How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
On this episode of Money Rehab with Nicole Lapin, entrepreneur Jaclyn Johnson shares her insights on building wealth and succeeding as a woman in business. Johnson discusses her $22 million exit from Create & Cultivate and advocates for diversifying investments across asset classes, from stocks to angel investments—an area where she has realized significant returns.
The conversation also touches on the personal challenges successful women face, from navigating romantic relationships with financial inequalities to societal pressures around cosmetic treatments. Johnson reflects on her approach to maintaining authentic connections and prioritizing balanced personal and professional growth.
This is a preview of the Shortform summary of the Dec 6, 2024 episode of the Money Rehab with Nicole Lapin
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1-Page Summary
Entrepreneurship and Wealth-Building Strategies
Jaclyn Johnson shares her experience building and selling her company Create & Cultivate for $22 million. She advises entrepreneurs to prioritize personal wealth by diversifying investments across asset classes like stocks, real estate, and angel investments. Johnson exemplifies this through her own successful angel investments, including a seven-figure exit. She manages a family office fund and co-founded Cherub to educate new angel investors.
Personal and Social Challenges of Successful Women
Navigating Relationships
According to Johnson, romantic relationships as a successful woman can be challenging due to financial inequalities, leading to awkward situations when planning vacations or housing. However, she maintains long-standing friendships more easily as they were established before her wealth.
Appearance Pressures
As Johnson approaches 40, she wrestles with societal pressures for women to undergo extensive cosmetic treatments. She prioritizes health and authenticity, striving to resist the "aesthetic arms race" of women increasingly looking alike through such treatments.
Building and Maintaining Relationships
Romantic Relationships
Johnson is exploring alternatives like matchmakers and organic settings to find the right romantic partner, having become disillusioned with dating apps. She aims to find someone with similar success or distinct financial status.
Platonic Friendships
Johnson values maintaining long-term friendships, as these friends have been with her through various stages of success. She accepts that some friendships naturally evolve over time.
Professional Relationships
Johnson advocates for having a coach and seeking mentorship, especially from those further along in business development. She has been candid about adjusting her compensation to reflect her role's growth.
1-Page Summary
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Counterarguments
- Diversification of investments is generally sound advice, but it may not be suitable for everyone. Some entrepreneurs might lack the necessary knowledge or resources to effectively invest in multiple asset classes or may prefer to reinvest in their own businesses.
- Managing a family office fund and educating new angel investors are commendable, but these opportunities are often only accessible to those who already have significant wealth or connections, which may not be representative of the average entrepreneur's experience.
- While successful women may face challenges in romantic relationships due to financial inequalities, it's also possible for individuals to find partners who are supportive and not intimidated by financial success.
- Prioritizing health and authenticity over cosmetic treatments is a personal choice, but others may find that such treatments positively impact their self-esteem and are a valid form of self-expression.
- Using matchmakers and organic settings to find a romantic partner can be effective, but these methods may not work for everyone, and some people may find success with dating apps or other modern dating methods.
- Valuing long-term friendships is important, but it's also natural for people to form new friendships throughout different stages of their life, including after achieving wealth.
- Having a coach and seeking mentorship can be beneficial, but it's also important to recognize that self-guidance and learning from one's own experiences can be equally valuable.
- Adjusting compensation to reflect the growth of one's role is fair, but it's also crucial to ensure that such adjustments are in line with the company's financial health and the compensation of other employees to maintain fairness and morale.
Actionables
- You can start a personal finance journal to track and analyze your investment diversification, noting down various asset classes you're interested in, such as stocks, bonds, or peer-to-peer lending platforms, and recording your learning process and decisions. This hands-on approach will help you understand your investment patterns and encourage you to explore new areas without needing extensive financial knowledge.
- Consider joining or forming a peer mentorship group with friends or colleagues where you can share knowledge, support each other's growth, and discuss challenges, particularly those related to balancing personal success and relationships. This can be as simple as a monthly coffee meet-up or a virtual chat room where you exchange experiences and advice.
- To align your income with your evolving role, whether in your job or personal business, create a self-assessment tool that helps you evaluate your skills, responsibilities, and achievements. Use this tool every few months to reflect on your growth and prepare for discussions about compensation adjustments with your employer or within your business. This proactive approach ensures you recognize your value and can articulate it effectively.
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Entrepreneurship and wealth-building strategies
Entrepreneur and investor Jaclyn Johnson shares her experiences and knowledge on building wealth through entrepreneurship and strategic investments. She provides insight into starting, growing, selling, and even buying back a company, as well as the importance of diversifying investments to create wealth.
Jaclyn Johnson's experience starting, selling, and buying back her company Create & Cultivate
Jaclyn Johnson founded Create & Cultivate in 2011 as a small event series and steadily built it into a large media and events company for ambitious women. Her strategic vision transformed her layoff into launching her own marketing events and influencer agency, eventually leading to the creation of Create & Cultivate. Johnson grew the business organically, with significant expansions beginning in 2015 when she injected her own capital and took on a partner.
Understanding the financial benefits of creating a company with potential for acquisition, Johnson intentionally built Create & Cultivate to be desirable to buyers. She shaped the company with this goal, which led to the brand's unique focus on career empowerment rather than the usual topics of beauty, fashion, and lifestyle, making it attractive to strategic buyers. With a majority stake in the company at the time of sale, she exited Create & Cultivate for a $22 million valuation that was impacted by the COVID-19 pandemic.
After a period of focusing on personal pursuits and managing a $20 million fund for a family office investing in the female founder space, Johnson felt a pull to reacquire Create & Cultivate. Despite initial reluctance from the private equity firm, negotiations concluded with Johnson successfully repurchasing the company, driven by her personal connection to the brand and community and her recognition of the value and opportunity for smaller, more intimate events.
The importance of diversifying investments for wealth creation
Jaclyn Johnson advises entrepreneurs to prioritize their personal wealth and diversification of investments. She exemplifies this through angel investments, including a $10,000 investment that resulted in a seven-figure exit, revealing her approach to maximizing wealth-building potential. Johnson recommends diversifying across different asset classes, including stocks, real estate, and angel investment ...
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Entrepreneurship and wealth-building strategies
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Counterarguments
- Diversification of investments, while generally a sound strategy, may not be suitable for everyone; some investors may achieve success through concentrated investments in areas where they have significant expertise.
- The success of angel investments, like the one mentioned by Jaclyn Johnson, is not typical; angel investing is high-risk, and many investments fail, which should be a consideration for new investors.
- The valuation of a company can be subjective and influenced by market conditions; the $22 million valuation of Create & Cultivate during the pandemic may not reflect its true value in a different economic climate.
- Reacquiring a company after selling it can be complex and may not always be the best strategic move; it could be argued that focusing on new ventures might offer better growth opportunities.
- The focus on career empowerment as a unique selling proposition for Create & Cultivate is commendable, but it may not be a one-size-fits-all strategy for all companies in the industry.
- The concept of "launch to legacy" is ambitious, but not all businesses will reach a legacy stage, and some entrepreneurs may have different definitions of success that don't involve building a long-term legacy.
- While the democratization of angel investing is a noble goal, the reality is that investing still requires a level of capital and risk tolerance that may not be accessible ...
Actionables
- You can start a small-scale investment club with friends to learn and practice diversification together. Gather a group interested in building wealth, set a monthly meeting to discuss different asset classes, and pool a small amount of money to make collective investments. This hands-on experience can help you understand the principles of diversification and investment without the need for large capital.
- Create a personal brand that reflects your career empowerment values and share it through social media or a blog. By consistently posting content that aligns with your professional ethos, you can attract a community of like-minded individuals. This network can be invaluable if you decide to start a business or seek opportunities for strategic partnerships.
- Develop a "legacy plan" for your career ...
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Personal and social challenges of successful women
Successful women face a myriad of personal and social challenges that stem from their achievements and financial status. These include difficulties in romantic relationships, pressures on women’s appearances, and the challenge of resisting the pervasive "aesthetic arms race."
Navigating relationships and social norms as a wealthy, successful woman
Navigating romantic relationships as a successful woman can be both "insane" and challenging. Johnson explains that differences in financial status and lifestyle can create complex situations.
Romantic relationships and financial inequality
In dating, successful women like Johnson encounter insecurity even in well-intentioned men who support their success. Issues such as inequality in financial capabilities lead to awkward situations, especially when planning vacations or considering real estate. For instance, if a partner cannot afford a luxurious trip, it might be impossible for them to surprise a successful woman with a vacation that meets her expectations. Similarly, when moving in together, deciding how much each person contributes to expenses like mortgage payments can become “unsexy and not fun.”
Friendship and financial history
Johnson has managed to maintain long-standing friendships from before her financial success. She finds it easier to navigate money issues with these established connections, likely because of the shared history and understanding that precedes her wealth.
Societal pressures on women's appearances and the challenge of resisting the "aesthetic arms race"
As Johnson approaches 40, she wrestles with social pressures to engage in extensive cosmetic treatments to maintain a certain look.
The reality of aesthetic pressures
Johnson observes a troubling trend of women on TikTok listing numerous aesthetic treatments and routines. She finds the extent and expectation of such ...
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Personal and social challenges of successful women
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Counterarguments
- While successful women may face challenges in romantic relationships due to financial inequality, it's also possible that such challenges can be mitigated through open communication, mutual respect, and finding shared values beyond financial status.
- The notion that financial inequality inherently leads to awkward situations in relationships may not always hold true, as some couples may find ways to navigate these differences creatively and equitably without discomfort.
- The idea that established friendships are easier to maintain after financial success might overlook the potential for new friendships to be just as strong, even when formed after success, if they are based on genuine connection rather than financial status.
- The societal pressures on women to maintain a certain look through cosmetic treatments may be overstated for some demographics or communities where there is a greater acceptance of diverse appearances and aging naturally.
- The portrayal of aesthetic maintenance expectations as overwhelming might not resonate with all women, as some may find joy and empowerment in engaging with beauty routines and aesthetic treatments.
- The emphasis on resisting societal trends in favor of natural aging and individuality could inadvertently dismiss the choices of women who ...
Actionables
- Create a personal finance discussion guide for relationships to comfortably talk about money with your partner, including topics like income disparity, shared expenses, and individual financial goals. This guide can help you navigate financial conversations with ease, ensuring both partners feel heard and respected, and can include conversation starters, mutual goal-setting exercises, and tips on maintaining financial independence while building a life together.
- Start a self-care journal where you track activities that contribute to your well-being without focusing on societal beauty standards. In this journal, you can record things like nature walks, reading, hobbies, and time with loved ones, which support your mental and physical health. This practice encourages you to define self-care on your terms and recognize the activities that genuinely make you feel good, rather than those dictated by external pressures.
- Organize a 'real beauty' photo project with friends, capturing each other in ...
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Building and maintaining relationships (romantic, platonic, and professional)
Strategies for finding romantic partners as a successful woman
Jaclyn Johnson discusses the complexities of dating as a successful woman.
Finding the right balance
Johnson's approach to finding the right romantic partner involves considering someone with either a similar level of success or someone with a distinct financial status. She has been advised to date people who are much younger or older or those who are very wealthy or not well-off.
Exploring various methods
After a disappointing experience with dating apps, Jaclyn Johnson is exploring alternatives like using a matchmaker and being more open to meeting people in everyday situations. Her disappointment with dating apps led to a reduced reliance on them as she chose to "live her life." Johnson is making an effort to meet potential partners organically, such as arriving early when meeting a friend for dinner and socializing at the bar. Despite challenges with the matchmaking process, she remains open and even willing to travel for love.
Prioritizing and nurturing long-term friendships
Johnson emphasizes the importance of maintaining long-term friendships.
Valuing enduring connections
She finds that navigating long-standing friendships is easier than newer ones, largely because these friends have been with her through various stages of success. She values these long-term relationships as a source of support and connection. Johnson takes pride in having friends from before her success, as they have known her through both struggles and triumphs.
Accepting changes over time
Although some friends have naturally grown apart over time, Johnson sees this development as normal. She reports more ease in handling financial matters and shared experiences, such as vacations, with friends she has known for a long time.
Navigating professional relationships and mentorship
Leveraging coaching and mentorship
Johnson stresses the importance of having a coach to navigate through the challenges of entrepreneurship and growth. She argues that a combination of a therapist and a coach is crucial for personal and professional success.
The importance of mentorship
Johnson believes it is important for successful women to both seek out and provide mentorship, as the pool of peers and role models shrinks with increased levels of success. She advoc ...
Here’s what you’ll find in our full summary
Building and maintaining relationships (romantic, platonic, and professional)
Additional Materials
Counterarguments
- While Johnson considers dating people with different financial statuses, some argue that significant disparities in wealth or success can create power imbalances and challenges in a relationship.
- Relying on organic meetings for potential partners may limit the number of people one can meet, especially for busy professionals, and some might argue that dating apps can increase the pool of potential partners if used effectively.
- While valuing long-term friendships is important, it's also beneficial to remain open to forming new relationships, as they can bring fresh perspectives and growth opportunities.
- Accepting the natural evolution of friendships is healthy, but it's also important to actively work on maintaining and nurturing relationships, rather than passively accepting their decline.
- Having a coach can be beneficial, but it's also crucial to develop one's own decision-making and problem-solving skills without becoming overly reliant on external guidance.
- Mentorship is valuable, but it's also important to recognize that not all advice from mentors ma ...
Actionables
- You can create a personal growth plan that includes seeking out a mentor and becoming one yourself. Start by identifying areas in your life where you want to grow, then reach out to individuals who excel in those areas and ask if they would be willing to mentor you. Concurrently, offer your expertise to others who might benefit from your knowledge, creating a reciprocal mentorship network.
- Develop a friendship timeline to nurture and evaluate your relationships. Draw a timeline of your life and plot significant friendships along it, noting how they've evolved. Use this visual to actively reach out and strengthen connections that have supported you, while also recognizing and accepting the natural progression or conclusion of others.
- Conduct a bi-annual per ...
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