Today marks the end of my seventy-fifth week of working from home (mostly). Here are my takeaways from week seventy-five:

• Patience – Some situations take time to line up the way I want before I can execute or move forward. Patience is needed. Over the years, I’ve learned to not jump the gun. This week was a reminder of that.
• Holiday – I didn’t realize Labor Day was next week until Wednesday. That was a nice midweek boost. I love three-day weekends and holidays, and I’m looking forward to enjoying this holiday.
• August – The month went by quickly. We’re now in the last month of the third quarter. I spent time thinking about what I want to get done this quarter, and I need to push pretty hard this month to hit my goals.  

Week seventy-five was great. I’m looking forward to recharging over the holiday so I can finish out the third quarter strong.  

Acquiring paying customers is a challenge for most companies and especially for early-stage companies. The brand isn’t well known, and resources don’t allow them do marketing the way they want. Customers that early companies do acquire are precious.

A few weeks ago, I chatted with two smart founders who have an interesting software product. Their platform helps consumers resolve a particular issue efficiently. The issue is something most people will experience only once in their lifetime, if ever. The downside to not resolving the issue is high, so the software creates value for consumers. Once the issue is resolved for a customer, though, they become an ex-customer and no longer contribute to revenue. This creates a challenge: the founders must constantly attract new customers. Their high marketing spend reflects this. This company will likely be successful, but it will be harder to scale than, say, a company that attracts and retains customers who pay monthly for many years.

Acquisition and retention of customers are important issues for founders to think about. Not all business models support ongoing customer payments for years, and that’s okay. Whatever business model a founder chooses, though, they should have a strategy to acquire customers in a cost-effective way and, if possible with that model, retain them.

I’ve been interested in residential real estate for years. I love researching different markets and following trends. Like everyone else, I’ve watched as housing prices have risen rapidly over the last few years. First-time home buyers in major metro areas are finding the supply of starter homes extremely tight, which is making affordability a challenge (there are other factors too). A few weeks ago, I read this article explaining that the problem’s not just in major metros.

Supply and affordability of starter homes are big problems waiting to be solved. I’m not sure what the right solutions are. Once they’re figured out, demand for them will be huge. Solving these problems won’t be easy, but it’s a massive entrepreneurial opportunity.

I suspect we’ll see more innovation as the problem becomes more painful. I’m looking forward to following the space and the innovative solutions founders create.

Today I spent time learning about a company. Generally, public perception of it is slightly negative. I’ve followed the company for some time, and after my research today I arrived at a different conclusion. I’m bullish on the company. I think it has a good future. I shared this opinion with a few friends, who all pointed to public sentiment. They suggested the crowd is likely right and it’s not a wise investment.

Today reminded me of my early days as a founder: I see something others don’t. When I explain what I see, others dismiss it or disagree. After I start my company and we have meaningful traction, others begin to believe what I’d always believed—that my startup could be something big.

The fact that others don’t see the potential in this company signals to me that it could be an opportunity for an outsize return. These types of opportunities don’t come along often. I’ll continue to research and will likely go with my (educated) instincts and pull the trigger on this investment.

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I was getting an investor’s perspective, and he said something that resonated with me. He’s a big fan of taking risks and trying things. Planting seeds, he calls it. He never knows whether the seeds he plants will germinate or, if they do, what they’ll become. One may grow into something massive. He’s lived this way, and it’s worked out well.

I agree, to a point. It’s important to try new things. If you don’t, the chances of having an outsize outcome are minimal. As Wayne Gretzky said, “You miss 100% of the shots you don't take.” On the other hand, I think trying to do many things at once isn’t ideal for most of us. You can spread yourself so thin that the thing that could be a winner doesn’t work because it isn’t getting enough attention.

My approach? Try new things in hopes that one will grow to be something big—and give each one the sun, soil, and space it needs to germinate and thrive.

I’ve shared a few of my views on Apple’s potential to be a consumer bank and how consumer lending is heating up. Yesterday I had the opportunity to chat with someone who’s worked at one of the largest US banks for over twenty years. Our conversation was social, but I couldn’t resist sharing my views and getting his take on where banking is headed. Our chat was enlightening. I learned a great deal about the inner workings of the bank, how the largest banks view Atlanta as a strategic city and are expanding rapidly, and how this has led to a hyper competitive Atlanta market for bankers, with salaries rapidly increasing.

One of the biggest takeaways was that what matters to consumers in a banking relationship is changing fast. Historically, large banks won because of their branch networks. The more branches, the better. Consumers knew that wherever they were, they could find a branch and get whatever help they needed. The branches were banking’s version of distribution. The branches were a core part of how the products and services the bank offered reached their customers. Establishing a network of brick-and-mortar branches was costly and time consuming, so the largest players had moats giving them defensible competitive advantages.

Now, consumers are rapidly shifting from in-person banking interactions to digital banking interactions. You don’t need to go to the bank to deposit a check or get a loan. You can do many tasks electronically via a mobile app or website. Because of this shift, consumers evaluate banks differently. Consumers care less about a network of branches because they don’t need to visit branches. They care more about digital tools. They want the best and easiest-to-use technology.

This banker was telling me that digital distribution is changing the banking world. The large banks that previously had the best distribution because of their branches are seeing their moats erode quickly. The companies that offer the best digital experiences are winning.

How companies get their solutions in customers’ hands matters a lot. Said another way, distribution matters a lot. The digitization of distribution will drastically change banking. Apple, Square, and other companies will compete for banking relationships like never before.

I had a conversation with a buddy about a real estate solution this past week. I recognized a problem and called him to get his perspective because he has years of experienced in the space. He agreed the problem is real and the solution seems viable. However, he questioned whether using resources to execute the solution would be the best use of those resources. Based on his experience, he thinks the same resources could be used to implement four smaller solutions in roughly the same time or less. Those four solutions could create value for more people than the larger single solution would.

I’m so glad I asked my buddy for his thoughts. My early thoughts weren’t developed and structured. Even with the rough starting point, though, his experience allowed him to see things  I couldn’t. After hearing his perspective, I’m thinking about this solution differently.

This was a reminder for me that it’s never too early to begin talking with others about ideas. Those conversations can reveal gaps in my thinking and refine it.

Today marks the end of my seventy-fourth week of working from home (mostly). Here are my takeaways from week seventy-four:

• Schedule – This week I went back to a few days with a heavy meeting schedule and a few days with a light schedule so I can focus. The heavy days were hard on my eyes because of Zoom, but they were productive.
• Demo day – I attended a virtual demo day today. It was nice to chat with multiple founders and hear about interesting problems.
• August – The month will be over in a few days. The year is flying by. Before we know it, we’ll be in the fourth quarter.  

Week seventy-four was packed. Lots of meetings and other work and very productive.

I love to understand founders’ origin stories. It’s always interesting to hear what led someone to start a company. I recently chatted with a founder who found the diaries of her father after he passed away. As she read them, she discovered that he’d had an idea for a product. He’d thought through much of it and documented it in his diary. He never executed on the idea, though. His daughter decided she wanted to pick up where he left off. Today she’s building a company around her father’s idea.

This story stuck with me. Her father took the time to document his thoughts for much of his life. He did it for himself, but his diaries had a big impact on others too. Those journals gave his daughter a better understanding of him after he was no longer with her. They also served as entrepreneurial inspiration. They were a gift that keeps on giving: they helped the author, his daughter, and now his daughter’s customers.

This founder was passionate about what she’s working on, and now I see why. I look forward to following her progress as she’s a credit to her father!

Over the past year I’ve spoken with many people who are taking advantage of remote work. They’ve left their home cities and are working from new locations for extended periods of time. Just this week, I spoke with a founder who’s working from New Mexico for the next few months. A few months ago, I spoke with a founder camped out in Mexico City.

Where people work from has begun to shift. Major metropolitan areas will continue to attract skilled workers, but I think we’ll start to see a rise in such workers moving to second-tier cities. If companies continue offering remote work as an option, employees will be untethered from offices in major metros and able to live in places more aligned with their personal priorities. Instead of seeing family for holidays, you can see them every weekend. Instead of visiting the lake during the summer, you can live on the lake year-round. Housing costs have increased rapidly and will likely continue to increase. If you can live someplace with a lower cost of living and earn the same or close to the same salary as you would in a major metro, that can materially improve your quality of life by relieving financial pressure.

We’re probably at the beginning of a major workforce shift. How we work and where we work have changed, and that will have ripple effects. Second-tier cities are in position to benefit tremendously from these changes. I’m excited to watch this play out and hope it has a positive and lasting impact on these communities.