Farnoosh Torabi:
After 148 rejections in the first funding round, Kathryn Minshew co-founder and CEO of the Muse took note of what she did wrong and upped her game when she went looking for new financing. Minshew scored close to $30 million thanks to the new approach.
In Kathryn’s money story you will learn
-How Kathryn and the Muse team re-vamped their strategy the second time they raised money
-How Kathryn rebounded from the 148 rejections in the seed round of financing
-How The Muse raised $30 million from investors
-How they were able to ask for less money and come out with more than the original targets
-The way Kathryn structured her process when pitching investors
-How they organized their pitches and research to be more effective
-Kathryn’s investor prioritization strategy
-The specific thing Kathryn said to investors to get them to the table faster- and with more interest in her company
-How a second round of financing is different- and should be approached differently from a seed round
In Kathryn’s lesson you will learn:
-The advice Kathryn found most helpful from her networks and mentors
-How she got help from other entrepreneurs
-How to tell if the investors are wrong not to invest- or if your idea and pitch is missing the mark
-How to figure out who your end users are- and why it is important
-Strategies and specific things to ask in order to get honest input about your company
In Kathryn’s money tip you will learn:
-Negotiations can be about more than just cash
-How to ask for signing bonuses, signing bonuses, flextime, vacation time, better titles.
-Why budgets for professional training are essential and how to negotiate for them
In my take you will learn:
-How to learn lessons from rejection, and incorporate them in your next venture
-The importance of taking the time to throughtfully plan and customize presentations and pitches
-How to level the playing field even when the other party is clearly more powerful.
Episode links:
TheMuse.com
Kathryn’s book with Muse co-founder Alexandra Cavoulacos The New Rules of Work
Follow Kathryn and The Muse!
Instagram @kminshew @themuse
Twitter: @Kmin and @TheMuse and @TheNewRules
Facebook https://www.facebook.com/thedailymuse
https://www.facebook.com/minshew
Transcription
Kathryn Minshew:
If you tell someone you're the founder of a company and ask for their input, they are more likely to give you positive impact because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its market positioning lands, or helping a company better understand what it's doing well and what it's not, people are much more likely to give you totally unfiltered feedback for the series A because I was running a process.
Bobbi Rebell:
You're listening to "Financial Grownup" with me, Certified Financial Planner, Bobbi Rebell, author of "How to Be a Financial Grownup". You know what? Being a grownup is really hard, especially when it comes to money. But it's okay, we're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, everybody. This is an episode about rejection, and what you would do differently the second time around. How to tell were they wrong to reject you? Maybe your message could be a little bit more on point. The Muse founder and CEO, Kathryn Minshew has told the story many times of how she and her colleagues were rejected 148 times when they when to raise money for their startup, The Muse. Once the company got off the ground, it has been a massive success, and many people would say, "Well, those 148 people, they must be so sorry that they rejected it." And of course, that is true to some extent. But also, Kathryn looks back and realizes she had a lot that she would do differently the next time. And in fact, she did do it differently when she went back for the next round of financing, and that's what we talked about. Here is Kathryn Minshew.
Bobbi Rebell:
Kathryn Minshew, you are a financial grownup. Welcome to the program.
Kathryn Minshew:
Thank you so much. I'm so excited to be here.
Bobbi Rebell:
And you are well known as the founder and CEO of The Muse, the amazing job site, and also well known for being rejected when you went to raise money. Tell me how many, 140 something times?
Kathryn Minshew:
148 times. It was like rejection for breakfast, lunch, and dinner, with a few meetings and noes inbetween for fun.
Bobbi Rebell:
And you are the queen of resilience, and one thing that you talk about in your book, "The New Rules of Work", which I should have mentioned to everybody. She is the author of a fabulous career book called "The New Rules of Work".
Bobbi Rebell:
You talk about your personal brand, and how important it is to define it. That fundraising and the lack of it for so long became your personal brand. So you brought with you a money story that has to do with what happened next, after you finally did get the initial funding and you went back for me. Tell us.
Kathryn Minshew:
Absolutely. Well, first of all, I'll say it's much easier as we all know to talk about failure once you've moved past it. So it became much easier to tell the story of the 148 noes after we had already successfully raised our series A and B rounds. So we've raised almost $30 million in venture capital so far for The Muse.
Bobbi Rebell:
Amazing.
Kathryn Minshew:
It's been a totally wild ride. So my financial story involves what I set out to do, or rather what I did in the series A to ensure that we had an outcome that was very different than the seed round. Because, obviously, I knew how important it was for that next round, to get it right from the go-ahead. And so to try and condense the story into something very quick, we wanted to go out and initially we were thinking about raising six to $7 million. But actually given the advice that I got while preparing for a fundraise, we were actually told to start out saying we were thinking five to six or five to seven, and then slowly let the demand build. So instead of us going out for a big number and being less sure if the market would respond, start out with a smaller number. And then, if the market is really excited about our business, let the negotiations and the demand push it up, which ended up working really well for us because we ended up raising 10 million after we had overwhelming demand.
Kathryn Minshew:
I also was incredibly structured about the process probably because I was a little bit paranoid after having such a difficult time with our seed round. So ahead of time, I really worked the story, got all of our metrics out there. I thought about how best to position them, which numbers to lead with, what to put first so that we could really grab people's attention. We were obviously lucky in that we had really great revenue growth and a lot of very strong metrics.
Kathryn Minshew:
And then, I actually created a spreadsheet. I took all of the investors that I was even remotely interested in talking to. I put them in a spreadsheet. Divided it up by location, so that when I was in New York, San Francisco, Boston, Chicago, DC, et cetera, I could meet with people who were there. Then, I included information about whether they had invested in any similar companies, any competitors. Any companies that might give them a better understanding into what we did at The Muse. I would include notes from different meetings. I actually would also rank how excited I was after each meeting to continue conversations, so I could prioritize the ones that I was most excited about. I would say that really helped to keep me on track, and so we were also able to run a pretty tight process, where we pinned all of our first meetings with investors to the same two-and-a-half or three-week period.
Kathryn Minshew:
It was really interesting because in the seed round, we had a lot of trouble with investors saying, "Oh, I'm busy, right now. But how about in a month?" I wasn't confident enough in the business, so we would just take whatever we could get for the series A because I was running a process. I would write back to people and be like, "You know I'd love to talk, but unfortunately, I need to get all of our first meetings done by X date. So I can push it a few days, but let me know if you're going to be able to make it work. And if not, I'm totally fine. We'll keep in touch and maybe there'll be another round that you can participate in." And what was fascinating is a lot of people would say, "Oh, let me move around my schedule. Absolutely, I can make it work." And suddenly, we were negotiating from a more even position. And the ones that weren't able to or the ones that said, "No, sorry. I can't do it," they probably would have never backed the company to begin with.
Bobbi Rebell:
True. Do you think looking back, obviously when you were going for the most money, the second round, you were a stronger situation to begin with. But had you used the techniques that you were now using that you just talked about, would you have had more success the first time?
Kathryn Minshew:
You know, maybe. It's so hard to know because the seed round for a startup is really different than later rounds because people aren't necessarily looking at your metrics. They are to some extent, but they're really betting on you. And I think the fact that it was my first proper company that I was fairly young at the time, this was six-and-a-half years ago, so it was very early in my career. And I think that plus the lack of knowledge or understanding about what we were trying to do in the business were some of the biggest concerns. So I do think we could have had a better time and controlled the process a bit more, but I also think there were just some fundamental and structural things that we had to get through and really prove on very limited capital before we could really go out and successfully fundraise from bigger investors.
Bobbi Rebell:
So now, what is your advice to listeners and especially want-to-be entrepreneurs that are looking to raise money, start businesses, and especially to young women?
Kathryn Minshew:
I would say, firstly, you can't understate the importance of perseverance because it is so hard in the early days. But I think that doesn't mean that you just keep doing the same thing without adjusting your tactics and thinking about how you could be more strategic. I found it to be so invaluable to get the advice from others, especially other female entrepreneurs. Because sometimes we have a lot of great friends who are entrepreneurs, who are men, but sometimes the tactics or the approaches or behaviors that would work for them, didn't work the same when I did them because of unintentional or unconscious bias or other things. And so I found that it was really helpful to surround myself with a network of entrepreneurs of both genders to get a lot of advice, to test out different approaches to see what felt natural and normal to me. Because if it feels too unnatural to you, investors will probably pick up on that, and it won't help you communicate that confidence that you are looking for when you're starting to talk to investors about your business.
Bobbi Rebell:
So one last question about this for our listeners, how do you know the difference between maybe your idea just isn't that good, and that's why you're not getting funding and you should stop, or you should persevere as you did because your idea just isn't hitting the right people at the right time with the right message?
Kathryn Minshew:
Absolutely. So you've just gotten to the crux of what makes this so hard, which is that there is no silver bullet, and you will never have 100% confidence or certainty either way, which is incredibly difficult. However, I think there are a few things you can use to help you directionally get that sense of whether your business is likely to be successful. The first, and I think the most important is to figure out who are your end users and do as much as possible to get unfiltered feedback from them.
Kathryn Minshew:
For example, if you tell someone you're the founder of a company and ask for their input, they're more likely to give you positive input because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its marketing positioning lands or helping a company better understand what its doing well and what it's not, people are much more likely to give you totally unfiltered feedback, and you need that unfiltered feedback when you're trying to ascertain if you really need to keep pushing forward on your business.
Kathryn Minshew:
So in my case, even though we were getting rejection, after rejection, after rejection from a lot of investors, we were hearing things from our users and from people who were signing up to use The Muse that indicated we had tapped a nerve and we were on a path that people love. They wanted us to use the product. They'd say I love The Muse, but can you do these five things? Make it better here. Change this. That's all positive feedback because that shows you that there is a need. You just have to keep getting better, and I think that is what gave me the oomph to keep going. But I will just call out it's not like I knew the whole time, oh my gosh, this is a great idea. I just have to keep going. I definitely struggled with whether I should accept that these people that were much more experienced than I, that were successful investors, maybe they knew something I didn't, and I just had hubris.
Bobbi Rebell:
All right. Let's do a money tip. You are the career guru, and you have so many amazing ideas and tips in your book. I wanted to pull some out of there and get maybe your favorite tips that people can use in their careers, and their ventures that they could maybe put to work ASAP at their next job interview or their next negotiation, what have it.
Kathryn Minshew:
I thought through a lot of different things I could share here, and the one I came up with that I wanted to talk about today is the fact that when you negotiate, it is not just all about cash and I think it can be really empowering to realize that because so many of us have anxiety about negotiating a salary, negotiating a raise. Whether it's at the beginning of a job search, or when you're getting a promotion. But I would encourage people, remember that there are a lot of other things you can negotiate for.
Kathryn Minshew:
So obviously, base salary is the thing that people talk about most. But what about signing bonuses, performance bonuses if you achieve certain things? You can also negotiate for flex time, for vacation time, for a better title that might help you in your career. One of the most creative things that I've heard is people negotiating for a budget for professional development and training.
Bobbi Rebell:
Specific money. In other words, not just saying, "Will you send me," in theory. It's very specific.
Kathryn Minshew:
Oh, very specific. In fact, there was someone at an organization that had mandatory salary bans that the leadership wasn't able to go beyond, and so she said great. Why don't you dedicate ... I think it was five or $10,000 towards training development conference that will include my travel, and that will help level me up to be a better employee for you, to let me do my job better, and it won't invalidate the salary cap. This will just be another way that you're investing in my growth, and they said yes, and I think that is such a great example of creativity when it comes to negotiation.
Bobbi Rebell:
Amazing. That's such great advice. Thank you so much. Tell us quickly before we wrap up, what are you guys up to at The Muse these day, and where can people find you?
Kathryn Minshew:
Absolutely. So people can find me at The Muse or @kmin on Twitter. As a company, we are doing a lot right now, but we have been really focusing on we rolled out a new feature called Discussions on TheMuse.com, where people can ask and answer each other's questions. So if you have a career question or you want to learn more about negotiating a raise, we've got a way now to get advice from our community and hear other people's stories. And then, I'm also just kind of fascinated down the road by continuing to explore this idea of how people make the best career decisions, how they find the right fits, and how we help companies tell their stories in a more genuine and authentic way that isn't about just come work here, we're great, but really shares the information people need to know to decide do I want to be part of that organization, or be part of that company?
Bobbi Rebell:
Hey, friends. Here's my take on what Kathryn had to say.
Bobbi Rebell:
Financial grownup tip, number one. Like she did, do your homework, including learning what went wrong the first time. Even if you think the companies or whomever you were pitching to were wrong to reject your idea, we all have room for improvement. Kathryn went out and asked for advice, for example, about how much money to ask for. She actually went for a smaller number based on the advice as a strategy, and ended up raising more money, so it worked. She was also much more organized and structured in her preparations the second time around. She was specific to each company, and deliberate in her presentation. She planned geographically, so she could be efficient with her time. Kathryn even ranked how excited she was about prospects, so she could prioritize and focus on her resources and the best alow there.
Bobbi Rebell:
Financial grownup tip, number two. Stand up for yourself, even if you need them more than they need you. In Kathryn's second round, when prospects said they didn't have the time to meet with her any time soon, she pushed back and was not only able to get them to the table faster when they were interested, but also to level the playing field for a stronger negotiating position.
Bobbi Rebell:
Thank you for listening to this episode of financial grownup. Please subscribe if you have not already. Reviews are great if you have just a few minutes. You can follow me @bobbirebell on Twitter, @bobbirebell1 on Instagram, and learn more about the show at BobbiRebell.com/FinancialGrownupPodcast. I hope that you all enjoyed this episode of "Financial Grownups" with The Muse's Kathryn Minshew, and that we all got one step closer to being financial grownups.
Bobbi Rebell:
"Financial Grownup" with Bobbi Rebell is edited and produced by Steve Stuart, and is a BRK Media production.
Comedian Catie Lazarus does not just host Employee of the Month, she also runs the business that supports it. Being the boss means setting realistic expectations for her team, and dealing with those who aren’t on board with her mission.
In Catie’s money story you will learn:
-The real reason Catie started “Employee of the Month"
-The behind-the-scenes challenges of running a live show/podcast
-The employer side of pay negotiation
-Why Catie is talking about lobsters and diners and how that relates to deciding the right compensation
In Catie’s money lesson you will learn:
-How to evaluate if your pay expectations are realistic for the company or organization that you want to work for or if you need to rethink your approach
-How to tell the difference between being unfairly underpaid, and being paid what the employer can afford
-The benefits of being flexible with your compensation, if the position aligns with your goals
In Catie’s money tip you will learn:
-Her tips on negotiating
-How to navigate the implicit and explicit biases in the work place
-How Catie incorporates her degree in clinical psychology into her business decisions and negotiations
-Strategies to use statistics in your negotiations
In my take you will learn:
-Why and how to take the big picture into account when asking for a raise
-The importance of keeping up your work quality and attitude even if you are turned down for a raise or promotion
-Why it is ok to do something a second or even a third time until you get it right.
-It’s not about perfection but it is about doing your best, and presenting the best product.
Episode Links
EMPLOYEE OF THE MONTH https://www.employeeofthemonthshow.com/
Follow Catie and Employee of the Month!
Instagram Catie_Lazarus
Twitter @catielazarus
Facebook EOTM
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from Transferwise, the cheaper way to send money internationally. Transferwise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Catie Lazarus:
Well, I paid him and I never used him again. Fast forward, after that show, a very big corporation asked recommendations for audio engineers. So, of course, I recommended all of the people who hadn't asked for that, who had seen rightly. It's not that they devalued themselves, it's that they showed perspective and that, I saw, as a really important trait when recommending someone to someone else.
Bobbi Rebell:
You're listening to Financial grownup with me, Certified Financial Planner Bobbi Rebell, author of How To Be a Financial Grownup and you know what? Being a grownup is really hard, especially when it comes to money. But it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Friends, people often ask me, "How do I get these incredible and, often, really high-profile guests?" Well, the answer is simple. Perseverance and having high standards. The interview you are about to hear is the third attempt made to get this woman on for you guys. She's amazing. I had to have her on. First, we had a last minute rescheduling because she lost her voice. Then, we actually did tape an episode but she wasn't happy. She has a really high bar and she wanted to re-tape the show. High standards, my friends. Do it till you get it right.
Bobbi Rebell:
Catie Lazarus is a comedian who does not come to anything with less than her best. She joked that she is not a financial grownup but you're going to see, she absolutely is. Catie is running a business. She is making tough money decisions. You may know her as the host of Employee of the Month. It is a live show about working that is also a podcast. She interviews everyone from John Stewart to Lin-Manuel Miranda, Maya Rudolph and, famously, Jon Hamm. Here is Catie Lazarus.
Bobbi Rebell:
Hey, Catie Lazarus, you are a financial grownup. Welcome to the podcast.
Catie Lazarus:
Thank you, Bobbi, I'm one of your biggest fans or, at least, I am a huge fan of yours.
Bobbi Rebell:
Well, I'm a huge fan of yours.
Catie Lazarus:
I was so thrilled when you came to the show.
Bobbi Rebell:
Your new Employee of the Month. Taped live podcast.
Catie Lazarus:
Exactly. Exactly.
Bobbi Rebell:
Celebrity studied extravaganza.
Catie Lazarus:
You know it's funny, 'cause I've had everyone from FBI agents and taxidermists and the lice lady and a former pick-pocket to, as you know, John Stewart and Rachel Maddow and Jon Hamm and Maya Rudolph and some of the others, so, it does range and that's, I think, what's nice about having this One-On-One podcast, as you know?
Bobbi Rebell:
Yes.
Catie Lazarus:
As well as these live shows where you get to see an variety of guests, as you did.
Bobbi Rebell:
And, by the way, it is a beautiful spring day in New York City and I hear the birds chirping behind you because you're a woman on the go so you're taping outside, which is kind of awesome.
Catie Lazarus:
I want to apologize because I know that the sound quality may not be as good because I'm outside, however, once you hear my voice, it actually might be better.
Bobbi Rebell:
It's all good. It's all good and you brought a really good money story. Tell us.
Catie Lazarus:
So, I started this show, Employee of the Month, 'cause I could not figure out how to get a job writing for The Weather Channel. I got hired to be an assistant on A Bee Movie, and I don't mean a B-grade movie, I mean a movie about bees by a very famous comedian and, at the last minute, the studio went with so-and-so's niece. You know I'd have these-
Bobbi Rebell:
Of course. Of course.
Catie Lazarus:
I was walking to the subway, kind of thing. And so I started my show to understand, not just how people break in, but how did they sustain careers. And you're here in New York and maybe this is a good way to say, "When you're starting out on your own, you may not be able to afford an office." Even a wee workspace. You may work from home. It may be DIY and that certainly was the case with my- [crosstalk 00:04:07].
Bobbi Rebell:
It's about being authentic, Catie, you're authentic.
Catie Lazarus:
Well, what I was also going to say on that note is, I made a joke with you earlier. I said, "When you walk into a diner, you don't order the lobster unless you wanna, you know, figure out what salmonella tastes like or find yourself ... maybe you don't wanna go home. Maybe you don't have a place to stay so you would order a lobster in a diner so that you would end up in the hospital and that would be the place you stay that night."
Bobbi Rebell:
Right. So your money story. I need to put you back on track, Catie. Okay. Let's go to your money story. Your money story is about people hitting you up for money. You're this struggling comedian.
Catie Lazarus:
Yes. So my money story is that you want what you want, but you also need to see what's in front of you. And so when people have come to me demanding wages that I just simply couldn't offer, it was as if they had walked into a diner and demanded a lobster.
Bobbi Rebell:
So, what do you mean? They were asking to borrow money or you were hiring them? What was going on?
Catie Lazarus:
I would be hiring people and they would want ... this would happen very rarely, but it happened. It happened with a couple audio engineers where they wanted money that they deserved to get if they are working at a corporation. They deserved to get it, maybe, even if they worked at a non-profit so they were-
Bobbi Rebell:
Wait, so it wasn't a judgment of the value of their work, it was a judgment of your budget?
Catie Lazarus:
Yes. And they're just simply ... It is what it is. It's nothing personal. I wish it was bigger. I wish that I made money too.
Bobbi Rebell:
So what would happen when this would ha ... I mean is there one incident that stands out?
Catie Lazarus:
Yes. Because I have to say that most of the people who worked on my show worked on my show forever and that, I will tell you at the end, why. So I have a really great team in place. But, on occasion, I would hire someone because I needed someone last minute and this happened with one specific person, a guy who came in and he was from a very small town and I always ask before I hire someone, I say, "What do you want to get out of this?" Because I know from my own experience that sometimes working at organizations that don't have as big a name, don't have as much clout or cachet, you, actually, get to do more work and you get to really learn on the job, which is a positive. And I asked him and he said, "I really wanna be part of something small." But the truth was is that he didn't. So he wanted to get paid really well.
Catie Lazarus:
Well, I paid him and I never used him again but, fast forward, after that show, a very big corporation asked recommendations for audio engineers so, of course, I recommended all of the people who hadn't asked for that, who had seen rightly. It's not that they devalued themselves, it's that they showed perspective. And that, I saw, as a really important trait when recommending someone to someone else.
Bobbi Rebell:
Right, because you have to be realistic about what the budget is for the organization that you're working for. It's not that you're not worth it, it's that this is what this is the project is. Yeah, so what's the lesson then from this story?
Catie Lazarus:
So I think the lesson is to look at what you're going into and ask yourself, "What do I want and what can I get?" And if the answer is, "I want to make money." Well, then you should probably go to an institution that has a track record of making money. If you want to be part of a really creative, artistic show that has tremendous potential for learning a skill, for perfecting a skill, for having ownership, an agency, all of those things, my show has always delivered. And that's why 99.9% of my staff has been with me for so long. My team, really.
Bobbi Rebell:
Awe. That's so great.
Catie Lazarus:
Yeah, and they're fabulous and we work together versus working for me. Now, if you're going to a bank, I'm not gonna name any, but if you're going to a bank or you're going to another kind of corporation, there is a sense that you work for someone.
Bobbi Rebell:
Of course.
Catie Lazarus:
Whereas, I treat my show as I work with you, even if you're my intern. You work with me.
Bobbi Rebell:
So I wanna talk about your money tip. It's, sort of, the flip side of this because you're talking about when you're on the receiving end of someone trying to negotiate with you but you also, in your business now, are constantly being in the position of having to negotiate for yourself in an environment that can be very precarious.
Catie Lazarus:
Yes. And so the hardest part, I find, as a creative person or anyone who's independent and particularly in a culture now where everyone has to be a brand even if you're a peace activist, on some level, you, somehow, have to find yourself as a brand. Pro-peace is not enough. With that in mind, I was short changing myself and I'm talking about with corporations and companies, not with other peers. And part of the challenge is is that there are implicit and explicit biases which the Me Too movement and Black Lives Matter and all of ... Pay Parity, all of these things have really shed tremendous light on it. I'm so thrilled that people are speaking out and having the courage to do so because it's really hard. How do you negotiate if women, typically, make less than men? How, as a female, do I go in and negotiate?
Bobbi Rebell:
Right. So your money tip is about how to negotiate?
Catie Lazarus:
So I decided that I was gonna try to be jovial about it and the reason that I chose to be jovial, meaning humorous, it's still serious. You need to get paid.
Bobbi Rebell:
Well, how much you get paid is a very serious thing.
Catie Lazarus:
Well, the approach. Exactly what you were saying, Bobbi, is that you want to not make it personal so it's not that that person is intentionally trying to be biased against me any more than I'm intentionally trying to be biased against someone else. So, instead of making it about us, I would make a joke about now women are statistically paid less than men, so I wanna make sure that neither of us falls prey to it.
Bobbi Rebell:
So you're calling them out.
Catie Lazarus:
I'm calling it out. Instead of-
Bobbi Rebell:
Calling it out. Yes.
Catie Lazarus:
Yes. So I'm calling the problem out versus the person.
Bobbi Rebell:
So can you go through an example of how you use this? What kind of language would you use?
Catie Lazarus:
A lot of times companies will say, "You know, you're gonna to get a lot of exposure if you go with us." So let's say, we're gonna hire you. You may or may not get exposure from that as anyone who's actually has experience in the business knows, including myself, and that's really up to you, whether that's what you're going in to get. If I'm going in because I'd like to pay my rent, pay for the dentist, what money people do when they go for major jobs. In that scenario, it's okay for me to joke about it a little bit and bring up the subject just like I said. So I stick with the facts which is that women are statistically paid less and, in fact, whether you're a woman of color becomes even more of an issue. So I stick with the facts and then I just make a very light joke about, "I don't want either of us to fall prey to it." Part of the reason I do that is so that I don't have to undermine myself either because I also carry these biases.
Bobbi Rebell:
Interesting. So have you changed, recently, in how you approach people when you hire them? Are you looking at people differently?
Catie Lazarus:
Absolutely, in that I really strive ... I'm coming from [inaudible 00:10:44] a doctor in clinical psych. So I think that there's a part of me that always strives to be better at being mindful of who gets hired and on my talk show, as you know, I have as many female guests and LGBDT, I have guests of all ages and careers and all of this reflects on a desire to see the world as larger than myself. Even if it's harder to get certain kinds of guests 'cause I may not know as many people in that age range or whatever it is or that field or whatever the different points are that create true inclusivity.
Bobbi Rebell:
Well, I just want to have one more moment with you to have you tell us a little bit more about the show, Employee of the Month. What's next with it and tell us where people can hear it.
Catie Lazarus:
We're, actually, going to be going on the road, so if people go to employeeofthemonthshow.com, you can find out if we'll be in a major city near you. You can also listen to the podcast One-On-One and I highly encourage you to go and look through the back files because there's everyone from Lin-Manuel Miranda to Jon Hamm and Maya Rudolph on my show and it's a lot of fun. Even Cynthia Nixon before she ran for governor.
Bobbi Rebell:
I know. That's interesting. That's for another show. Alright, and on social media, where can people follow you, be in touch with you, all that good stuff?
Catie Lazarus:
I'm on Instagram and the Twitter and Employee of the Month has a Facebook page which Putin may or may not also be checking out. So you can go to @employeeofthemonth and Catie is spelled with a C, C-A-T-I-E and then Lazarus, L-A-Z-A-R-U-S.
Bobbi Rebell:
You're wonderful, Catie Lazarus. Thank you so much.
Catie Lazarus:
Thank you, Bobbi, as are you.
Bobbi Rebell:
Hey, friends. Here's my take on what Catie had to say. Financial grownup tip number one. When you go to your boss and ask for a raise, be mindful of the economics of the business. You may be worth more but only to another company that has a bigger budget. Sometimes, the company you work for, actually, cannot afford to pay you more or there are business reasons they choose not to, even if you deserve it. If you make the choice to stay, own that decision and do the best job you can. Don't be that person who complains all day but keeps showing up. You know that person. We've all had them at work. I've had them at every job. You just think, "If this place is so bad, leave." Put a smile on and make it work. But it's also okay to leave for a place that can afford to pay you more. Your employer may not be happy to lose you, but the truth is, they probably know that they can't afford to keep you. They will probably wish you well.
Bobbi Rebell:
Financial grownup tip number two. Sometimes, consider a do-over when you aren't happy with the results. Not only did Catie ask to re-tape her episode, I, myself, have gone to guests and asked them to re-tape their episodes or to come up with more original or compelling stories and money tips to share if I'm not happy with the show or the plan for the show they're going to be on. It can be uncomfortable, at first. But every single time, it results in a better show, a happier guest and, often, a thank you for making the effort to make them sound and come off even better than other shows.
Bobbi Rebell:
That is a wrap on the Catie Lazarus episode. If you want to be a guest on the show and have high standards, like Catie, write to us at info@financialgrownup.com to be considered for our new, once-a-month, listener episodes. Include, in the email, the money story that you wanna share, the lesson and, of course, a very original and compelling everyday money tip. Be sure to subscribe, if you have not already, so you don't miss any upcoming episodes and follow me on Twitter @bobbirebell, on Instagram @bobbirebell1 and for more on the show, go to bobbirebell.com/financialgrownuppodcast. I am such a Catie Lazarus fan. I can't wait for the next Employee of the Month podcast. Make sure you subscribe to that, as well. She is the best and thanks to Catie for helping us all get one step closer to being financial grownups.
Bobbi Rebell:
Financial grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media production.
After 148 rejections in the first funding round, Kathryn Minshew co-founder and CEO of the Muse took note of what she did wrong and upped her game when she went looking for new financing. Minshew scored close to $30 million thanks to the new approach.
In Kathryn’s money story you will learn
-How Kathryn and the Muse team re-vamped their strategy the second time they raised money
-How Kathryn rebounded from the 148 rejections in the seed round of financing
-How The Muse raised $30 million from investors
-How they were able to ask for less money and come out with more than the original targets
-The way Kathryn structured her process when pitching investors
-How they organized their pitches and research to be more effective
-Kathryn’s investor prioritization strategy
-The specific thing Kathryn said to investors to get them to the table faster- and with more interest in her company
-How a second round of financing is different- and should be approached differently from a seed round
In Kathryn’s lesson you will learn:
-The advice Kathryn found most helpful from her networks and mentors
-How she got help from other entrepreneurs
-How to tell if the investors are wrong not to invest- or if your idea and pitch is missing the mark
-How to figure out who your end users are- and why it is important
-Strategies and specific things to ask in order to get honest input about your company
In Kathryn’s money tip you will learn:
-Negotiations can be about more than just cash
-How to ask for signing bonuses, signing bonuses, flextime, vacation time, better titles.
-Why budgets for professional training are essential and how to negotiate for them
In my take you will learn:
-How to learn lessons from rejection, and incorporate them in your next venture
-The importance of taking the time to throughtfully plan and customize presentations and pitches
-How to level the playing field even when the other party is clearly more powerful.
Episode links:
TheMuse.com
Kathryn’s book with Muse co-founder Alexandra Cavoulacos The New Rules of Work
Follow Kathryn and The Muse!
Instagram @kminshew @themuse
Twitter: @Kmin and @TheMuse and @TheNewRules
Facebook https://www.facebook.com/thedailymuse
https://www.facebook.com/minshew
Transcription
Kathryn Minshew:
If you tell someone you're the founder of a company and ask for their input, they are more likely to give you positive impact because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its market positioning lands, or helping a company better understand what it's doing well and what it's not, people are much more likely to give you totally unfiltered feedback for the series A because I was running a process.
Bobbi Rebell:
You're listening to "Financial Grownup" with me, Certified Financial Planner, Bobbi Rebell, author of "How to Be a Financial Grownup". You know what? Being a grownup is really hard, especially when it comes to money. But it's okay, we're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, everybody. This is an episode about rejection, and what you would do differently the second time around. How to tell were they wrong to reject you? Maybe your message could be a little bit more on point. The Muse founder and CEO, Kathryn Minshew has told the story many times of how she and her colleagues were rejected 148 times when they when to raise money for their startup, The Muse. Once the company got off the ground, it has been a massive success, and many people would say, "Well, those 148 people, they must be so sorry that they rejected it." And of course, that is true to some extent. But also, Kathryn looks back and realizes she had a lot that she would do differently the next time. And in fact, she did do it differently when she went back for the next round of financing, and that's what we talked about. Here is Kathryn Minshew.
Bobbi Rebell:
Kathryn Minshew, you are a financial grownup. Welcome to the program.
Kathryn Minshew:
Thank you so much. I'm so excited to be here.
Bobbi Rebell:
And you are well known as the founder and CEO of The Muse, the amazing job site, and also well known for being rejected when you went to raise money. Tell me how many, 140 something times?
Kathryn Minshew:
148 times. It was like rejection for breakfast, lunch, and dinner, with a few meetings and noes inbetween for fun.
Bobbi Rebell:
And you are the queen of resilience, and one thing that you talk about in your book, "The New Rules of Work", which I should have mentioned to everybody. She is the author of a fabulous career book called "The New Rules of Work".
Bobbi Rebell:
You talk about your personal brand, and how important it is to define it. That fundraising and the lack of it for so long became your personal brand. So you brought with you a money story that has to do with what happened next, after you finally did get the initial funding and you went back for me. Tell us.
Kathryn Minshew:
Absolutely. Well, first of all, I'll say it's much easier as we all know to talk about failure once you've moved past it. So it became much easier to tell the story of the 148 noes after we had already successfully raised our series A and B rounds. So we've raised almost $30 million in venture capital so far for The Muse.
Bobbi Rebell:
Amazing.
Kathryn Minshew:
It's been a totally wild ride. So my financial story involves what I set out to do, or rather what I did in the series A to ensure that we had an outcome that was very different than the seed round. Because, obviously, I knew how important it was for that next round, to get it right from the go-ahead. And so to try and condense the story into something very quick, we wanted to go out and initially we were thinking about raising six to $7 million. But actually given the advice that I got while preparing for a fundraise, we were actually told to start out saying we were thinking five to six or five to seven, and then slowly let the demand build. So instead of us going out for a big number and being less sure if the market would respond, start out with a smaller number. And then, if the market is really excited about our business, let the negotiations and the demand push it up, which ended up working really well for us because we ended up raising 10 million after we had overwhelming demand.
Kathryn Minshew:
I also was incredibly structured about the process probably because I was a little bit paranoid after having such a difficult time with our seed round. So ahead of time, I really worked the story, got all of our metrics out there. I thought about how best to position them, which numbers to lead with, what to put first so that we could really grab people's attention. We were obviously lucky in that we had really great revenue growth and a lot of very strong metrics.
Kathryn Minshew:
And then, I actually created a spreadsheet. I took all of the investors that I was even remotely interested in talking to. I put them in a spreadsheet. Divided it up by location, so that when I was in New York, San Francisco, Boston, Chicago, DC, et cetera, I could meet with people who were there. Then, I included information about whether they had invested in any similar companies, any competitors. Any companies that might give them a better understanding into what we did at The Muse. I would include notes from different meetings. I actually would also rank how excited I was after each meeting to continue conversations, so I could prioritize the ones that I was most excited about. I would say that really helped to keep me on track, and so we were also able to run a pretty tight process, where we pinned all of our first meetings with investors to the same two-and-a-half or three-week period.
Kathryn Minshew:
It was really interesting because in the seed round, we had a lot of trouble with investors saying, "Oh, I'm busy, right now. But how about in a month?" I wasn't confident enough in the business, so we would just take whatever we could get for the series A because I was running a process. I would write back to people and be like, "You know I'd love to talk, but unfortunately, I need to get all of our first meetings done by X date. So I can push it a few days, but let me know if you're going to be able to make it work. And if not, I'm totally fine. We'll keep in touch and maybe there'll be another round that you can participate in." And what was fascinating is a lot of people would say, "Oh, let me move around my schedule. Absolutely, I can make it work." And suddenly, we were negotiating from a more even position. And the ones that weren't able to or the ones that said, "No, sorry. I can't do it," they probably would have never backed the company to begin with.
Bobbi Rebell:
True. Do you think looking back, obviously when you were going for the most money, the second round, you were a stronger situation to begin with. But had you used the techniques that you were now using that you just talked about, would you have had more success the first time?
Kathryn Minshew:
You know, maybe. It's so hard to know because the seed round for a startup is really different than later rounds because people aren't necessarily looking at your metrics. They are to some extent, but they're really betting on you. And I think the fact that it was my first proper company that I was fairly young at the time, this was six-and-a-half years ago, so it was very early in my career. And I think that plus the lack of knowledge or understanding about what we were trying to do in the business were some of the biggest concerns. So I do think we could have had a better time and controlled the process a bit more, but I also think there were just some fundamental and structural things that we had to get through and really prove on very limited capital before we could really go out and successfully fundraise from bigger investors.
Bobbi Rebell:
So now, what is your advice to listeners and especially want-to-be entrepreneurs that are looking to raise money, start businesses, and especially to young women?
Kathryn Minshew:
I would say, firstly, you can't understate the importance of perseverance because it is so hard in the early days. But I think that doesn't mean that you just keep doing the same thing without adjusting your tactics and thinking about how you could be more strategic. I found it to be so invaluable to get the advice from others, especially other female entrepreneurs. Because sometimes we have a lot of great friends who are entrepreneurs, who are men, but sometimes the tactics or the approaches or behaviors that would work for them, didn't work the same when I did them because of unintentional or unconscious bias or other things. And so I found that it was really helpful to surround myself with a network of entrepreneurs of both genders to get a lot of advice, to test out different approaches to see what felt natural and normal to me. Because if it feels too unnatural to you, investors will probably pick up on that, and it won't help you communicate that confidence that you are looking for when you're starting to talk to investors about your business.
Bobbi Rebell:
So one last question about this for our listeners, how do you know the difference between maybe your idea just isn't that good, and that's why you're not getting funding and you should stop, or you should persevere as you did because your idea just isn't hitting the right people at the right time with the right message?
Kathryn Minshew:
Absolutely. So you've just gotten to the crux of what makes this so hard, which is that there is no silver bullet, and you will never have 100% confidence or certainty either way, which is incredibly difficult. However, I think there are a few things you can use to help you directionally get that sense of whether your business is likely to be successful. The first, and I think the most important is to figure out who are your end users and do as much as possible to get unfiltered feedback from them.
Kathryn Minshew:
For example, if you tell someone you're the founder of a company and ask for their input, they're more likely to give you positive input because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its marketing positioning lands or helping a company better understand what its doing well and what it's not, people are much more likely to give you totally unfiltered feedback, and you need that unfiltered feedback when you're trying to ascertain if you really need to keep pushing forward on your business.
Kathryn Minshew:
So in my case, even though we were getting rejection, after rejection, after rejection from a lot of investors, we were hearing things from our users and from people who were signing up to use The Muse that indicated we had tapped a nerve and we were on a path that people love. They wanted us to use the product. They'd say I love The Muse, but can you do these five things? Make it better here. Change this. That's all positive feedback because that shows you that there is a need. You just have to keep getting better, and I think that is what gave me the oomph to keep going. But I will just call out it's not like I knew the whole time, oh my gosh, this is a great idea. I just have to keep going. I definitely struggled with whether I should accept that these people that were much more experienced than I, that were successful investors, maybe they knew something I didn't, and I just had hubris.
Bobbi Rebell:
All right. Let's do a money tip. You are the career guru, and you have so many amazing ideas and tips in your book. I wanted to pull some out of there and get maybe your favorite tips that people can use in their careers, and their ventures that they could maybe put to work ASAP at their next job interview or their next negotiation, what have it.
Kathryn Minshew:
I thought through a lot of different things I could share here, and the one I came up with that I wanted to talk about today is the fact that when you negotiate, it is not just all about cash and I think it can be really empowering to realize that because so many of us have anxiety about negotiating a salary, negotiating a raise. Whether it's at the beginning of a job search, or when you're getting a promotion. But I would encourage people, remember that there are a lot of other things you can negotiate for.
Kathryn Minshew:
So obviously, base salary is the thing that people talk about most. But what about signing bonuses, performance bonuses if you achieve certain things? You can also negotiate for flex time, for vacation time, for a better title that might help you in your career. One of the most creative things that I've heard is people negotiating for a budget for professional development and training.
Bobbi Rebell:
Specific money. In other words, not just saying, "Will you send me," in theory. It's very specific.
Kathryn Minshew:
Oh, very specific. In fact, there was someone at an organization that had mandatory salary bans that the leadership wasn't able to go beyond, and so she said great. Why don't you dedicate ... I think it was five or $10,000 towards training development conference that will include my travel, and that will help level me up to be a better employee for you, to let me do my job better, and it won't invalidate the salary cap. This will just be another way that you're investing in my growth, and they said yes, and I think that is such a great example of creativity when it comes to negotiation.
Bobbi Rebell:
Amazing. That's such great advice. Thank you so much. Tell us quickly before we wrap up, what are you guys up to at The Muse these day, and where can people find you?
Kathryn Minshew:
Absolutely. So people can find me at The Muse or @kmin on Twitter. As a company, we are doing a lot right now, but we have been really focusing on we rolled out a new feature called Discussions on TheMuse.com, where people can ask and answer each other's questions. So if you have a career question or you want to learn more about negotiating a raise, we've got a way now to get advice from our community and hear other people's stories. And then, I'm also just kind of fascinated down the road by continuing to explore this idea of how people make the best career decisions, how they find the right fits, and how we help companies tell their stories in a more genuine and authentic way that isn't about just come work here, we're great, but really shares the information people need to know to decide do I want to be part of that organization, or be part of that company?
Bobbi Rebell:
Hey, friends. Here's my take on what Kathryn had to say.
Bobbi Rebell:
Financial grownup tip, number one. Like she did, do your homework, including learning what went wrong the first time. Even if you think the companies or whomever you were pitching to were wrong to reject your idea, we all have room for improvement. Kathryn went out and asked for advice, for example, about how much money to ask for. She actually went for a smaller number based on the advice as a strategy, and ended up raising more money, so it worked. She was also much more organized and structured in her preparations the second time around. She was specific to each company, and deliberate in her presentation. She planned geographically, so she could be efficient with her time. Kathryn even ranked how excited she was about prospects, so she could prioritize and focus on her resources and the best alow there.
Bobbi Rebell:
Financial grownup tip, number two. Stand up for yourself, even if you need them more than they need you. In Kathryn's second round, when prospects said they didn't have the time to meet with her any time soon, she pushed back and was not only able to get them to the table faster when they were interested, but also to level the playing field for a stronger negotiating position.
Bobbi Rebell:
Thank you for listening to this episode of financial grownup. Please subscribe if you have not already. Reviews are great if you have just a few minutes. You can follow me @bobbirebell on Twitter, @bobbirebell1 on Instagram, and learn more about the show at BobbiRebell.com/FinancialGrownupPodcast. I hope that you all enjoyed this episode of "Financial Grownups" with The Muse's Kathryn Minshew, and that we all got one step closer to being financial grownups.
Bobbi Rebell:
"Financial Grownup" with Bobbi Rebell is edited and produced by Steve Stuart, and is a BRK Media production.
MSNBC Your Business host JJ Ramberg didn’t just love Ben & Jerry’s ice cream growing up.
She loved their mission. That led not only to her career interviewing entrepreneurs on television but to her own socially responsible ventures including Goodshop and The Startup Club.
In JJ’s money story you will learn:
-How Ben and Jerry’s Ice cream inspired JJ’s business with her brother called Goodshop
-How her business supports non-profit causes
-How to use GetGumdrop to support causes you care about
-How her ventures have raised nearly $13 million dollars for non-profit causes
In JJ’s lesson you will learn:
-How to balance being socially responsible business with profitability
-Why JJ believes corporate sustainability starts with focusing on secure jobs for employees
-When NOT to give directly to charity
In JJ’s money tip you will learn:
-How JJ’s new spending categorization strategy is helping her save money
In my take you will learn:
-How to balance supporting your business with supporting causes you believe in
-No-cost ways to support charities you believe in
Episode Links
Learn more about
JJ Ramberg on MSNBC
Been There Built That podcast
Your Business with JJ Ramberg on MSNBC
The Startup Club book
Goodshop
GetGumDrop
Ben & Jerry’s Ice Cream
The Body Shop
Patagonia
Amazon Smile
Bidding for Good
Follow JJ Ramberg!
Twitter @jjramberg
Instagram @jj.ramberg
Facebook JJRamberg
MSNBC Your Business host JJ Ramberg didn’t just love Ben & Jerry’s ice cream growing up. She loved their mission. That led not only to her career interviewing entrepreneurs on television but to her own socially responsible ventures. In this Financial Grownup podcast episode we also discuss no-cost ways you can support charities. #CharityIdeas #GiveBack
Transcription
JJ Ramberg:
The most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner Bobby Rebell, author of How to be a Financial Grownup. You know what? Being a grownup is really hard especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Wise words from this episode's financial grownup. She is JJ Ramberg, host of Your Business on MSNBC. JJ has been talking to small business entrepreneurs for more than a dozen years. JJ also hosts the Been There, Built That podcast, and she has a few pretty significant side hustles that she herself has been building including a fantastic plug-in app called Goodshop and a young adult book project with her sister that she will tell us about. Here is JJ Ramberg. JJ Ramberg, welcome. You are a financial grownup. Great to have you.
JJ Ramberg:
So happy to talk to you, Bobbi.
Bobbi Rebell:
You have your own new podcast and a new book to talk about. Tell us more.
JJ Ramberg:
I do. There's a lot going on. We've recently a few months ago launched our podcast Been There, Built That. Basically, I've had this show on MSNBC for 12 years called Your Business.
Bobbi Rebell:
Longest running show, right? Is that the longest running show on business?
JJ Ramberg:
It's the second longest running show after Chris Matthews, after Hardball. I know.
Bobbi Rebell:
That's the longest business show.
JJ Ramberg:
Yeah, for sure. It's crazy. I think it's the second longest running female anchor.
Bobbi Rebell:
Awesome.
JJ Ramberg:
Maybe first female, I don't know.
Bobbi Rebell:
Let's just go with first. Let someone correct us.
JJ Ramberg:
Exactly. I've had this show on MSNBC for 12 years about growing businesses. We just launched the podcast because on this show I get three minutes to talk to people. I always get to talk to them much longer in the green room and at coffee. The podcast is my chance to now get those conversations out to our audience too.
Bobbi Rebell:
You also have The Startup Club.
JJ Ramberg:
The Startup Club was my side passion project that I did with my sister. It's a fiction book for kids about kids who start businesses. It's a typical book for grade school kids, like two best friends start a business. The mean girl in school copies them. They get in a fight. The brother gets involved, all this stuff. Through it, they learn what's the difference between profit and revenue, and what is marketing, and all kinds of business things, which tap into kids' general interest at this age anyhow.
Bobbi Rebell:
Kids are curious. My son is very curious. I have a ten-a-half-year-old. He is very curious about business. I am definitely going to check that out with him. You also, speaking of kids, when you were a kid, you loved ice cream. It was memories of Ben & Jerry's that inspired your money story that you're going to share with us.
JJ Ramberg:
It was. When I was growing up I was really taken by the idea of socially responsible businesses. In those days it was Ben & Jerry's, all the good that they were doing, and The Body Shop when it first started, and Patagonia. I thought when I'm older, even just as a kid, I thought I want to do something that is business because I come from a family of business owners and incorporates doing good. Cut ahead many, many, many years, and my brother and I came up with this idea called Goodshop, which was we partnered with thousands of stores. You'd shop just like you normally would. We'd get you all the best coupons and deals for those stores, but you can select your favorite cause no matter what it was. A percentage of what you spend goes back to that cause.
Bobbi Rebell:
That's awesome. Now there are extensions.
JJ Ramberg:
Now we have the Gumdrop extension. You don't even have to worry about putting the coupon in or choosing your cause every time. You just go to getgumdrop.com and add the extension. It automatically puts the best coupon in at checkout. If you select a cause, a percentage of what you spend will go back to that cause. We've raised nearly $13 million for causes so far.
Bobbi Rebell:
Amazing. What is your lesson for want to be entrepreneurs who also want to be doing good? How do you actually execute this? This is an 11-year overnight success.
JJ Ramberg:
Twelve, actually.
Bobbi Rebell:
Yes, 12. Oh my gosh, 12.
JJ Ramberg:
Yeah. It's interesting. I get this question a lot from people. As you can imagine, because of the show, I meet so many founders and people who want to start companies. Because my company is socially responsible, I get the question. My thought is Goodshop was born originally on this premise of let's give away our revenue when people choose causes. It was baked into what we were doing. That's why we launched it in the beginning, but not every company is like that, and not every company needs to be. You got to think of social responsibility not just about giving money away. It can be about treating your employees really well. The best thing, I think, the most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes. Yes, if you can take time off to volunteer, or if you can donate part of your profit, that's fantastic, but I don't think you need to feel the great pressure of that right when you're starting up, if you don't have time.
Bobbi Rebell:
I feel like there is pressure for people to say, "I'm giving this percentage to charity." In fact, by employing people, you are helping.
JJ Ramberg:
Yeah, and look, when you're starting out, you know this, you don't necessarily have money to spare to give away. That money needs to go back into building your business.
Bobbi Rebell:
Solvency is important.
JJ Ramberg:
You have to think about what makes sense for your company at this particular time. Look, it's changeable. As you grow, things can change. I think treating people well and keeping your doors open, you can think of that as socially responsible.
Bobbi Rebell:
Give me a money tip, something that you and your family do that our listeners can implement right now.
JJ Ramberg:
I have recently started categorizing all of what I spend, which I think is so fun. I know some people think that is so horrifying.
Bobbi Rebell:
That's fun? That's not fun.
JJ Ramberg:
I know. It's so funny. To most people, that sounds awful. To me, I take such great pleasure in seeing exactly where my money is going. My money tip, if it at all sounds fun to you, go ahead and do it also. There are all kinds of systems online.
Bobbi Rebell:
Are you using an app?
JJ Ramberg:
I use a proprietary one, but there are lots of them out there that will help you do this.
Bobbi Rebell:
Thank you, JJ.
JJ Ramberg:
Good to talk to you, Bobbi.
Bobbi Rebell:
Here is my take on what JJ had to say. It has a lot to do with her refreshing and realistic on business and being socially responsible while you build a business. Financial grownup tip number one, as JJ says so well, when starting a venture don't get caught up in making sure that you give, for example, a certain percentage of profits to charity, or give employees days off to volunteer. If it works for your business plan, that's great. The truth is if your business provides a service that is helpful to your clients, providing value for them and also can provide a solid and stable job for your employees to support their families, that is good too. A solvent, profitable business should be your priority.
Bobbi Rebell:
Financial grownup tip number two. From the consumer perspective, for things that you are already buying, see if there's a way that you can buy things that you're already buying, and have a percentage of what you are already paying go to a cause that you care about. For example, you can start with Goodshop's new Gumdrop extension. You could also, for example, shop with retailers that donate a percentage to charity like Amazon Smile, which has the same products as Amazon, but donates half of one percent of your purchase to the charity of your choice.
Bobbi Rebell:
Also, keep an eye out for themed promotions at places you already shop where they will give a certain percentage to charity for that time period. Separately, you can go directly to charities and even schools and ask if they have any partnerships with retailers. Very often you can put a code in and, for example, enter through a website portal with retailers. Then that organization will get a cut of what you spend. I also like to shop at school auctions where I can buy things that I probably would have bought anyway, and you can support the school or the cause. The website I use for that is called biddingforgood. You can bid on items for any school or organization there. You don't have to be affiliated with that organization or school. I've bought everything from kids' classes to theater tickets, even a yoga mat, all through bidding for good often at lower than retail prices, in fact. Even though you're bidding, it's not always a higher price. Sometimes you actually get a good deal for yourself. Of course, the money goes to the school or the organization, so it's all good.
Bobbi Rebell:
Thank you so much for listening to this episode of the Financial Grownup podcast. If you like the show and want to hear more, please help support us by subscribing and then rating or reviewing on iTunes or Apple Podcast. That is the way more people can hear about us. Also, please share on social media or just tell a friend. I hope you enjoyed hearing JJ's story and advice and that we all got one step closer to being financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stuart and is BRK Media Production.
Farnoosh Torabi was underpaid and overworked as a young journalist. But a key piece of information put her on the road- albeit a rocky road- to doubling her pay.
In Farnoosh’s story you will learn:
-What to ask your HR department to find out if you are underpaid
-Strategies to use if your pay is at the low end of the salary range for your job
-When to know it is time to look for a job outside your current company
-How to handle the big question “How much do you want to make” during job interviews
-How to turn an employers promise of a future raise, into an immediate salary bump
In Farnoosh’s lesson you will learn:
-How to most effectively advocate for yourself
-How Farnoosh was able to persevere even when she faced pushback about her compensation
-The importance of getting the information in advance of negotiations
In Farnoosh’s money tip you will learn:
-Why she advocates checking your numbers every day
-What weight and wealth management have in common
-How she uses Mint
-How checking your finances can help catch financial fraud or hackers
In My Take you will learn:
-My mothers suprising negotiating technique
-How I got a salary above my ‘reach’ range by using it
-My dad’s philosophy on how companies show appreciation
-How to handle being offered a higher title and more responsibility- without a pay bump
Episode Links:
Find out more about Farnoosh’s course “Personal Finance for Grads” on Investopedia.com by going to academy.investopedia.com and look for Personal Finance for Grads.
Be sure to use the code FARNOOSH20 to get 20% off the $99 course lifetime access.
Farnoosh also mentions Mint, where you can also check out her columns.
You can learn more about Farnoosh Torabi on her website http://farnoosh.tv/
Follower her on social media:
Twitter: @FARNOOSH
Instagram @farnooshtorabi
Facebook: www.facebook.com/FarnooshTorabi
Listen to the So Money podcast on itunes
And check out my episode from when How to be a Financial Grownup came out!
Farnoosh Torabi was underpaid and overworked as a young journalist. But a key piece of information put her on the road- albeit a rocky road- to doubling her pay. Listen to this Financial Grownup podcast to learn how she doubled her salary and how you can too. #Salary #SalaryIncrease