Alan Masarek

AT&T's CEO just told 99,000 employees something few executives admit in public: We have consciously shifted away from loyalty. For half a century, corporations ran on a handshake deal: companies bet on people before they proved themselves, and people bet on companies before they proved themselves. John Stankey just announced that deal is over. His viral memo admitted: companies now collect commitment without giving it back. "Some of you may have started expecting an 'employment deal' rooted in loyalty," he wrote. "We have consciously shifted away from some of these elements." Wall Street is rewarding the honesty, the AT&T stock is up 46% over the last year. The power tax is what happens when companies collect full loyalty without paying any of their own. AT&T demands five-day office presence for "predictable collaboration." Complete cultural alignment with "market-based" priorities. Measurable contribution tracked through behavioral analytics. In return? A desk, a laptop, and the privilege of not being fired yet. This wasn't always possible. Companies used to bet on unproven people through training programs and job security. The promise of AI gave companies alternatives to humans. Market concentration gave them leverage. Economic uncertainty gave them cover. The Mercenary Response Meta offers $100M signing bonuses because culture can't retain talent when commitment is one-sided. Dell doubled their stock while employee satisfaction crashed. The result? A logical adaptation cycle eroding trust from the inside out: → Top performers sell to the highest bidder  → Everyone else builds exit strategies → Surveillance replaces trust Why It will Backfire: The power tax contains its own destruction. AI shrinks teams. That makes every remaining human exponentially more important. Exactly when the power tax teaches them not to care. The social fabric doesn't rebuild automatically. Once people learn commitment is extracted, not reciprocated, they stay guarded. Yet companies need this trust more than ever: 50% of consumer spending comes from a smaller group of earners. Companies can serve concentrated markets with fewer workers - but only if those workers are fully engaged, not just compliant. The power tax creates two paths: Path 1: Perfect extraction. Use leverage to demand everything while offering minimum viable employment. Path 2: Build reciprocal commitment. Use power to invest in people before they prove themselves. AT&T chose extraction. Stock up 46%, engagement down, organizational memory scarred. But power dynamics shift. When you need people to commit to uncertain outcomes, you can't train them that commitment is a one-way street. LegacyCos are perfecting extraction. The winners of the next decade will perfect reciprocity. (Full version with links and references sent to newsletter subscribers)

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Halfway Through 2025, 20 Lessons That Made Me a Better Founder, Investor, and Person -- We’re (more or less) halfway through the year, in the past 6 months, I’ve: – Walked away from people I thought would be around forever – Deployed capital into deals that scared me – Watched competitors implode – Watched friends win – And made more mistakes than I’ll publicly admit Here are 20 lessons that hit harder than I expected, in business, investing, and life: 1. Distribution isn’t a growth strategy, it’s the strategy The best product without attention is a graveyard. 2. The founder with momentum always beats the one with pedigree Motion compounds, credentials don’t. 3. If you want to be taken seriously, speak clearly. No fluff, no jargon, no 12-slide metaphors, just say what you mean. 4. You’ll lose good people trying to save average ones Know when to cut the cord, even if it hurts. 5. Holding back your opinion is expensive Silence costs more than the risk of offence. 6. Most people don’t lack talent. They lack urgency. 7. Just start Don’t let that voice in your head, ruin something beautiful. 8. The best investors I’ve met ask more about distribution than valuation They're not backing your idea, they're backing your ability to move it. 9. “Personal brand” is just reputation at scale You already have one, you just don’t control it yet. 10. If you still care what they think, you’re not building for yourself 11. Saying no is what gives your yes power Boundaries make you richer, in energy, focus, and money. 12. Playing long term games with short term people never works No matter how talented they are. 13. Relationships are the highest ROI asset class in the world 14. You don’t rise to the level of your goals, you fall to the level of your systems 15. Everyone wants the upside of entrepreneurship, until they meet the emotional volatility Resilience is a moat. 16. Your standards will scare people, that’s fine, keep them. 17. Fear of judgement is a prison most people never escape The second you stop caring, you start winning. 18. Love is only peaceful when you’ve got peace outside of it If your business is chaos, your relationships will reflect it, don’t confuse intensity with depth. 19. Fitness is the only KPI that doesn’t lie You can fake your bank account, you can bluff your lifestyle, but your body tells the truth, every time. 20. Outgrowing friends isn’t personal, it’s necessary If the people around you still think it's 2022, leave them there. Second half of the year? Double down on clarity, momentum, and people who match your energy.

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When is the right time to sell your business? I get this question a LOT. After years as an operating partner in PE firms and now running Skaling Ventures, I've been on all sides of the table (buy-side, sell-side, advisor, etc.). The "perfect time" isn't about hitting some magic revenue number. The most successful exits I've seen happen at what I call the "productive plateau." Think of it this way: You've built something valuable (solid 95%+ retention), found a stable growth rhythm (10-20%), and nailed one distribution channel. But you're hitting a ceiling. Maybe you're a technical founder who's maxed out on go-to-market. Or you've got a clear view of what's next but not the appetite to take it there yourself. Counterintuitively, these aren't weaknesses — they're opportunities. The same "problems" you might try to fix before selling are often exactly what firms like us are looking for. Johnny Page's framework (love his book "Software as a Science" btw) nails the three key dimensions every founder should consider. But from where I sit as a acquirer/operator, these are my key focus areas: - Solid product-market fit (aka 95%+ retention) - One established channel (usually organic/word-of-mouth) - Stable but not explosive growth (10-20% is the sweet spot) - Technical founding team that avoided most substantive tech debt - Clear systems of record (your analytics, billing, books) The best exits aren't about perfect timing; they're about perfect alignment with the next steward of the business. If you're curious about my journey acquiring and operating Micro SaaS companies, I build in public >> https://t2m.io/4aDyNCpu #acquisition #startups #business #entrepreneurship

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I’ve witnessed first-hand the allure of raising large rounds of venture capital early on after being both in the founder seat raising VC $ and now in the VC seat guiding early stage founders. The social and financial pressures are real. The consequences of growing too quickly without a clear handle on product-market fit are just as real! It's easy to get caught up in the fundraising race early on when all of the headlines usually glorify large VC rounds, but *the truth is*: sustainable business and product growth should always come before scaling for the sake of headlines. Think of your financing strategy mindset like conditioning for a marathon—not a sprint. Early mindset training determines how far and how well you’ll go. Some of the following principles are helpful to keep in mind before going all-in on venture capital…. 💡 Clarity on Product-Market Fit is Key. Before chasing meaningful VC $, focus on getting clear and deep validation from your customers and end users. The best companies first go deep, refine their offering, and build a loyal customer base. ⏳ Patience Pays Off. Rushing to raise venture capital may seem to fuel growth, but it can cloud your understanding of what truly resonates with your customers—and what should actually come next on your roadmap.. Prioritize learning over scaling in the early stages to ensure your product is solid. 🔑 Sustainable Growth > Growth for Growth’s Sake. Raising too much capital too early can force a growth trajectory that doesn’t align with your product roadmap AND customer base– and in a worst case scenario, you may lose sight of your end vision. It’s important to know when to scale and when to double down on improving your product and operation with the end goal of growing your customer base in a quality first manner. 🛠️ Build Your Foundation First. Strong, sustainable businesses are built on solid foundations: loyal, happy customers, enduring metrics, and product-market fit. Use your capital wisely, and ensure every step of growth is backed by data-driven decisions– beware vanity metrics! Along the building journey, ask yourself: Can your product generate consistent revenue and meet customer needs before raising more? 🚀 Keep your focus on building something durable—and truly loved by your customers. Curious how others are approaching this—what’s your litmus test for knowing when it’s time to scale?

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🔥 I raised $40M in venture capital for my last startup. But getting a ~$2.5M SBA loan? Way harder. 💸 (Read that again.) 👀 With venture, you can go from term sheet to close in 30 days. Good luck getting an SBA loan funded on a business acquisition in under 3 months from start to finish. The SBA and the bank will do more diligence and paperwork on you and the business than all your VCs combined. 🔍📑 The closing process is night and day. Raising VC is like having TSA Precheck and skipping the 3-hour line ✈️. With a government-backed loan, you’re in that long line, piles of paperwork, rounds of diligence, and countless steps before you get the green light. 🛂 And yet… I’d still choose an SBA loan to buy a boring, profitable business over raising venture capital again. Why? Because with VC you’re dependent on investors and chasing runway, where 99% of startups never turn a profit 📉. With ETA, you step into a business that already throws off cash 💵 and you actually own your destiny 🔑. Owning a business that generates real profits beats relying on the next round of funding to survive. 🚀💪

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Consulting is no.1 on the chopping block with agent automation – This analysis was done by about 6 agents running a standardized process 60 times for each consulting area we focused on – transitioning to consulting as software will save 50%-80% in costs and empower your people.

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