MSMP 55: Henry Daas on The Codfish Life

There are many business books that share theories about how to manage companies.  Unfortunately, many of them are heavy in theory and light on real-life experience, which is why I’m always keen to talk with those who don’t just have a set of experiences with one company, but many sets of experiences across multiple companies and industries.
 
Someone who fits that profile is Henry Daas, who joined us for this episode of Mads Singers Management Podcast.  Henry is a serial entrepreneur, business coach, author of a book about money and finance and currently writing a book about the “seven silos” of a business, which he has arranged into an acronym spelled as “codfish.”
Henry used a website to find an English word that would match the first letters of each of the concepts that he found were vital for any successful and serious business:
  • Customer Service
  • Operations
  • Development
  • Finance
  • Infrastructure and IT
  • Sales and Marketing
  • Human Resources
Henry has a great skill stack, one of which is in finance, so I really enjoyed our conversation about business finances.  We agreed that a shocking number of business owners do “bank account financing,” meaning that they run their business and build their financial outlooks based on what is going on in the company bank account.  This is just one of the many issues I talk about in my finance course for entrepreneurs.
Henry insists that business owners doing less than $1M in annual revenue should know the numbers from their balance sheet and profit and loss statements backward and forwards.  He also noted how casual most business owners can be about securing credit during good times.  “Otherwise,” he says, “You won’t be able to get it when you do need it.”

I really appreciate Henry’s humble and understated style and there’s a lot more to this interview that you’ll enjoy.  Dive in!

Key Learning Points:
1. Henry shares how he developed his Seven Silos concept - 1:57
2. Henry gives his opinion about “writer communities” - 5:35
3. Henry talks about the #1 finance issue most small business owners face - 7:30
4. Henry talks about the importance of a credit line, even when you don’t need one - 10:27
5. Henry cautions against “bank account” financial planning - 13:45
6. Mads discusses two aspects businesses should consider when making investments  - 20:31
7. Henry discusses the one milestone that makes you a “real business”  - 26:32
8. Henry discusses “micro clients” and their relation to the 80/20 rule  - 31:00
9. Henry shares his biggest management mistake - 39:02
10. Henry warns about the “equity trap” - 40:35
11. Mads explains why he takes business partnerships more seriously than marriages - 42:00

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