How AriZona Iced Tea's founder built an empire on $0.99 cans

feel like entrepreneurs try to raise money before they've even learned to sell the product that they're trying to sell? Well,

that's the new approach to business.

Why though? It feels like a lie.

They read about other people doing that and they figure that's the way to do it.

So often people come into my office saying, do I want to invest? Do I want to get involved? And oftentimes they've been at business a few years.

I say, how are you doing? They say, I'm losing.

I'm losing money doing it.

That's always a turnoff.

You know, the first

can of Arizona I sold in 1992, I made a profit on.

The first can.

I made a profit on it.

And the last can I'm going to sell tonight, I'm going to make a profit on.

In business, my dad told me, know your cost and sell it for above that, right? So often these people don't understand that cost.

They haven't figured that out because it's not important.

They figure, let's get some capital.

I'll squander it through advertising and all that kind of stuff.

Maybe go for a second round of raising more capital.

Oftentimes, it doesn't work out.

That's not our style.

That's not my style.

You know, everything in our company we own, we have zero debt.

I'm able to do that because I'm a practical, conservative guy, right? And

so you believe that if your company can't afford it, you don't do it.

That's exactly right.