Getting Back on the Field

6One thing that people don’t know about me is that I played lacrosse for 18 years, and coached for 15 of them. Coached all kinds of players from 3rd grade to college; even spent a year coaching women (which is an unsurprisingly unique experience).

As I started companies, it was easy to believe that as CEO, I would be something of a “player-coach.” I would get my hands dirty when needed, but mostly would run the team and be a leader for the players.

Turns out, being CEO is none of that.

Over the past three years or so, I have been CEO of Graphicly. Until a few months ago when I walked into our Board meeting and informed the board that it was time for me to step down.

It was time for me to remove the “CEO” part of “player-CEO.”

Why? The simple, truthful answer is that it was the right thing for the company and, frankly, the right thing for me.

Your startup is all about the right people

We all know that some startups fail over time. While there are myriad reasons for this, including the inability to articulate market differentiation, not really knowing your customers, or simply not being prepared for the gritty reality of life as an entrepreneur, I have seen how a powerful team can make all the difference. Of course, having the right people for your business starts with you. But the people you choose to surround yourself with after that can play a huge role in setting your business up for success.

Founders are constantly told to network, to form a board of advisors, to find the right people. Some of the brightest founders I’ve ever met are the ones who have the ability to recognize they don’t (and can’t) play every role in their business.

One of the best examples of this epiphany having impact came with one of the startups I’ve worked with at UpTech. One of our founders recently discovered that after he spent time building a support team around his business, to share feedback and to make vital connections, his monthly sales revenues increased by 68 percent. The right people—with expertise in his industry and some with general business experience with whom he clicked—transformed his bottom line.

Bang Your Gong

Anyone who works at a startup company quickly learns that culture is everything. Culture is the unspoken sync that keeps people rowing in the same direction. It is the glue that keeps people operating when it is way too early for job descriptions. Culture becomes the “smell of the place” when clients, partners and job prospects walk through the door. But you cannot have a real culture until you pick your way of celebrating the wins.

When you are working at an entrepreneurial company sometimes things move so fast that you forget to celebrate. That business prospect that says “yes” triggers a wave of new work assignments. The reporter who wants to cover your company forces you to nail down your talking points.

A Philosophical Foundation

“One’s philosophy is not best expressed in words; it is expressed in the choices one makes… and the choices we make are ultimately our responsibility.” – Eleanor Roosevelt

One the great joys of being in an academic or teaching profession is seeing one’s former students succeed in life.  Such was the case this past December when a former student of mine from the 1990’s, Andy Kaiser, called and stopped by to see me.  Catching up is always exciting as he told me about the birth of his start-up idea in 2004, the subsequent birth of his now five children, starting with twins born 2005, and the re-birth of his business idea in 2011.  As he related his 10-year start-up run, I was struck by the underlying philosophy that drives and sustains him.  This past week, I invited him to speak to my class and there it was again, the unmistakable core philosophy.  In fact, on his company’s web site, he outlines not only his entrepreneurial journey and business, but his core philosophical foundation.

Please – Just Inspire Me!

These are the words uttered by many employees these days as they trudge (slow, weary depressing walk) into work believing something – somehow, someway – will be different today.  But, their hopes quickly end up being futile thoughts.  “Just another day at the office” is the common, six word theme heard around the dinner table.  So, the conversation moves to other topics more meaningful than work.

Is this prevalent in business today?  The book – The Cynical Americans by Kanter and Mirvis – chronicles the highly cynical environment found in companies today.  In the latest edition, the author’s research finds that almost fifty percent of employees working in corporate America (including start-ups and small businesses) are cynical.  Your issue – how can any company win in the marketplace with half of their workers sensing that their company will not win?

The DNA of a Successful Entrepreneur

An entrepreneur is an individual who attempts to make a profit by executing an innovative idea using initiative and taking calculated risks with limited resources. Entrepreneurship is more an attitudinal issue than a learned process. The attitudinal characteristics that will inhibit entrepreneurship are:

*            Living in the past

*            Risk aversion

*            Fear of failure

*            Valuing linear thinking over non-linear thinking

*            Constant search for a designated scapegoat

*            Hatred of other people’s success

To Work for an Entrepreneur, Apply Like One

Many people advise aspiring entrepreneurs to go work with a startup company before venturing out on their own. This offers a chance to live and breathe this high-paced world and learn from founder mentors while still pulling in a steady paycheck. But to work for an entrepreneur, you must job seek like an entrepreneur.

Over the past six months I have personally been involved in hiring over a dozen people for our startup, and I am surprised how little work most people put into applying. It might be that the shift to digital applications through sites like LinkedIn make it too easy for people to apply by clicking a button. But they forget that it’s just as easy for the hiring manager to hit “delete.” Winning a great job takes hard work and determination, and that’s doubly true when it comes to an entrepreneurial business or startup.

The first step is to put yourself in the shoes of the startup’s leaders. They put in many hours, make decisions at light speed, need people who can contribute immediately, and are passionate about their companies. A single bad hire can kill a promising company, yet the right hire can double or triple sales overnight. Any spare hour that the entrepreneur spends is precious, and she must be extremely choosey on where her time is spent.

Startup 101: Build an Advisory Board

A strong advisory board, which shouldn’t be confused with a board of directors, is the single most valuable asset that a start-up can have.  An advisory board is generally a group of three to five individuals that advise the company, often for free, in a capacity that is less formal than that of a board of directors.  The value can be limitless, but some of the more significant benefits include the following:

1. Your team is more important than your idea
   An A team with a B idea is more investable than a B team with an A idea.  Sophisticated investors bet on people, not ideas. This approach has become even more commonplace considering most start-ups pivot three or four times before settling on a business model. The original idea often evaporates and only a strong team can carry the company forward.  An advisory board gives you an instant team, often without giving up any equity, that can build credibility. Smart entrepreneurs will beef up an otherwise thin “management” slide on their deck with an impressive advisory board.
2. It wont cost you anything
   Most advisory board members are not compensated and entrepreneurs should avoid, if possible, any payment other than picking up the occasional lunch tab. Entrepreneurs are the new rockstars and most founders don’t realize that being affiliated with a start-up is attractive; don’t be afraid to ask.  Prospective board members are likely to be flattered by your offer and will welcome the opportunity to lend a hand.
3. The perfect advisory board member
   An advisory board member should be selected because they have (a) access to capital, (b) credibility, or (c) can provide a skill set that the current team lacks.  Every advisory board member should have at least one of these characteristics, but the perfect board member has all three.  Make a list of the skill sets that your business needs and draw up a “wish list” advisory board.  Leverage your network and start making “asks” of people that match your needs.
4. Minimal time commitment
   An advisory board should not require much time from the founders or from the board members. Because advisory boards are generally not compensated, the time commitment should be less than a few hours a month. Many advisory boards never meet formally; entrepreneurs can reach out to specific board members when the need arises. The minimal time commitment can help entrepreneurs attract prestigious, but busy, prospective board members.
5. Maximum flexibility
   Most advisory board members are not bound by contract or formal agreement. As a company grows, its needs may change and more prestigious individuals may be asked to serve.  The informality of an advisory board allows new members to be added and less relevant members need not be formally removed. There is no cap on the number of members allowed, which can help start-ups build a robust team.

7 Ways to Find Success While Still Feeding Yourself

I was 23 when I determined to live the life of an entrepreneur. Like many, I was seduced by the idea of independent wealth, “owning my time”, and changing the world (all in the same breath, of course). These goals alone were not my vice. How I pursued them and the beliefs I acted out while driving toward success have often led me off course. I always believed that if I just worked harder and longer hours that it would equal a greater chance of success. While a diligent work ethic is important for our character and provision, I realized that too much of a good thing can also be destructive.

Have you heard that story of the woman who died from drinking too much water?

In essence, water intoxication occurs when a person drinks so much water that the other nutrients in the body become diluted to the point that they can no longer do their jobs. I believe this is a lot like the American work culture. We strive so hard for success, wealth, and sometimes fame, that we lose sight of the other necessary nutrients that give us life.

Rest, Reflect, Act

“And now we welcome the New Year, full of things that have never been.”

          – Rainer Maria Rilke

With the 2013 rapidly fading into 2014, it is fitting that we take time at the end of the year to pause and reflect on where we have been and where we are going.  There is something exciting about looking back on successes, failures, good times, and not so good times and realizing that the future beckons us to look forward to new vistas, hopes, fears, and dreams.  The writer Carl Bard captured this excitement very succinctly when he said, “Although no one can go back and make a brand new start, anyone can start from now and make a brand new ending.”

This is especially true for entrepreneurs, who constantly seek to solve problems, introduce new methods of production, innovate new products and services, and generally seek to meet and exceed customer expectations at every turn. 

A very successful entrepreneur once told my class that entrepreneurs are doers not dreamers.  They take action – not tomorrow, but today.  They get off their butts and make something happen.  In essence, entrepreneurs marry thought (ideas) and action to generate goods and/or services that address a “pain point” in an unserved and/or underserved market.  They execute ten simple steps (six strategic and four tactical) that propel them forward.