Making tough decisions is what founders and CEOs sign up for. It comes with the territory. Tough decisions are tough because they hurt people. However, there’s a distinct difference between a tough decision and a dishonorable one. I was chatting with a founder in a difficult spot who may have conflated the two.

His company is facing a challenging time and he needs to reduce his staff. That was a tough decision, but it was one that he had to make for the company to survive. I asked how he intends to handle the transition of departing employees. He said he plans to pay severance but not sales commissions earned. The team worked hard in anticipation of being paid commissions, and now they won’t receive them. The founder has the money to pay them, but he’s choosing not to.

Downsizing the team to give the company a fighting chance at long-term survival is a tough call. It sucks, but it has to be done. If it’s not, the company could die. Some won’t understand this decision now, but they will if the company starts thriving and hopefully hiring again. Not paying people what they’ve earned is different. No matter what happens in the future, everyone will remember how part of the team was treated on the way out. It shows the company has questionable values. It’s likely to lead to a variety of unintended consequences. It’s not how people should be treated and is simply the wrong decision.

Founders will find themselves in tough spots during their entrepreneurial journey. Navigating these situations will require tough decisions, but founders shouldn’t use them as an excuse to detour from personal or company values. They should still do the right thing.

Tonight, I tuned in to a great conversation that various diverse investors on a panel were having. One of them said this about early founders: “There is funding for what you want to do, but you have to convince people that it’s worth the investment given the lack of data points.” This was a great point and I totally agree.

When a business has traction, it starts to be derisked from an investment perspective. A growing customer base and revenue are metrics that can indicate the business’s trajectory and help investors gain confidence. When the business is at an early stage, those data points just don’t exist. And in that situation, it’s the founder’s responsibility to articulate their vision in a way that investors can easily grasp and that excites them. When early founders can do that, they’re more likely to convince someone to invest!

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At CCAW, we always knew when income tax season began. Some of the parts we sold were necessary for a vehicle to operate safely, so they were must-haves. Our average order value was around $350—a considerable purchase. Lots of customers waited to buy until they had an influx of cash. Tax refunds fit that bill perfectly. The day refunds hit, we’d see a spike in sales. This usually happened in February or March and marked the beginning of our busy season.

Today I was reflecting on how much tax refunds affected our business and the small and medium-sized businesses of other founders I know. We’re currently in the midst of tax season. The deadline has been pushed back to May 17, but historically, most people anticipating a refund file well before the deadline.

And many people are about to receive cash from another source. Earlier this month, the American Rescue Plan Act of 2021was passed. This legislation provides direct stimulus payments (the proper name is economic impact payments) to individuals if they meet certain criteria. The stimulus payments are intended to lessen the economic blow of the pandemic. I hope it achieves that goal. If it does, it should result in consumer spending.

Last year individuals received stimulus checks in April, but we were early in the pandemic and there was lots of uncertainty. We’re still in the pandemic, but we have a better understanding of COVID-19 and more businesses are open. I’m curious to see how the combination of tax refunds and stimulus payments affect small and medium-sized business. Not to mention the broader economy. I’ll be watching this closely and talking to founder friends on the front lines. Should be interesting to watch this play out.

It’s likely that some of the workforce will keep working remotely or hybrid going forward. I just don’t see people going back to an office Monday through Friday. One thing I’m unsure about is the future of business travel. I was a road warrior early in my career and know the lifestyle well. Fly out on Monday, fly back on Thursday (if you’re lucky).

During my years of weekly travel, I learned to accept it. But when I stopped, I told myself I never again wanted to travel that much for work. Business travelers have been home for about a year now, and I’m wondering what normal will look like for them. I’m sure they’ve adapted and learned to close deals and effectively address client concerns via video. In-person contact will still be valuable and business travel will continue, but at what frequency? Monthly or quarterly instead of weekly?

I don’t know the answer, but whatever it is, it will have broad ramifications. For example, business travelers were the most profitable customers for airlines. If they return at 50% medium term, what will that do to the industry? And to hotels and credit card companies?

I’m curious about what the new normal will be for business travel and how affected industries will adapt. It could be a huge entrepreneurial opportunity in the making.

I had a good conversation with a successful founder who’s now an angel investor. We discussed his investment criteria. He wants to back founders going after huge or fast-growing markets. Even if they’re small now. In fact, even if they’re new now. No founders in permanently small or shrinking markets, no matter how terrific the founder may be.

Market size is something that’s important for founders to be aware of. Get this right and you’ll have wind in your sails. Big markets are usually easy to spot. Quantifying how big can be a challenge, but knowing a market is big isn’t usually too hard. Fast-growing markets are similar: easy to spot, harder to quantify. Recognizing new markets can be trickier. I don’t have a great rule of thumb and plan to do more research on this, but I think that starting with understanding the problem makes sense. How pervasive is the problem? How painful is it? If tons of untapped customers are experiencing a high level of pain and will readily pay for a solution, you may have found a great new market.

It’s important for founders to understand what type of market they’re going after. Pick the right market and you can ride a tidal wave to success!

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In the last month I’ve had an opportunity to speak with a number of tech investors outside the Southeast. Some well along in their careers and others just starting. I’ve noticed a consistent theme: they’re all paying VERY close attention to what’s happening in Atlanta. Some are even looking to relocate here. One seasoned investor at a reputable firm said he and his team think Atlanta is a top-five city for tech startups.

I’ve lived in Atlanta a long time. I’ve been watching the tech startup landscape evolve. I’ve always thought Atlanta is special and a great place for entrepreneurs. Now outsiders are taking notice. I think Atlanta is at a tipping point and a convergence of factors will make the city the mecca of startups and entrepreneurship (if it isn’t already). The city has logged some big fund-raising rounds and exits in the last few years. That’s putting capital in the hands of employees at local startups, who can angel invest in more emerging local companies. It’s also increasing awareness among the national investor community, who want to invest in local startups.

Working from home has more people rethinking where they want to live. Atlanta offers a unique mix of characteristics that makes it an attractive place where people can see themselves putting down roots. Working from home has also removed geographic limitations on investment. Founders in Atlanta and investors outside Atlanta no longer have to get on a plane to connect. They can meet and close deals on video. There are a ton of other factors too, but these are some big ones.

Atlanta has always had scrappy founders who’ve done amazing things. I think local founders will continue to see the resources and knowledge available to them expand as the profile of the Atlanta ecosystem continues to increase. This can only accelerate their success and allow them to pursue bigger and bolder ideas. I’m excited to see all this come to fruition!

For many years I never thought about my title at CCAW. When people asked, I called myself the president. In truth, I was focused on moving the company forward and didn’t much care about a title. For some reason “CEO” never sat well with me, so I settled on president.

Today I had an enlightening conversation with other founders about titles. Here are a few takeaways:

• External vs. internal – Most internal people know who’s doing what, but others don’t. For this reason, titles (or the impressions they create) matter to outsiders.
• Business partners – Having co-founders adds another element to things. The distinction of an appropriate title is great, but defining in writing who’s responsible for what is the key to accountability, which is essential.
• Title sharing – Some founders share a title with their business partner. Think co-CEO. It’s uncommon, but it can help with transition planning. It gives a rising person the opportunity to learn under the mentorship of a person transitioning out. They can work side-by-side for a while, smoothing the transition.
• Responsibility – Titles are important to some people, and there’s nothing wrong with that. It’s only a negative when they lose sight of or don’t understand their responsibilities. Understanding your role in the company is step number one in setting yourself up for success. Focus on that.

Today’s conversation was great, and I loved hearing other people’s ideas. I’m still not much of a title person, but it changed how I think about this topic. My key takeaway is that what’s being asked of you is more important than what you’re called.

This week, I’ve listened to two founders who are targeting enterprise companies as customers. One, “Alan,” landed a major one with no product and a pitch deck. The other, “ Bob,” has a working product but hasn’t yet been able to persuade anyone to use his platform (which is great, by the way). The big difference? Relationships.

Alan has years of experience and relationships with people who trust him. He leveraged them to land his first customer. Bob is solving a problem in a space where he doesn’t have relationships or experience. He has to earn the trust of potential customers, and that takes time. Alan has founder–market fit; Bob doesn’t. This doesn’t mean Bob won’t be successful; it just means he may have a tougher journey. I learned this lesson the hard way when I was a founder.

Many factors increase or decrease the chance of success. Founder–market fit is one of them. If you’re an aspiring founder with an idea but no founder–market fit, ask yourself if you’re the right person to solve the problem. If you believe you are, forge ahead!

Today I attended Outlander Labs’ Speaker Series. This month’s speaker was Hamet Watt. He has a diverse background that includes being a venture capitalist and entrepreneur. He’s currently CEO of Share Ventures, a venture studio, and used to be co-founder and chair of MoviePass. Here are a few takeaways from today’s conversation:

• Harmony vs. consensus – Harmony on a team is good. It means people respect each other’s opinions. Consensus in decision-making ends in watered-down decisions. The drive to consensus smooths the sharp edge that’s needed for a good idea or decision to get traction.
• Instincts vs. conviction – Founders need great instincts more than they need conviction. If they don’t have good instincts, they’ll be convinced of the wrong things.
• Energy – It’s important for founders to manage their energy. Sometimes you have to sprint . . . but to finish the race, you must pace yourself. You need to be able to continue running even after hearing “no” over and over again. Hamet views this as a mostly mental trait.
• Prioritization – People who ruthlessly prioritize to get things done make good founders. They understand everything won’t get done, but they’re sure to complete mission-critical tasks.
• Conversations – Investors want to have conversations; they don’t want to be pitched. Investors are human beings who want to partner with people. Hard to do that if communication isn’t bidirectional.
• Ideal investor – Founders should look for investors who allow them to be themselves. It’s easier over the long haul to work with someone who accepts you and sees your personality as a strength.

Hamet has a unique perspective on things and it was interesting to hear him explain it. He also shared an interesting story from his MoviePass days.

I’m excited for Hamet and Share Ventures and can’t wait to see the businesses he helps start!

This past weekend, I had an issue with an expensive product I purchased a year ago. I was frustrated that it was defective and worried it might be out of warranty. I called their customer service number on Saturday morning and had a pretty good experience. I sent a few pictures while I was on the call. The rep offered to send me a replacement free of charge and alternatively gave me the option to upgrade to the latest product for a small upcharge. In the end, happy they stood by their product, I decided to upgrade.

A lot of companies focus on getting the customer and closing the deal. I’m of the opinion that how you treat the customer post-transaction is equally as important. Giving your customers a satisfying experience after the deal is how you establish loyalty and turn them into evangelists. In my situation, this company has probably gained a customer for life because of the way they resolved my problem. That’s what I’ll remember, not the problem.

Regardless of the stage of your company, remember to treat your customers well after the sale. Doing so will help you build a base of loyal repeat customers you can count on!