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I share what I learn each day about entrepreneurship—from a biography or my own experience. Always a 2-min read or less.
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Entrepreneurship
A Tough Road to Travel
I read and have been thinking about Hatching Twitter: A True Story of Money, Power, Friendship, and Betrayal, which is an excellent book. I enjoy reading detailed accounts of the journeys of impactful people and companies. Twitter’s impact has been profound and the journey to create the company was full of twists and turns. Here are a few takeaways:
- Pivot – Great things can come from pivoting a company. Twitter is a prime example.
- Politics – As organizations become large, politics can take a toll on them. Building and reinforcing a strong culture is critical as you scale.
- Founders – Founders’ relationships aren’t always pretty and in fact can get downright ugly. The severity of Twitter’s founders’ issues surprised me.
- Values – Morals and values matter. Be sure to include them in your evaluation criteria when you’re considering co-founders and early key team members.
I don’t know how accurate Hatching Twitter is, but it’s a great read. It offers a much-needed dose of realism about what building something great is like: It’s difficult. It’s full of emotional highs and lows. Conflicts are unavoidable and must be overcome. But when people do it for the right reasons and persevere, the impact on society can be huge.
The Side Hustlers Are Coming
I read an article about this past week’s jobless claims report. Almost 39 million people have filed for unemployment insurance benefits in the last nine weeks. I’m hopeful that each of these people will find employment quickly and minimize the financial disruption of their life. But what happens if they can’t? More than likely, our communities are facing prolonged dark days.
When employment options are thin on the ground, supplementing income with side hustles is common. These endeavors start at a micro scale. They’re simplistic and crude. But they can be gateways to lifelong entrepreneurial journeys. A side hustle usually involves testing on a small scale and growing organically as you achieve product–market fit and customer awareness. Then one day you look up and you have a thriving company generating meaningful revenue, with real customers and real employees. You’ve created a company of value that has an impact on people in the company and in the community.
If high levels of unemployment remain with us for long, I predict a surge in people trying their hands at side hustles. I believe that with more awareness, resources, and mentoring, a wave of successful entrepreneurs can emerge from the gloom we’re enduring. They will positively affect their communities via employment and other activities that stimulate the economy. They will also inspire the next wave of entrepreneurs by facilitating proximity to success. Entrepreneurship is one element that, alongside coordinated programs and other efforts in the community, can be a positive force in transitioning a community from troubles to prosperity.
How could we help aspiring entrepreneurs succeed during this difficult time?
Harness Conflict to Solve Problems
A new entrepreneur asked where ideas about critical features of CCAW’s system came from. These features allowed us to streamline our management of large amounts of data and set ourselves apart from competitors. They ultimately became the foundation for growing rapidly while keeping to the quality standards we were known for. My response? Conflict. The entrepreneur was surprised.
When a challenging problem needed to be solved, I’d have a whiteboard session with company leaders. We’d agree on what the problem was and then begin debating how to solve it. We often were of different minds. Sometimes our disagreements were intense and tempers would flair. Usually, everything worked out—we would come up with an amazing solution that borrowed from everyone’s perspective.
To make sure our conflict stayed healthy, we had to establish ground rules. Basically, we adhered to the golden rule: we had to treat each other as we wanted to be treated. When things got heated and we were about to break that rule, we suspended the meeting until everyone was calm. We reminded each other that everyone is entitled to their opinion and it’s OK to agree to disagree.
My big takeaway from those sessions was that healthy conflict can bring good outcomes. We didn’t see eye to eye, and we each thought we were right, but we respected each other. Genuinely listening with the intention of understanding allowed us to view the problem through a different lens. After hearing everyone out, we saw the problem completely differently. That helped us see a different path to a solution. I often noticed that when they understood a team member’s perspective, people would have a burst of ideas. We fed off each other’s ideas until we reached a solution that we all thought was ideal.
I don’t like to argue, but I have an appreciation for the value of someone else’s perspective. I may not agree with it, but I enjoy the process of trying to understand it. When you’re building a company, you’re often trying to solve problems that others can’t solve. Constructive conflict is a powerful tool that mature teams can use to solve problems in unique ways.
How has constructive conflict helped you solve a problem?
Say No Quickly
Today I had a great conversation with investors. They mentioned how important it is to say no quickly. Their thesis is simple: you want to have straightforward criteria that allow you to quickly recognize when you can’t move forward. One example: an entrepreneur either is or isn’t a solo founder. An investor who has decided not to invest in solo founders won’t waste time and energy considering a solo founder’s startup. Listening to this reminded me of my early days at CCAW and how I learned this lesson the hard way.
Before we had a steady vendor base, I had to make cold calls and sell vendors on doing business with us. Courting tons of vendors and getting them to agree to partner with a company they’d never heard of was time consuming. Sometimes, after agreeing to terms, I would learn it wasn’t feasible to do business with them. A couple of common issues were that they didn’t have electronic products or couldn’t provide pricing data. They’d say something like, “Just call us and we’ll give you whatever you need.” I’d spent valuable time and energy on a relationship that would never go anywhere. It was frustrating, to say the least.
I eventually created a checklist of questions to ask vendors early on. It focused heavily on their technical and operational capabilities. If their answer to any of the questions was no, it wasn’t a good fit and I walked away. Over time, I refined the checklist to the point that we spent time only on partnerships that were a perfect match.
Define your bottom line and quickly say no when someone can’t meet your standards. You’ll find a lot of value in this, personally and professionally. We all get the same 24 hours; how we use them is what separates us. Walk away sooner rather than later from relationships that can’t progress.
How do you manage your time more effectively?
What’s Missing for Atlanta Entrepreneurs
I’ve had thought-provoking conversations over the last few weeks about what’s needed for Atlanta’s entrepreneurial ecosystem to reach the next level. What’s the next level? A regular stream of companies transitioning from early stage (sub–$100 thousand in annual revenue) to $250 million-plus liquidation events (acquisitions, IPOs, etc.) within ten years. Atlanta has a robust entrepreneurial scene and a community that’s super supportive (local government, universities, corporations, accelerators, etc.). In my opinion, Atlanta is one of the, if not the, strongest areas in the southeast for building businesses. But there’s lots of room for improvement.
The folks that I’ve talked with and I came up with a bunch of things that we think would help. But here’s what I believe could be game changing: people who’ve helped build companies that have had liquidation events exceeding $250 million. Founders, executives, key early employees, no doubt others. People who’ve earned their credibility by experiencing the journey to liquidation. These folks have seen the movie and they know how it ends. By no means am I saying that Atlanta doesn’t have such people. But there aren’t enough of them. I think that once you increase their presence in the city (assuming they’re excited to give back), you can start changing the ecosystem.
Why is that true? Easy . . . proximity to success. Going back to my post about this, it’s game changing for early-stage entrepreneurs to have access to successful people. If more people who know how to create companies that can liquidate for $250 million-plus are available to connect early-stage entrepreneurs with the right people and otherwise mentor them, the newcomers have a huge advantage. They are much more likely to succeed. Larger liquidation events happen more frequently, which attracts more investors, which attracts more high caliper entrepreneurs to the city. It creates a flywheel.
Now that we know what’s missing, how do we get more of these credible people in Atlanta?
Changing Consumer Needs: Fitness
I had a good conversation with someone in the fitness industry. As you can imagine, fitness, like other industries, is navigating the pandemic. He shared some great insights. Here are few takeaways:
- Gyms reopen – Where they’re open, usage is nowhere near pre–COVID-19 levels. Cancellations have accelerated. Personal training sessions are way down. So is class attendance.
- Spacing – Gym floor plans were designed to pack in as many machines as possible. That’s not safe now because it makes social distancing impossible. Equipment must be removed. More space could be leased, when feasible.
- Air quality – Hourly changes of air from outdoors, UV lighting, and air filtration aren’t things many gyms have thought about, but they may consider them to make customers feel safe.
- Virtual – Virtual exercise offerings by boutique gyms are surging. Clients have embraced them and these options will probably still be around later.
- Outdoors – With the quarantine, more people are exercising outside (e.g., running) and in groups (e.g., at “boot camps”). People love getting out of the house. Habits are forming and many will stick.
- Trainers – Many trainers have adapted their business models away from revenue sharing with gyms to outdoor boot camps and personal training. More of them are learning to build personal brands and market to attract clients.
- Peleton – Affluent consumers are embracing things like Tonal, Peleton, and other home options.
My biggest takeaway is that there is still a strong consumer desire to work out, but gyms currently can’t meet that need for the masses. This void has upended the industry and created an opportunity to provide new workout options that feel safer. Gyms will be forced to adapt and make investments they otherwise might not have ever considered. Exercise rooms may become more commonplace for home builders. Many people may continue to spend more time outdoors, playing sports or otherwise working out in the fresh air.
It will be interesting to see how this all plays out. I predict that gyms will still be around but their business model will change. I think the home workout category will be the biggest beneficiary, closely followed by more biking, running, etc. and use of public recreational areas. I see scrappy entrepreneurs taking advantage of this opportunity and building the next generation of fitness businesses.
Credible Mentors Are Key to Your Success
One of the most consequential decisions I made as an entrepreneur was to seek out mentors. Over time I had a few as CCAW transitioned. It took me several years to find my first really good mentor, but when I did it made a world of difference. At the time, CCAW was doing around $500,000 in annual revenue. The company was just me and one team member. My mentor was in a different industry, was doing around $60 million in annual revenue, and had more than a hundred employees.
I recently reflected on what made the relationship so impactful. There are lots of things, but one especially stands out: credibility.
When I described a challenge, my mentor could relate to it because years earlier his company had been at the stage where CCAW was. He drew on the specific experiences that helped him resolve the same challenge or one that was similar. His credibility came from having already achieved what I was trying to achieve. He shared his blueprint for success, which comprised knowledge amassed over many years. He essentially laid the path to success at my feet. I still had to walk the path, but I didn’t have to figure out where it was or what it looked like.
I believe that everyone could benefit from this type of wisdom and should consider establishing a relationship with a credible mentor. To increase the likelihood of a fruitful mentorship, I encourage people to first decide on the answers to two simple but powerful questions: What am I trying to accomplish? Has my prospective mentor successfully done the same sort of thing? If you can’t answer the first, you’re not ready to be mentored. If you can’t say “yes” to the second, you haven’t found the right mentor.
When seeking knowledge from another person, always consider whether he or she is credible. On my business journey, the wisdom of credible people has been a game changer many times.
No-Code Entrepreneurship
I’ve begun testing a website builder. Webflow allows you to build beautiful websites without knowing how to code. Historically, creating a website required at least two skills: designing its look and feel and making it functional. For both, coding was a must. Now, though, user-friendly tools can help you create a great website without knowing the first thing about code. Webflow, Weebly, and Squarespace are just a few of them.
Here are my takeaways:
- Power – Webflow is extremely powerful. The possibilities feel endless.
- Learning curve – The product is dense because of all its capabilities. It’s intuitive once you understand the building blocks of the system, but it’s no iPhone. You can’t just start using it with no training or study. There is a learning curve.
- Webflow University – This resource is well thought out and user friendly. There’s lots of easy-to-digest content with great videos. An engaged user community helps you get answers to your situation-specific questions.
- Comparison – I played with WordPress and Webflow simultaneously. I liked Webflow better. Its educational resources were higher quality and more concise. I got the impression that Webflow has more native functionality, whereas WordPress requires plugins to accomplish some of the same tasks.
- Migrating – It appears that it could be challenging to migrate from Webflow to another platform, depending on the specifics of your site.
- Templates – The library of templates is impressive and a great starting point. Webflow doesn’t have as many as WordPress, but they are higher quality (in my opinion).
- Design – The platform isn’t a silver bullet and won’t save you if design isn’t your forte.
I’ll continue to play with Webflow and come up with a final verdict on it, but so far so good.
I remember, when I started CCAW, having conversations with teams of people to create simple brochure websites. The sums I paid back then for those simple projects are laughable now. With Webflow, the same things can be done by an entrepreneur in a weekend or, even if you want to use a good designer, for a fraction of their former cost.
I love how the no-code movement is allowing entrepreneurs to do more with fewer skills and resources. Reducing startup costs lowers barriers to entry and makes entrepreneurship a reality for more people.
If you want to start a company but are discouraged by limited resources or skills, see if a no-code solution is available. You probably aren’t the only person facing your challenge. Worst-case scenario, someone has documented their journey to the solution of the problem and you can follow their lead. Best-case scenario, there’s a no-code solution that can solve your problem quickly and inexpensively.
Working from Home: Week Nine
Today marked the end of my eighth week of working exclusively from home. Here are my takeaways from week eight:
- Virtual learning – I took advantage of a few virtual learning opportunities, which I enjoyed. I’ll be doing this again.
- Change of scene? – Eight weeks of the same environment is getting a bit old. I miss the variety that coming and going entails. I’ve been debating whether to go somewhere else for the next month or so, and I’ll get some feedback and continue to mull this over.
- Relationships – Maintaining professional relationships may be harder in the medium term, so I started using a new tool that should help. I’m excited to play with my new toy and see how it helps my relationships.
- No meetings – For the first time in a long time, I had two days without meetings. With no interruption looming, I was focused and productive. However, I did miss the professional interaction.
Week eight was a good one. I was productive and in a good rhythm. No epiphanies this week—just an awareness that it’s been two months.
I’ll continue to learn from this unique situation, adjust as necessary, and share my experience.
Can We Help Logistics Keep Pace with a Changing World?
Today I had a great conversation with a friend who owns a logistics company. His fleet of trucks delivers goods to individual consumers and businesses in Georgia. He shared his pandemic experiences with me. As others were hunkering down, his team was steadily making deliveries. He hasn’t felt the pain other entrepreneurs have. In fact, he’s thinking about expanding his business into more offerings and has a long-term vision for a large logistics firm.
As I listened, I thought about the big impact logistics has on our everyday lives. How is the food we eat delivered to restaurants and grocers? How do our medicines make their way to pharmacies? How does fuel get delivered to gas stations?
Because of the pandemic, I now receive a steady stream of deliveries. I asked my friend about consumer deliveries. He said this is an area that has changed and will continue to change. Consumers are having more things delivered, and he and his team are still learning how to grow that part of his business efficiently. He wishes there were more tools to help a smaller operator like himself better manage consumer deliveries.
Logistics isn’t sexy and it can be complex. But it’s an essential component of serving many large markets. Consumer deliveries will continue to expand rapidly. For people with knowledge and experience in this space, I foresee opportunities to build large businesses that provide tools to support the ability of smaller logistics companies to operate efficiently or help smaller companies whose core business isn’t logistics manage their logistics.