you. What it takes is for you to keep me obsolete. And as long as you do like the moment we know that I’m officially obsolete your eyes. I know I’m obsolete in my eyes, but obviously in your eyes is when it fully vests. And they did it took about 45 days, and they just phased me out of everything. Like from promotional from bizdev relationship capital is faze me out at this point. It’s been 10 minutes a month. And it’s really just to say hi to everybody. We have one big team meeting a month I jump on, I say Hi, this is like my original entrepreneurial family. And I let them run the show. And for the first time in a decade, I had a completely clean canvas. I have young children, as you know, very happily married, our life is preset because Cindy has provided for us very well. And I was at this really unique moment where I realized like I could do anything right now. But what should I actually do? And I just felt this calling that this was my moonshot time. This was the time to do something that would shake the world up, or I’d go down trying but this was my moment. And as I was thinking that way, my goal what you kid for some moonshot like what what is my moonshot like? We all have a moonshot. What is my moonshot? And I realized my moonshot is to do what I just did with sin, do it. But 10,000 More times by 2031. Now, that’s ridiculous. 10,000 of anything is absurd. But that’s what a moonshot is, right? Like, it should make you sweat. It should make you feel like in moments that you’re like, paralyzed, and other moments later, you’re like, wildly enthusiastic. So that was my moonshot. So I called up money. And I was still my CTO, it said, do it and I said, money. I have something I’m going to do with or without you. But I would like you to do it with me. And what that is, is I want to launch 10,000 tech companies in 10 years. Are you in? And his exact words were? I’m in? Because it’s you. But Jared, I have absolutely no idea what you’re talking about. So I said, Okay, let me let me explain. We’re going to launch a tech incubator. But this is going to be more than any other incubator or accelerator where typically, you’re getting a very small investment, and then some mentorship and connections. That’s awesome. That’s just not what this is. This is a place for people to come with their ideas, their tech ideas, whether those ideas are written on a napkin, or maybe they’re in a pitch deck, or maybe there’s a minimum viable product, or even a cash flowing tech company that has plateaued, and they’re going to come to us and pitch us on it. And when they pitch us on it, there’s four criteria that we look for. The first is is it the right person? For what we mean by that? Are their values aligned with our values? Are they the right person to even do this like to bring this solution to the world? The second is the right idea. So is the idea technologically viable within a realistic timeframe? Because everything’s viable, but is it like a realistic timeframe? It’s not like a seven year thing or like a 90 to 120 day thing to at least start testing the market? And does this solve a big enough problem in the world? The third is the right market. So what we mean by that is this whole concept of red ocean and blue ocean red ocean means highly competitive, and blue ocean means there’s nothing in sight. Nice There are positives though, the red ocean is very expensive because you’re competing against a lot of noise. And the blue ocean is very expensive, because you’re actually having to pay to educate the world on why they need this solution. We look for the pink oceans where there’s, there’s someone or something doing this already, they’re just not doing it optimally, but they’ve already taken the time to educate the world, or the industry. And the fourth criteria is the right business model. Can we launch scale and begin to cashflow or go for an exit pretty quickly. So right person, right idea, right market, right business model. And if all of that is validated positively, we will co found a company with this person will both take equity in the company. So our values are just completely aligned. And then we build the entire company at cost software development, go to market sales, customer support legal fundraising financing, like we build companies, we don’t build products, we go the entire company at cost. And about 99% of the minimum viable product cost is in India at cost and a company that we own. So it’s not like random people that were just like finding on Upwork or Fiverr. Like these are employees that we’ve recruited from Amazon and Facebook and Uber and other big software development firms that have gone through our training like these are really qualified people on our team. So Manisa Jarrod, we have to do this. So we opened up our portfolio in June of 2020. And over the past 15 plus months, we’ve had 8500 people apply to work, numbers is seen number. So of the 8500. About 5% had a chance to present their idea to us. So we saw something in their application that really pulled us and felt there was something there. And of the hundreds of people that had like a shark tank moment with us where they pitched us. We’ve said yes to about 70 tech companies now. It’s actually more we have 22 More companies join us in the past week. So I’m not even counting those because those haven’t really gotten into motion yet. But 70 companies in one year, here’s what I want to make sure everyone hears We are not playing law of averages. This is not a game where we’re like, if we launch enough, we’ll get one or two winners. And those one or two winners will make the whole thing worth it. When we’re saying yes, it’s because we see an opportunity to build, scale, and sell this company within a realistic timeframe. So we’re saying no, like 99.5% of the time, because we just don’t see that. When we’re saying yes, we see a clear path forward. We’re also extremely vertically integrated, which is one of the ways that we’re able to build this foundation of predictability. We launched our own angel investor network about a year ago, which has been really successful, very helpful to provide those seed investments into these companies. We launched our own crowdfunding platform, a revenue based crowdfunding platform to test and validate ideas to ensure there’s something there and even to pre sell to. We launched this initiative called Young Entrepreneur movement, which is our force for good. It’s a curriculum for young people to go through, where they learn how to become a tech entrepreneur, when they finish they have a past to pitch us. And if it’s a great idea, and the right person and the right market, the right business model will co found with them. We have 217 year old founders now and a 90 year old co founder so it’s working well. But here’s where the story gets extra interesting. As we were growing and scaling. We were introduced to Grant Cardone. And for those who don’t know who Grant Cardone is, he runs almost a $3 billion Real Estate Fund, I would say he’s probably like the influencer of the influencers, because he, he actually has done it. He’s very financially successful. But his following is 10s of millions of people. He was on a TV show on Discovery Channel called the undercover billionaire, where they took four billionaires, they put them in random cities around the US, they stripped them of their identity completely in the game 100 bucks, and they said you have 90 days to turn this $100 into a million dollars and the other three failed. And he succeeded. And he didn’t just succeed that $100 became $5.5 million in 90 days. So he is an extraordinary promoter. Go to marketer, business developer salesman, and I’ve now learned human Tim. So we were introduced to one another. And he wanted to just understand, like, Who’s this maniac around this 10,000 tech companies in 10 years. So that’s everybody thinks like, he’s crazy, or he’s onto something. But regardless, I get a lot of attention. So he invited me to come out to the office just to meet with him. And when I was going to the office, I wasn’t going to do a deal. Like that wasn’t even on my mind. What I was going to was to understand who is this man? Like I didn’t know him. Personally, I know him the way that 10s of millions of people know him by watching his content going to his events. But like, Why does his daughters have a sparkle in their eye when they look at their father? Like why does his wife Elena like look at him with such like admiration? Like, why do people that I know that work with him on his team say that, that he’s changed their life? Like, who is that? Because that’s I don’t know, and you wouldn’t know unless you got close to him. So I went to this meeting and before we talk Daddy business we talk values, I think more than ever, value alignment is essential, especially if you’re gonna get married in a business partnership is as real of a marriage as a personal marriages. So we got talking about our values and things that we care about with regard to our children and freedom and, and very quickly realize there is definitely something here like this is one of those like catalytic relationships like there’s like something here, that’s just gonna shake up the world. And I said to him, like, Grant, what you’re done in real estate is absolutely extraordinary. At the same time, it’s cute. And he’s like, cute, we have a $3 billion real estate fun. That’s more than cute. I’m like, No, it’s cute. I’m gonna explain to you why, when you have a million dollar cash flowing property, in real estate, you have a million dollar cash flowing property in real estate. When you have a million dollar cash flowing tech company, you have a $25 million value tech company, it just it’s a different world. And what you’ve done in real estate, I don’t know anyone that’s done it. Like it’s extraordinary. But if you were to deploy some of that energy into tech, with that limitless scale for both impact and economics, dude, like it’s legend, like, it’s just legend, and I know what we do. Like there’s no company in the world that can take a napkin, literally like a napkin, hopefully, there’s no ketchup on the napkin that has an idea, and contort and ideate around it, and turn that into an actual product and get it funded, and then build it, and then do the go to market and the branding and the storytelling of the customer is important. The sales like no one can do that the way that we can do it that I’m certain of, and I’m equally as certain that no one can promote the way that you can. And in that moment, is it stop us Do you see that chair sitting in right now, Jared? I said yeah. He said that share costs $100,000 per hour, but somebody wants to meet with me, we sell them a seat to sit at this table with me as $100,000. And they’re our they can do anything. They can ask for personal advice, they could ask for business advice, they can pitch me and they often come and pitch me. And I’ve never done a deal with anyone that paid $100,000 to sit in that chair to pitch me, the deals didn’t make sense. And I know you didn’t pay 100 grand. And I know you’re not pitching me. But what I’m going to do is put my hand out and I want to do a deal with you. I want to do this together. And in that moment, we shook hands and that was the birth of TEDx incubator. I want to make sure everybody that’s watching or listening to us understands what just happened. We are completely democratizing the tech industry. We’re giving everyday people an opportunity to become tech entrepreneurs, because that’s been my thesis for years. Everyone, regardless of age, regardless of skill, regardless of where you’ve come from, should step into the space of tech. If you see an inefficiency in the world, most likely the solution is some type of tech product. But if you don’t give yourself the permission to think that way, because you’re not smart enough, or you don’t have that skill set or you’ve come from nothing, then guess what the problem persists. Silicon Valley is cool, and it’s also really pretentious. It has this like barrier around it that only lets certain people in graduating from top business schools incredible resumes connections, most people have no shot, even step on the turf of the valley. What we’re doing is making the valley everywhere. We have founders in Austria, we have founders in the UK, we have founders in, in New Zealand, we have founders in Canada, we have founders all throughout the country from small towns, because there are no geographical boundaries to a freaking great idea. And what’s happened is Silicon Valley is all over me now, because of what I said before, he’s crazy, or he’s onto something. He’s crazy. He’s awesome. And we just want to watch like if he’s gonna crash and burn we want to watch and and if he’s gonna freakin blow up, we want to know so that we can buy the companies when they’re ready to be bought. I share this because maybe right now you’re listening to this because the universe had us collide the same way to Universe had me collide with money. Because if money moved anywhere other than my street, we wouldn’t have this conversation, because I went about, but he walked out his door. And that’s where my building was, like we had to meet. Like he was just completely meant to be the same reason that you’re listening to this right now. Because I know there’s a tech idea inside. And I just want you to have the courage to present it to our team so that we can see if we can co founder company together.
Scott D Clary 24:19
I just want to take a second to thank the sponsor of today’s episode, athletic greens. Now I’m super happy that I partnered with athletic greens because I literally use them every single day. Now I’ve known about athletic greens for a little bit only because I tried them about two years ago way before they decided to sponsor the show. And I noticed that in winters when I didn’t take athletic greens, I would get sick as a dog. When I did take athletic greens, I wouldn’t get sick at all. So it turns out that when you take one scoop of athletic greens, you’re taking an absorbing 75 high quality vitamins, minerals, Whole Foods sourced superfoods, probiotics and adaptogens. So this is incredible for your immune system. And a special blend of all of these ingredients supports your gut health, your nervous system, your immune system, your energy, your recovery, your focus your agent, so I take it one scoop every single morning. It’s lifestyle friendly, meaning whether or not you eat keto, Paleo vegan, dairy free, gluten free, it’s going to fit that diet, which is important for me, because sometimes I like to go a little bit low carb, if you’re already taking a multivitamin, this can completely replace that important to choose a high quality vitamin with ingredients that your body will actually absorb Athletic Greens definitely takes care of that. And it’s way cheaper than actually getting all the different vitamins, supplements ingredients, if you’re going to buy them separately, to make it easy athletic greens is giving you a free one year supply of immune supporting vitamin D, and five free travel packs. With your first purchase. All you have to do is visit athletic greens.com/success. That’s right, that’s a special URL they put together just for success story podcast listeners, again, that is athletic greens.com/success to take ownership of your health and pick up the ultimate daily nutritional insurance. Awesome, man, I love that. And I and I recognize all the things that you’re fixing in startup land, because there’s so much broken in traditional Silicon Valley venture capital incubators, because that law of averages that you said you’re not playing, is what everyone else is playing. And that’s why people don’t have a shot. Because I am a firm believer that if you are if you as a founder are the right person and my right person. I mean, you’re willing to try things you’re willing to fail, you’re willing to ideate, iterate all of that stuff. Anybody can be a founder, anybody can make a product successful, as long as they’re willing to put in the effort, the grit, the perseverance and tenacity. Now, the issue with Silicon Valley is that they play the law of averages, right? So it’s you will invest in 10 companies, and they only expect one to hit, because they’ll make their 10x or their 100x 1,000x. On that one unicorn, everything else fails, no problem. But that’s not conducive to really unlocking what most entrepreneurs want, which is not a billion dollar IPO. It’s just building something that they can call their own that can support them. And I think that I’ve said this before, most people don’t, when they get into tech, because of the way traditional Silicon Valley and tech and startup has been structured or positioned, they think that they should be aiming for the next Facebook, which is great, you can try that. But you don’t have to do that. Most people don’t ever want to do that. And if they had that, they would be like stressed the hell out. And they wouldn’t want that you can you can exit, you can build a you know, 100,000 500,000 million dollar month recurring revenue product, and exit data, great valuation, and be set for life and not worry about another job. And you can set your family up, you can set your parents up your kids up, like that can be enough. And I don’t know what you know, where you plan to take some of these companies. But still, if you have the environment where you would be okay, partnering with somebody and exiting a company at a 10 or $15 million valuation, that already is going to be life changing money for a lot of people
Jared Yellin 28:11
will speak into that. So there’s two things I’m this stat I’m going to make up 98% of the people that are looking to raise money should be looking for a team, because money will follow the right team. And for you right now that you have an idea. You’re like, I just need money, you definitely don’t need money, like you need the right team to build infrastructure and the money will follow. But to your point on, where are we taking these companies. So one of the things that I do is exercises with our team. And we have a huge team. Now hundreds of people through India, the US were setting up three new companies want to Ukraine, Pakistan and Bangladesh, just incredible town out there. I want to give people a chance they’ve never had before, like the most invigorating career path where we’re combining the stability of employment with the upside of entrepreneurship. And that’s what this is for our team. But I create unnecessary levels of sense of urgency, unnecessary like radical, so layers of sense of urgency, because what it does is it forces execution, it forces action, I believe everybody, even the most discipline people, they are conditioned to be complacent. So when you create an environment where urgency is just the norm like in your hearts, like always racing, it’s like, oh my gosh, like Time is ticking like, it actually leads to better decision making. I’m happy to have anybody challenged me. I just know it works for our team. So here’s what we do. When we launch a product, there is an 18 month window from the day the minimum viable product goes live. There’s an 18 month window into the world’s gonna add and we want to make sure that all of our hard work is going to lead to a check for this. Why are we going to work so hard otherwise, right? Like Listen, yes, I am about impact money is not my main motivation. But I’m not putting an effort to not make money like that. It has to be there has to be there 18 months to build enough valuation before the world comes to an end. So some Want to or something writes a check. Now here’s the reality outside of my, my insane level of urgency that I create with every company is we might say no to the check. And we also the world’s not ending, but that let way of operating it forces action. Most people will not just second guess something, they’ll like 19 guess something to make one decision. In those 19 guesses, we’ve made 19 decisions. And that is just a wedge that you just can’t catch up. So the beauty of all this, and granted, I’ve spoken about this, I said this to him, I said, I have failed way more than I’ve succeeded. But no one ever knows. Because I just keep on keepin on, like I don’t even know like, like, oh, that didn’t work, because like, I already made another decision that and the next one work. So that just overshadow the other. That layer of urgency is what’s so key for you as an entrepreneur, because here’s the reality, at 18 months, we’re still a startup. But in 18 months, in one day, we might need to start building like a new layer of infrastructure. And what I know I don’t want to do and won’t do is hire 10,000 CEOs and 10,000 CEOs, like that’s not what this looks like. But guess what, Amazon, LinkedIn, Facebook, Zendesk, Zoho, those companies, they’re never taking a napkin, like ever, that’s just not the world they’re in, they’re not going to make the first book, they want to make the last book. So what I want to do is make the first book have an exit at the 18 month or the 24 month mark, whenever it makes sense, take the cash off the table and still retain 10 to 15% ownership in the company. But let them build the infrastructure, we still go on the ride, we still do bizdev, we promote like we do the things that they’re never going to do as well as we’re going to do for the individual company. And they go for the multi 100 Millions and billion dollar exit. So we still go on the ride. But now we can circulate the team back in to start working on some of the new napkins that get presented to us. That’s the model. And for you, every one of you that have an idea that should be the outcome. Like none of you should be like, I’m going to build the next Amazon like you don’t want to build the next Sunday, you want to build like 47 companies that Amazon buys. Like that’s what you actually want that quality of life is off the freakin charts. At a certain point, it is not as fun as it once was. We’re here to make the first book, let them make the last book, we can go on the ride with them to make some of those last bucks. Now,
Scott D Clary 32:20
I’ll tell you one thing too, you’re talking about getting a major win for the founding team in the CEO. But sometimes, and I’ve seen this quite often, when I’ve worked with startups at later stages, the first thing they’ll do is they’ll take they’ll get rid of the CEO or the founding team and just clean slate and then and then grow from there. So I think that this is a smart way to do it. Now I want to I want to unpack because you said you had four? Did you have four things? So right person or idea right market my business model? I want to dive into those for somebody who wants to start something they’re gonna be like, Well, how do I how do I become the right person? So how do I then we can also do right idea, right market, right business model. So how do you how do you make a great entrepreneur? What’s great, what’s your mindset, you should crush it
Jared Yellin 32:59
. So we actually have had a number of situations where when people are going through the process with us their ideas, like mediocre, but they’re so right, and we still move forward. Because we know that we can make like with an extraordinary person, we can make a mediocre idea extraordinary. We’ve also had the opposite Scott, where we’ve had these like freakin homerun ideas, but like kind of mediocre people. And we’re like, Ah, I don’t know how to make a mediocre person great like that I don’t know how to do so they need to get there. And then we can start having a conversation. But what we look for is this. And we’ve now done this now for enough time to know exactly what we need in our idea co founder, we need a voice for the company, we need someone that can handle the spotlight. Grant Cardone is an extraordinary promoter, like what he’s able to do from a promotional perspective is like on days area, like on your seven, like from just like exposure and relationship cabling, it’s it’s really, it’s it’s just, it’s magical to see, and I’m not that bad myself, too. So the combination of us means that we’re going to shine like the moon on you. And you’re gonna have this like spotlight and you have to just handle it. Like you have to handle a fact that you’re going to get tons of press, you’re going to get invited to be on podcast that would never have reached out to you. You’re going to handle the meetings, they’re going to be set up with your ideal candidates to structure joint ventures, in a handle going to one of the events that we host and there’s 1000 people or 10,000 people there and we decided last minute to call you up and you’re pitching like, you need to handle the spotlight. If that makes you queasy. We might still work with you as long as you’re willing to learn because that’s a very important skill, or we have to find somebody else to partner with you to be in that seat. Because what we can’t do is father ourselves, like we can’t shine the moon on ourselves. We have to shine on somebody else. And this is everything. Like when we go and we fundraise like we’re shining the spotlight on you. Like any of the investors, they know Brad’s involved, they know I’m involved, but they want to know who’s like, who’s the voice. And we want to make sure that we’re putting in this effort to shine the spotlight, get meetings that most likely would never happen for you on your own and if it would happen you have a lot more track record to make it happen, immediately use, you know, show up, like you need to show up as someone that they feel that they can trust with their investment, because they know they can trust us, like, they know that’s not their issue, they just want to know that you can, that’s the key, you have to handle style, you have to want it, you have to be willing to learn. The other thing too is like, we’ve only have the 70 plus companies, I want to say maybe three of them. The idea that came with is actually what we built. And those were three, like industry technologies. So we really didn’t know any better. Like these are things that like we’ve never experienced, like we’re building a software for the Public Adjusting industry, I didn’t even know that was like, and now we’re building a software for it. So I can’t say that, like the workflow is right or wrong, like but the person that we’re building it with, has been in the industry for 20 plus years, and he’s really successful in the industry. So besides those like three business tech products that we just would not have enough knowledge truly influence. Besides like the user experience where we had a lot of say, everything else has been an ideation process. And some of them, what they came with is what we’re building is so radically different that you could you even notice it anymore. So outside of handling a spotlight, it’s opening your mind to the fact that you might be right with your idea. And you might not be the same way that we might have to hide or we might be like is the same concept we have to IAT. And we will not write one line of code until we are crystal clear on what is the minimum viable product, and what is the economic model. And if we’re not clear on these, we will not progress because that’s where you start burning through capital, software development firms, they’re going to start the moment you write them a check, because they don’t care. Like they don’t care, or lack of clarity makes them more money. Like they they like people that aren’t clear, because as a result, like they’re gonna keep on building and then over time, like you’re not clear. So you’re gonna get clear one day, and they’re not clear the next and they’re just Cody, and Cody, and Cody, and all of a sudden, what you thought was gonna be $750,000 ends up being two years and $2 million. And then you have to scrap the whole plot, which was my story, right? So like, that’s the difference. We’re partners. And one of the thing too, we have people that come to us and they try to compare, like what we’re doing to incubators, because there’s a lot of incubators out there. And the other day, I was talking to a young entrepreneur, and he was like, Yeah, I’m just deciding between what you’re doing a TEDx and there’s this FinTech incubator that that is interested in me, they didn’t give me an offer, but interested, I’m like, cool, like, what are they going to offer you? And so they’re gonna offer me a little bit of money to help me validate the idea and a few connections and some mentorship over the six month experience working with them. I might, that’s cool. Mike, I have a question. On year six, when you decide to sell your FinTech, part of QuickBooks, are they gonna sit in the meeting to negotiate the deal? And they’re like, no, no, it’s just a six month experience, like, okay, cool, like a year three, when you realize like, you have to kind of re engineer some of the software to scale like, are they going to be sitting in those meetings with you and deploying resources to like, re engineer that software, because they’ve already told you, it’s just a six month thing. And like, here’s the difference. The word incubator is the wrong word for us, like we’re not an incubator, it should be called teknicks. Co Founder ship, because we’re co founders, and we still from the day zero when we start until we sell that company, like we are on that journey. So like when we need to, like re engineer something, because we guessed wrong collectively, or we just need to in order to scale further, or we got a great recommendation for like a new feature like, that’s us with you, right? When we’re gonna sell the company in 18 months, or 24 months or in five years, and we’re going to negotiate the optimal outcome. We’re in it, like when you get sued, because like, someone’s gonna sue it, like, it’s just gonna happen, like, where, like we’re in it. And that’s a distinction, to build a tech company on an island by yourself and think that a software development firm is going to be there to help you with all these major guaranteed milestones, or that the incubator who’s going to help you validate a concept is going to be there on the journey with you. They’re just not the only thing that will be on the journey with you as co founders ship. So either you need to go out and build your own team, which is very time consuming, very expensive. And I’m gonna say very risky, because you don’t know what you don’t know. So you hire this, this, this wonderful CTO, who’s a really good engineer, but the dude can’t or do that can’t lead. So you have a really good engineer that can’t build the team around them. And there’s no way you’re going to reach your optimal potential. So that’s the difference. It is cofounder ship. And that’s the non negotiable. No one can come to us with an idea and be a cake. You just build it for me and I’ll run with it. That’s not what we do. Like, go go find an incubator go, developer. We are co founders in the trenches from day zero until we saw that thing.
Scott D Clary 39:33
I just want to take a second to thank the sponsor of today’s episode feedback loop. Now, if you’re a product person, entrepreneur, startup guy like me, you have at some point in your career, tried to take a product to market, you’ve tried to come up with a new idea and it fell flat. It’s ultimately failed. 85 to 90% of all new products of all new startup ideas fail. Why is this basically it is really hard, really expensive and really time consuming to validate product. To market fit with your potential consumers or customers old style market research is way too slow, too complicated, too time consuming for dynamic, fast moving teams and want to build great stuff. But what if you could test out your idea your product with your target consumers whenever you want before you invest in the money time energy effort that it takes to actually develop a product? Well, that’s what startups all the way through to Fortune 500 are using feedback loop for you get quality feedback from your target customers early and often. Feedback Loop is the test before you invest product research platform. It has built in expert templates for concept testing, user discovery, prioritizing features on your roadmap, and much more, you can create your own test in minutes and get quality insights from your target consumers in hours, they set up a special link for everybody who’s a success story podcast listener to test it out to try it go to go dot feedback loop.com/access You get three free tests. That’s go dot feedback loop comm slash success. You can try it out for free, you get three free tests. So if you want your next product idea or feature to be a hit test before you invest, build based on data, not opinion, and launch with confidence with feedback loop, check it out right now. And also, you know, it’s always better to have part of something as opposed to all of nothing, right. So do you find you get pushback on that from founders, I’m just curious if
Jared Yellin 41:27
the founders that are like, like rookies, like they don’t know, they haven’t had enough bruises, like we have those moments where they’re like, I would do anything right now for someone to understand me, I think about when I went down the path and I pivoted from agency to building the product. I had a big team on the agency, but there was no team on built the product. It was a software development firm. And it was the darkest and loneliest time of my life. I’m really health conscious, like exceptionally like all organic foods, and exercise and meditation. And I didn’t lose any of that during that time, because that’s my foundation. But I was in a really dark place in my mind, like, it was so lonely. I had no one I could go to, I was earning six figure checks every month. Like I could never talk to my parents about it. Like I was like 26 years old, like, they would have been freaking out. Like, I just started this new relationship, who’s now my wife, but definitely didn’t want to bring her into the drama. Like I Who did I talk to. And there wasn’t like this, like, kind of like tech community that exists today. Like I don’t even know where to go. So I was just in this dark space I felt like I was being taken advantage of but it wasn’t exactly sure. Listen, I don’t want that for anyone that has an idea. That’s the one thing like the entire process is fun. Like there’s positive pressure, because like we’re doing something with you that has never been done before. Right? We’re building your tech idea. So there’s positive pressure. But there is never those like, oh crap moments, like ever, ever, ever. Because like we’re getting into a few like we help navigate, like when a bug shows up in the software, because it’s going to you don’t even know about it. Because why do you need to know about it, your co founder has got it like we got it. Like we fix the book. It’s done like you don’t even know that need to know there’s about you see the handle a spotlight, how we do insulate our founders, that that’s what they’re focused on, just handle the spotlight, create the opportunities with us handle the opportunities that we create for you. And let’s build scale and sell this company.
Scott D Clary 43:19
Actually, the one thing that you are avoiding is the is the dark side of entrepreneurship, all the all the mental health issues that come with founding a company that people don’t expect, unless they’ve done it before that that isolation is tough, man, that isolation is very tough. You just spoke to it. That’s a great thing that you’re taking away from founders, because that’s something that I don’t think a lot of people know about if you never founded a company before, or is really discussed. It’s the it’s the isolation, the loneliness, the mental health issues that come with starting a company on your own.
Jared Yellin 43:48
Yeah, yeah. Anyway, sorry. Yeah, it’s tough. Tech Tech is even more dark, right? Like any entrepreneur is crazy, like tech, entrepreneurship is freaking crazy.
Scott D Clary 43:56
There’s too many pieces. There’s too as a non technical founder is too many pieces to keep track of. Okay, let’s keep going down this. Let’s keep going down this, this list. Okay, so you have the right person, that’s what the right person is. That’s how you work with people. Right idea? What’s the right idea.
Jared Yellin 44:12
So it’s technologically viable and a realistic timeframe. So what that means is, we’re not going to build a rocket ship, like we’re just not going to do it, it takes too long, it’s too capital intensive, what we look to do is have some product a minimum viable product that we can launch in 90 to 120 days from the first line of code. So we’re really intense about that. If we don’t see a path to get there, the most will do is six months. But after that we’re guessing, burning through money. So it needs to be realistic timeframe, like we’ve been pitched on tech ideas that are that are awesome, but require 150 people for three years until they’re gonna see the light of day like we just it just that’s just not our game. Like that’s just not what we want to focus on. And then the next thing is, is there a big enough problem to solve? Like, there’s a lot of problems in the world and some of them just have to be swept under the rug and just get a patent, like you’re not gonna launch a new tech company to solve that little piece of dust, right? So that’s that those are the key things. And part of this is exercises we have. We have people that have ideas, do product market fit exercises, we have this exercise called problem stacking, where you have to identify your ideal user. And then you have to interview them to find out what are the problems that exist in their life? And then see, what what which are the problems? are you solving? are you solving problem number 74 on their list? Or are you solving problem one or two? Because like, those are, those are very different things we do all of these exercises are people that have ideas, to help them get there. And then once they’re there, and they present to us like we then are able to make a decision on that. So that’s that’s how we define the right idea.
Scott D Clary 45:42
Can you Can you unpack the exercise that you do for product market fit for somebody who’s listening? Who wants to figure out if they have PMF?
Jared Yellin 45:49
Yeah, so it’s actually this this question here? That’s really cool that people love it. A lot of it has to do with defining your avatar. So like, who is the absolute ideal end user for this? And then once you define it, what makes them the ideal end user? So its characteristics? Like what are their hobbies? Or their interests? What are their aspirations? What are their goals? What are their pains, there’s all these questions, you actually write a story of your end user, like you literally write the story of Bob, and like Bob is your absolute ideal user. And then you have to go out and find Bob’s, like people that represent that. And then you literally say, Hey, Bob, I’m going to read a story, tell me if you can identify with this. And you literally read the story that we just helped you create. And then you say, Now, this is the product that I’m going to give you. And I want to see if your story changes, and then you literally look for the physiological changes and like the feeling of engagement, and we actually ask them to record these these sessions. So that’s how we do it. It’s literally through storytelling.
Scott D Clary 46:46
Amazing. Okay. And then the next piece, you actually this was this is sort of bordering into so that’s right idea. But that’s also somewhat dovetailing into right market. So right market, you mentioned it before, it’s not red ocean, it’s not blue ocean, it’s pink ocean.
Jared Yellin 46:59
Yeah, no, it’s just expensive, right ocean, like, you’re gonna just have to outspend everybody else. And for anyone that started before you, they have something that you don’t have, which is a bigger budget. So that’s expensive. And when there’s, there’s no competition, that means the world might not even know it’s a problem. So now you have to educate them on Hey, you have this problem, you have this problem. And that’s just expensive, like you’re just spending a lot of time educating. So we like when someone else has done the education. But it’s not this, this bloody ocean of just businesses like fighting for territory. So we call it the pink ocean, that’s us is the perfect ocean. And usually with this too, usually what makes it pink is that there’s another dominant player that’s in the space. And they have raised many rounds of capital, they have deep pockets, but they’re kind of like the Titanic now think they can innovate, they can’t iterate, they’re not agile. So we love that, because we’ll fill this the whitespace that they’re not filling, start to take some territory, or at least get attention. And they have pockets to buy stuff. So those are usually pretty interesting, because we can like kind of predict the exit just because we know there’s someone there that can,
Scott D Clary 48:06
but smart, very smart. And then the last piece is right business model. So is that like a recurring revenue product? Is that enterprise sales? Like what what is right business model mean?
Jared Yellin 48:15
It’s so we will bet on non cash flowing tech companies, if the founder pre revenue revenue, well, they’re all that but like, well, like yeah, we’ll like even bet on like someone that has an idea that they can’t monetize, like one that’s more of like a data, user play, like like, like Twitch, right, like Twitch video shoot video game streaming, like, they didn’t make any money, right? So then it became a fundraising game, like they raised $39 million, just to literally buy time. And then Amazon ended up buying them for $920 million, right? So we’re not against that just requires a certain type of co founder, that that we can really shine a spotlight on. Like they need to be able to sell and raise capital, that that’s what the game is like that they’ve literally just cell division cell division. So if that’s not the skillset of the person, we won’t take on the deal. But we will take on deals that are SAS based, so recurring revenue model based enterprise level sales things that we can cash flow. So ideally, we want to become cashflow positive by day 90 post launch at the latest how we really want to do it the first month. And that sounds like crazy because like there’s companies that don’t cashflow positive for years, our costs are so low though, like the operating expenses of running these companies are just so low that we don’t need a lot to happen to become cashflow positive. And when we’re cashflow positive, we can really do an upper bound because most don’t even get there. So we can that’s where if we raised $250,000 of seed capital just to build the MVP and have some runway and we get cashflow positive quickly that gets everyone’s attention. We then do an up round where we raise $5 million dollars or whatever is relevant at a significantly greater valuation. So everybody’s happy that we just went up in valuation so quickly. Now we have resources that just double down and that we go for that exit on the 18th month so that’s like that’s like the trajectory of how works.
Scott D Clary 50:01
Gotcha. And this the Okay, so this is this is how you grade the companies now I’m also curious from a founder perspective, when should they go all in on the startup? Because maybe they don’t have? Well, actually, I’ll ask you when should have found a girl in? Should they quit their job and work with you day one is just a side hustle thing until you’re cashflow positive, are you cutting them a check so that they can quit their job? Or should they have six months of saving saved up?
Jared Yellin 50:25
We don’t like when they quit. It creates unnecessary pressure. Like we actually had a few founders where I said, if you don’t find some way to make money, even if you’re driving Uber, we have to pause because you are putting so much pressure while we’re trying to build the product. And that’s unnecessary pressure, like I like this, like false sense of pressure, which is the world’s gonna end in 18 months. We know that’s not actually happening. But like, that’s a real pressure, which is like I have kids and I can’t put food on the table like, I don’t want that that’s that you’re down putting that on me? And like where do you make bad decisions as a result of that? So I like when they have some, either they have they’re they’re not they can like live off of and they’re good until we can cashflow this, or they tell us from the start that when we raise money, we need to incorporate salary, that’s fine. It’s like the surprises when they’re like,
Scott D Clary 51:09
oh, by the way, no money.
Jared Yellin 51:12
Well guess what we didn’t raise for you to get the tank, right. So it has to be open communication. I like when initially like especially when we’re building the product that this become nights and weekends for them. I think it’s a really healthy thing. Let them just stay where they are have that civility, and then hustle on the nights and weekends where that’s when they’re doing business stuff. Like that’s what we’re setting up meetings, they’re just having to accommodate, that’s when they’re on their lunch break at work like that they’re doing sales calls, like, just find a way it’s not a long time, it’s 90 to 120 days, we launch it cash flow. That is a different story. I just like I’ve had multiple times where I’m like, Listen, if you don’t get a job, if you don’t drive Uber, I’m telling you, we’re putting a pause on this, because I don’t want to deal with your personal issues that you’re bringing into this company. And we’ve done like I’m firm on that. Like, if you can’t put food on your table, and you’re relying on this to do it, this is not going to do it if you didn’t tell us from the start that you needed to. So like we have to now go and raise more money, which is impossible because we’re in between these rounds. We didn’t plan for it. We look so irresponsible. So I’m going to pause this, like let’s not burn any investor money. Let’s tell the investors, we’re recalibrating, and we’ll get a freakin job. And then when you get a job, you get a paycheck then let’s come back and start again.
Scott D Clary 52:20
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Jared Yellin 53:52
Yeah, relationship capital. So we really get intentional. I don’t like Mark Zuckerberg. So the last thing that I want to do Mark Zuckerberg money, I’d rather have strategic relationships that I care about get cash. So we get really intense with relationship capital, we do an exercise every founder who’s your power 100. These are your 100 ideal relationships. Some you know, some are one degree away, some are many degrees away. Let’s move the Wonder reason to the one those you know through the many degrees to one degree like let’s just keep on common relationships, relationships. We also do biz dev from Day Zero. Every company launch a podcast with now they have a reason to go out and start building relationship capital because they’re inviting people onto their podcast. It’s not a bait and switch. They’re creating content that’s going to be really valuable for that person and for our co founder, but then those are relationships that really care about what we’re building together.
Scott D Clary 54:42
Amazing. Okay. I want to ask some rapid fire we’ve we’ve hit a ton of points. And I think we’ve really unpacked what you’re doing and in some great lessons for entrepreneurs. So I want to unpack some more rapid fire career questions from you that I do with everybody before I pivot, though. Any other last thoughts, lessons, things to think about? If you’re an entrepreneur listen to this episode. What should I What should I be thinking about tomorrow if I want to get my idea and get in front of you or even just take my DSL further before I get in front of you
Jared Yellin 55:10
get off the fence. That’s it. I mean like to me what frustrates me more than anything is when someone’s like, I’ve been thinking about this for six years. I’m like, What have you been thinking about for six years? I called him What do you mean? Like stuff they get the majority of the greatest ideas in the world will end up in the graveyard with you and I don’t want that to happen like to me, I want to be the one that is the first on the journey to hear that idea like our company. I want you when you don’t feel ready to pitch us like that’s what I want because otherwise you’re not going to pitch anyone because no one’s gonna give you the time of day like there’s no venture capital firm give you the time of day there’s no investor there’s there’s no there’s no one other than a software development firm who just wants your money and that’s not HP pitching your idea to so that’s what that’s my that’s the one thing I’m going to say is get off the fence right now and pitch your idea pitch it to us it’s a safe space at the very least you’re going to learn about what we’re what what’s not right in it and at the most you’re gonna accompany with us or we’re going to co found with you myself Frank are down to the entire next incubator team
Scott D Clary 56:10
amazing and then drop some socials some websites so you tenets incubator, where can they meet you online, socials, and then the websites they should go check out more on
Jared Yellin 56:21
every platform. Jared Yellen, like I’m yelling at you just with no G. So J. R. Ed Yellin Kota, Jared yellen.com, we produce a ton of content there, and head over 10 like the number one 0x incubator.com and get off the fence, submit your idea can’t wait to hear it can’t wait to potentially co found with you at the very least I can’t wait help you see what you don’t see within your idea. So that one of your next ideas is the one we move forward
Scott D Clary 56:48
with. Awesome, man. Okay, so a couple rapid fire questions, a biggest challenge that you’ve had in your career or personal life, how did you overcome it?
Jared Yellin 56:57
So the biggest challenge I’ve had in my career was when I was pivoting from agency to software company. I ran out of money because I didn’t want to renew the agency clients. They were like year long contracts, and I fell out of integrity to renew when I knew I wasn’t gonna do anymore. And I completely ran out of money. My accountant said, Listen, you can’t make payroll this week, I had a big team. I’m like, What is somebody doing? They can’t make payroll. And he said, they hire people. I’m like, Well, I can’t do that. So I decided in 48 hours, I said, I’m going to create a four week boot camp to teach small business owners how to build an annual marketing plan. And I didn’t create anything, I just created a sales page for it. And in 72 hours from there, I had 1000 businesses pay $497. So I made five grand, and that literally just bought me times I launched a thought and really challenging moment as an entrepreneur,
Scott D Clary 57:47
that’s stressful, man, that is super. Those are those nights when you’re like, as a solo entrepreneur, you’re like, man, holy shit, this kind of job. That’s tough. That’s tough. Alright, what is one unpopular opinion you have about startups? Um,
Jared Yellin 58:06
my unpopular opinion about startups is that’s a great question. But I mean, goes down the path of tech. So like, I, I believe that software development firms should never touch a startup, I think that they’re perfectly fine working with the Coca Cola and the Nikes of the world. I think that’s that’s the right place for them. But that’s an unfavorable opinion, for software development firms, I don’t think they should touch them. I think that every time someone pitches them, they should just introduce them to us. We’ll give them some equity in the deal. And everybody’s gonna win, because that startup is never going to pay their invoices. And now there’s going to be accounts receivables for the software development firm, and there’s gonna be a really frustrated founder that doesn’t get what they want. So I think software developers shouldn’t be allowed to touch startups.
Scott D Clary 58:45
Good. Pick one person in your life has probably been many, who’s had a huge impact on who you are. Who is that person? What did they teach you?
Jared Yellin 58:54
My kids that they are by far the most impactful people. I know that they’re watching and listening to every single thing I do, and I am in I’ve always been intentional, but I am hyper intentional about who I am as as a leader, and as a human, because I know that they’re gonna model quite a bit as all of us do. And I want to make sure what they’re modeling is something that takes them way beyond that. I’ve even gotten to on my own but by far the most impactful,
Scott D Clary 59:22
very good a book or podcast that you’ve read over your life, you’d recommend people go check it out
Jared Yellin 59:31
think what book, a lot of books I guess I’m gonna say grands textbook. I really think that that’s a book that it’s simple. And I think it’s simple yet it has such valuable, digestible action steps that people can take. And I just encourage everybody to read it. Before I partner with him, I’m like, this is a book everybody should read.
Scott D Clary 1:00:03
Good, very good. Tell if you could tell your 20 year old self one thing, what would it be?
Jared Yellin 1:00:10
You got it. Like you just got it like because then they’re like, listen, like I come across extremely confident and certain. And I know that every other second, I’m living in doubt, like every human. And so that’s one thing. I’d say you got it. And I say that to myself in real time. But like I would really say, like, you got it, like you got it, you can do this.
Scott D Clary 1:00:29
And last question, what does success mean to you? Freedom?
Jared Yellin 1:00:33
Absolutely freedom. And it’s not just for me, it’s for everybody that I owe the blessing to touch. It’s obviously my family. It’s it’s our team. It’s our co founders, it’s our end users of our companies. It is freedom. I believe that we are at such a critical time right now that if you don’t define what freedom is for you, it will be defined for you. And this is your time to really define that non negotiable