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NotesonTheIntelligentEntrepreneurbyBillMurphy,Jr.Chapter1:

BillMurphyisajournalistandanentrepreneur,wrotethebookcasestudiesofthreeentrepreneurs.

(1) MarcCenedella http://www.marccenedella.com/

Hemadegooddealsbydevelopinggoodrelationships.He’dkepthiseyesopenandusedhisbrain.

(2) MarlaMalcolm http://www4.gsb.columbia.edu/null/download?&exclusive=filemgr.download&file_id=7214739andhttp://www.bluemercury.com/

Shedevelopedareputationforbeingconfident,smart,andambitious.Oneofherfirstteamleaderswasimpressedwithherwithherresilience(reboundsreadily,lively)

(3) LieutenantChrisMichelhttp://workinprogress.blogs.time.com/2007/05/16/veterans_discover_online_jobhu/andwww.military.com

Chriswonthepeoplearoundhimoverwithhisdeterminationandcharm.Hisattitudeis“Iamcommittedtodoeverythinginmypowertosucceed.”

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Chapter2:Entrepreneurshipcanbelearned

ProfessorHowardStevenson,HBS

“Thereareskills,attitudes,andafundamentalbaseofknowledgethateducationandexperiencecanprovide.Youwon’tturnmeintoaworld­classathletebysendingmeouttopracticewithacoach,butIwillcertainlyplayabettergame.Entrepreneurshipisnodifferent.”(discuss)

WhattheyteachinHarvardBusinessSchool?Thecorebeliefaboutentrepreneurship:itcanbetaught,anditcanbelearned.

HarvardBusinessSchool:Entrepreneurshipis“thepursuitofopportunitywithoutregardtoresourcescurrentlycontrolled.”Itisnotsomuchasetofskillsasitisaprocess,abelief,andacommitment.Itisamodeofthinkingandacting–awayofobservingtheworld,offiguringouthowtochangeit(hopefullyforthebetter),and,perhapsmostimportant,ofbecomingthepersonwhoiscapableofimplementingthatchange.Skillsareimportantbutskillsarecommodities.Besides,thenon‐MBAamonguscanhireMBAstoperformbusinessfunctionssuchasfinance,marketing,andhumanresources.

Becomingasuccessfulentrepreneurrequirescourage,characterandfaith.

Entrepreneurs,theschoollearned,tendedtobehappier,healthier,andlesslikelytobedivorcedthantheirclassmateswhoworkedforlargefirms.Forthemostpart,theylovedwhattheydid.HBSprofessorHowardStevensonputsit,“theyneverwanttoretire.”

Processofentrepreneurship:

1. Evaluatetheopportunity.2. Assessrequiredresources.3. Acquiretheresource.4. Managetheventure.5. Harvestthevalue.

Needtoteachbythecasemethod,groundedingoodexamples,andforcestudentsinclasstointeractthewaythattheywillintherealworld.

Whydoessocietyneedentrepreneurs?Weneedthinkers,risktakers,creators,andbuilders.Weneedambitiouspeoplewhowillputthemselvesonthelinetobuildrealfirmsthataddvalueandcreatejobs.Theysolvedifficultproblemsandinvententirelynewindustries.

TheTENKEYRULES

1. Makethecommitment2. Findaproblem,thensolveit.3. Thinkbig,thinknew,thinkagain.4. Youcan’tdoitalone.5. Youmustdoitalone.6. Managerisk.7. Learntolead.8. Learntosell.9. Persist,persevere,prevail.10. Playthegameforlife.

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Successfulentrepreneursmadeanunequivocal,pedal‐to‐the‐metalchoicetothroweverythingtheyhadintorealizingtheirdreamsofbuildingsuccessfulcompanies.Firststepthatanyintelligententrepreneurmusttake:you’vegottomakeacommitment.Withaclearheadandawholeheart,you’vegottodecidethatyouabsolutely,positivelywillbecomeasuccessfulentrepreneur.

MAKETHECOMMITMENT

Chapter3:

Chancefavorsthepreparedmind.–LouisPasteur

Bygroup:sharepersonalitytest.Whatmakesanentrepreneur?

Forteacher:HBStaughtitsstudentshowtoapproachandbreakdownproblems.Thecasestudiesinvariablyincludedtoomuchinformation,andfewstudentsretrainedmuchofacase’sdetailsaftertheywerefinishedwithit.Instead,studentsdevelopedtheabilitytoanalyzecomplexbusinessproblemsandjudgewhichinformationwasimportantandwhichwasnot.

OptionistoteachthemMBAapproachtocasestudysuchas:

o StatementoftheProblemo Objectives(SMART)o AreasofConsiderationo AlternativeCoursesofActiono AnalysisofAlternativeCoursesofAction(Financeissues,Whowillimplement,Pros

andCons)o Recommendation

HBSprofessorsconsistentlytoldtheirstudentsthatcomingupwithgoodideaswastheeasiestpart.ProfessorBillSahlmanwarnedthemthatstartingasuccessfulnewcompanywouldbeverydifficult.Itwilltakealotofresearch,hesaid.You’llhavetowantit.You’llhavetofollowthrough,evenwhileyourfriendsandclassmatesareenjoyingthemselves.

“Ideasaredimeadozen,”Sahlmansaid.“Executioniswhatisimportant.”

EdZschau(professorinHBS):“Ifyou’replanningtobeanentrepreneur,youshouldbeplanningtobeasalesman.You’reconstantlyselling.You’resellingyourselfwhenyourcompanydoesn’tevenexistyet;you’resellingtheconcepttopotentialemployees;you’resellingtocustomers.Andyou’retryingtoconvincesuppliersthatthisteenycompanyofyours,thatisn’twellfinanced–you’resellingthemthebeliefthatyou’regoingtosucceed.”

Chapter4:MaketheCommitment

Youcan’twaitforinspiration.Youhavetogoafteritwithaclub.–JackLondon

Question:howbadlydoyouwantthis?What’reallymotivatingyoutolaunchacompanycanmakeallthedifferencedowntheroad.

Beforetheydevelopedbusinessplans,recruitedteams,raisedmoney,learnedtodeal,andbuilttheirventures,Marla,ChrisandMarceachmadeaconsciousandverypersonalcommitmenttobecomesuccessfulentrepreneurs.

TheirsocialenvironmentsencouragedChrisandMarlatobelievethatbecominganentrepreneurwasnotonlypossiblebutsomethingtheyferventlywantedtodo.

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Surprisingfact:Manycompaniesarefoundedbypeoplewhonevertrulysetouttobecomeentrepreneurs.Instead,newventuresareoftenlaunchedbecausetheirfoundershavelostjobs–theunemployedaretwiceaslikelytolaunchcompanies–orbecausetheydon’twanttoworkforothers.

Butstill,thedepthofyourcommitmentmattersgreatly.Makingaconsciouschoicetobecomearealentrepreneur–ratherthansimplyfindingawaytomakealivingorstartingabusiness–isessential.

InHBS,theprofessorsseetheentiredisciplineofentrepreneurshipasnecessary,lifefulfilling,andattimesalmostspiritual.They’renotjustteachingbusinessstrategiesandprocesses;they’reinspiringstudentstoembraceawayoflife.

ProfessorJosephLassiter:Myhopeisthatwehelpourstudentsfindthecouragetoactuallytaketheleap.It’sextremelyeasytofollowanestablished,well‐traveledpath,andtheirlivescanmatterandtheycanfindfulfillmentandallofthoseotherthings.Butsomepeoplewanttotakeadifferentpath,andyettheyhesitatebecausethey’refearfulabouttheconsequences–becausetheycan’texplainittotheirmomanddad,becauseit’sriskierthananotherpath,becauseit’slonelierthananotherpath.ButIwouldmuchratherthattheydieregrettingwhattheyhavedonethanwhattheyhavenotdone.(p.70)

Importantquestionsforaspiringentrepreneurs:

Whatotherobligationswillcompetefortimeandresources?Launchingabusinessentailsrisk.Butifyouhavealotofobligations,itmaynotbewisetogiveupasteadypaychecktostartyourowncompany.Askyourself:ifImakethecommitmenttobecomeanentrepreneur,whoelsewillbecomingalongfortheride(family)?Whowillitaffect?Iftheanswerleadsyoutoconcludethattheriskistoobig,figureouthowtoreducethatriskbeforeproceeding.

Whatkindofsupportsystemsdoyouhave?Whoarewillingtoprovideemotionalsupport,encouragement,andgoodadviceasyouembarkonyourentrepreneurialcareers?MarlaspentmanyhourstalkingwithestablishedentrepreneurswhorancompaniesthatLedeckywantedtobuy.Peopledon’tfeelliketheycan’tstartcompaniesbecausetheydon’tknoworworkwithotherpeoplewhohavestartedcompanies.Entrepreneurshipcanbeahardandlonelylife.Withoutthesupportandencouragementofothers,successwillbemoreelusive.Havingmentorsandrolemodelsmatters.So,who’sreallygotyourback?

Whatistheopportunitycost?Considertheopportunitycosts(i.e.salary,position)ofmakingacommitmenttobecomeahigh‐percentageentrepreneur.Sometimes,namingyourfearscanmakethemmuchlessscary.

Whatisyourtoleranceforrisk?StigLeschly,HBSalumnus,whostartedacompanycalledexchange.comsoldittoAmazonformanymillionsofdollarsandcamebacktoHBStoteach:‘it(workingonexchange.com)wasnotrisky–Ihateitwhenpeoplesayitwasrisky.Idon’tthinkthat’strue.Ifyoufactorineveryaspectofadecision,wearealloptimizinguncertainty’.ForLeschly,thebiggestriskwasthedangerofbecomingmediocrehewasmorescaredofgoingbacktoMcKinsey,orSkaddenArps,orP&G.

(p.75)Wherewillyoufindyourbestidea?

Willitsurpriseyoutolearnthatmakingafirmcommitmenttoentrepreneurshipasyourfirststepwillalmostcertainlyhelpyoucomeupwithyourbestideas?

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Theysaythatcomediansliveinthesameworldastherestofus;theyjustseeeverythingdifferently.It’sthesamewithentrepreneurs.Onceyou’vetrulymadethatcommitment,you’llbeamazedathowquicklyyoubegintoseetheworldinadifferentlight.

Problemsgivewaytoopportunities.

“Why?”becomes“Whynot?”

“It’salwaysbeendonethisway”turnsinto“Whatifwetriedsomethingdifferent?”

Opportunityispersonal,notuniversal.Itgrowsoutofyourtalents,experiences,interests–andtheproblemsthatyou’reuniquelypositionedtoperceiveintheworld.

ForMarla,ChrisandMarc:oncetheyhadmadethecommitmenttostarttheirowncompanies,theythoughtconstantlyhowtheworldaroundthemcouldbeimproved.Theybeganfocusingonaproblemtheywantedtosolve.Andonlythendidtheystartlookingforthesolution.

FINDAPROBLEM,THENSOLVEIT.

Chapter5:

Everyproblemhasinittheseedsofitsownsolution.Ifyoudon’thaveanyproblems,youdon’tgetanyseeds.–NormanVincentPeale

Marla:ifyoucouldjustgoonlineandpurchasethesebeautyproducts,wouldn’titbeeasier?In1999,noonehadlaunchedaWebsitededicatedforthem.

Theconceptofbluemercurywasnotsimplyacosmeticsite,butahigh‐end,luxurydestinationforwomen.“bluemercury”isbuildinganew‘NiemanMarcusoftheInternet’,”shewroteinthebusinessplan–‘theInternet’sforemost,upscalespecialtyretailerfocusedonbusy,professional,andaffluentwomen.”

MarlahadlistenedasLedeckyconcludedthatthemostinterestinge‐commerceproposalswerethosethatproposedtobuildtheirbusinessesonlineandthenlinkupwithtraditionalretailers.HercompanywasmuchbiggerthananideatosellcosmeticsovertheInternet.Sheemphasizedthat‘wearefocusedonademographics,notaproductcategory.’

HerrecentresearchhadrevealedthatthereweretwentyonemillionaffluentwomeninAmerica,“65%ofwhomareintheworkforce,whocravetime,andwhoseneedsareunderserved.”Thiswasn’tjustamakeupandcosmeticsWebsiteshewaspitching;itwasa‘foundationforamultiplecategoryupscaleretailer.’

ForChris:theBigIdeahadbeenhidingrightinfrontofhimallthetime:theUnitedStatesarmedforces.Hecouldbetheonetoconnectandempowerallthosewhoserved,andtheInternetofferedtheperfectwaytodoit.Addupeveryoneservinginthemilitary,thosewhohadserved,thosewhoaspiredtoserve,theirlovedones–thetotalwasinthetensofmillionsatleast,withtrillionsofdollarsinbuyingpower.

WastherealreadyanInternetsitetargetingmilitarymembersandveterans?–offerpracticalinformation,avirtualplacetoreconnectwitholdshipmatesandarmybuddies,youngpeoplewhoarethinkingtojoincanbetargeted.

IDEAScomefromdeterminingthatSEGMENTthatyouwanttoSERVE.It’susuallywhoyouare.YouservebestthesegmentthatislikeYOU!

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Chapter6:Findaproblem,thensolveit.

StigLeschly,founderofexchange.comandformerlectureratHBS

“I’llbetthemilitary.comguywasinthemilitary.I’llbetthewomanwhostartedthemakeupcompanyreallylikeslipstick.”

Startwithaproblemyoureallywanttosolve.DoNOTstartwithasolutionandthengolookingforaproblem.Identifyproblemsyouknowsomethingabout.Chooseproblemsthatyoupersonallywanttosolve.

Here’saquestionyouwanttoaskyourself:whocares?

It’simportanttounderstandthateverygoodentrepreneurialopportunityispersonal,andthesetwoideassimplyweren’ttherightopportunitiesforChrisandMarla,giventheirexperience,strengths,andpersonalities.

ItmakesperfectsensethatChriswouldincorporatehisloveforthearmedforcesintheconceptofthiscompany.OrthatMarlawouldbuildherventurearoundnotonlyherinterestinbeautyproducts,butalsoherunderstandingofwhatanambitious,intelligent,professionalwomanwouldwantoutoflife.

Theygottheirideas–ideasthatworked–becausetheybeganbyidentifyingproblemsandthenfocusedintenselyonproblemstheywerepersonallyeagertosolve.

Marla:it’seasierwhenyoureallycareaboutsolvingaproblem.It’sdefinitelyeasiertostickwithitifyoulikethebusiness.

Focusingfirstonthesolutionratherthantheproblemthatneedstobesolvedcanbearecipeforfailure.

ProfessorHowardStevensonsaysthat‘partofthereasonthatyouhavealotoffailuresintechnologystart‐upsisthatthefoundersdon’tknowthemarketplace.Theymayknowthetechnology,butoftenthereisnocompellingneedforthecustomertobuy.’

AtHBS,studentsareoftenadvisedtoworkintwoorthreedifferentfieldsaftergraduation.Thehopeisthataftersomeexperimentationthey’llfindanindustrythatreallyintereststhemandthengetajobthatallowsthemtolearnalotaboutit.

Dataonentrepreneurshipshowsthattheoddsofbeingasuccessfulentrepreneurincreasewhenonegraduatefromcollegethenworkforsomeoneelsefirst.Learnasmuchasyoucanaboutanindustrythatinterestsyou.Andifyou’reseriousaboutstartingyourowncompany,you’dbewisetolearntosupervise,manage,andleadonsomeoneelse’sdime.Inshort,experiencematters.

ProfessorBillSahlman–Decidewhereyouwanttolive,pickanindustrywithgoodprospectsandampleopportunity,findthebestjobyoucan,andthenlookforgoodmentors.Ifthingsgowell,youwillsoonhavefirsthandknowledgeoftheindustry–andastimegoesonthere’sagoodchanceyou’llbeabletoidentifytheproblemsthatpeopletrulywantsomeonetosolve.

NoamWasserman:‘makingsureyouaresolvingarealcustomerproblemissomethingthatdifferentiatesentrepreneurs.’Therearedifferentkindsofproblems.Therealdividinglineissimple:doestheproblemyou’veidentifiedrelatetothepromotionofpleasure,ortothepreventionorterminationofpain?Andintensitymatters,too.You’vegottodistinguish

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betweenthe“ideasthatonlyrisetothelevelof‘nicetohave,’versusthingsthatpeoplereallyneedorgreatlywant.”

Painbusinessesarethosethatsolveasignificantproblem,andpeoplewillrarelyhesitatetopaymoneytosolvethatproblem(considerMaslow’shierarchyofneeds).Pleasurebusinessessolvelessurgentproblems.Theycansometimesbegreat,butthesuccessrateismuchlower.

Entrepreneurialideas–askyourself–whatamIinterestedin?WhatdoIdowithmytime?Thenthinkabouttheproblemsyouencounterinyoureverydaylife.You’remuchmorelikelytofindaproblemyoucareabout–andonethatotherpeoplewillcareaboutaswell–ifyoufocusonsomethingthat’spersonallyinteresting.

Haveagenuinepassionforthatindustry.

Thebottomlineis:WHOCARES?Considerthepeople,theopportunity,thecontext,andthedeal.Willcustomerscare?Willinvestorscare?Willthemarketcare?Isthereareadymarketfortheproductorthesolutiontotheproblemyou’vechosen?

THINKBIG,THINKNEW,THINKAGAIN

Chapter7

Inevitably,launchingacompanymeantuncertainty,pressure,andwildswingsofemotion.

AtHotJobs,thebusinesswasallaboutcollectingandtradinginformationratherthanphysicalproducts.

Marlahadtwoimmediatepriorities.First,theyhadtoreachouttothepremiumcosmeticscompanieswhoseproductsshehopedtosellonherWebsite.Second,theyhadtohireaWeddevelopmentfirmtodesignandbuildthesitesinfrastructure.Oncetheyhadaprototypeinplacetheycouldapproachahandfulofventurecapitalfirmsandquicklyraisethekindofmoneytheywouldneedtogrowverybigveryfast,beforeanyoneelsegotthesameidea.

BecausesheandBarryhadnevermadetheroundsofventurecapitalfirms,they’dneverlearnedaboutthemanyotherfirmsthatweresimultaneouslypitchingsimilarideas.SheandBarry,asaresult,nowbelaunchingindirectcompetitionwithnearlyadozenwell‐fundedInternetbeautysites,noneofwhichshe’devenheardofafewweeksbefore.

Whensheoutlinedthecompetition,thepotentialinvestorsallsawthesamething:bluemercurywasdeadmeat.

Marlarealizedthekeytoherideawasn’ttheWebsite–itwasthecosmetics.Marlarecastthecompanyasabricks‐and‐clicksenterprise–shewouldopenretailstores,andtheWebsitewouldbeacompanionchannel.BluemercuryproposedtobuyEFXoutright,aretailstoreofcosmetics.Herinvestorswerenotonboardwithherdecision.

TofundthepurchaseagreementtobuyEFX,Marlahadtoremortgageherhomeandsignapersonalguaranteetocoverallofthecompany’soutstandingobligations.Bythetimethedealwasdone,Marlaownedtworetailstoresandahalf‐finishedWebsite–andshewasnowcarryinghalfamilliondollarsindebt.Marlanowownsareal,livecompany.

EFXbroughtwithitthepurchaserecordsofitstwentythousandcustomers.Moreimportant,thecompanyhadalonghistoryofdealingwiththemostprestigiousvendorsin

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thecosmeticsindustry,theonesMarlaneededtoensurethatbluemercury–boththeWebsiteandthestores–couldgrowtobecomeahigh‐enddestination.

Hiringtherightpeoplematteredenormously.Thefirstquestionshewouldaskprospectiveemployeeswasusually,“Whatisyourfavoritebrandofbeautyproductandwhy?”Anyapplicantwhocouldn’tanswerthatquestionwithpassionandintelligencecertainlywasn’ta“beautyjunkie”likeMarla–andsosheclearlywouldn’tbewellsuitedtoworkforbluemercury.Marlahiredonlyfull‐timeworkersandpaidthemfull‐timesalarieswithbenefitsratherthancommissions.Equallyimportant,hercustomersshouldknowthatthesalespersondidn’thaveafinancialincentivetosteerthemtowardaparticularlineofbeautyproducts.

Chris:ThinkingBig

Chris’goalwastoorganizeeverybodyinthearmedforces.

DemographicthatChriswastargetingwereasfollow:

o Themilitarymarketislargeandattractiveo 30millioncurrent/formermilitarymemberso Another40millionadultswithclosetiestothemilitary

Toaskforfunding:Inthelate1990s,theconventionalwisdomwasthatanyentrepreneurpitchingtoaventurecapitalfirmneededtopresentacredibleplantoreach$50millioninrevenuebythe5thyearofoperations.ThoughChrisachievedthis,noinvestorswereinteresteduntilMikeLevinthal.

Forhispart,MikeLevinthalhadsatthroughmany,manypresentationsfromwould‐bedot‐commillionaires,yetChris’spassionmadetheideastandout.Herewassomeonewhounderstoodthebusinessside,buthealsoseemedtounderstandthemilitarycommunitybetterthananyoneelseinSiliconValley.ThemarketMilitaryAdvantagehadtargetedwaswideopen,andLevinthalbelievedthatitcoulddominateit.TheMayfieldpartnersinvested$5Minthebusiness.

WiththeMayfieldinvestment,Chris’sgrouplaunchedaWebsitethatwasbeginningtoattractasubstantialnumberofvisitors;thecompanyhadenoughcredibilitytoraisealotmoremoney.Withinmonths,Chrishadraisedanother$20Minventurecapital,butthecompanyspentmoneyalmostasfastasitcamein(i.e.advertisementsandeventstobuildbrand).

Chapter8:THINKBIG,THINKNEW,THINKAGAIN

It’snotwhatyoulookatthatmatters,it’swhatyousee.–HenryDavidThoreau

Arealopportunityconsistsofbothaproblemandaproposedsolution.

Thinkingbigcanmeancomingupwithideasthathavescaleandscope,aswellasaimingforhugefinancialreturns.Attheveryleast,itmeanspursuingideaswithenoughpotentialtomakethemworthyourtime–nottomentionyourinvestors’andcustomers’time.Venturecapitalfirmsarerarelywillingtofundcompaniesthatdonotprojectrevenuesinthetensofmillionsofdollars.Butthinkingbigreferstomorethanjustmoney.Successful

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entrepreneursspendtheirlimitedtimebypursuingplansthatwouldmakeitpossibleforthemtohaveasmuchasimpactaspossible.

Thinkingnew,fundamentally,meansbringingyouroutsider’sperspectivetobearinanindustrywherepeoplehavealwaysdonesomethingacertainway.

Thinkingagainmeansrecognizingthatalmostnoonecomesupwithbothagreatproblemandtheperfectsolutionrightoutofthegate.

THINKBIG

Peoplearen’talwaysnaturallyambitious.InChris’scase,hebecamelegitimatelyambitiouswhenhemovedtoWashington.Everyday,heinteractedwithtopmilitaryandpoliticalleaders–peoplehe’dseenonlyfromafarupuntilthen.Gradually,hecametounderstandthattheywerehumanbeings,too.Andiftheycouldclimbsohighuptheladder,whycouldn’the?

IncaseofMarla,shelearnedtothinkbiggerandbiggerbecauseshesurroundedherselfwithpeoplewhoaimedveryhigh.Theypushedhertotakeongreaterchallenges,andtoenvisioneverbroaderdefinitionsofsuccess.

Learningtothinkbigisaprocessthatneverstops.BarryBeck“Don’tgoaroundthereandlookforexperiences.Experienceiswhatyougetwhenyoudon’tachievewhatyouwant.Gooutthereanddowhatyouwanttodoandsucceedatit.Andbecarefulwhichmountainyouclimb.Godforbidthatyouclimbamountain,plantyourflagatthetop,andthenlookaroundandrealize–WhatwasIthinking?Iclimbedthewrongmountain.”

THINKNEW

Innovationusuallycomesfromeitherbringinganewtechnologytoanindustryorcomingupwithanewbusinessmodel.Forinstance,MarlaidentifiedalotofthingsshedislikedabouthowcosmeticsweresoldinAmericabeforeshelaunchedhercompany.Sheinsistedonhiringfull‐timesalespeople,employeeswhowantedwhatshewantedoutofherwork–notjustanhourlyjob,butarealcareer.Marladidn’tidentifywithretailmanagersorcosmeticvendors,sheidentifiedwiththepeoplewhoshoppedinherstores.Shebuiltthebluemercury’sbusinessmodelaroundprovidingthegreatestpossiblebenefittohercustomers,whichwasbothasimpleandprofoundinnovation.

THINKAGAIN

Successfulentrepreneurslaunchedtheirbusinesseswithentirelythewrongidea–andsucceededlateronlybecausetheyrecognizedtheirmistake,slammedonthebrakes,andtriedsomethingdifferent.

Marlawasabletoraisecapitalforwhatshe’sdoingnowonlybecausethecompanybeganasanInternetplay.Butshehadtoquicklychangetheirstrategy.Shehadabadfirstideabutthenfoundawaytotransformit.

Thinkingbigdoesn’tnecessarilymeanthinkingcomplicated.“Someofthebestideasaresimple,”EdZschausays.Forinstance,Starbuckscoffeebythecup!

ProfessorNoamWasserman:Someofthebestentrepreneursenterintoabrand‐newindustry,andtheyseeabetterwaytodothingsthanthepeoplewhoaresteepedwithinthatindustry.Asoutsiderswithdifferentexperiences,theyhavebroaderthinking,andthey

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oftenseehowtoadaptamodelfromanotherindustrytothisnewindustrywherethingshaven’tchangedinawhile.Theycanseeotherwaystodothingsbecausetheirperspectiveisn’tbasedonthoseunstatedassumptionsabouthowthingshavetobedone.”

Intheend,you’vegottofigureouthowtodeliverproductsandservicestocustomersataprofit.Whatoftenkeepsyougoing?It’syourdream.Sometimestorealizeyourdreamyouneedtoseekthehelpofotherpeople.Yousimplycan’tdoitalone.

YOUCAN’TDOITALONE.

Chapter9:

It’snotwhoyouknow.It’swhoyougettoknow.–ChrisMatthews

Likemanyinvestors,CapitalInvestorsknownas“thedinnerclub”caredasmuchormoreaboutthepeoplebehindaventureastheventureitself,andMarlapresentedacompletepackage.Shewastheright‐brainedidealistwhoknewwhatherclientelewantedbecauseshewasherownidealcustomer.Butshealsohadadriven,analyticalmind‐set.EvenassheandBarrywereaskingformoneytopentierfourthstore,theinvestorscouldseethatMarlahadacarefullyconsideredplantoopenthefifth,sixth,andseventhstores,allthewayuptoadozenormore.

Chapter10:Youcan’tdoitalone

Changecreatesunprecedentedopportunity.Buttotakefulladvantageofthoseopportunities,focusontheteam.Teamswin.–JohnDoerr

TheKeytoFindingKeyPeople

Highlysuccessfulentrepreneursleanheavilyon“socialcapital”tobuildtheirbusinesses.Firsttheydevelopednetworksthatwouldhelpthemtoidentifyandpursueopportunity.Second,theydidaremarkablygoodjobofrecognizingtheirownpersonalstrengthsandweaknesses,whichledthemtoputtogetherstartupteamsthatcomplementedtheirtalentsandexperience.

Marladoesn’tcomeacrossasasuperficialorobviouslyambitiouspersonwhoisinterestedinothersonlyforwhattheycandoforher.Butstill,withforesightandconcertedeffort,shehadaknackforputtingherselfintherightplacesanddevelopingrelationshipswiththepeoplesefoundinteresting.

Chrisgoesoutofhiswaytointroducehimselftounusuallyinterestingpeople.

Highlysuccessfulentrepreneursneverhesitatedtointroducethemselvestopeoplewhomightproveusefulortoleveragewell‐developedcontactswhentheyhadaspecificendinmind.

RecruitingtheRightTeam

Successrequiresateam.Atthefoundingstage,itusuallyconsistsoftwoorthreepeople.

BillSahlmaninaHarvardBusinessReviewauthorof“HowtoWriteaGreatBusinessPlan”minimizestheimportanceofbusinessplans;theireffectontheprospectsofanynewventure’slikelihoodofsuccess,hewrote,ratedabouta2onascaleof1to10.Instead,herecommendedfocusingonthe“interdependentfactorscriticaltoeverynewventure”.Firstamongthesefactors,hesaid,were“themenandwomenstartingtheventure,aswellasthe

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outsidepartiesprovidingkeyservicesorimportantresourcesforit,suchasitslawyers,accountants,andsuppliers.”

HBSalumniArthurRocksays,“Iinvestinpeople,notideas.Goodpeople,ifthey’rewrongabouttheproduct,they’llmakeaswitch.”

Anotherventurecapitalistpartnersays,“Whatmakesasuccessfulcompany?Thestrengthofthemanagementteam.It’sveryimportant.Weseekoutentrepreneurswhoareabletohireotheroutstandingpeople.Welookforafounder/CEOwhohasexceptionallyhighintellectualhorsepower,whounderstandsthenatureofcompetitionandwhatwillberequiredtowin–forsomeonewhoisgoingtowin.Welookatallingredients–thesize,thebusinessmodel,thecompetition.But50to75percentisthecaliberofthepeople.”

MarcCenedella:Thenumberoneruleistobepassionateaboutsomething.Yourpassionisyourbestmeansofmeetingpeople.There’ssolittleoitintheworld,andpeoplearedrawntotheexcitementofsomebodywhoisreallyalive,reallyonfireaboutsomething.Everythingelsefollows.

Attheendoftheday,it’llbeyournameonthedoor.They’llbelookingtoyouforleadershipdirection,andinspiration.It’syourcompany,andintheendyoubeartheultimateresponsibilityfornotonlylaunchingit,butgrowingitintoathriving,successfulbusiness.

It’syourdream,sometimesthere’ssimplynootherchoice.Youmustdoitalone.

YOUMUSTDOITALONE

Chapter11:

Tobeachampyouhavetobelieveinyourselfwhennobodyelsewill.–SugarRayRobinson

TobeontheInternetgame,oneneedstofigureouthowtoattractusersandmakemoney.

ForMilitary.com,AnneDwaynesawanunderservedmarket:qualifiedleaddevelopmentfortheeducationindustry.Imagine,shesaidtoChris:You’retheheadofadmissionsatacollegeorvocationalschoolandyou’retryingtofillyourclasses.Whatifyoucouldfindasteadystreamofstudentswhowerecapableofdoingthecoursework,whowouldaddvaluetoyourstudentbody,andwhosetuitionwouldbepaidbythefederalgovernment?AnneproposedthatMilitary.comoffereducationalinstitutionsasimpledeal.First,thecompanywouldaddacheckboxtoitsregistrationformanditscommunicationswithitsmembers,askingiftheywantedtohearfrom“military‐friendlycolleges.”Next,Military.comwouldsellthecontactinformationtheycollectedtocollegesandvocationalschools.

ForAnne,thinkingnewisimportantbuttheyneededcustomerswhocouldthinknewaswell.Cutting‐edgecompaniesbecamethesuppliersandcustomersofothercutting‐edgecompanies.

ForMarc,in2003,heembarkedhis27thjobsearchandhadbeeninterviewedhundredsoftimes.Hewouldspendanhourortwosearchingforjobsheknewhewouldneverapplyfor,inafieldhehadnointentionofentering.Hestartedturningupamazingleads,positionsthathiscousinsfoundveryintriguingandthattheyknewtheyneverwouldhavecomeacrossotherwise.Marc’sproblem:hewouldhavetobeabletolistjobsthatpeoplecouldn’tfindanywhereelse.Butwithoutasolidcoreofjobseekers,howcouldhepersuadeemployerstopostads?

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Hisbusinessmodelwastochargejobseekersratherthanemployers.Heneedsaninexpensiveplantorecruitjobseekerswhowouldbewillingtopayfortheservice.Hisplanistofocusonanarrowportionofthejobmarket.“Ifwe’reonlyacceptingthehighest‐payingsalesjobs,peoplewillpayforthoseleads,”hesays.

Theresponsetohisbusinessmodelwasoverwhelminglynegative.Marcrealizedthatwithoutrevenue,hecouldn’tattractcapitalinvestment;withoutcapitalinvestment,hecouldn’tproducerevenue.Marcrealizedthattheventurewouldhavetobeself‐funded.

MarcranafewadsonCraigslist–“Lookingforhelpfinding$100,000‐plusjobs?Ifso,theadspromised,SalesLadderwouldsendalongafreenewsletter.Marcalsolaunchedasimpleviralmarketingcampaign,askingcousinstoemailallhercolleaguesinthesalesindustryandaskthemtotakealookattheWebsite.(Targetistogetsubscribers).

Chapter12:Youmustdoitalone

TeddyRoosevelt:

Itisnotthecriticwhocounts;notthemanwhopointsouthowthestrongmanstumbles,orwherethedoerofdeedscouldhavedonethembetter.Thecreditbelongstothemanwhoisactuallyinthearena,whosefaceismarredbydustandsweatandblood;whostrivesvaliantly;whoerrs,whocomesshortagainandagain,becausethereisnoeffortwithouterrorandshortcoming;butwhodoesactuallystrivetodothedeeds;whoknowsgreatenthusiasm,thegreatdevotions;whospendshimselfinaworthycause;whoatbestknowsintheendthetriumphofhighachievement,andwhoattheworst,ifhefails,atleastfailswhiledaringgreatly,sothathisplaceshallneverbewiththosecoldandtimidsoulswhoneitherknowvictorynordefeat.

Marc:Stubbornnessisthesecret.Haveastrongsenseofyourownopinion.Beinganentrepreneurisaboutsaying,Iknowthisdoesn’texist.Thissegmentisn’tbeingaddressed.ButIcangodoit.Isupposesomepeoplemightcallthatarrogance.Tome,it’samatterofself‐assurance.

Chris:Ichangetherulesofthegame.Ratherthancompetingwitheveryoneinthesquadrontobecomethenestguyintheairplane,Ibuiltmyreputationcreatingthings.It’sbecomeasuccessstrategyforme:Idon’tplaybyotherpeople’srules.

Studyofentrepreneurialpsychology:theimportanceofconfidence,persistence,andtheabilitytogoitaloneareborneoutbytheacademicresearch.“Oneofthetoughtensionsthatgoodfoundersfaceishowtobesoloplayers,”NoamWassermanagreed,“butatthesametime,stillbeteamplayers.”

Confidencemaycomefrom:thestudents’experienceofanalyzingabouttwohundredcasestudiesandthusputtingthemselvesintheshoesofmanydifferentbusinessleaders;byinterviewingfoundersofsuccessfulstartupsandwriteapaperthatdemonstrateswhatthey’velearnedtogivethemdirectexposuretoentrepreneurialmindsandhelpgivethemtheconfidencethatmaybe,someday,theycouldstartacompanythemselves.

MANAGERISK

Chapter13

Trueentrepreneursworkextremelyhardtotakeaslittleriskaspossible.

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Marc:usingeverypossiblelow‐costtactictobuildexcitement.Tobuildhissubscribers,hewouldsendoutupdatesofSalesLadderemailseachweekandtoanyoneheconsideredapotentialangelinvestor.Hekepthismessagesshortandtothepointsothatpeoplewouldactuallyreadthem.Marc’splanistotarget25,000subscribers,atwhichpointtheywouldmakeasubtleswitchandturntheweeklynewslettersintoasimpleadvertisingcircular.They’dstilllistthejobs,butatsomepointtheywouldstartchargingthesubscriberswhowantedtoaccessthecontactinformationandgettheotherdetailsthey’dneedinordertoapply.Marcwouldpredicthowmanypeopleweregoingtosignupthatweek,orhowmanyjobsthey’dfind–andalmostwithoutfailitwouldhappen.

SalesLadder.comwaschangedtoTheLadders.TheLaddersranbanneradvertisementsonitscompetitors’Website–MonsterandCareerBuilderandcontinuallyupdateditsfreeadsonCraigslistandothersuchsites.Thehardestpartofeveryone’sjobwascompilingthenewsletterseachweek,whichtookanenormousamountofeveryone’stimebecausemarchadsetagoalofincludingatleastthreehundredlegitimate$100,000‐a‐yearjobsineachissue.

Theyadvertisedthattheywouldsoonstartofferingpremiumlevelofservice–thenewPresident’sClub–thatwoulddeliverthemostvalue.Peoplewereclearlyrespondingtotheirjoblistings,andtheywereearningabitrevenuefromrunningpaidGoogleadsonthesite.Recruitersandemployerswereevenstartingtosubmitjobsontheirown,withoutMarcortheothershavingtolookforthem.

Marcrealizedtheyhaveenoughtractiontostartthepayproductwhenhiscousin’scolleaguerecommendedTheLadders’servicetoherandwhenoneMondaymorningtheygotemailsat9amaskingwhathappenedtoTheLadderswhentheirnewsletterwasnotsentontime(before9am).

Toraisefunds,hepitchedhiscompanytoahandfulofventurecapitalfirms.In6months,Marcwasabletoraise$635,000torunalegitimate,growingcompany.

ChrisMichelsoldMilitary.comafterworkingonitfor4andhalfyearstoMonster.com.Thefinalpurchasepricewas$39.5Million,Chriswalkedawaywithalittleover$5Million.Chris,AnneandtheremainderofMilitary.comteamwerenowemployeesandshareholdersofMonsterWorldwide.AndyMcKelvey,388thrichestpersonintheworldaccordingtoForbesmagazinesays:“Oncehe’ddecidedtobuythecompany,hewasmostinterestedinthepeoplewhobuiltit,runit,andrescuedit.BigcompanieslikeMonsterdidthisallthetime,buyingupsmallcompetitorsforafewmilliondollarsnotsomuchbecausetheywantedthebusiness,butbecausetheywantedthepeople.

McKelvey–hehadtakenatinyYellowPagesadvertisingfirmandoverfortyyearsbuiltitintothetoprecruitingserviceontheWorldWideWeb.Whenhe’dstartedout,thefieldofhumanresourcesrecruitmenthadbarelybeenenvisioned–nottomentiontheInternet.“Besides,”McKelveysaid,“thinkabouthowmanydealsaredonethatleavethefoundersfeelingscrewed.”Topreservetheteamthathadbuilttheventureintoacompanyhewantedtoacquire,McKelveyfeltthat$5Millionwasasmallpricetopay.

Chapter14–ManageRisk

Oneofthegreatmythsaboutentrepreneursisthattheyareriskseekers.Allsanepeoplewanttoavoidrisk.–ProfessorWilliamSahlman,HarvardBusinessSchool

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Entrepreneurshipinvolvesrisk,butsodoeseveryotherchoiceyoumakeinlife.Thedecisiontolaunchacompanybuiltonasolidbusinessmodelmightactuallybelessriskythanalotofothercoursesofaction.Successfulentrepreneursconsistentlyaimtostrikeadvantageousdealsandassembleteamsofpeoplewhocontributeessentialassets.

Marla:Hedgeyourfinancialriskmeansdon’tspendmoneywhenyoudon’tneedto.Itmeansraisemoneybeforeyouneedit,andfocusrelentlesslyongrowingyourrevenueandimprovingyourbottomline.

Chris:Hedoesn’thaveahighertoleranceforriskthantheaverageperson.“Thereisnospecial,overarchinglevelofrisktoleranceamongentrepreneurs,buttheydohaveaninflatedsenseoftheirownabilities.Theyabsolutelybelievethattheycangooutthereandlaunchasuccessfulcompany.”

Marc:Whenhestartedthecompany,hefundedithimself.Hewasalmostunbelievablycheap.HelearnedtowritecodesothathecouldputuphisinitialWebsiteonhisown.Heworkedoutofhisapartment;hebroughtinpartnersandemployeesforequityratherthanpay;heandAlexusedguerillamarketingtactictheycouldthinkoftoreduceexpenses.

StigLeschly:Bycarefullymanagingrisk,youpreserveasmanyoptionsaspossible.Thestudentsbecomeverygoodatanalyzingalltheelementsofaventure,allthevariables,sothatiftheydodecidetoeverstartacompany,theirexposureisaslimitedasitcanbe.

NoamWasserman:Entrepreneursmanageriskratherthantakerisk.Focusonthebottomline;raisemoney;befrugal.Whatentrepreneursdoismanagetherisktheytake,inpartbyallocatingtherisktootherplayerswhoarebetterabletomanageit.

R&RisperhapsoneofthemostfamousentrepreneurialcasesatHBSwrittenbyHowardStevenson.Thecaseprotagonist,BobReese,hadbeenintheboardgamebusinessforyears,andattheheightoftheTrivialPursuitcrazeintheearly1980s,hecameupwiththeideaofdesigningasimilargamethatwouldfocusonTVtrivia.Inamatterofmonths,Reesemanagedtogetawiderangeofstakeholderstocooperateandproducehisproduct,includingagamedesigner,TVGuidemagazine,adepartmentstore,andothers.

Stevensonoutlinedtheapproachedthisway.“Weaskthequestion,‘Isthegamebusinessrisky?’Everybodysays,‘Yes.’Andthenyouanalyzethecaseandyousay,‘Well,whodoesReesehavetogettocooperate?’Heonlyhasaboutthreemonthstolaunchthegame,andyouask,‘Whatdoeshegive,andwhatdoesheneedtogetfromthem?Whotooktherisk?’Thedesignerspenttwoweeksdesigningthegame,buthewaspaid$250,000,andsincehenormallymade$30,000,hesurewasn’ttakinganyrisk.Hedidn’tevenhavetodesignthegameuntilorderswereinplace.Icangothrougheachofthese–thedepartmentstore,forexample,placedorders–butReesearrangedforTVGuidetogivethemfreeadvertisingthatexceededtheamountoftheirorder.Soevenifthegamebombedandtheyneversoldasingleunit,they’dgetthesetwelvepagesinTVGuide,whichwasatthatpointinfrontof17millionsubscribers.Andsincethestoreswerenevergoingtoreorder,theyweren’ttakinganinventoryrisk.Bythetimewe’vefinishedourstudyofthecase,Ialwayssaytothestudents,‘Well,wheredidtheriskgo?Ithoughtyoutoldmethiswasrisky!’

Thinkofwhatyouwillbringtotheventureandvalueyourassetsaccordingly.Yourideaisworthsomething.Yourtimeisworthsomething,too,soisyourpassion,yourexperience,andyourcontacts.Opportunitiesvarydependingonwhoisconsideringit;similarly,theriskdiffersgreatlydependingonwhothinksabouttakingthoserisks.Theintelligententrepreneurworkshardtoensurethatthepeoplebearingeachriskaretheoneswhoperceivethemasleastrisky.

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SkillssetshouldbecomplementaryNOTsimilar.

Toomuchcautionopensthedoortoadifferentsortofrisk:inaction.

Nothingventured,nothinggained.

Agoodwaytomanageriskisnottomanageitalone.Theassetsthateachmemberofourteambringstoyourventurewillhelpyoulimityourexposuretorisk;afterall,you’vebroughtthemonboardbecauseyoubelievetheycanmakeasubstantialcontributiontoyoursuccess.

Whoeveryouare,whateveryourpersonality,yoursuccesswilllikelyturnonwhetheryoulearntoleadpeopleeffectively.

LEARNTOLEAD

Chapter15

Marc:ThecofoundersofTheLaddersallunderstoodthattheyonlysurewaytoincreaseboththeirsalariesandthevalueoftheirequitywastodoeverythingpossibletobuildTheLadders.Iftheylistedacertainnumberofjobsandspentacertainnumberofmarketingdollars,theycouldcountonsigningupafairlypredictablenumberoffreesubscribers.Andforeachhundrednewsubscribers,theycouldmakeaprettyaccurateguessabouthowmanywouldeventuallysignupforthepremiumservice.

Fewmilliondollarsinvestedinthecompanywilldramaticallyrampuptheirmarketing,buildamorerobustWebsite,andcementtheirpositioninthisnewmarketbeforetheircompetitorsknewwhathadhappened.Weeklyrevenuenowisbetween$20,000to$25,000.

NowinvestorswerecompetingforMarc’sattention,nottheotherwayaround.Meetingventurecapitalistswasalsoawayofgettingsomefreeadviseabouthisbusinessfromsomeverysmartpeople.VenturecapitalfirmfromBoston:NickBeim,ofMatrixPartnershelikedthelookofthebusinessmodel,buthewasevenmoreimpressedbythequalityofthemanagementteamMarchasassembled.ThisteamhadbeenworkingintheindustryathighlevelsforseveralyearsbeforestaringTheLadders.Theybroughtobviouspassionandcommitmenttotheirenterprise.Theyhaddevelopedauniqueandcounterintuitivebusinessmodel–thoughnoonehadevertriedtochargejobseekersforlistings,itwasclearlyworking.

Andtherewastheideaitself.Theywereinthepainbusinessratherthanthepleasurebusiness.AsBeimknew,findingajobtriumphseverythingwhenyoudon’thaveone.Beim’sfirminvested$7.5Million.

Differencebetweenactivitiesandoutcomes

Illustration:Supposeyoucouldgetalookattheofficialrecordsoftwonavyfightersquadrons.Imaginethatthesehypotheticalunitsflewthesameairplanes,trainedinthesameway,andundertookthesamemissions.Further,imaginethatthesquadronsweremadeupofpeoplewithvirtuallysimilarbackgrounds.Giventheseequivalences,youmightthinkthatthetwosquadronswouldperformprettymuchonapar.Butthedatashowedthatthiswasn’tthecasetall.Infact,navystudieshadrevealedthatstrongsquadronsoutperformedweakeronesbyafactoroften.

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Whatwasthedifference?Mostlikelyexplanationforthestrikingdifferenceinperformancewasleadership,culture,andarelentlessfocusondesiredoutcomes.Equippingandtrainingthesquadronswasimportant,butnotnearlyasimportantastheparamountgoal–patrollinganddeterringduringpeacetime,fightingandwinningintimesofwar.

Onlytwocharacteristicsreallymatteredwhenevaluatingteammembers–competencyandfit.2x2matrix

Greatfit.

LowCompetency.

Greatfit.

HighCompetency.

Lousyfit.

LowCompetency.

Lousyfit.

HighCompetency.

COMPETENCY

Howdoyouhandlethehighlyproficientpersonwhowasneverthelessacomplainerwhohurtotheremployees’morale?Ortheenthusiastic,nicepersonwhojustdidn’thavetheskillsorcompetenciestogetthejobdone?Whenthingsweregoingwell,youcouldcoverupforpoisonousorincompetentpeoplebutwhentimesgetbad,theysimplyhavetogo.

Marla:togrowbigger,theyraisedanotherroundoffunding.Marlastillinsistedonhiringonlyfull‐timeemployees,eventhoughsomeofherinvestorsencouragedhertoswitchtopart‐timestaffsoshecouldsaveonfringebenefits.Marlawasconvincedthatthelowerlevelofservicehercustomerswouldreceivewouldn’tbeworthit.Shestillusedastore‐basedbonusstructure,sothatheremployeeswereencouragedtoworktogetherratherthancompetewithoneanother.AndMarlastillpersonallyinterviewedeverynewemployeeineverystore.Sheheldherselftoaveryhighstandardandthestoresreflectedherambitiontobethebestofthebreed.

Marc:company’srevenuesweretobeused“formarketingandgrowth,”notforpaddingthewalletsofemployees.ThoughTheLaddershadneverpaidespeciallywell,ithadalwaysthrownfunpartiesandprovideditsstaffwithsomegreatperks.Marcbelievesinmotivatingpeoplebypromisingtogivethemsomethingspecialittheyreallyperformed.Marcinsistedoncelebratingthecompany’swins.

Chapter16LearntoLead

Leadershipisgettingsomeonetodowhattheydon’twanttodo,toachievewhattheywanttoachieve.–CoachTomLandry

Toleadisabouthavingintegrity,clarity,andenthusiasm;aboutfindingtherightpeople;aboutgivingthemthepowertomakedecisionsevenwhileshepherdingthemtowarda

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particulargoal.Learningtoleadisaboutmakingpromisesandthendoingeverythingyoucantokeepthem.

QUESTIONfordiscussion:Isagoodleaderagoodmanagerandviceversa?WHY?

Chris:Leadershipisaboutsettingtheculture,performanceandhavingpassion.Ifpeopleactuallybelievethatyouhavetheirbestinterestsinmind,youcanhavegreatconversationswiththem,evenifthey’resometimesprettytough.Youcanhavearealimpact,notjustontheirworkbutontheirlives.

Marc:abashisaboutmorethanhavingfun;they’reagoodwaytoshowbothhispassionforthecompanyandhisappreciationforthecontributionsofothers.Youhavetohiremoretalentedandcapablepeople,andyouhavetomanagethemusingdifferentskills.

EdZschau:Mostentrepreneursareideapeople.Butwhenyoustartoutasanideapersonandthenovertimelearnhowtomanagethecompany,leadthecompany,andthenbringittoasuccessfuloutcome–whenyou’vedonethat,you’vedevelopedsomeessentialskillsthatmakeitpossibleforyoutobeacapableCEO.ThenyoucandecidewhetheryouwanttohireaCEOtorunyourcompanyday‐to‐day,orwhetherreallywanttobeboththeideapersonandtheoperationsperson.Sure,theidealisthatyoucandoboth,butthatisn’trightforeverybody.

NoamWasserman:Innovatorswhodon’tknowhowtoleadpeopleoroperatebusinessescanflameoutveryfast.ThemostsuccessfulentrepreneurscanworkaloneANDbeateamplayer;theycanmakeacriticalindividualcontributiontotheirventureANDmakethattransitiontoleadingothers.

Forinstance,itcanbeverytoughtomakethetransitionfrombeingasalesmantobeingamanagerofsalesmen.Insomeveryprominentcases,newventureshavepromotedtheirbestsalesmantomanagerandasaconsequencekilledtheircompany.

Onelessonthat’sespeciallydifficulttolearnisthatNOGOODLEADERWILLBEUNIVERSALLYLIKED.

Thekeytobecomingagoodleaderisnotabouthavinggreaterintellectualhorsepowerofbetterskillsthanyouremployees.StigLeschly:Generalmanagementisalmostanti‐intellectual.True,somestrategyproblemsarehard,butmostaren’timpossible.Andinsomedisciplines–manufacturingscience,engineeringscience,andlifesciences,forinstance–specialistsarecriticaltothesuccessofacompany.Butgeneralmanagersdon’tneedtohaveaspecializedskillset.Whenitcomestoeffectiveleadership,whatreallymattersiswhattranspiresamonghumanbeings–whetheryoucanhireandfire,whetheryoucanrunameetingwithtwoorsevenortwenty‐fivepeople,whetheryoucanrelatetopeople,motivatethem,connectwiththem.”

Wasserman’sresearchdemonstratedthatwhensuccessfulcompaniesfinishtheirinitialproductdevelopment,orwhenthey’veraisedasignificantnewroundofoutsideinvestment,it’softentimeforthefoundingCEOtostepaside.Inmanycases,heorshesimplydoesn’thavethemanagementandleadershipabilityneededtorunalargerorganization.

Ifyoulaunchyourventuresuccessfully,theremaywellcomeadaywhenithasgrownbeyondyourabilitytoleadit.AstheCEOofaneverexpandingenterprise,youhavetoworrynotonlyaboutyourproduct,butalsoaboutsuchthingsasbuildingasalesforce,distributingandsupportingyourproduct,managingfinances,andleadingbiggerandbigger

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teams.Maybeyoucandoallthosethingsandmore,butwhatifyoureachsuchapinnacleofsuccessthatonedayyoutakealookatyourcompetitionandrealizethatyournew,innovative,game‐changingcompanyhasbecomethestatusquo?

Whatmotivatespeopletolaunchcompaniesisoftenincompatiblewithwhatmotivatessomeonetoleadalargefirmoverthelongterm.

Howdoyoulearntolead?

1) Howwelldoyoucommunicate?Areyouagoodlistener?2) Howclearisyourvision?Ifyoucan’tarticulateavisionforyourenterpriseorifyou

doubtyourabilitytomakeandkeeppromisestoyourpeople,youarealmostcertainlynotreadytomakeyourdreamofbecominganentrepreneurareality.

3) Canyouputegoaside?Areyouabigideaguyoragetstuffdoneguy?Areyouwillingtostepasideanddelegatewhennecessary?

4) Whatdoyoutrulywanttodo?

Leadershipisaboutorganizingpeopleandmotivatingthemtoworktogethertowardacommongoal.Theflipsideofgoodleadershipistheabilitytosell.Youmaythinkthatlaunchingacompanyisallaboutinnovation,buttherealtruthisthatit’sequallyimportanttolearnhowtopersuadepeoplethatyourideaisasingeniousandinvaluableasyouthinkitis.Yourventureisonlyasgoodasitsbestsalesperson.

LEARNTOSELL

Chapter17

Whendoesamarketerbecomeasalesperson?Whenheneedstomakeapayroll.–AnneDwayne

Marc:Problemsincetheyhadsetthepriceforemployerstopostadsatzero,theyhadsentaclearmessagethattheirservicewasn’tworthanything.Forinstance,acorporaterecruiterwhoworkedforaFortune500firmhadbecomeabigboosterforTheLadders.Wheneverajobwasopeninhercorporatedivision,shewouldsubmitittoTheLadders.She’dhadgreatluckwiththeirserviceandtoldhercolleaguesthattheyshoulduseitaswell.Butalmostnootherrecruiterwithinthecompanyhadfollowedsuit.Theyhaveanevangelistinsidethecompany,andevenshecan’tsellit!

“Freejustisn’tworking.”Freeisthewrongprice.

ThesewereFortune500companiestheyweretargeting.Theyhadmoneytospendonrecruiting.

Marla:Bluemercurywasbecomingahotcommodityandinearly2006,PricewaterhouseCoopers(PwC)auditedthecompany’sbooksfor2005andconfirmedthatithadgenerated$17Minrevenue–nearlytwicewhatithaddonetheyearbefore.ChrisSpharhadseenretailfirmssellforsixtimesannualrevenuesorhigher.

Goodmanagementbook:MadeinJapan,theautobiographyofAkioMorita,cofounderandCEOofSony.Culturethatputscustomerservicefirst;basedonabusinesssaying,“Okyaku‐samawakami‐samadesu,”whichmeant“thecustomerisgod.”

Theattitudeiswhat’simportant.

Ledecky‐Darmantheoryofentrepreneurship:startandbuild,buttakeyourwin!Takesomemoneyoffthetable.

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BarryBeck:Don’tfallinlovewithyourbusiness.Barryturnedtohisfavoritemetaphor–Icarus,thecharacterinGreekmythologywhoflewtooclosetothesun.“Don’tbeIcarus,beDaedalus,whofliesalittlelowerandsurvives.

Marla:Invuswouldinvestinthefirmatapre‐moneyvaluationof$62M.Together,MarlaandBarryownedjustover70%ofbluemercury’sstock;afterthedealthey’dholdonto24%,andsotheywouldbewalkingawaywithwellaboveBarry’sgoalof$20Mincash.Moreover,therewouldbe$10Mavailabletofundtheexpansionofmorestores,andMarlaandBarrywouldstayinplaceastheCEOandCOOofthecompany.

Sevenyears,onemonth,andfifteendaysfromthedayMarlastartedhercompany,shehaddoneit.Shehadstartedandbuiltbluemercuryandshehadtakenmoneyoffthetable.

Chris:Ratherthankeeppushingaroundtheedges,tryingtosqueezeafewmorepointsandafewmoredollarsoutofthecompaniesthatwantedtoreachthemembershipofMilitary.comeachmonth,whynotreplicatethemodelandbuildcommunitiesfocusedonotheraffinitygroups?Forexample,whynottaketheconceptbehindMilitary.comandstartanewWebsiteforlawenforcementofficerscalledsomethinglikePolice.com?Firefighters.com,Teachers.comandNurses.com

Chapter18:LearntoSell

Assoonasyoudecidetobecomeanentrepreneur,youbecomeasalesperson.You’vegottosellyourselfassomeonewhocaninnovate,leadandexecute.Youwanttosellyourideaandyourventure.Thatiswhatyouneedtolearnhowtosell.

PASSION

You’realwaysbalancingyourpassionandyourcredibility.

EdZschau:Themistakenimpressionaboutsalesisit’sallaboutconvincingpeopletodothingstheydon’twanttodo.Agoodsalespersonissomebodywhocanunderstandthevaluesandtheobjectivesofthecustomer,andthenmakeapropositionthatresonateswiththosevaluesandobjectives.He’salsogottoconveyasenseofcredibilityandintegrity.

Youhavetopersistentintheappropriateway,becauseyouwillofcoursegetturneddownalot.Butifyouknowhowtobringacustomerbacktothetableandsaysomethingthatreallymakessense,you’llgetbusiness.

Chris:Oneofthemostimportantthingstounderstandaboutastartup,particularlyintheearlystages,isthatyouhavetosellapromise.Peoplewanttobelieve.Theywanttobelieveinyou.Theywanttobelieveinyourcompany.Andyourobissimplytogivethemtheopportunitytobelieve.Investorswanttofindthenextbigthing.

CREDIBILITY

Marc’spassion:hemadetimeeachweektoemailupdatesabouthisprogresstopeoplehehopedmightsomedayinvestinhiscompany.Hedidn’tsendoutthoseupdatesbecausehehadto;hesentthembecauseheenjoyedtellingpeopleabouthisefforts.

Mosteffectiveentrepreneursarethosewithcredibility–acombinationofintegrityandcompetence–whichisjustasimportantashavingpassion.Whenintegrityiscombinedwithcompetence,apersonearnsrealcredibility.BillMurphyaskedhiswifewhyshelikedMarla’scompanysomuch.It’sthesalespeople,sheansweredimmediately.Theytookthetimetoworkwithherandevensteeredherawayfromanumberofmoreexpensive

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productstheybelievedweren’trightforher.Theyseemedtohaveherbestinterestsatheart,andbecauseshetrustedthem,sheenjoyedbuyingwhattheyhadtosell.Theirpassionwascontagiousandtheircredibilityclosedthedeal.

Seekoutemployerswhoencouragecreativethinkingandrisktaking.You’llbehappierworkingforthissortofperson,andyou’llalsodevelopthemind‐setandreflexesthatwillserveyouwhenyou’refinallyreadytofoundyourowncompany.

What’sthemostimportantskillforanentrepreneurtohave?Sales.NoamWassermanvehementlypushedthestudentswhowantedtobeentrepreneurstogooutandcarryabag.Gooutandsellsomethingdoor‐to‐door,anddoitasearlyinyourcareeraspossible.Learningtosellisabigadvantageoverthepeoplewhohavereallyneversoldanything.

Howtolearntosell?Thereisnosubstituteforexperience.It’sachallenge.

Onehastopersist,persevereandprevail.

PERSIST,PERSEVERE,PREVAIL

Chapter19

Nevergivein.Nevergivein.Never,never,never,never–innothing,greatorsmall,largeorpetty–nevergivein,excepttoconvictionsofhonorandgoodsense.–WinstonChurchill

Chris:Withhistrackrecordandapromisingbusinessplanbuiltonhisprevioussuccess,hereceivedanofferforcapitalafteronlyonepitch.SeveralventurecapitalistswerefightingovertheopportunitytoinvestinAffinityLabs.Chrisreceived$6.5MventurecapitalistdealwithTrinityVenturesandtheMayfieldFund.

Chris’firstbigquestionwaswhichcareerfieldstotarget.Theylookedforprofessionswiththelargestpopulations,highestincomes,biggestpercentageofInternetuser–and–perhapsmostimportant–theintangiblenotionoftheiraffinityforoneanother.Suchapoliceofficers,nurses,teachers,firefighters,artists,governmentworkers,andpeopleworkingininformationtechnology.

Byspringof2007,thefirstnewAffinityLabscommunityasreadytolaunch:PoliceLink.com.Bytheendof2007,AffinityLabshadgeneratedover$2MinrevenuefortheyearandChrisprojectedthattheywouldachievefourtimesthatamountin2008.They’ddevelopedanexcellentbusinessplan,hiredwell,andexecutedsmartly.

Injust18months,Chrisstarted,built,andsoldhissecondsignificantcompanyfor$61MtoMonsterandabout40%ofthatamountwouldgotoChris.

Chrisstilllivedinthesameone‐roomapartmentthathe’dmovedintoalmost10yearsago.Hestilldidn’townacarthoughhetraveled,tookpicturesandboughtnicersportsjacketsandbluejeans.

AffinityLabswouldneverhaveexistedifhehadn’tfoundawaytomakeMilitary.comwork.ItwashisexperiencewithMilitary.comthathadtrulymadehimanentrepreneur.Hehadsetouttosolvequestionsthatbotheredhimpersonally:howdoesaformermemberofthemilitarymakehisorherwayinciviliansociety?He’dbuiltanumberoftoolsthathadhelpedsolvedthatproblemandanumberofothers,notjustforMilitary.com’smembers,butforhimselfaswell.

InthewakeofAffinity’ssale,Chrisfinallyboughtacar(Porsche);purchasedamuchbiggerloftapartmentinSFandgavesomemoneytohisparents.

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Marc:InJanuary2004,TheLaddershad“flippedtheswitch”andforthefirsttimebegunchargingjobseekers.TheLaddersfacedanotherproblem–ithadalwaysmarketeditsserviceas“freeforemployers.”Sinceallofitscompetitorsalreadychargedemployerstolistjobs,TheLadderswouldbegivinguponeofthecharacteristicsthathadsetitapartintherecruitingfield.

ThesolutionMarc’steamcameupwithwastorollthingsoutgradually.Theywentthroughalltherecordsoftherecruiterswhohadusedthesiteandassignedeachoneascorebasedontwelvecriteria–howoftentheyposted,howoftentheyloggedinandsearchforapplicants,etc.Basedonthesescores,theyofferedeachrecruiterbetweenoneandtwelvemonthsoffreeservicebeforerequiringthattheybeginpayingtolistjobs.Themoreactiveanddesirableaclienthadbeen,thelongertheclientcouldlistitsjobsforfree.

Theexistingbusinesscontinuedtomoveaheadaggressively,andthecompanyextendeditsreachbylaunchingaEuropeanversionofTheLadders.

Marc:Heknewthatentrepreneursalmostnevergetthingsrightthefirsttimearound:youjusthadtokeeppluggingaway,tryingfirstoneapproachtofindingasolutiontoyourproblem,andthenanotherandanother,untilatlastyoufoundonethatworked.

Thetransitiontopaidmodelwaspainful.Onlyabout14%oftheoriginalrecruiter‐usersremained,butMarcwasconvincedthattheywerenotbookingadsfromthebetterclassofjobposterstheybadlyneeded.Theystilllistedjustasmanyjobsforeachapplicant;thedifferencewasthatthepersonpostingthejobwasmoreoftendirectlyinvolvedinthehiringdecision,ratherthanaheadhunterorothermiddleman.

Chapter20:Persist,Persevere,Prevail

Nothinginthisworldcantaketheplaceofpersistence.Talentwillnot;nothingismorecommonthanunsuccessfulpeoplewithtalent.Geniuswillnot;unrewardedgeniusisalmostaproverb.Educationwillnot;theworldisfullofeducatedderelicts.Persistenceanddeterminationaloneareomnipotent.Theslogan“presson”hassolvedandalwayswillsolvetheproblemsofthehumanrace.–CalvinCoolidge

Thekeyispersistinglongenoughtotakeadvantageofthegoodfortunethatdoescomeyourway.Showingupjustgetsyoustarted.Thetrulycrucialingredientisthedeterminationtopersist,persevereandprevail.

Persistenceisanexcellenthedgeagainstrisk.

Ifyougenuinelybelievethatyouwillpersevere–ifyou’veproventoyourselfoverandoverthatyousimplywillnotquit–thelikelihoodthatyou’lleventuallyachieveyourgoalsishigh.

Ifpersistenceimprovesyouroddsofsurviving,italsoallowsyoutotakeadvantageofopportunitywhenitdoescomealong.Sometimesanunexpectedeventcanaffectyoupositively.AcademicsatbusinessschoolslikeHBScallthisa“shiftinthecontext.”

ProfessorBillSahlman:Caseofapackagingcompanythatwasdoingpoorlyintheearly1980s.Oneofitsproductswasacheapmechanismformakingconsumergoodtamper‐resistant.Theownerswereonthevergeofsellingtheirstrugglingbusinesswhenatragiceventturnedtheirfortunesaroundcompletely.Infall1982,sevenpeoplediedafterconsumingTylenolcapsulesthathadbeenlacedwithpotassiumcyanide.SalesofTylenol

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plummeted,andthecompany’smanufacturer,Johnson&Johnson–aswellaseveryothermanufacturerofconsumablegoodsintheUnitedStates–clamoredawaytopackagetheirproductssotheywouldbetamper‐resistant.Theailingpackagingcompanywassuddenlyfloodedwithordersandquicklybecameprofitableagain.Persistencepaidahugedividend:thecompanyhadsurvivedlongenoughtotakeadvantageofacompletelyunforeseenchangeinthebusinesslandscape.

Chris:LouisPasteurquote“Chancefavorsthepreparedmind.”Workethicsmatters.Chrisdideverythingtheycouldthinkoftoimprovetheirchancesofsucceeding,andtheyneverstoppedlookingforopportunity.

Marla:Theideajustgetsyoustarted.Onceyougetinthegame,you’vegottoworkatituntilyoufigureitout.Andnomatterwhatwedo,nomatterhowmuchsuccesswehaveinagivenyear,thegameisalwaysaboutsurvival.Nothingstaysthesamefortenyears.We’vehadtochangeourstrategyyearafteryearafteryear.Ifyoucansurvivethroughallthetoughtimes,you’llbethatmuchstrongerwhenthegoodtimesfinallycome.

StigLeschly:Theruleofpersistenceanditsassociationwithlearningissoimportant.Becauseone’swisdomishard‐won:itcomesoutofone’sownexperiencesasanentrepreneur,andastoryaboutaspectacularsuccessthatwasmadepossiblebyhisrefusaltoacceptfailureasafinaloutcome.

Akeytosuccess:willingnesstorevampafailedstrategyandpersistlongenoughorthemarkettocatchup.Leschlyyouwon’tsucceedbecauseyouhaveagoodidea.You’llsucceedbecauseyouworkyourassoff,becauseyounevergiveup,becauseyoureinventyourselfconstantly.You’vegottobeparanoidallthetime;you’vegottoreadjustbasedoneverylittlepieceofmeaningfuldata.

Ifyouactwithintegrity,youhavenothingtolosehere.Ifyouburnthroughyourinvestmentandthecompanyimplodes,butyoucomeoutofitwithyourreputationforintegrityintact,you’restillgoingtogetyourcallsreturnedwhenthenextopportunitycomesalong.

Cultivateyourabilitytopersistandpersevere,learnasmuchasyoucanfrombothsuccessandfailure,andprepareyourselfforthedaywhenopportunitiescomesyourwaysoyoucantakefulladvantageofit.

Beastudentofbusiness.Readbooksaboutmanagement,leadershipandotherbusinessissues.Readaboutbusinessandentrepreneurshipandsharewhatyou’velearnedwithyourteam.

Gotothewell.YouwillfindwealthofvaluableinformationandadviceaboutentrepreneurshipjustbybrowsingtheWebsitesofschoolssuchasHBS,Stanford,etc.Takefulladvantageofyourrelationshipswithyourmentors;reachouttootherentrepreneurs,developnewrelationships,andlearnasmuchasyoucanabouthowthey’vehandledthechallengesthey’vefaced.

Whenyoucan’tmoveforward,moveon.Persistencedoesn’tmeanyoushouldstaywithoneventureuntilthecaseisutterlylost.Theresometimescomesapointwhenthesmartestthingyoucandoiswalkaway.Butacommittedentrepreneurwillfindawaytogetbackinthegame.

Entrepreneurshipischoosingawayoflifethatveryfewothershavethegutstopursue.Whenyouplaytheentrepreneurialgame,you’replayingthegameforlife.

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PLAYTHEGAMEFORLIFE

Chapter21

Thereasonablemanadaptshimselftotheworld;theunreasonableanpersistsintryingtoadapttheworldtohimself.Thereforeallprogressdependsontheunreasonableman.–GeorgeBernardShaw

Marc:theoverseasexpansionhadcontinuedtogowell;TheLadders.co.uk

IntheUS,the2008financialcrisiswastakingitstoll.AlargenumberofreliablecustomersofTheLadderswouldsuddenlybeunabletopayfortheirservice.ThisposesadirethreattoMarc’scompany.Theylivedoncashflow,andiftheamountofmoneycomingineveryweekdiminishedsignificantly,heywouldhavetocutcostsimmediately.Aswithmanycompanies,theirbiggestcostwaspayroll.“Ifwe’regoingtolayoffpeople,”hetoldhimself,“we’lldoitonce,andwe’llcutdeepenoughtoensurethatwedon’thavetodoitagain.”

Marla:Shedecidednottogoforwardwithbluemercury’snationalexpansion.Herinstinctshadbeenright:theeconomyhadindeedtakenadive.Becauseshehadreducedcostsandtakensuchaconservativeapproachtogrowth,thecompanyhadescapedmostofthepainsufferedbyitscompetitors.

She’dlongsincerealizedthatshewastrulyintheself‐esteembusiness,becauseherclientele’shappinessdependedonlookinggoodandfeelinggoodaboutthemselves.Evenindifficulteconomictimes,womenweregoingtobuybeautyproductslikemascara.Andtheyuseduptheirsuppliesquickly;atubeofmascaramightlastthreemonths,andthenthey’dhavetobuyanother.Whentimeswerehard,makeupcouldprovideakindofentertainment,awaytoputtroublesaside.

SheandBarrydecidedtolaunchtheirownlineofcosmetics.Therewasagapinthemarketplace,Marlaconcluded–aplaceforhigh‐end,eco‐friendlyproducts.

TopTENlessonsforHarvardMBAs:

1) Experimentwithyoursummerjob.2) Getinthegame.3) DROOM(Don’tRunOutofMoney–JonLedecky,HBS’83)4) Dosomethingyoulove.5) Thefirstyearisthehardest.6) AvoidtheGBF*mentality.(*GetBigFast)7) Angelsareyourfriends.8) Competitionmakesyoustronger.9) “Nothing’sgoodforever.”(DickDarman,HBS’67)10) YouCANhaveitall.

Chapter22:PlaytheGameforLife

Weneed100,000peoplein100,000garagestrying100,000things–inthehopethatfiveofthembreakthrough.–TomFriedman

Definesuccess:Wecanusequantitativemeasuresuchashowmuchmoneydotheymake?Butit’snotalwaysonlyaboutmoney.

Thefreedomandsecurityprovidedbyahighincomeorasignificantwindfallaremuchmoreimportanttohighlysuccessfulentrepreneursthanthemoneyitself.Atthedeepest

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level,whatmattersmostisfindingatruemeasureoffulfillment–onethatleaveyoufeelingthatyouhaveusedallyourtalentstoaccomplishsomethingworthwhile,makeadifferenceinpeople’slives,andleavealegacyforthosewhofollow.

Entrepreneurshipisn’tjustaboutsolvingaproblem,buildingaventure,managingrisk,ormakingmoney.It’sabouthavingapositiveimpactontheworld,makingthemostofthegiftsyou’vebeengiven,andrealizingyourfullpotentialasahumanbeing.Anintelligententrepreneur,inshort,playsthisgameforlife.

Marc:In2010,theEuropeanversionofTheLadderscontinuedtothrive,withplanstoexpandintoevenmoreinternationalmarkets.Marc’sweeklye‐mailreachedmorethan3.6Msubscribers,andhespentagooddealoftimegivingspeechesallovertheworldnow,too.Heisalsopassionateaboutencouragingpeopletotakechargeoftheircareersandfindfulfillmentinlife,whereveritmightleadthem.

Marla:Shewasproudtoreportthathervisionforhelpingheremployeesattaincareers,asopposedtosimplyjobs,wasworking,andthatmanyofhersalespeopleandmanagerswerenowcelebratingtheirtenthyearofworkingforbluemercury.

Chris:Bothofthecompanieshestarted–Military.comandAffinityLabs–continuedtoflourish.In2209,Chrisvisitedtencountriesandtraveledtoalmosteverycontinent.Oneparticularshot–asensationalshotofakillerwhalejumpingoutofthewater–symbolizedmuchofhislife.He’dhadtospendyearsdevelopinghisskillwithacameraandthenhadtraveledtoAlaskatogetthephotograph,butthecrucialpointwasthatwhenhe’dfoundhimselfinpreciselytherightplaceattherighttime,he’dbeenfullyprepared“Togetthatpicture,”hesaid,“youneedtobeonthatboat.That’sreallythestoryofmylife.”

Tobecomesuccessfulentrepreneur,you’vegotomakeatotalcommitmenttothegoalandthenspendyearsworkingtowardthatmomentwhenitallcomestogether.

ProfessorHowardStevensonandLauraNash’sbookentitled“JustEnough”attemptstoshowreadershowtojugglewhattheybelievearethefourkeyelementstosuccessinworkandlife:happiness,achievement,significanceandlegacy.

It’sturnsoutthatthere’slittlecorrelationamongthefourelements,Stevensonsaysinaninterview.Youcanachievegreatlywithoutbeinghappy.Youcanprobablybesignificantwithoutgreatachievement.Youcanleavealegacywithoutachievingitinyourownlifetime(i.e.KarlMarx)andyoucanbehappywithoutexperiencinganyoftheotherelements.

Stevenson:Idon’tliketothinkofitasstrikingabalance,becauseIprefertothinkofitasjuggling.

ProfessorJosephLassiter:“Studentsusuallycomebacktoseeme.Mostofthemarehappyandcontent…Theminoritywhoaren’tsatisfied,inalmosteverycase,they’reunhappyeitherbecausetheydon’tfeelintenselyinvolvedwiththeirworkorbecausetheyhaven’tfalleninlove.Moretothepoint,they’reeitherworkinginaprofessionthatsomeoneelsethoughtwouldbeagoodfitbutisinfactofnoparticularinteresttothem,ortheyhavenoonetosharetheirlifewithandthey’refundamentallylonely.Theynever–ever–cometomeandsay,Gee,I’mnotmakingenoughmoney.”

Attheendoftheday,what’simportantisWHATsegmentdoyouwanttoserve?WhatPROBLEMdoyouwanttosolve?Toolsaretools,butwhat’simportantistheWHATthatbringsaboutthePASSIONinyou.Frommypointofview,theseare2peoplewhochangedtheworld:HowardSchultzandSteveJobs.