In a chat with a friend today, he asked me a great question: Is there a trait founders consistently have? I had to think about it a bit. There are many founder traits, but one that’s common to all? That took more thought. Finally, I said that founders are problem solvers at their core.

Every founder I know is always thinking about and working on solving some problem. They’re not the sort of people who sit around and do nothing. They’re always looking for something they believe needs to be solved—and then trying to solve it. This drive to solve problems is hard-wired in them, I believe. Not all the solutions they work on will be successful, of course, but that doesn’t stop them from trying!

A friend shared with me a recent Elon Musk interview in which Musk explained his views on first-principles thinking:

To create a new product, many people start by understanding the available tools and methods. Then they use them to create the product. This is a flawed way of going about it. Existing tools and methods act as constraints, limiting our thinking about what’s possible. If something can’t be built with existing means, most people think it can’t be done. So, they create what’s possible given the available tools and methods, not what’s ideal.

To apply a first-principles approach, begin by imagining the theoretical perfect product. Then try to figure out how to build it. If existing tools and methods can be used, great. If not, create the necessary tools and methods!

First-principles thinking isn’t new, but it was interesting to hear Musk’s take on it.

I listened today to a great interview of a successful entrepreneur and investor. One part of it especially stood out. He was asked how he manages to relax even though he’s constantly engaged in high-output activities, and his answer was enlightening:

• Simplify life – He doesn’t want more things in his life that he must think about or do. He minimizes the number of daily decisions he has to make and the things he does regularly. He constantly downsizes to further simplify his life.
• Avoid mental chaos – He could do lots of things, but juggling too many things creates mental chaos and stress. When he’s stressed, his energy changes, he’s not in a good place, and he’s not effective in his work. To avoid this, his default response is no.
• Hyper focus – He says yes to something only when he anticipates massive output for a decent amount of effort. He will hyper focus on that project, blocking out time on his schedule to do so. The rest of his time is unscheduled and used for relational activities and learning.
• Optimize his “personal operating system” – He knows what he can handle and how he operates best. He doesn’t want to overload his personal OS by taking on too much. Instead, he optimizes for a few things that have the potential for a big impact.  

This approach is unique. It’s counter to what I’ve heard from other successful people. I really like how he is so self-aware that he’s able to optimize his approach to what works best for him while ignoring how other people manage their work and lives.

During the holidays, chatting with friends and family, I heard about challenges with buying goods. Furniture, appliances, cars . . . people are looking for specific items but can’t find them. Many things are on back order and delayed. This is affecting people’s plans and forcing them to seek alternatives, many of them costly.

Supply chain issues have been pervasive all year. The impact on the availability of goods and their prices has been significant. I met with a few founders during the year who are running product companies. Their businesses were seriously affected by these issues. They figured out temporary work-arounds but planned for the issues to be resolved by EOY. Things would be back to normal going into 2022, they thought.

I’m curious to see how the supply chain looks in 2022. If there isn’t a clear line of sight to normality, I think companies will develop new strategies and seek out new solutions to get goods in the hands of their consumers. They’ll be thinking more long-term this time, not about temporary work-arounds. If that happens, we could see rapid innovation in supply chains, which could have a big ripple effect on other industries and the broader economy.

Yesterday, the news broke that Salesloft is receiving growth capital. Today the CEO confirmed that Salesloft has agreed to receive a strategic investment from Vista Equity Partners at a $2.3 billion valuation.

Congrats to the Salesloft team on a huge win! They’ve been building a great company for years. Can’t wait to see what happens next.

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I met with three separate real estate entrepreneurs today and toured their projects. As we talked, I noticed that they have something in common: the ability to see something others cannot. They took on properties that weren’t desirable and that many others had overlooked, ignoring their current condition to focus on what they can become with good execution.

Each of these entrepreneurs has a vision for their project, and they communicate it to their team and other stakeholders. Once others buy into the vision, they focus on executing to turn the vision into reality.

Seeing opportunity where others don’t and having a vision are big parts of why these entrepreneurs have been successful. Next time you come across something that others have overlooked, consider asking yourself: what could this become?

I talked with an early founder with a promising business. He said he wants investors and team members who aren’t just along for the ride. He wants people who’ve bought into his vision and will roll up their sleeves and help turn it into reality. As he so eloquently put it, he doesn’t want dead weight.

I laughed at the dead weight comment, but he’s right. Founders should want people who’ll help them along the journey by making meaningful contributions. And they shouldn’t just pull along people who don’t contribute.

Entrepreneurship and start-ups have become very popular. Many people are aware of the potential rewards that await and want to reap them. What they don’t understand is what it takes to make it to a pot of gold at the end of the rainbow. The journey isn’t pretty. It takes a lot of grit and sacrifice. It’s definitely not for the faint of heart or those who don’t believe in what they’re doing.

If you’re an early founder looking to build something great, try to surround yourself with people who believe in what you’re trying to do and genuinely want to help you do it.

I talked to a founder today who plans to work through the holidays. He’s not going to work on Christmas, but he intends to work most other days. He sees this time as an opportunity to work on strategic planning instead of being in the weeds of the business.

This reminded me of myself in the early days of my company. For years, I spent a lot of time during holidays working on things that required long periods of concentration. I made great progress on high-level planning, but I could never recharge and wasn’t as present with family and friends as I could have been.

Eventually I realized that more balance suited me better. I started taking a few days off—no looking at work. I’d spend time with others and recharge. And I’d work on a single initiative the rest of the holiday. If I completed that work, got downtime, and was able to connect with others, it was a win. I still use this approach, and it continues to suit me well.

I was talking to a family member today, and they shared memories from when I was a toddler. Apparently, I was very comfortable going against the grain. I didn’t worry about what everyone else was doing. I would often be in my own world, consumed for hours by whatever intrigued me at the time. If I was interrupted then, I made it very clear that I wanted to be left alone. Even if it meant missing out on what everyone was doing.

Not being concerned about what others thought helped me pursue entrepreneurship when others close to me were pursuing more traditional paths. It also allowed me to tune out feedback from people who questioned my taking such a risky path. It’s interesting to hear that it’s a trait I’ve had since I was a young child.

Today I was at a friend’s house. He canceled his cable years ago and has been using YouTube TV ever since. Today he turned on his TV to watch a game and was stunned to learn that ESPN has been removed from YouTube TV. Disney and YouTube couldn’t agree to terms, so ESPN and other Disney-owned channels are out. My friend is evaluating his options.

This is an interesting situation. Channel owners like Disney have always had an interesting relationship with distributors of their content. They created it but needed help distributing it to consumers. Historically they were able to find a compromise because they needed each other. That dynamic has changed, as evidenced by today’s events. Disney, Netflix, Amazon, etc. have created their own distribution platforms and amassed millions of monthly customers. They can now distribute their content directly to the end consumer.

I’ve been watching distribution change in movies, banking, and other fields. This YouTube TV and Disney situation is yet another example of the changing distribution landscape. Technology has removed hurdles, allowing companies to distribute their solutions directly to consumers digitally—no third parties needed. This trend will continue at an accelerated pace. Distribution, along with other factors, will force innovation in many industries that haven’t changed in decades.