What tips would you offer other entrepreneurs?
Rosenstein: First, it’s great to have a business that generates good cash flow. There are going to be times when things go wrong and money is tight, and friends, family, and investors are hard to find. Make sure you think hard about what you’ll do and where you’ll get money during these times, especially if your model is not cash-flow friendly. And perhaps most importantly, always be willing to share equity or take less money to get the right people or the right partners.
You will always make more money than you expect when things go well, but this means choosing your partners and your colleagues carefully. I like the combination of high natural intelligence, competitiveness, personal humility, and a strong ethical foundation. That’s a winning formula for your most important people. When you find someone who is like this who can add value to your business, be willing to pay up, take less for yourself, or make whatever sacrifice you need to make, because that is how you make a great business.
The same can be said about picking the right people to sell your business to. The right people can adapt your model at the right time, help you find a solution you didn’t see, or simply execute better than the competitor. Never be cheap or careless when it comes to investments in your key people or the right partners.