Why Entrepreneurs Love Endurance Sports

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If you don’t have answers to your problems after a four-hour run, you ain’t getting them.
– Christopher McDougall (Born To Run)

As I prepared for my first marathon last year, people kept asking me why I was running the race. What compelled me to spend all my free time running (and at the time fundraising for CCFA). While there were personal reasons for this specific race, what was apparent is that a ton of my fellow entrepreneurs had done or were preparing to do some endurance activity themselves. From mountaineering to marathons to triathlons – it was clear that the entrepreneurially inclined also have a higher than normal participation rate in endurance sports.

What is it about pushing yourself to physical limits that appeals to us? Some say it’s the same drive and motivation to succeed that lead them to entrepreneurship in the first place. Honestly that’s just not it. Certainly the skills and character needed for professional success helps someone complete their chosen activity – but it’s not the “why”. After 6 months of reflection and a few more races, it’s become apparent that the thing I seek is myself. The voice in my head that becomes even more introspective, even more truthful. It’s a place to reconcile the decisions of my past and their results and think through the decisions I currently face in a physical and emotional place that has been stripped bare of its armor.

The startup environment is so emotionally and physically demanding that we develop protection, both from the outside world and from ourselves. There is something about bumping up against your physical limits that breaks down even the strongest armor.

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Not Everyone Needs To Take The Same Risks

When a person really desires something, all the universe conspires to help that person to realize his dream.
–Paulo Coelho (The Alchemist)

Last week I read a couple posts about hiring MBAs into startups by Ed Zimmerman and Phin Barnes. They took a thoughtful look at hiring and funding MBAs, with both largely ending up on the “it ultimately depends – but I’m usually extra cautious about it” answer. My view is a little more nuanced view, in that I think that most MBAs should ignore the startup hype and go after the big roles at corporates that they dream about. Much like a Rabbi telling the wannabe convert to get stuffed 3 times before welcoming  them into the fold, founders should push the limits of potential MBA candidates.

If they don’t do the startup thing, it’s totally ok! Other people do not need to define success, or their life, the way that a startup founder does. It makes me extremely upset when I see startups poopooing other people’s career goals as not valiant. It is perfectly acceptable, and more logical, to make a conscious effort to de-risk career choices. Hell, in the depths of the dark days there isn’t a single startup founder who makes it past the “just messing around stage” that doesn’t rethink their own huge risk taking. Over the past year I’ve had more than my share of dark days, many of which had me thinking how to seriously de-risk.

When an MBA decides to take on the extra risk, they can be a huge asset. Many MBAs have an element of unrestrained ambition that makes them a force when deployed in the right way. They will give up all other aspects of their life for professional success, throw personal relationships out the door and maybe even sacrifice their own health. They also usually have the intelligence and attitude to be a key contributor to the team. The problem, as both Phin and Ed point out, is that they are usually wired to take safe bets and seek out status, security and prestige. As a founder, you question their motives for wanting to be involved, worse you fear that they’ll jump ship when something shinier comes along.  If you can find one that truly wants to be involved, they usually have something to prove and that kind of fire translates into an employee that will be very hard to stop.

So when an MBA comes looking for startup opportunities as their modern “safety school” equivalent, they get shown the door.  If you put up every roadblock and they knock them down one by one and are relentless because either your idea or your team is something they need to be a part of, then open up and use their fire to your benefit.

Not Everyone Needs To Take The Same Risks

Have The Guts To Say No

If you love me
tell me you love me
don’t stab me man
– 50 Cent (High All The Time)

For some reason, many people seem to have been conditioned over time to choose tact over honesty. In both personal and business life this manifests itself as white lies, dropped e-mail threads, and ultimately, resentment. Why can’t we as a society be upfront with our thoughts and feelings? What is there lose?

Last week, I got an email from a friend talking about another entrepreneur: “[xyz knowledgeable entrepreneur] is totally unresponsive. To a point where I’ve written him off….all his friends believe the drop off is due to ego, he’s too good for people now”. Ugh, can you think of a worse insult for an entrepreneur (or for anyone)?

Like many of you I get a good amount of unsolicited requests, resumes and other small-asks. It’s annoying, sure, but I don’t ignore them, and usually send a polite “Sorry, but I can’t do this” response. No need to go through the rig-a-ma-roll of explaining the reasoning for your decision, just be direct and up-front. As adults, we should be accustomed to rejection (hell, entrepreneurs even more so) but I know for myself, and nearly everyone I know, hearing directly “no” is 100X better than being ignored, or worse, being lied to.

There are a million and one reasons why you may not want, or be able, to help someone. Have the decency and guts to close the loop and say what you think. We’ll be more productive, happy and successful for it.

Have The Guts To Say No

Moving To NYC

Case I wake up in the morning and it’s all gone
Best believe I’ma get it right back
Thats the hustler in me I know you like that

– Young Jeezy (Leave You Alone)

With 4th of July upon us, I felt it was time to be a little more public about my next moves. As many of you know, I’m in the process of moving to NYC to launch a new company. There is a deep love in my heart for Colorado, and Boulder in particular. In many ways, my closest friends and family have found it hard to believe that I’d leave a place that I love so dearly. At the end of the day there are 3 reasons that I’m going: 3D printing, a new startup opportunity, and family/friends.

For many years, I’ve had a fascination with the intersection of the physical and digital worlds. How do things we create digitally get manifested in the real world. Card Gnome was my first experiment. Over the last couple years, and more intensely over the last few months, 3D printing has become an obsession. NYC is the epicenter of this new technology. Not just for the US, but for the world. Makerbot, Shapeways and 3D Systems are 3 of the largest players in the space and all have headquarters in the NYC metro area. Stratasys, the other behemoth from Israel, recently acquired Makerbot to be it’s consumer brand and they aren’t moving from NYC. Makerbot and Shapeways even have their manufacturing facilities within the city limits. 3D printing changes the manufacturing cost calculus, allowing producers to optimize for geography rather than labor costs. What better location than metro NYC to show the world that labor cost optimization is dead.

About 1 month ago I was doing due diligence on a company that I was interested in and met Kegan Schouwenberg. She is an amazing entrepreneur and the former head of US operations for Shapeways, a true thought leader in 3D printing. She had this crazy idea that she could use 3D scanning and printing to create custom orthotics that aren’t just functionally better, but are better looking and easier to buy. She’s an industrial designer by trade and was looking for a business partner to handle distribution and business operations. I was really intrigued and after about a month of thought have decided to join full time as a founder and COO for the new business we’re calling Sols.

Lastly, my family and many of my friends still live in the tri-state area (Philly, NJ, NYC) and I’ve been neglecting those relationships for many years. I can’t remember a time when I was close enough to home for casual visits since I left for college and I’m looking forward to being closer. My heart is stil in the outdoors and NYC and its environs just cannot fulfill that need (although I’m still going to try). My hope is that in the future I’ll be able to move back to Colorado (or California) where I’ll have easier access to the backcountry adventures that I love.

At the end of the day, I’m not “leaving Colorado”, I’m just living in New York for a little bit. If you are around Boulder next week on the 11th I’ll be doing happy hour drinks at the West End Tavern starting at 4pm. Come say hi.

Moving To NYC

I’m an Entrepreneur (just don’t call me a startup)

This is a guest post by Patrick Stinus, a co-founder of Seventh Element , a management consulting firm that provides “Fortune 100 tools to small businesses” to help them grow and increase profitability.

I was recently on the phone catching up with Joel and it dawned on me that while we’re both entrepreneurs, we operate in completely different worlds. If you were to ask, 99.9% of people they would see very little differences in our stories. We both worked in the GE “fast track” program which promised us lives of success and the “the American Dream”. We both left it behind to start our own businesses, take a shot at changing the world and do work that makes us truly happy. The difference is that I’m not trying to launch a startup, I’m starting an agency.

Start”ups”, especially ones that focus on technology, are what most people envision when they think about when you quit your job to “follow your dreams.” They’re typified by years of living on Ramen noodles, working 70 hour weeks, bootstrapping and sometimes pimping yourself to private money. They are designed to cheaply and quickly create a completely new (or incredibly better) product or service. It takes time without revenue to develop new products.

Agencies are businesses whose core value proposition is the skill set of its employees. I co-founded Seventh Element to bring the business management tools we perfected at GE to small businesses. We skipped the long, costly, and iterative product development phase and went straight to clocking billable hours to our clients. We can leverage our corporate pedigree to potential clients and make money within the first month of existence.

If you graph the profits of successful startups, they follow an exponential curve, where they bumble along for a long time making very little money and then get traction and “pop.” Since these businesses have such high-profit margins, which aren’t tied to hours available to bill, they have the potential to create hugely scaleable businesses which can be sold for hundreds of millions of dollars. The agency model theoretically starts with respectable profits on day one and grows in a modest, linear, path as it bill more hours and hires more talent that can be billed. An agency is far less risky, but is much less scaleable.

I am not trying to oversimplify the challenges our agency has faced, or imply that leaving a steady job for an agency is more (or less) respectable than a startup. The fact is that agencies have a good chance of making reasonable money, and startups have a low chance of making stupid money. If you do the rough math, the upside is similar. Owning a business is a personal decision, and the money is just one piece of the puzzle. Their isn’t a right or wrong way to do things, but keep this comparison in mind if you are deciding on starting your own business.

I’m an Entrepreneur (just don’t call me a startup)

5 lessons before launching your startup

“Nine to five is how to survive – I ain’t trying to survive… I’m trying to live it to the limit and love it a lot”

-Jay-Z

Last week I had a discussion with someone considering leaving their job to launch a startup.  They wanted some honest feedback on their business model. It occurred to me that objectively evaluating a startup idea is a skill that can only be learned through experience and that I finally felt marginally comfortable giving advice on the topic. After 8 months of making mistakes, listening to great mentors and thinking through many ideas it felt great to give back. For those of you I haven’t spoken with, I wanted to jot down some of the key lessons I’ve picked up along the way.

1 – Understand your goals – You need to be honest with yourself about whether you want a massive business or a lifestyle supporting income source.  All your thoughts about the startup must flow through the answer to this question.

2 – Passion – If you are creating the next big thing, realize you’ll need to have the passion to devote 70+ hours a week for 3-5 years to make it a success. Is this an industry and product you will stay excited about? Note that I’m not saying the product has to be sexy, plenty of people make huge profits on products others didn’t even consider working on.

3 – Test instead of talk – Try to test your idea without spending money and time on development. If your core-product is a consumer website, there are ways to test your prototype extremely cheaply. Once its built, give it to customers and ask them if they are willing to pay for it. Try to avoid the echo chamber of your friends and family. Their support will carry you through the tough times, but they are terrible judges of what constitutes a great business idea.

4 – Financial resources – You need to eat, you need a roof and you need to provide for your family. If you can’t do this while devoting the time and effort for a startup, then its not for you. Getting funding is a long and arduous process and will likely require that you’ve already gotten traction with your product.

5 –  Product-Resource Fit (Viability) – What resources do you need to make your company successful? Do you have, or can you acquire, the skills, money and other resources needed to implement your idea? Be optimistic but honest. In order to make your dream a reality you will need to fully believe you can do it.

A lot of you are founders of companies, use that comment box to talk about your own lessons or expand on mine.

5 lessons before launching your startup

What kind of company culture are we building?

Over the past few weeks Chad and I have been recruiting engineers to join our Card Gnome team. It has forced us to be introspective and verbalize our company culture to prospects. It has been illuminating to look at how our personal belief systems have manifested themselves into an operating entity. It comes down to 4 core tenants:

Passion/Motivation: Life is short so we believe it should be spent doing things we are passionate about. We truly believe that intrinsic motivation produces the best long term value and we foster that in ourselves and others. Money by itself is not a motivator, only an indicator that your business has added value. We are trying to build an amazing organization of passionate individuals, therefore acceptance of mediocrity is unacceptable.

Independent Debate: Chad and I are both fiercely independent thinkers with nearly opposite personalities and core skillsets. Our debates are epic but always respectful. We put all the details on the table and force each other to justify our thinking. It has given us a deep appreciation for how the other person thinks, which only serves to make the debates more honest. At the end of each debate though we come to a conclusion and agree on a path forward. I cannot, at this moment, think of a situation in which we were not in complete agreement on the correct decision. There is very little grey area, we both agree that a decision is the correct course or we keep talking. Compromise has its place, but it generally doesn’t build a compelling product.

Experimentation: We  are wiling to implement our ideas purely to learn what will happen. In fact, adding printed cards was originally one of these ideas. A few people had asked whether we could print our eCards for them and so we decided to give it a try. A week later, after receiving amazing feedback from consumers and artists, we decided to change our core business. Other trials have been failures, but the freedom to try something new is what makes us entrepreneurs, and heck its fun.

Respect for others: Our company is not just about profits, its also about meaningfully improving the lives of our customers, employees, partners and ourselves. When we make decisions we think deeply about how the decision will effect our stakeholders.  Making them happy and treating them fairly is the only way to build a great company.

We haven’t written a formal values statement yet, and there are certainly things I’ve left out, but this post is a good start. Use the comments below to let us know what you think about it.

What kind of company culture are we building?