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I invested my savings in building a media brand from scratch. Here is how much it costs

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When you start a new business, how should you decide how much of your personal savings to invest?

And for the first time, I’m using what I feel is a large amount of my own money to start a new business.

I’ve set up media companies before, but I haven’t dived into my own savings. A decade ago, I ran a boutique service agency, and we reinvested some of our proceeds into another arm of the company, a book website. I think this is one of the best ways to take off a company if you don’t have money in the bank yet: by offering services that bring in cash flow and investing over time in new asset growth.

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Then I went home to a personal financial media brand called The Penny Hoarder (they took over my agency). This company was booted too, but the founder developed it for five years before I joined as a third employee, and we were well resourced so that our growth matched the rapid pace of a funded start-up.

So when I set out to start a new media company last year, I had enough experience to figure out how I wanted to do it. I like to boot – I value independence tremendously – and have money to invest from six average figures Selling a content site Last year, this book website we launched during my agency days.

Invest in a new media brand

Someone asked me, why put your own money into launching a company, when you can run Substack or get a job at a media company?

Because building something out of nothing – something bigger than me – is exhilarating. I’m good at writing, but my real superpower is construction: spotting opportunities, putting all the pieces together, and sticking with them long enough to create something of value.

There’s also the financial advantage of running a scalable project that doesn’t just depend on me, and the freedom to play by my own rules. If you are an entrepreneur, you understand this very well; It is impossible to get away from the next challenge. Every little win is a thrill.

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So I started working about 30 hours a week (this is my version of working full time now that I have a family) on my new project in September 2021. I called him they got it.

through us the newsWe share stories about online businesses that have sold for the low six, seven or eight figures, the kinds of exits that don’t usually get media attention but can change the lives of founders, especially those who run or raise only minimal funding. We also build resources to help entrepreneurs sell their businesses, including a database that tracks acquisitions of this size.

I chose this topic because it resolved a pain point I had myself: the two times I sold my business, I didn’t know where to turn for advice or professionals for help. Most of the information I could find was geared towards much larger sales. And I checked out comps or comparable sales manually – because no one was keeping track of them for deals of this size.

So I set out to build this resource for entrepreneurs — but it turns out that investors, M&A professionals, and entrepreneurs looking to buy companies are hungry for this information, too.

By the time we launched in February 2022, we had an email list of about 1,000 people and we Spend about $30,000. Most of that money went towards creating content and designing and building the website.

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While I’m our only employee, I work with a team of freelancers who do a lot of heavy work: reporters, researchers, podcast producer and designer, as well as a COO. My goal is to eventually hire a few employees, but I don’t want to build a huge team. My favorite model – and that’s largely possible because it’s an online business – is thin team, big revenue.

Fast forward to six months after launch, and I generally shared What did our numbers look like? This was until the end of July 2022:

Spent: $115,000

Revenue: $42,000 (reinvested in the brand)

My investment: $73,000

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I freaked out when I put my money into this brand. But scarier? Tell others how much you have invested.

Is it too much or not enough?

It’s easy to share these kinds of numbers publicly once you’ve succeeded and reviewed what it takes to get there. But being transparent about my investment when we’re not making a profit yet? I found that much more frightening.

Others may look at what you’ve spent and say it’s too much. I should have spent less on the MVP to see if anyone cared before putting serious money into it.

Others may say that this is not enough. Some of the emerging media I follow Twitter It raised millions to fund the first few years of growth. How am I going to intervene with only $73,000?

However, I felt that this transparency is important, both to show others what it really takes to start a business, and because it aligns with our brand ethos. We ask entrepreneurs to share sensitive information with The Got Acquired, metrics about their business, or behind-the-scenes details about the toughest parts of their acquisition experience. They trust us with this information because they know that transparency helps other entrepreneurs succeed; It’s a simple way to push it forward.

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So by sharing my fearsome milestones, I’m practicing what we preach. This investment worked for me, though high for some and low for others. By putting in those dollars, the brand was polished enough at launch to be taken seriously.

The hardest part for me in deciding how much to invest was not the initial investment, but rather the commitment to invest more as needed. My original plan called for an investment of $60,000 to get our operations up and running, with the hope that revenue would be funded soon after.

After the launch, we had some great victories. We’ve grown our email subscribers to several thousand organically, with open rates above the industry average. We got sponsors who wanted to reach our audience of acquisition-interested entrepreneurs. our mission echo.

Of course, I don’t want to suggest it was easy; There were a lot of challenges, too. It was difficult to recruit great reporters with the right skill set even though I have a background in creating content teams. And my expectations about how quickly we might grow weren’t always in line with the size of our team and our resources.

However, we had momentum, so I decided to put in more money. And I will continue to do so if necessary because we are in a different place now than we were when we formulated our pre-launch strategic plan.

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Now I just don’t think this idea will work – I know it will.

Moving towards profitability

My goal is to generate enough revenue to cover expenses by the end of this year. The monthly burn rate is now $10,500 per month, but things change quickly at startup, so in fact it might look different next month.

I had to push myself to share these numbers publicly – but the reaction when I did was overwhelming. Other quitting practitioners were very grateful for the transparency. We often hear about the successes of a new company, but details about the investments it took to get there tend to be muted. My fellow entrepreneurs were relieved to hear someone say, I invested my own money, which is scary. They felt they had passed.

Yes, it is risky to invest your savings rather than raise money and transfer at least some of that risk to someone else. It’s certainly not a risk everyone should take, nor is it a risk everyone can take.

But for me, at this point in my life and career, betting on myself is the right way to go.

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Alexis Grant is a media entrepreneur and founder they got it.

The opinions expressed in Fortune.com articles and reviews are those of their authors only and do not necessarily reflect the opinions and beliefs luck.

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Finance

Dave Webster slumps after third-quarter win fails to impress (NASDAQ: PLAY)

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Dave Webster (Nasdaq:game) Involved decreased 6.3% Despite the announcement of winning fiscal third-quarter earnings.

Restaurant and arcade chain operator happened Third quarter GAAP EPS of $0.04 per share with earnings of $481.2 million. These numbers came in above average analyst expectations of $0.01 and $10.42 million. forefront Forma combined comparable store sales, after completing the acquisition of flagship event branded stores, increased by 13.3% compared to the same period in 2021.

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“Our team has focused on three key work streams; one, managing the merger process effectively; two, long-term strategic planning; and third, managing near-term sales and profitability to offset the ongoing inflationary pressure in our business,” CEO Chris Morris highlighted during Third quarter earnings call.

In the third quarter, the company opened three new stores under the Dave & Buster brand and ended the quarter with $599.3 million in cash, which included $108.2 million in cash and $491.1 million available under a $500 million revolving credit facility.

Looking ahead, CFO Michael Quarteri said on the earnings call that he’s “encouraged by the continued trends in the fourth quarter,” even in the midst of significant economic uncertainty.

PLAY stock is decreased 13.5% year to date.

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Fauci warns that China risks a “wave of infections” after relaxing its coronavirus eradication policy

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Joe Biden’s chief medical adviser has warned that China’s reversal of a zero-Covid policy threatens to put pressure on the country’s health system and create conditions for new variants that could spread around the world.

Dr. Anthony Fauci urged Beijing to import Western Covid vaccines based on messenger RNA (mRNA) technology, which are more effective than Chinese-made vaccines, to increase the vaccination rate and boost overall immunity.

He said a wave of casualties would occur A large number of elderly people in China About 85 million people over the age of 60 have not received the third dose of the vaccine needed for strong protection against Omicron variants – and people with underlying health conditions are particularly challenging.

“If they don’t do things like launch and implement a proactive vaccination campaign, and open up, you’re going to have a wave of infections that will certainly be associated with some degree of disease severity,” Fauci said. The FT Global Boardroom event Wednesday.

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He added that any large wave of infections in China would give the coronavirus a chance to mutate into new types.

“When you have a big wave of transmissions of the virus, you give it a huge chance to mutate. When you give the virus a chance to mutate, that allows it to create potentially new variants. And once you have a completely new variant it can have an impact on the rest of the world.”

‘When you have a huge wave of virus transmissions, you give it a huge opportunity to turn around,’ Anthony Fauci told the FT Global Board of Directors © Abbie Coonan / FT

The risk of an uncontrolled wave of Covid infections across China creating conditions for new variants to flourish was “possible” but “very low,” Eric Topol, founder and director of the Scripps Research Translational Institute, said on Wednesday.

“The much bigger concern is that there will be countless deaths and morbidity unless there is an accelerated and much better vaccination rate, including more effective vaccines, in the population,” he said.

Fauci, who is stepping down from his position in the US government at the end of the year, added that he had not had contact with Chinese officials in a long time. He said Beijing’s strategy earlier in the pandemic had “some flaws” because it did not use lockdowns to vaccinate people.

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Beijing announced this week widespread relaxation President Xi Jinping’s controversial zero-COVID policy emerged as evidence of the economic damage caused by the pandemic’s restrictions emerged. But Wigram Capital Advisors, a macro advisory group focused on Asia, predicts that relatively low vaccination levels among China’s aging population could lead to million deaths If infection rates rise under relaxed restrictions.

Fauci echoed the advice issued Last week by Ashish Jha, the White House coronavirus coordinator, on how China should change its policy and import Western vaccines to tackle the virus. China said it would provide the BioNTech vaccine, but only to foreigners.

I would suggest they import western types [vaccines], particularly the highly effective mRNA vaccines used in most countries of the world. Unfortunately, the original Chinese vaccines were not as effective as some of the other vaccines.

Even in the United States, Fauci said, the number of deaths from Covid remains unacceptably high. He said cooler weather, increased social activity in the upcoming holiday season, and Omicron’s new BQ.1 and BQ.1.1 variants mean the pandemic is far from over.

“This is not a good formula for declaring that this is over,” Fauci added. “We still have to be on our guard.”

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Apple’s Tim Cook celebrates a new chip factory in Phoenix

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When Chinese factory supply Apple’s iPhone has been so riddled with the COVID-19 outbreak that it has shutdowns and staff strikeit directly affected global iPhone shipments.

some Estimates That iPhone production may decrease by up to 30% as a result of curbing the spread of the epidemic in China.

To reduce the risk of slowing down the production of its devices abroad, Apple decided to take matters into its own hands. Apple CEO Tim Cook confirmed on Tuesday that chips for Apple devices will now be made in the United States

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Apple silicon unlocks a new level of performance for our users. And soon many of these chips can be stamped “Made in America,” he wrote in the tweet.

A new plant in Arizona, operated by the contract chip maker, Cook said Taiwanese semiconductor industryIt will mark the beginning of a new era of advanced manufacturing in the United States.

This will be the first time in a decade that Apple will use US-made chips. The California-based company relies heavily on parts manufactured in Asian countries, In particular, China. Most of the chips that power Apple devices are Made in Taiwan.

The Apple CEO spoke at the TSMC factory under construction in Phoenix, along with President Joe Biden.

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“As many of you know, we work with TSMC to manufacture chips that help power our products around the world,” Cook said during the speech. to me bloomberg. “And we look forward to expanding this business in the coming years – as TSMC forms new and deeper roots in America.”

Apple plans to make silicon chips for most of its devices at its Phoenix plant. bloomberg mentioned. In the early years of manufacturing, the factory will produce fewer chips and use lower-quality technology than what Apple may require for its devices in 2024.

The company did not immediately respond luckComment request.

TSMC initially planned to spend $12 billion at our factory in Phoenix. Taiwanese company later increased Its investment amounts to nearly $40 billion, which it said is “the largest foreign direct investment in the history of the state of Arizona and one of the largest foreign direct investments in the history of the United States.”

The chip maker is said to be looking forward another plant Located in the United States as part of a larger effort to reduce reliance on Asia to make much of its chips.

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The plant is set in Arizona Opened in 2024.

The new Impact Report weekly newsletter will examine how ESG news and trends are shaping the roles and responsibilities of today’s CEOs – and how they can better overcome these challenges. Subscribe here.



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