10/8/19

Chaos >>> Order

If you are a founder, entrepreneur, startup CEO then you are familiar with the notion of transforming chaos into order. [OK, let me say — “I hope you are.” However, we both know it is not as well ingrained as we might hope.]

If you are an “aspirin” startup — meaning the raison d’etre of your love child is to reduce the pain of mankind, the chaos is the pain and the order is the pain free — or lessened pain — environment that results thereafter.

If you are a “vitamin” startup — meaning the raison d’etre of your little bastard is to improve the quality of life, the chaos is the inferior quality of the before and the order is the higher quality plane of the after.

There is a decided “before” v “after” transformation.

Bit extreme, but it makes my point. Guy lost a lot of weight? What a magical transformation. I imagine he feels a lot better. Took those bad eating habits and created some order, no?

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08/18/19

CEO Shoptalk — The Founder’s Tale

In the life of the successful startup is a slightly disorganized story of its founding. It is a powerful story. It provides a keen insight into the who, what, when, why, where, how of the company. It is a story of creation. Only one person can tell it with an authentic voice.

It is a tale told best by the founder, hence the name: The Founder’s Tale.

It is a story that is the glue that binds people to the company and makes them want to follow the leadership. If you want to lead a pride of lions, then you have to tell the story of how you formed a pride.

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07/12/19

CEO Shoptalk — The List of Horribles

Nice day in the ATX. Nice day to talk about the List or Horribles.

The List of Horribles is something which a CEO of a startup or small business WILL encounter along the way to the finish line (pay window). These things — not all, but some — will happen.

“Come on, Big Red Car, really?” you say in that skeptical voice of yours, the one your mom used to call your “whiny” voice.

“Yes, dear reader, dear CEO, many of them will happen.”

Here is you (female CEO?) dealing with the List of Horribles. The guy with the helmet head is a Venture Capitalist finalizing the negotiations of a down round.

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03/13/19

You Are All Alone

Nice warm day in the ATX after a morning of rain. Ahh, On Earth as it is in Texas! It’s SXSW time in the ATX.

As a founder, entrepreneur, CEO there are times — most of the time — when you must rely solely upon yourself. You are all alone.

Even when you are a member of a team, at times you are all alone because you are the decider.

This is not a bad thing; it is just a thing. You can relax knowing that every other founder, entrepreneur, CEO has had the same feeling.

That feeling — when the butterflies in your gut become condors and they try to slice their way out with their sharp talons. Your stomach is an acid pit and your breath is like kerosene.

It is real, but you can handle it. Learning to rely upon your own judgment is critical.

I am not counseling you to ignore advice. Solicit advice, but know that sometimes, you will jump alone.

Here is a video of a stick of paratroopers (with equipment) getting ready to jump over White Sands as part of a training exercise. Every soldier who approaches that door is a member of a team, but when they jump they make that decision alone. You as a founder, entrepreneur, CEO will make that same decision.

You got this, trust me.

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01/29/19

Making Progress in the Real World of Startups

Big Red Car here on a crisp, sunny Texas winter day. It is 40F, which is bone chilling cold in the ATX.

So, the BRC is talking to a couple of CEOs and they are describing their growth curve–from founding to launch to the Promised Land. All of them have made it to the pay window, a nice arrival point.

It was an interesting discussion and one you might want to have with yourself.

In an ideal situation — something that never, ever happens — fictitious growth might look something like this. You are looking at performance over a period of time. We all want it to be high and to the right. Performance appears to increase at a uniform rate, at a steady rate. Not very realistic?

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01/8/19

Accounting Thinking for Startups

I hate accounting, but I love orderly accounts. I love it when the checkbook, the bank reconciliations, the cash receipts/disbursements journals, and the balance sheet all agree. Takes a bit of sleight of hand to make that happen, but I love it.

As a startup CEO, you need to get a good handle on how accounting works. This blog post is not going to teach you accounting, but it is going to give you the Stations of the Cross as it relates to what you do from the perspective of accounting.

Ready?

First, accounting can be a little time consuming and boring. As a CEO, never, ever, ever get involved with it. In your early days, hire an arm’s length bookkeeper and have them put your operation together on QuikBooks. [Pro tip: You could run the Pentagon on QuikBooks Enterprise, so don’t let anybody tell you it isn’t robust enough for your enterprise.]

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11/12/18

Mature Startups

Big Red Car here on another cold, rainy Monday in the ATX.

So, I’m chatting with a seasoned startup CEO, and he asks, “What is the first sign that a startup is bursting through the crawl, walk, run continuum, Big Red Car? What are the things you look for?”

Says I, “When they start their own training program, conduct offsites regularly, and have an industry leading conference as part of their marketing program.”

To which he says, “Do tell, Big Red Car. What does that mean? The industry leading conference part?”

Related image

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10/15/18

Voting Trusts

Big Red Car here on a rainy Monday in the ATX. [Whoever has been praying for rain locally – you can stop now.]

So, a founder calls me and says, “I read where you recommend a voting trust for a startup. Do tell?”

A voting trust is a good idea right from the founding of a company. It is something which should be in your founding documents:

 1. Articles of Incorporation;

 2. Corporate Bylaws;

 3. Option Plan;

 4. Founding Shareholders Agreement;

 5. Voting Trust; and,

 6. Employment Agreements.

[You do have the Big Six, right? Haha, half of y’all couldn’t find these docs even if you made them. Sorry, that was mean.]

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