HIBT Method Cleaning w/ Adam Lowry and Eric Ryan

What: Taking on major multinationals like Proctor and Gamble, Chlorox and even Unilever, two entrepreneurs wanted to change the world of green cleaning products.

When: Adam and Eric grew up as friends (meeting at a summer camp as kids), but started working together in the late 90's after they both ended up in California chasing separate .  

Why: The two friends took on the aphorism that "green doesn't clean" by making soap that could clean a bathtub while doing no harm to the environment.

What I learned: In the podcast (How I Built This / Method), Eric and Adam talk about taking money from outside investors, something that's looked on as glamorous and the marquee of 'making it' in the entrepreneur world (at least in my mind!).  What might not be as well known are the effects of dilution (the decrease in existing shareholders' ownership of a company as a result of the company issuing new equity) when venture capital money enters the picture.  If you aren't familiar with this concept, I would recommend reading this article or even watching this short clip.  All this aside, the two founders of Method talk about their recommendations on taking money from friends and family.  Not too uncommon when seeking startup capital, taking money from friends and family (as told by Eric Lowry and Eric Ryan) creates a sense of deep responsibility and loyalty to those dollars.  They go on to say that money from family and friends becomes deeply personal for those accepting the family. 

Take Away: There are several ways to finance a startup, from bootstrapping, friends and family, family trusts or even venture capital.  However, taking a note from those who have been there and definitely 'done' that, Eric and Adam recommend thinking twice before accepting money.