Five Ways to Allocate Your Capital đ¸
A huge part of business is money. Money for growth, money for product dev, money for hiring, money for marketing, money for salesâŚ
So a huge question every business leader needs to ask themselves is:
How do you make your money, time, and resources work best for you?
And thatâs a question of capital allocation.
Todayâs Mission Daily guest, Wade Foster, the CEO of Zapier, literally puts his money where his mouth is when it comes to the strategies he suggests for successful capital allocation.
Wade has been on the show before when he spoke about The Outsiders, a book that identifies the financial practices of eight hugely successful CEOs who have extraordinarily high returns.
In this episode, Wade talks through the five categories of capital allocation in The Outsiders and how they apply both to his company and his personal life.
These categories are:
đ Investing in existing operations
đ Acquiring other companies
đ° Issuing dividends
đł Paying down debt
đ Buying your companyâs stocks
Tune in here to learn more about what these categories are and how you can implement them.
A quick shout out to our friends at TriNet for making this month of Mission Daily possible! TriNet makes HR easier for small to medium-size businesses. From payroll to benefits to compliance, TriNetâs got your company covered. Learn more at trinet.com.
Note From The CEO đ
In this weekâs series of rants (Mon, Tues), we faced the reality that everyone is fighting a battle. Weâve realized that whatâs wrong with us is not our fault, that these cycles of allocating blame have been spinning for the entirety of human history. Once weâre ready to stop blaming ourselves and others, we can begin the search for the right help.
For me, I had been to therapy and psychiatrists as early as the 6th grade.
They didnât speak my language. They didnât have any testimonials from happy kids they had helped. They didnât have any empirical demonstration of âcuringâ or helping people struggling with what I faced.
So I kept looking. I kept hoping. I kept researching. But most importantly, I didnât stop.
Now, after finding the âperfectâ professional help and protocol with a track record of success for people in my shoes⌠And after traveling the world, deploying in the military, building cool things, starting a family, etcâŚ
I am convinced that THE only skill required to find the perfect help you need (or help for someone you love who is struggling) is persistence.
Definition: firm or obstinate continuance in a course of action in spite of difficulty or opposition
Thatâs it. There might be nights and days and more pain than you can ever articulate. But in order to complete your quest for healing, you need to be persistent.
Keep going. Never stop. Eventually, youâll find the perfect help.
In tomorrowâs message, weâll discuss some tactical ideas around how to find that âperfect helpâ.
â Chad Grills, Mission Founder and CEO
Midweek Motivation đŞ
âAfter orbiting the moon, mundane business problems did not faze him.â â William N. Thorndike, The Outsiders
âThere is a fundamental humility to decentralization, an admission that headquarters does not have all the answers and that much of the real value is created by local managers in the field.â â William N. Thorndike, The Outsiders
âYou are right not because others agree with you, but because your facts and reasoning are sound.â â Benjamin Graham (Featured in The Outsiders)
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Weâll see you tomorrow! âď¸
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