The Prof G Pod with Scott Galloway - Office Hours: Apple Car Acquisitions, Mission Statements, and Going into Business With Your Family

Episode Date: June 13, 2022

Scott takes a question on whether Apple might acquire Canoo, a struggling EV startup. He then explains the value of mission statements to a company’s brand and culture, and offers advice to someone deciding if they should leave their current job to join their family business. Music: https://www.davidcuttermusic.com / @dcuttermusic Learn more about your ad choices. Visit podcastchoices.com/adchoices

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cards, savings accounts, mortgage rates, and more. NerdWallet, finance smarter. NerdWallet Compare Incorporated. NMLS 1617539. Welcome to the PropG Pod's Office Hours. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question, please visit officehours.propgmedia.com. Again, that's officehours.propgmedia.com. First question, again, I do not hear these questions before they are asked. Real and authentic, real time, call it Shark Tank, minus the shark, just tank. First question. Hi, Scott. I want to hear your thoughts on the rumor that Apple is thinking of acquiring Canoo, the electric vehicle company for their electric car division.

I have great interest in this vehicle company. I actually put down the $100 deposit to reserve mine. And I just want to hear what you think of it. Marsh, as I said above, I have not heard these questions. I don't know the company Canoo. A couple of thoughts. So the idea that they would acquire Canoo, which I believe is an EV company started about five years ago, makes a lot of sense. And they can probably acquire it on the cheap. I find they're disciplined acquirers. They're not known for making kind of crazy big number out of control, expensive acquisitions. Although you might argue they overpaid for beats, but anyways, a billion, but what's a billion dollars for a, at the time it was a one and a half trillion dollar company. Anyways, it's basically sweat off their brow. But Canoo, I think is not doing that well. My understanding is Canoo has had to warn people that they may run out of cash and kind of new

EV companies are, there's a lot of them. I put a deposit down on a Rivian and I keep getting messages. By the way, their communications are awful. First, I got a message saying, oh, we're raising the price of your Rivian that you ordered from 70,000 to a hundred thousand. I'm like, well, how did that happen? And then before I even had time to get angry and turn into a Karen. I shouldn't use that term. Karen is basically the new age way of calling someone a bitch. You never describe men as Karen. Anyways, essentially before I had time to complain, they sent me another memo saying, just kidding, just kidding. We're not charging you a hundred grand. We're charging you 70.

And I think I bought a Rivian because I like the look. It feels strong. I want EV, but I like an SUV. I like riding up high. And I also think deep down Rivian because I like the look. It feels strong. I want EV, but I like an SUV. I like riding up high. And I also think deep down, I'd like to see more competition to Tesla. So anyways, bought a Rivian. Think they look cool. We'll see.

But this space is about to get a lot more competitive. And kind of the gorilla everyone is waiting to show up is Apple. The moment Tim Cook pulls back a recycled dolphin-friendly cloth from over a piece of metal that is bent around four tires and an electric engine and has this logo of a fruit on the front of it, that waiting list becomes the most valuable waiting list ever assembled. And that is, it will be tens, hundreds of thousands of people long, maybe even millions of people long, who all raise their hand and go,

I'm in on anything iOS does. It's a great conversation starter. It's a great way of signaling your worth as a mate. I'll get on that list. I would buy a microwave if it had an Apple logo on it. I'd get on any list pretty much for anything in a different category that had an Apple logo on it, much less a car.

So I'm going on that, much less a car. So I'm going on that list as are a significant portion of the billion iOS users globally. And overnight, or nearly overnight, you're going to see a huge reallocation of capital from Tesla to Apple, I believe. Supposedly given Canoo's cash situation, it's unlikely that they will survive. I think Apple probably does need to make an acquisition. I thought they were going to purchase, I thought it made sense for them to purchase Nissan. Nissan hasn't really resonated, or maybe even Infiniti. The Infiniti brand hasn't worked.

Strong design culture, supply chain, cars are supposedly very complex to put together, even though EVs supposedly have dramatically fewer parts because the motor is pretty complicated. I think it makes sense for Apple to either partner with or buy an automobile company. Now, whether or not there's real IP here, there's real supply chain, I have no idea. My guess is they can pick this up on the cheap. Wouldn't surprise me. It's got a market cap of about $830 million, meaning they maybe pay a billion for it. This might be a take under. They might

be able to buy this thing for less than its market cap right now because it doesn't sound as if its prospects are good. And once it starts, businesses don't go out of business because they're bad ideas. They go out of business because they run out of cash. So once there is a real liquidity, ongoing concern crisis at this company,

you can see the market cap go down really fast. So I do think that Apple will likely make either big investments in a partnership with a Hyundai, there's been rumors there, or acquiring an automobile company to figure out some of the supply chain issues to expedite that moment when they pull back the cloth and the dog is on the list. Thanks for the question. Next question. Hi, Pro-G. My name is Piotr, and I live in Denver, Colorado. My question to you is this.

Do all companies really need a mission, vision, statement? As an example, Boom Supersonic, a company based here in Denver, has a mission which reads, to make the world dramatically more accessible. It's vague to the point of being meaningless. Why not just make the best plane in the world that airlines will queue for the privilege of placing an order for? I bought my phone because of its value, quality, and utility, not because of the company's mission statement.

To be honest, I haven't even got a clue what it is. I would like to hear your thoughts on this. Cheers. Piotr, thanks for the question. Congratulations on living in what is one of the hottest cities in the world. I'm fascinated by migration patterns, and I was trying to think every year I predict a city of the future or a city that I think is going to boom. By the way, previous winners, Austin and Miami, before they were really, really cold. They were kind of red

hot, but not white hot. And the two finalists for my prediction around city of 2022 were Denver and Mexico City. And I chose Mexico City for a host of reasons, mostly because 99% or 98% vaccination rate, a great arbitrage in terms of quality of life versus cost of living. But I think Denver is absolutely a city of the future. And for a host of reasons, whether it's this last frontier of raging moderates. They just seem like reasonable people in Colorado. And I think people are really drawn to that. I think people are reevaluating COVID and want to spend more time enjoying themselves in the outdoors. It's a well-run state. I'm a huge fan of the governor there. Just Colorado has the best brand, I think, in statehood. Anyways, not what she asked.

I think that a mission statement is pretty important. And unfortunately, it goes into yoga babble. But trying to understand your bigger company's bigger purpose, I think, is important. And I would push back a little bit. I'm an investor and advisor to boom, mostly because I'm fascinated by aviation. My father used to take me to Orange County's John Wayne Airport when I was a kid and put his hands over my ears and we would watch planes take off and I could identify them. Oh, that's a 737. Oh, that's a DC-9. It was PSA Airlines in Air California. And it's one of the nicest memories I have of my father. I have a plane, I'm fascinated by aviation. And I was just super excited to get involved with this company. I think

making the world more accessible is actually something you can understand. And I do think that supersonic travel is a game changer. There's a big difference between a flight being three and a quarter hours and one and a quarter, one and a half hours. It just makes it an entirely different ballgame. Now you want to talk about a real game changer. I'm going to London soon. I'm going to be U.S. where 90% of my professional life is because commuting to the U.S. or specifically going to London from New York is an overnight affair where you try to pretend to sleep. I take some sleeping pill such that I get this shitty yet narcotic-induced sleep and I wake up and the next day I'm just like a fucking hot mess. And especially at my age, I find jet lag, jet lag is really difficult as you get older. And it makes a lot of sense. Our species is just not adapted to jet lag. Now, getting to London, getting to London in three hours versus six and a half, game changer. Why? It opens up. It means you go to London for

a meeting. It means you go to London for a weekend. It means I have a memorial service of someone I care about in London happening in the middle of July when I'm supposed to drop my kids off at camp and I can't go. If it was supersonic, I'd go because I could get there in about three hours and I could turn around in 24 hours and it wouldn't be too taxing on me and just boom there, boom back, so to speak. So I do think that mission statement, making the world more accessible, does make sense. I've been thinking about this a lot.

At PropG Media, we're about to start or launch. I'm so happy you gave me the opportunity to pimp our new products. We're talking about starting a markets-based adjunct to PropG. The content that resonates with people, the content I think we bring some insight into is markets and finance. And also, we have a mission here. We want to create a generation

of more economically and emotionally viable young people, specifically young men, because my sense of the majority of the young women I meet are economically and emotionally viable. It's a lot of the young men I meet that don't seem to be tracking around this economic and emotional viability. And I think teaching young people about the markets, helping them establish insight, domain expertise, and best practices around financial literacy, understanding the markets, I think there's a nice mission there. And I think people are receptive to it. I think it's unifying.

It helps create a religion or a guiding light for the company. And I do believe, especially a younger generation, wants to believe that they work at something that is in the agency of something bigger, right? Now, there's a thin line between something that's actionable and people can rally around and yoga babble. But I would argue a mission around accessibility for a supersonic company. Yeah, I get it. Maybe it doesn't encapsulate it perfectly. Maybe it does sound a little bit flowery. But I buy into it. Now, Peloton saying they're selling happiness. No, they're selling exercise equipment. Maybe they could say that they're helping people feel

better about themselves through fitness. That to me would seem like a little, not quite as big a leap, if you will. But I buy into mission statements. I think they should say distinctive, the economic value. How are you adding value, if you will? And I buy into mission statements. I think they should say distinctive the economic value. How are you adding value, if you will? And I think you should articulate them or figure them out early and then articulate them to the employees. I always just say, here's our mission statement and here's three adjectives that describe our brand. But I think that stuff is really, really powerful. And anyways, I'm a believer in it. I didn't used to believe in that stuff. I thought it was a little flowery, but I think that was my inability to come up with a good mission

statement other than let's make a shit ton of money and be awesome. That was kind of my only mission as a younger man. Thanks for the question, Piotr. We have one quick break before our final question. Stay with us. The Capital Ideas Podcast now features a series hosted by Capital Group CEO, Mike Gitlin. Through the words and experiences of investment professionals, you'll discover what differentiates their investment approach, what learnings have shifted their career trajectories, and how do they find their next great idea? Invest 30 minutes in an episode today. Subscribe wherever you get your podcasts. Published by Capital Client Group, Inc.

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Go to ConstantContact.ca and start your free trial today. Go to ConstantContact.ca for your free trial. Constantcontact.ca. Welcome back. Question number three. Hey, Prof G. My name is Jack. I'm 27 years old, and I live in Salt Lake City, Utah. Currently, I work in digital marketing at a publicly traded company. In my current role, I get to see the daily operations of our whole e-commerce and digital advertising business. On the other hand, my family operates a small consumer goods business. While the business is 200 times smaller than the company I work at, It is healthy and profitable. However, its digital business is almost non-existent. I'm considering joining my family to build out their digital business, using the knowledge I have gained during my time working at a more mature business.

However, I'm hesitant to do so. I've gotten myself to a platform and I'm working on my own career path. Joining the family business would not be glamorous and involves tons of hard work, but the prospect of giving back to my family has me excited. My question to you is, how would you decide between staying in my current role or leaving to build my family's digital business? Thanks for all the wisdom you've already shared. I look forward to your show every week. Okay, Jack from Salt Lake City. First off, this firmly falls into the category of a good problem. And that is, it sounds like you have a great job at a platform,

and you also have a family that's successful and wants you to come into the family business. So this is kind of, you know, do I drink champagne or have a Zacopin Coke? I go with the Zacopin Coke, but still, these are good, kind of having succeeded in non-family owned entities. You just show up with more credibility and it's like, yeah, okay, I'm here because of nepotism, but I'm also a baller and I've earned the right to be here because I'm good at what I do. I remember the Sulzbergers who are the family that own the New York Times used to have kids that wanted to be in the business go work at a regional paper and kind of earn their chops as journalists. I think A.G. Sulzberger, who's the publisher now, started at a newspaper in Oregon. And I think that's just the way to go. I think

when you show up to have a certain amount of private markets, third party, arms distance, non-family credibility professionally serves you really well. Now, back to your question. I think it's situational, and that is, at your current company, do you have the opportunity to advance and learn a lot over the next two or three years staying there? Are you enjoying it? How much do you like it? How much are you learning? Because once you go to your family business, it's likely kind of a one-way trap door. And that is, it's unlikely you're going to leave unless the business goes out of business or something blows up with your family. A lot of it also comes down to more sensitive things. Are the people running the business now?

Is it your dad and your mom running the business and they're old and they want to retire and they want to turn over the keys to somebody else? Is it run right now by a sibling that you have a dysfunctional relationship with, which is only going to get worse when you show up? Does it mean moving? Does it mean getting too involved with your family where your spouse doesn't get along with your family? I mean, there's just so many things here.

I think what you need here, and I had similar advice on a question that was presented to us in the Pivot podcast, you need a kitchen cabinet of advisors, people you trust at your current company, friends, a family member that has enough distance that they're going to really think through and be a fiduciary for you. Not think about what's best for the business or best for the family, but what's best really for you and your family. Lay it all out. This is what I like and don't like about my company. This is what would be awesome about being in the family business. This is what I'm worried about. And really be thoughtful about these things and get the benefit of third party views because it is

very difficult to read the label from inside the bottle. When you're talking about going to work for a family business, you're talking about a lot of stuff, right? A lot of pressure they're putting on you is the sun. A lot of incredible advantage you might have. It might be a shit ton of fun to go run the family business. And quite frankly, it's unlikely the platform you're at, you're going to be CEO of. You have a real shot of being CEO of a family business.

I find family businesses, when they have functional leadership and good decision-making models, are great businesses, especially if you're in the family, so to speak. So you're going to have a leg up. It's a great opportunity. I want you to have two or three conversations with people who know you, know the company you're at, know the situation at your family business, and you can just lay it all out. What are the drivers of when as opposed to if? Because I think you've already decided you're going to do it. Once you have sort of a leaning one way or the other, I'd be very transparent with your family. You know, maybe make the right decision, maybe make the wrong decision, but you're their son. You're their son and you love them immensely

and you want to be transparent and make sure that they understand your concerns and everybody knows what everybody is thinking when you join. Because it doesn't sound like if, my brother, it sounds like when. Thanks for the question, Jack. Again, this is a good problem. That's all for this episode. Again, if you'd like to submit a question, please submit a voice recording by visiting officehours.proptimedia.com. Our producers are Caroline Shagrin and Drew Burrows. Claire Miller is our associate producer. If you like what you heard, please follow, download, and subscribe.

Thank you for listening to the Prop G Pod from the Vox Media Podcast Network. We will catch you on Thursday. relationships with our colleagues, business partners, and managers. Listen in as I talk to co-workers facing their own challenges with one another and get the real work done. Tune into How's Work, a special series from Where Should We Begin, sponsored by Klaviyo. What software do you use at work? The answer to that question is probably more complicated than you want it to be. The average US company deploys more than 100 apps, and ideas about the work we do can be radically changed by the tools we use to do it. So what is enterprise software anyway? What is productivity software? How will AI affect both? And how are these tools changing the way we use our computers to make stuff,

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