One Entrepreneur On Money: Marc Lefton of Adholes

This is part of a series called "The Entrepreneurs On Money."  This interview is with Marc Lefton of Adholes.

Knowing what you know now, what do you think you might have done differently where money is concerned, if you were just starting your business?

Be more direct with clients about what costs are involved in what we do and find out sooner whether or not they were comfortable. When you're a startup and you have a new idea, people will take meetings with you and they will listen to your ideas, and they will be very interested in what you have to say, and they will even meet with you again and again. And then the time comes to talk money and they don't have anywhere near what it takes to engage with you. Don't be shy about asking up front. In fact, we're as bold to ask for a fee just to put together an estimate these days because it really separates those who are serious from those who are using your time to write an RFP they should be putting together themselves that they can go shop around to the competition.

The ROI on not spending time on people who have no money is you can better hone your pitch for those who do with the extra money. Or do something like take a break. 

What were your biggest mistakes when it came to managing your money as a business owner?

Spending ahead of demand. When you start up, cash is king. So use it wisely. Don't do ANYTHING until you're hurting so much you just can't take it anymore. If you're working from Starbucks or virtually, wait until there's no question that you need an office - that there's just no way to keep things going without one. Same for any subscriptions, technologies, accountants, lawyers - people think they need all these things and yet, entrepreneurs survive without them somehow all the time. 

What were your smartest moves when it came to managing your money as a business owner?

Being very upfront about our cash flow with companies we hire. We know the nature of the economy right now is that clients will pay us slow, which means we pay people slow through no fault of our own. But sometimes when you hire a company, they expect you to be a bank and front the money - or are expecting something sooner. I'm always honest about how long it will take, so they can make a choice now if it's worth it for them to wait or work with another client who can pay sooner. Fortunately we're in a position now where cash flow has improved that we have less of these conversations all the time. 

What are your best suggestions for new business owners when it comes to managing money?

Sit on the floor. Chairs are expensive. 

Any final thoughts on money and managing it as a business owner?

Once you're big enough, hire a good comptroller to work with your cash flow.

Marc Lefton is a New York City-based award winning advertising creative director who founded Adholes in 2004 - the ad industry's first and largest advertising social network  and group blog, which was honored by the Webby's in 2007. Recently, he founded Half Fiction, a marketing agency focused on integration of new technologies such as social media, mobile apps, augmented reality and mobile tags.