Alright – so today we’ve got the honor of introducing you to Clay Banks. We think you’ll enjoy our conversation, we’ve shared it below.
Alright, Clay thanks for taking the time to share your stories and insights with us today. So, let’s imagine that you were advising someone who wanted to start something similar to you and they asked you what you would do differently in the startup-process knowing what you know now. How would you respond?
After founding eight companies over 23 years, the perspective gained is invaluable, and with it comes the clarity to approach business formation differently. First and foremost, I would carefully select my business partners based on shared core values and a common north star mission for the business. It is crucial to understand not just their skills but also their character, behavior, and how they treat others. A thorough period of collaboration and mutual observation before formalizing partnerships could prevent misalignments that might arise down the line.
Additionally, I would strongly prefer bootstrapping over raising equity or debt capital. Building from the ground up with a lean, self-sustained model not only fosters discipline but also ensures a deeper sense of ownership and control. Avoiding external capital early on often means navigating growth at a sustainable pace, which can foster stronger, more resilient business fundamentals.
One key learning has been the importance of efficiency and precision. If starting over, I would focus on establishing a minimum viable product and testing its reception in the market quickly. This approach helps to iterate faster, identify viable revenue streams, and reduce time wasted on non-critical elements. By grounding decisions in early data and customer feedback, I’d refine the offering more effectively.
Lastly, building a strong organizational culture from the outset would be a top priority. I’ve learned that culture isn’t an afterthought; it’s the scaffolding for long-term success. Defining and embedding values, clear communication, and strategic intent into the DNA of the company early could prevent many of the pitfalls that arise when these elements are neglected. With these insights, I’d be better equipped to forge a path that is faster, more efficient, and aligned with my vision of success.
Clay, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?
Clay Banks’ entrepreneurial journey began in 2002 during his sophomore year of college when he co-published A VOLS WALK, a coffee table book celebrating the cherished traditions of Tennessee Volunteers fans. Distributed through major retailers like Borders, Barnes & Noble, Walgreens, Walmart, and even Amazon during its early days as a bookseller, this project ignited his passion for creating and scaling impactful ventures. The experience revealed Clay’s natural aptitude for storytelling and building connections, laying the foundation for his career as a serial entrepreneur.
Post-college, Clay honed his skills in sales and marketing, excelling in commission-only roles in radio advertising before transitioning to economic development for the State of Tennessee. There, he worked to attract corporate investments that would drive community growth—an experience that deepened his desire to create opportunities and build value.
In 2014, Clay co-founded HavenLock, a groundbreaking home security platform that achieved rapid growth and widespread recognition. Over nearly a decade, the company launched over ten innovative security products, raised $5 million in investment capital, and secured significant media coverage, including features in Inc., Forbes, TechCrunch, and an appearance on Shark Tank Season 10. Clay navigated the challenges of scaling a startup with grit and creativity, eventually leading HavenLock to a successful equity acquisition by a venture capital firm in 2023.
Currently, Clay wears multiple hats as an entrepreneur and mentor. He is the co-founder of GloriLight, a children’s nightlight that incorporates scripture into bedtime routines, merging family faith practices with modern design. Additionally, as the founder of InPaceline, a growth consultancy, Clay leverages his decades of experience to guide tech entrepreneurs in raising capital, developing innovative products, and scaling their ventures. He also invests in real estate, curating unique short-term rental experiences, and mentors young innovators at the Williamson County Entrepreneur and Innovation Center.
What sets Clay apart is his resilience, his ability to combine vision with execution, and his unwavering commitment to empowering others. A five-time Ironman and two-time World Championship qualifier, Clay applies the same determination in life as he does in business. For him, failure is not an endpoint but a stepping stone to innovation and growth. Above all, Clay is most proud of his ability to inspire and support the next generation of creators and leaders, ensuring that his legacy extends far beyond his own ventures.
Conversations about M&A are often focused on multibillion dollar transactions – but M&A can be an important part of a small or medium business owner’s journey. We’d love to hear about your experience with selling businesses.
Yes, I have sold a business. In 2022, I sold my founder equity in HavenLock Inc., a company I co-founded in 2014. HavenLock started as a home security innovation, growing into a platform with over 10 products that addressed safety challenges for both residential and commercial users. Along the way, we raised more than $5 million in capital and gained recognition from major outlets like Inc., Forbes, and TechCrunch, even making an appearance on Shark Tank. The journey was challenging yet incredibly rewarding, and ultimately, I reached a pivotal moment where I realized I had taken the company as far as I could with the people and resources available to me at the time.
The sale to a venture capital firm was strategic and intentional. I firmly believe that the ideal buyer is one who not only recognizes the value of what you’ve built but also has the resources and vision to scale it further—essentially passing the torch to the next steward of growth. For HavenLock, this meant finding a partner who could inject fresh energy, capital, and expertise into scaling the business beyond my original scope.
One of the biggest lessons I learned is the importance of preparing your business for a sale well before the actual process begins. This involves building strong operational systems, maintaining transparent and accurate financial records, and establishing clear intellectual property rights. Equally crucial is fostering a culture that aligns with the values of prospective buyers—they’re not just acquiring a product; they’re inheriting a team, a vision, and a roadmap.
For entrepreneurs looking to sell their businesses one day, I encourage reflection on what the next phase of life or business looks like for you personally. Selling HavenLock allowed me to embrace a new chapter, pursuing opportunities that aligned more closely with my evolving interests and calling. Remember, selling a business is not just an end; it’s a transition—and one that can set the stage for new growth, both professionally and personally.
Can you share a story from your journey that illustrates your resilience?
One story that stands out as a testament to resilience comes from my experience pitching on Shark Tank during Season 10. It was a pivotal moment for our company, HavenLock, where we aimed to showcase our innovative security product to millions of viewers and some of the sharpest investors in the world. However, things didn’t go as planned. During the pitch, our set malfunctioned, and we couldn’t demonstrate the product’s value the way we had rehearsed. The demonstration, which was critical to illustrating how HavenLock worked, fell flat.
The reactions were tough to endure. The Sharks didn’t hold back their skepticism, and laughter filled the room as the pitch unraveled. We didn’t secure a deal, and in that moment, it felt like a crushing blow. But failure in that setting wasn’t the end—it was a crossroads. My co-founder and I decided to embrace the experience, take the lessons from it, and keep moving forward.
Despite the setback, we returned to the grind, refining our messaging, improving our product, and doubling down on our mission to protect people in their homes and schools. We landed new partnerships, expanded our product line, and continued to grow the company.
That Shark Tank moment reinforced a key lesson: resilience isn’t about avoiding failure; it’s about facing it head-on and choosing to keep going. Failure, public or private, is part of the entrepreneurial journey. What defines you is how you respond. For us, it was the fuel to keep innovating and protecting lives, and I wouldn’t trade that experience for anything. It reminded me that sometimes, laughter in the face of adversity is just a precursor to triumph.
Contact Info:
- Website: https://www.inpaceline.com/
- Instagram: https://www.instagram.com/inpaceline
- Linkedin: https://www.linkedin.com/in/claybanks/
- Youtube: https://www.youtube.com/@InPaceline
Image Credits
Micah Haynes