I want to share more of what I’ve learned about self-awareness, which I recently posted about. A few months back, I took the StrengthsFinder assessment. Of the 34 qualities measured, my top two strengths are that I’m analytical and deliberative. StrengthsFinder defines these as follows:

• Analytical – You search for reasons and causes. You have the ability to think about all of the factors that might affect a situation.
• Deliberative – You are best described by the serious care you take in making decisions or choices. You anticipate obstacles.

This assessment was spot on. I’m a natural thinker and enjoy spending time considering possibilities and contemplating different scenarios.

When I read my results, though, something dawned on me. When I was younger, I was hindered by not realizing that I’m wired with these two traits. In the early days of CCAW, I tried to gather every scrap of information and understand every possible outcome before making a decision. It took me longer to decide about anything than it should have because I was aiming for perfection.

Speedy decision-making and execution are important to entrepreneurial success. Ideally, you should make the best decision you can with imperfect or incomplete information, execute on it quickly, learn from what happens, and apply your newfound insight next time. Doing so repeatedly is foundational to building a company. And you get pretty good at making decisions.

Venture capitalists often look at speed of execution when they’re considering investing in an entrepreneur. And for good reason. It’s an indicator—one of many, true—of the entrepreneur’s chances of success.

I’ve become mindful of how long I take to make a decision and execute on it. I’ve embraced reality: I’ll never have all the information, and there’s no such thing as a perfect decision. I make the best decision I can in the circumstances, carry it out, and analyze how things turn out so I can do better next time. Things don’t always turn out the way I’d hoped, but I’m always learning.

What have you learned that’s helped your decision-making?

‍

This week I had a conversation with my first entrepreneurial mentor. We reflected on my journey and how much I’ve developed and matured. I started CCAW partly because I was supremely self-confidence. I thought I was superhuman, able to accomplish the impossible without help. Falsely, I believed I couldn’t fail. I knew the things that could go wrong, but I didn’t think they applied to me. When people reminded me of the risk I was taking, I was unfazed.

I had this attitude because of where I was in life. I was extremely young, only a few years out of college. I thought I knew everything. In truth, though, my knowledge gap was enormous and I didn’t know much at all. It was so early in my career that I hadn’t experienced any setbacks or run up against obstacles. In short, I was young, dumb, and stubborn.

Once I was full-time at CCAW, I learned the limitations of my superhuman powers. It was 2008 and the financial crisis was upending the world. I was drowning in an ever-deepening ocean of things that needed to be done, I had no help or resources to lean on, and I was fighting an uphill battle against a global recession to acquire customers. I began to question myself and I didn’t have the right support system, so I started to feel like the lone man on the island. That was my reality for a few years.

Talking with my mentor this week, I realized that my journey as an entrepreneur took a turn for the better when I became more self-aware. Once I experienced painful failures with no one to blame but myself, I was forced to take a hard look in the mirror. What I saw was an ordinary imperfect human who couldn’t do it all by himself. The failures were the result of my weaknesses in areas critical to CCAW’s success.

I began to be candid with others about my weaknesses and I sought out a mentor to help me improve. I connected with my first mentor, and things quickly changed. She gave me blunt feedback and told me what I needed to do to be a better entrepreneur. I took her critiques in stride (sometimes this was painful) and didn’t push back. After all, I had sought her out and asked for help.

Most venture capitalists invest only in entrepreneurs who are coachable. Now I understand why. The entrepreneurial journey is a hard one, and you need all the help you can get to be successful. If you aren’t self-aware and open to feedback, you’re more likely to fail. I encourage people to be honest with themselves about the things they don’t do well and get help with them. This simple mindset adjustment can change your life.

How has being self-aware helped you?

In CCAW’s early days, I avoided making tough decisions until I absolutely had to. I was inexperienced and afraid of doing the wrong thing, and I always hoped that something material would change so I wouldn’t have to do anything. In hindsight, I can see that procrastinating just delayed the inevitable and piled stress on my team and on me.

With more experience, I learned a better way. I began announcing decisions I needed to make and the date by which I needed to make them. Usually, my confidants were professional people whom I held in high regard (for instance, my EO Forum and mentors). Sometimes, they included team members, family, and close friends.

Why did I put myself on the spot? Simple—to give others permission to hold me accountable. For me personally, public accountability is powerful because I’m wired to be competitive and I have a strong sense of responsibility. I hate losing and tend to take psychological ownership of what I say I will do. If I commit to doing something and then don’t, I feel like I lost and also like I let other people down. I want to avoid both of those horrible feelings.

The pandemic has created an unprecedented macroeconomic environment. Navigating to the other side of it will require tough, timely decisions. Consider whether public accountability could help you make them.

What are your methods for getting yourself to make difficult decisions?

Today I was reflecting on all my conversations with entrepreneurs over the last three weeks. What entrepreneurs are talking about has changed drastically. And this makes perfect sense given the pandemic. But beyond the obvious, I believe the change reflects a shift in entrepreneurs’ mindsets.

The economy has been mostly expanding for the last decade or so. Until March, there didn’t appear to be anything that would prevent 2020 from being another growth year. Most entrepreneurs were focused solely on growth. They planned to raise capital, hire people, and execute on growth-focused initiatives. The metrics they measured and discussed were usually growth-oriented.

The pandemic is a clear and present danger and has brought some businesses to a standstill. It’s now clear that 2020 will not be a year of growth for most, and for many it will be a year of deep contraction. Most entrepreneurs I’ve spoken with are trying to gauge how much business they’ll lose and figure out how to reduce the size of their team and their expenses while maintaining positive cash flow. The metrics that are now being measured and discussed focus on efficiency.

In my opinion, during economic expansions most entrepreneurs accept a certain level of inefficiency in the name of growth. They’re trying to move as much water as possible from point A to point B. They know water is slopping out of the buckets because they’re moving fast, but as long as more water is pouring into the tanks at point A, it doesn’t matter. But during economic contractions, the same entrepreneurs embrace efficiency. The water source dries up, so they put lids on the buckets and carry them slowly to make the most of the water they have.

Having experienced growth mode at CCAW, I recognize that it’s very difficult to get a team to focus on growth and efficiency simultaneously. When you’re growing, you live by the done-is-better-than-perfect mindset. There are more things to do than there are people to do them. Your people will become frustrated if they’re told, “Move fast! Get it done! Oh, and do everything perfectly. No waste or mistakes!”

Without a doubt, there will be pain in the short term for many entrepreneurs. However, I strongly believe that the lessons we learn during this period will help our companies endure.

Today I had separate conversations with two friends who are entrepreneurs. The Paycheck Protection Program (PPP) came up both times. The program was just announced, so many things still haven’t been sorted out. We agreed, though, about the importance of understanding your runway so you can plan how to navigate the PPP process and communicate effectively with your team, your bank, and other important stakeholders.

At CCAW, I always knew the length of our runway. This equation gave it to me:

• net cash / average monthly fixed expenses = runway (in months)

Here are some inputs we can use for an example:

• cash bank balance: $200,000
• accounts payable (how much you owe others): $50,000
• monthly payroll: $50,000
• monthly rent: $5,000
• other monthly fixed expenses: $7,000

Here’s the calculation:

• Net cash: $200,000 (bank balance) – $50,000 (accounts payable) = $150,000
• Fixed monthly expenses: $50,000 (payroll) + $5,000 (rent) + $7,000 (other fixed expenses) = $62,000
• Runway: $150,000 (net cash) / $62,000 (fixed monthly expenses) = 2.4

This business has 2.4 months of runway left if things get really bad. Of course, this is a worst-case scenario. It assumes the business won’t collect any cash (accounts receivable aren’t included). And it assumes that fixed expenses won’t be reduced. It isn’t meant to be a perfect calculation. It’s just a snapshot to help inform decision-making.

This calculation was revealing to me, especially during difficult times. Every day, I knew how much time I had to right the ship before drastic measures would be required.

I encourage entrepreneurs to regularly calculate their runway and communicate it to key people, internally and externally. This simple metric is super-powerful. It can rally and focus people rapidly, which is critical during difficult times.

Today I was reviewing the lifeline that I created for CCAW. Something jumped out at me: how hard the journey was in the beginning. From 2007 to 2013, we grew at a healthy rate (with a few resets along the way) and surpassed $1M in revenue for the first time in 2013. Then beginning in 2014 our growth accelerated dramatically and we recorded eight figures in annual revenue by 2018. Seven years to get to $1M and then more than ten times that number within five years!

There was one major thing that was different about those two time periods: high-level talent. In 2014, we hired a COO and CTO. In 2016, we hired another executive to focus on technology. So, in 2016 there were four high-level thinkers focused on growing the business to our defined goal of eight-figure revenue. We had tons of strategic projects that we were executing on independently and collectively. When there were roadblocks or challenges, we huddled to share ideas. Usually, we broke the huddle with an agreed solution. (Some debates did get contentious, but that’s OK because we got to the right answer.)

Before those three hires, it was just me. I did my best to identify the right solutions. Often that required doing research to fill the gaps in my knowledge. I implemented solutions. I managed all the company’s teams. Twenty-four hours a day just wasn’t enough time for one person to do all of that and do it well. The effort was mentally and physically exhausting. The company’s growth, I now realize, wasn’t what it could have been in those early years.

Hindsight is 20/20 and I wouldn’t change anything. But along the way, I learned—the hard way—the benefits of high-level thinkers being part of an early team. You can exploit your strengths to divide and conquer, hold each other accountable, and bounce ideas off each other at critical moments. These, plus a ton of other reasons, are why VCs are hesitant to invest in solo founders.

If you’re in the early stages of growing your business, consider learning from my experience: involve a cofounder or other high-level thinker as soon as you can.

When I began working on CCAW full time, I was doing it out of my apartment (WeWork didn’t exist). It was 2008. Because of the financial crisis, I was trying to stay lean and keep the lights on. After a few years, I started to feel like the only human on a tiny island. My personal network could no longer relate to my professional struggles (my family and friends didn’t have entrepreneurial experience). Conversations increasingly ended with, “Well . . . I hope you figure that out.” It was discouraging. I had gone from interacting daily with peers and higher-ups in corporate America to seldom communicating with anyone professionally (except by email and phone). There was no way for me to talk through my struggle with anyone who understood.

Deciding things needed to change, I sought out entrepreneurial groups. I found Entrepreneurs’ Organization (EO) and was super-excited until I learned that I needed $1M in annual revenue to qualify (I was at about $200k–$300k at this point). I kept pushing forward and discovered that someone I knew was a member of EO’s Atlanta chapter. We discussed my predicament, and he told me that EO had created EO Accelerator for people in my position (less than $1M, but with the potential to reach $1M with some help). I asked for a warm intro to the person running EO Accelerator in Atlanta.

Joining EO Accelerator was a turning point in my entrepreneurial journey. Just like that, I was part of a group of peers—people who had taken action on their entrepreneurial dream (they had customers and revenue), were at about the same place (less than $1M), had similar goals (grow to $1M+), wanted accountability (we met once a month for four hours), and were committed (we had to pay an annual fee).

The experience turbocharged my growth. I was now learning from the successes and failures of others, which saved me a lot of time. I was exposed to entrepreneurs in other industries and was able to apply best practices from those industries to my space (this is how I was introduced to tech). I presented my ideas and got unbiased feedback from peers. Within a few years, CCAW’s revenue exceeded $1M and I had a great professional network and a great set of friends. Joining EO Accelerator was pivotal and I’m thankful that EO created the program.

Whatever you’re trying to do, don’t go it alone if you don’t have to. There’s a lot to be gained from working with and learning from other people in similar situations.

Today marked the end of my second week of working exclusively from home. Here are my takeaways from week 2:

• Physical activity – I embraced running outside during week 1, but it’s been raining too much to do it consistently this week. I adjusted by incorporating bodyweight exercises into my routine. I even began a daily challenge (with friends, for accountability): 200 push-ups and 200 sit-ups. Fitbod is a cool app with algorithmic daily workout suggestions customized for you and your situation. Happily, it works when you want to lose body fat and you’re stuck at home with no equipment.
• Time – My days began to creep a little. I found myself working at 8 p.m. one day. Going forward, I intend to stick closely to defined working hours.
• Social interaction – I attended a Zoom video happy hour, which was a lot of fun. And I’ve been using Zoom videos often to catch up with people. It helps to see someone’s face during a conversation.
• Meals – I’m cooking more (after calling Mom for her favorite recipes). Researching and discussing recipes (“What are you cooking?” is a great conversation starter these days) highlighted some of the unhealthy things in those tasty restaurant meals I’m accustomed to. I really miss not doing lunches with people, but I’m replacing them with—you guessed it—Zoom video calls.
• Relationships – This has been a great time to reach out with and catch up with people. More folks answer or return calls quickly.
• Goals – Having this much downtime may never happen again in my life. I want to make the most of it. This week, I’m going to consider what I want to accomplish during this lull.
• Reflection – I’m a thinker by nature, and now I have more time to think deeply about things, which I’m enjoying.

This second week of working from home wasn’t ideal, but it wasn’t bad, either. I’ll continue to reflect on my goals and look for creative ways to interact socially. I plan to learn from this unique situation, adjust as necessary, and share my experience.

I’ve been using Zoom video calls to conduct meetings for the last few weeks. Zoom is a perfect example of a startup (well . . . it used to be) that improved on an existing product rather than creating something new. Zoom’s founder worked for Webex, and he realized its product was becoming obsolete in the age of cloud computing. And Webex’s acquisition by Cisco, a large enterprise company, slowed Webex’s evolution.

The founder saw an opportunity. Wouldn’t video conferencing be better if it was designed to work on cloud computing infrastructure? He built a beta product, raised some capital, and the rest is history. Today, Zoom is publicly traded and has a market cap (i.e., worth) of more than $42 billion. Its product is popular with customers even though it has lots of competitors and it wasn’t the first video conferencing product. (Side note: Zoom currently has an enterprise value of forty-five times 2020 projected revenue. For most publicly traded SaaS companies, this number is in the vicinity of ten.)

Many entrepreneurs feel they should create something transformative that no one else has thought of. But building a better mousetrap can be just as rewarding. (I’m not saying it’s easy—the product usually needs to be ten times better than existing products to scale quickly.) Zoom is a great example. Its founder combined his deep knowledge of video conferencing (his “unfair advantage”) with new technology (cloud computing) to create a much-improved video conferencing experience that customers love.

I like this path because everyone isn’t an idea person or futurist. Most professionals, though, have years of experience in some corner of the world of work and can easily tell you what people don’t like about it and how it could be improved. A great startup idea could spring from that specialized knowledge.

Today I had a conversation with a close friend who is an entrepreneur. His business has multiple locations that provide services to children. We discussed the pandemic and how it’s affecting him (local stay-at-home orders forced him to close). He’s concerned, of course, about the well-being of his fifty employees and of his customers.

The biggest thing bothering him is the uncertainty. He doesn’t know how long he will have to be closed, which makes planning difficult. And he doesn’t know what to tell his team. He’s also not sure whose directives to follow. The city’s? The county’s? The state’s? The federal government’s? I sympathized with him and we decided to brainstorm about ideas to help him through this.

During our conversation, he settled on a strategy. He’s going to make contingency plans for closure lasting one, two, three, four, five, and six months—different plans for each scenario. And he’s going to communicate this approach to his team members, vendors, and customers. Proactively managing the situation is important to him.

I’ve never run a business like his, so I’m not familiar with its nuances. But the merits of his overall approach are obvious, and I give him a lot of credit for coming up with it. He isn’t worrying about things he can’t control. He’s accepting uncertainty, planning as best he can on the basis of the information at hand, and communicating his plans. They won’t be perfect, and things will likely change, but I’m confident that his employees, customers, and vendors will appreciate not being kept in the dark.