Category: GETTING STARTED

Covid-19’s Cannonball Call

Covid-19’s Cannonball Call

Peter Cauton

How the Pandemic is Inducing a Mass Midlife Crisis and What to Do About It

One of the few positives I’ve observed living through now almost 4 months with Covid-19 is the massive amount of people reconnecting with old hobbies. 

People started getting back to their writing, their dancing, their guitar playing, their singing, their teaching, their baking, their photography, theirthing. 

I think somewhere around month 2 of quarantine, people’s need to express these gifts grew larger than their sense of shyness or reservation – so we started to see more and more people post about finding their lost passions again on social media. 

While a lot of us have been experiencing massive career changes involuntarily, there are some people I know are choosing this uncertain time to execute rather drastic career pivots – a tech lifer-turned distributor, a career corporate executive-turned education entrepreneur, a doctor-turned teacher, career HR practitioner-turned salon owner.

They’re far from being the only ones, too. 

There must be something deeper afoot. 

My theory is that the current acute conditions have created such an unparalleled mass disruption, forcing us to face some existential life questions we may have been avoiding. 

What is this dissatisfaction I feel? Am I doing what I’m supposed to be doing? 

Cannonball Moments

One spring day in 1917, teenager Walt Disney was coming home from delivering newspapers. Noticing a block of ice on the road, he couldn’t resist the urge to playfully kick it. What Walt didn’t notice was a large horseshoe nail embedded in the ice. The nail went through Walt’s big toe and as a result, Walt was bedridden for two weeks – his only vacation from his newspaper route job in 6 years. 

According to biographer Bob Thomas, in those two weeks Walt did a lot of thinking about his future. He LOVED to draw, but can he really build a career there? His dad highly disapproved of it, as it was a distraction from schoolwork. Perhaps he was thinking about his really poor grades, and how couldn’t concentrate in school. There goes college. He liked performing, but probably concluded he didn’t have enough talent to make a living with it. 

During those isolated two weeks though, Walt found himself doodling a lot. At the end of those two weeks, it became crystal clear to him – he wanted to be a cartoonist. That newfound resolve would propel him to plunge headlong into an animation career and establish Walt Disney Studios just five years after. 

That nail proved to be just the right disruption for Disney to momentarily escape his routine and face his soul’s questions. 

The Jesuits call these Cannonball Moments,unexpected situations in life which lead us to reconsider our identities and change trajectories. This is aptly named of course, for the literal cannonball which shattered the right leg of proud military man Ignatius de Loyola, forcing him to get sidelined for months in bed, which eventually changes his life’s direction as well. 

How many of us are experiencing the same sort of cannonball conditions now? 

We suddenly have a lot more of time on our hands, a lot more quiet time on our hands, we are isolated, suddenly taken from our routines, and yeah, getting powerfully reminded of our mortality everyday not only through this once-in-a-lifetime virus but the daily heartbreak we see on the news as well. 

Shall we heed the quiet call now stirring louder in our hearts? 

The Quest for Alignment

A lot of us push it back most of our lives. It isn’t practical. Not realistic. Especially nowadays. 

A good number of us try to scratch it a bit. Then, facing a bit of adversity, we put it quickly back in the box, and rationalize, I really should grow up and forget about this already.

But this call is part of our DNA, mapped into our souls from the moment we were born. It will continue to knock gently until answered fully.

It’s a bit timely as well, I am convinced. 

What is quite clear to me is that when people tap into their purpose, it isn’t just themselves who benefit. Everyone else does, too. Profoundly so. 

The singer who decides to sing can bring tears to those who listen.

The organizer who decides to organize can bring life-changing projects to life. 

The teacher who decides to teach can change lives. 

The consoler who decides to console can bring peace to many. 

The programmer who decides to program can create groundbreaking technology.

It’s easy to see that people who find and choose this alignment between true self and chosen role can affect far more dramatic change than people who experience misalignment – the artist who manages money, the teacher who sells, the consoler who crunches numbers, and so on. 

Don’t we need more and more people creating dramatic, positive change in these particular times?

This pandemic has affected how we work tremendously. If you’re lucky, perhaps migrating to a work-from-home setup and zoom fatigue are how the disruption is most felt. It might be good to consider how you are using your reclaimed travel time. Perhaps that could be put into better use. 

There are a lot of us who are hit in a worse way, suffering pay cuts, being laid off, dwindling bank accounts. Having gone through both the painful experience of getting laid off and the equally traumatising ordeal of laying people off, I have deep empathy for those going through this experience. 

I know how important it is to find silver linings. Perhaps viewing this situation as a cannonball moment can be a crucial silver lining – one leading to a fuller, happier, aligned life.

Everyday I’m Side-Hustlin’: Harness the Power of the Side Project

Everyday I’m Side-Hustlin’: Harness the Power of the Side Project

Peter Cauton

(Click below for the audio version of the post)

hustle

What is a side hustle? Basically, it’s a part-time job beyond your full-time one. And yes, you can use it to basically change your life.

It certainly did mine.

Years ago, I remember feeling stuck in my career in Human Resources. I accepted my first corporate job as an HR Officer in an IT firm, and I sorta just followed that ladder. Eight years after, I was in the midst of a full-blown quarter-life crisis. I felt the industry wasn’t for me, but I had already devoted 8 years of my career working hard, and it was difficult for me to fathom shifting gears and starting in another industry from the ground-up again.

That year, I had a startup idea. I offered it at a possible product to the company I was working with, but it was quickly rejected. That made my resolve in pursuing this idea stronger.

However I faced a big hurdle: I was supporting my family as a breadwinner. I couldn’t just quit what paid the bills.

I decided to pursue this passion of mine during my off-hours. During the weekend. After work. Lunchtime.

This became my side-hustle. Through this effort (and over 50 weekend interviews), I found my cofounder, who was willing to go full-time. THAT got the ball rolling. We founded the first STORM company in my living room a little after that. For the next 2-3 years, STORM continued to be my side-hustle, up until I waved good-bye to my corporate career to pursue entrepreneurship full-time.

STORM
STORM wasn’t a “garage company,” we were a “sala company”

That was a life-changing leap for me – as my experience in STORM would dramatically alter my career from line HR Management to a career as an entrepreneur.

It all started with my side-hustle.

And then, in 2011, while working on STORM full-time, this blog, Juan Great Leap, became my side-hustle. And in a very different way, this too, would change my life.

So many times, I encounter people who are quite serious in taking a leap, who DO want to try something different.

But a lot of us face different obstacles – financial, security, fear, responsibilities – which prevent us from taking a dramatic leap.

This is where the side-hustle can come in beautifully.

It allows us to take a smaller leap. It allows us to dip our feet in the water to get a bit of a feel. In time, like it did for me, perhaps it can facilitate a bolder leap in the near future.

But there can also be a deeper role the side-hustle can play for you.  A much deeper, even spiritual one.

The side hustle can engage your soul

Are you a frustrated writer who took on a BPO job to make ends meet?

Are you a dancer? Perhaps some time ago,  you were in the college dance troupe and from time to time you dream of “those days” when you were performing and time just stood still.

Perhaps circumstances won’t let us make the leaps we want to. But that’s not an excuse to let our gifts and passions stale away

unused.

Yes, the side-hustle can let you earn a bit more, but I feel the far more crucial role it can serve us is the engagement of our souls – which can only happen when we exercise and use our God-given gifts.

When I watched A Star Is Born a few months ago, I found myself tearing up just listening to Lady Gaga sing, not because of any particular

plot drama, but just hearing her, witnessing her gift. In just watching her, I KNOW she’s exercising her God-given gift – that she’s incredibly passionate about singing and perfecting her craft. True enough, when you visit her wikipedia page, you’d see she began performing in open mic competitions as a teenager and dropped out of college to pursue music.

Writing this, right now, is HEAVEN for me. I love the process of finding just the RIGHT word, making sentences and paragraphs feel complete. I’m not able to scratch this itch in my full-time job.

I realize, I NEED to find a medium with which to write. And here it is. Yes, I’m filling a need to let my insights and thoughts be heard, but that is secondary to my need to just…write. My true audience is one.

The side hustle can allow you to explore what you really want to do

So let’s say you know your gift is…talking. You can’t just quit your full-time finance job. You can use your side-hustle as your own personal laboratory.

Join a toastmaster group for a month. Not really comfortable? Sell insurance part-time the next month. Not for you? Work as a barista for a bit and get a feel of face to face customer service.

With the internet and all its different job platforms and networks out there, the possibilities are literally endless. There is now very little risk in trying different things out to see whats best for us.

Just pause and think about the ramifications.

We can spend YEARS, or even decades, hopping from one job to the next, one industry to the next in trying to the find the job or function which fills us, and most probably enduring a lot of unnecessary pain, doubt, restlessness and confusion along the way.

We don’t need to go through that anymore.

The side-hustle (and the way the internet has just souped it up) can help us cut that time dramatically. 

Go find your side-hustle.

 

For Your Soul’s Sake, Slay Your Dragon!

For Your Soul’s Sake, Slay Your Dragon!

Peter Cauton


https://www.googletagmanager.com/gtag/js?id=UA-130453128-1

window.dataLayer = window.dataLayer || [];
function gtag(){dataLayer.push(arguments);}
gtag(‘js’, new Date());

gtag(‘config’, ‘UA-130453128-1’);

henry-hustava-81799-unsplash

We all have a lurking dragon to slay.

There’s always THAT project we’re imagining – for some of us it’s in the constant forefront of our thinking, or for some of us, its a concept that we only visit whenever we allow ourselves to daydream a bit.

We can’t seem to let go of this project because it tugs at our souls, it captures our imagination. It’s a project which we envision would involve our unique giftedness – we KNOW we have a shot at making it work.

It could be starting a new line of work, putting up a startup, trying out some freelancing, pursuing a new hobby, organising a charity,  letting people know more about a cause, or going back to teaching. It looks different for each of us.

It’s easy to see ourselves as the hero of this story. The thought of this challenge fills us with a sense of adventure, meaning, and excitement. The possibility of success makes us just giddy.

But make no mistake. This is a dragon.

We are FILLED with fear facing it. Anxiety. We get paralysed. We push it back. To tomorrow. Next week. Next year. When we’re ready.

There is a price we pay for though when we keep on pushing it back.

My dragon is writing.

The last time I wrote in this blog was on January of 2017 – I did 3 posts that January. Prior to that 3-post streak, my last post was in 2015.

From my very first post in November of 2011 to December of 2014, I managed to publish nearly 300 posts.

I remember vividly how I felt writing those posts. Time would just WHIZ by. I would love solving the puzzle of how to make the posts feel more balanced, or finding just the right word to use, or the joy of just finding the exact metaphor to use. I was alive.

Then I just….stopped.

You know all the reasons. I had to work. I had to spend more time with my family. There were a zillion other things to do.

I tried a few times to revive it, but ultimately, I just stopped altogether.

Then something weird happened…I avoided writing.

When someone would ask, “Hey Peter when would you start writing again,” I’d get all flustered and irritated, and would try to change the subject entirely. At some point, I became allergic to ANY writing task. When someone would ask me if I wanted to write some copy for work, I’d suggest someone else.

In retrospect, I guess I didn’t want ANYTHING to remind me that I was doing my soul quite a disservice. I didn’t want to feel that lack, that gap between doing what I KNEW was soul-filling and my current state. I didn’t want anyone waving it in front of my face.

Then, self-doubt started to creep in. Old fears. Could I still write? Will I still be relevant? Will I have enough to say to sustain a writing cadence? Will people care?

This pushback went on. And on. And on.

I knew I had to face my dragon sooner or later though. I didn’t want to regret never coming back to it.

So I threw out all my self-delay tactics: the need to have a reserve number of posts already written before relaunching, the need to have a “grand launch” of sorts, the need to redesign and perfect the site, the need to have a foolproof plan on how to do this on top of all the other things I have to do. Just do it.

So here we are.

I don’t know how it will go this time round. I don’t know how this adventure ends, nor where it will take me. I don’t know if I’ll be relevant. I don’t know if people will care.

I just know I NEED to do this.

So here we are. I’m dancing with my dragon again. I feel alive and terrified at the same time.

There isn’t a better time for dragon-slaying as now

Yep, I can still remember the pre-internet world. To reach an audience, you needed exclusive and/or expensive access to print, TV, or radio. To find the best jobs, you needed to rub elbows with industry hotshots, or go through a good headhunter. I remember going to the photobooth to buy dozens of 2 x 2 pictures to staple them on the dozens of paper resumes I printed out. To find a job OUTSIDE the country was basically unheard of.

Now, literally everything is within fingertip reach. Job platforms have THOUSANDS of available jobs, both here in abroad. You can work for a Silicon Valley firm while working in the comforts of your Manila home through a platform like Upwork. You can learn virtually anything in Youtube. If you create something unique and interesting later and post it in social media, it can go viral and you can reach millions in a few hours. We can SEE people who have taken advantage of this digital revolution and followed their dreams.

Yet, our dragon battle remains unfought.  Accessibility isn’t the problem. I think it actually just serves as a medium which makes our dragons seem bigger and our frustrations more profound. I can choose do this anytime. Yet I choose not to.

It’s time for us to rise up from this stupor. God gave us those desires and longings for a reason. It’s part of our purpose. The world will be better if we scratch the itch. We can run from it, hide from it, pretend it doesn’t exist, but it will ultimately bubble up to the surface and leave us feeling restless and in crises (scheduled sometimes either mid or quarterly!).

Throw out those excuses. Carve out that time. Do that NEXT thing. You can do it!

Rise and slay.

From Startup to Scale in 3 Escalating Leaps

From Startup to Scale in 3 Escalating Leaps

Peter Cauton

Years ago when I graduated, I had no special commendations. My grades were slightly above-average. Flunked one or two, if I remember right. I have no MBA. No special connections. I was raised in a middle-income family, where I contributed a portion of my earnings as a breadwinner along with my brother. I never got the chance to work abroad. I started my professional career out as a high school English teacher, and then entered corporate life as an HR Officer.

I remember slowly going up the corporate ladder. The frustration of it. The ups and downs. The multiple crises, quarter-life and otherwise. You know.

I remember refusing to have my dreams slowly snuffed out by reality though. I remember taking some leaps. Some small, some big.

Fast forward. STORM is now Philippines’ largest flexible benefits provider. It has since developed multiple enterprise products and will hit 100,000 employees on its platforms in 2017. It managed to raise P190 million in 2015. It is now starting to expand to other countries.

It is a Blessing. A literal dream come true.

I wanted to tell you the story of the three definitive leaps I took to take STORM from a startup founded in my living room to where it is now. It is my hope that you get see what I see: that if I managed to take these leaps, you can too.

First Leap: May 2005

My very first inspiration in doing a startup was boredom.

After some years in the HR track as a manager, I quickly got familiar with the cadence of the function. In typical companies, first quarter was when recruitment happened, it was when I visited the different campuses for job fairs and also the time when more veteran professionals looked for work (after bonus season). Second quarter was arranging the summer outing and midyear evaluations. Fourth quarter was the busiest with planning, final performance evaluations, and promotions. In between, I handled a whole bunch of people problems.

Year after year, it was like this.

I could forecast what EXACTLY what I’d be doing months ahead. Even after I’d get promoted or transfer companies, this cadence would soon catch up with me and I’d get bored out of my wits. There was also an underlying desperation that I tried to avoid confronting: was I TRAPPED in this career I had chosen?

Fortunately, I had this business idea I was excited about to keep me sane and professionally excited about something.

In the first (consulting) company I worked for, I was lucky to have been the project manager for one of the first flexible benefit systems implemented in the country. I tried to pitch it internally as a possible business line for the firm I worked with, but it was quickly rejected (“we won’t spend for a product with no clear market”).

This rejection galvanized me into thinking — hey, maybe I could do it myself!

I rationalized that for my idea to really be palatable to companies, I needed it to be a software product (as opposed to me being an implementations consultant).

Therefore, I needed a technical co-founder.

When I think about it now, the VERY FIRST leap I did was a small and innocuous one: a created a pitch deck using Powerpoint.

Then, I worked my ass off.

In 2005, the local Philippine startup ecosystem was nonexistent. There were no events to look for co-founders in. No Linkedin or Facebook. (as far as I recall, no one used Friendster then as a networking tool) I instead networked old-school (I asked my friends out for coffee and asked them if they knew anyone else interested) and used all my weekend mornings to talk to different people. Must’ve talked to over 50 people.

I lucked out and found the perfect partner, Paolo.

With an investment P30,000 each, we founded STORM and set up shop in my living room. Paolo went in fulltime immediately. Since I was breadwinner, I couldn’t afford the risk and contributed to STORM part-time. To save money, we set up the first office right inside my 1-bedroom condominium. We also begged for used furniture from our friends:

Again, I worked my ass off. I worked a fulltime job as an HR Director and spent nearly all of my spare time working on STORM.

Second Leap: July 2008

The company would grow SLOWLY over the next 2 years.

Then, during the summer of 2008, Paolo approached me and asked, “Dude, can I talk to you?”

“Can I talk to you” — never good news 🙂

After 3 years of STORM, Pao wanted to do something else.

In my mind, I thought STORM was done. After all, at that time we had just lost our biggest client (via fax!), and if Pao left, no one would run the show fulltime.

Wait, what if I go fulltime?

I would quickly block out and relegate thoughts like this as sheer folly.

After all, it was ALSO right smack in the middle of the global financial crisis. What’s the first budget that goes out the window for companies during a crunch? Yep, the HR budget.

But in my prayer time, taking this preposterous leap became a very powerful theme I couldn’t shake off.

I started to look at the numbers. They weren’t so encouraging.

Resigning and going full-time for STORM meant swallowing an 80–90% paycut during a year when my eldest, Joaquin was born.

During this particular time, the savings in my bank account was wiped clean when the person I loaned the amount in good faith disappeared.

I asked some of my wisest friends for advice. ALL of them said to wait it out. They understood my passion for STORM, but that I needed to wait this out. Perhaps I can let STORM die first, and then start again.

All logic told me to wait.

Instead, I followed this not-so-Small Voice in my heart.

With my wife’s support, I tendered my resignation and bid adieu to my HR Career.

It was the most traumatic and emotional career decision of my life.

It was also the absolute best one I ever made. (Thank God!)

January 2013: Third Leap

Sometime in 2009, Pao came back to STORM and together we began to organically grow the firm. This time was such a learning experience for me as an entrepreneur. It was all bootstrapped. In order for our families to have food on our tables, we needed to be a profitable business.

For the next 5 years, we would grow the company at a very steady pace.

Then, we hit a wall.

Up to this point, we were doing Flexible Benefits like our competitors did: as a software-as-a-service product. We would charge our clients a static monthly fee for use of our system. Employees on the platform would then use our system as a flexible reimbursement system: they would exchange their current benefits into basically, credit. They would then spend on the benefits of their choice using money from their own pocket, and then reimburse it thru our system.

This was a very useful model for us when we started because it gave us a very forecastable fiscal model.

However, this reimbursement-software-as-service model had many limitations: a) a lot of companies don’t have budgets for this sort of innovation on benefits b) the companies that did have budget had a lot of difficulty increasing this budget (we had difficulty negotiating rate increases even just to accommodate inflation) c) the reimbursement system created a whole lot of process problems (human error, reimbursement cheating, etc) d) you have to be financially liquid to use the system.

We then thought of a risky innovation: instead of using a reimbursement system, why can’t we create an internal BENEFITS MARKETPLACE? When people convert their current benefits, they can use the resulting wallet on a marketplace which STORM can offer.

Not only does this completely solve the process problems and the need for the employee to be liquid, but VERY IMPORTANTLY, this will allow us to change the business model. Instead of earning from the client company through monthly fees, we can instead earn from the benefit merchants through margins off of every benefit bought on the marketplace.

This allowed us to separate ourselves from competition by not only offering a superior, more relevant product, but also give us the ability to offer a fantastic value proposition: FREE.

The risks however, were very real: 1) we would have to raise money from the outside because we didn’t have enough money in the bank to execute a massive pivot like that, 2) we would be shifting from a business model that has kept us alive for many years, 3) there were no pegs ANYWHERE for us to learn if this could be done.

In the end, we decided to take a giant leap.

We raised an angel round and executed a successful pivot in 6 months. We then would proceed to quadruple revenue that year, laying the foundation for our bigger fundraise with Xurpas come 2015.

Leaps as a Way of Life

As an entrepreneur, one of the biggest realizations I’ve had in recent years is that in this Innovation Economy we live in, companies need to continually innovate (or die).

This is why STORM continues to invest in new and newer things. It’s why we decided not to rest on our laurels in 2013 and change the entire way we did business.

Very recently, we launched our newest product, Squares, which is something that’s VERY different from the other platforms we’ve been offering.

I think this approach needs to be inculcated individually, as well.

We live in an incredible time when technological revolutions happen on a blindingly fast pace. In order for any individual to capitalize and thrive in this environment, one has to be willing to risk and take leaps.

And if my experience is any indication, ANYONE can.

YOU can.

You just need to…

Take That First, Small Leap

I was never immediately someone who took large leaps.

My very first leap was to spend a few minutes crafting a pitch deck. Then this set me up for the next leap: pitching to potential co-founders on weekends. This allowed me enough momentum and courage for my next leap: parting with P30,000 and starting. Eventually, this paved the way for me quitting my HR career, and so on.

I am still VERY much in this pattern, eager to see the crossroads and opportunities which lie ahead.

Don’t let the world fool you into thinking your dreams are impractical exercises.

What’s your next leap?

Been Awhile, JGL

Been Awhile, JGL

Peter Cauton

entrepreneur-593378_1280

After 8 months, I had all sorts of ideas on what my “first” post will be like.

Some long, drawn out 5-parter on what I’ve learned all this time, perhaps?

Some Michael Jordan “I’m back” one-liner?

I was even mulling just hammering out a regular post and pretend the 8-month gap never happened.

I had all sorts of ideas.

Of course it came down to me just opening good old WordPress and suddenly just typing.

And here it is.

When Peter?

I would get asked around a lot “when are you writing again?” or “when is the next open coffee?”

And I would just smile and apologize.

I did have the perfect excuse.

It has been a busy year. STORM went through a huge fundraiser. We started operations in Indonesia (which was just surreal). We are scaling fast, and facing all the problems which came with it. Moreover, I now had more children to spend time with and take care of.

I never got around to giving this as an excuse though, because it was simply not true. I actually wanted to share so much of what I was experiencing.

Truth is, I just never got around to writing. Reverse-momentum all over again. (here and here!)

So, what the heck…

So here’s a post just to break this 8-month gap. Boom. In your face reverse-momentum!

Some small consolation – I went through a TON these past months and learned SO much. At the very least, I think I’ve got a whole lot of writing just bursting out of me.

Thank you for your patience and your support – especially those who have encouraged me to continue. Those truly mean the world for us writers.

 

 

I’m back.

What Is Your Fearlessness Quotient?

What Is Your Fearlessness Quotient?

Peter Cauton


jump

At work, when we talk about hiring (which we talk about A LOT nowadays), I usually tell my co-managers that I am very interested in hiring “entrepreneurial-minded” people.

Then I’d get often asked:

What does that mean?

That’s a question I’ve been mulling about for ages. What exactly is it? How do you evaluate if someone has it? How do you know if someone has the potential to have it?

There are so many theories on what entrepreneurship is.

Here’s one of mine.

I think, when you distill it, when you boil entrepreneurship down to its basest levels, entrepreneurship is all about fearlessness.

Entrepreneurs just conquer fear.

Innovation, a word long synonymous with entrepreneurship, is all about not being happy with the status quo and doing something better.

How many times have we let the status quo remain because no one had the guts to call it out? Just to even identify that you want to  merely explore changing the status quo can be scary, much more actually trying to change it. Imagine the threats and pressure Elon Musk is facing now from the gigantic industries (petroleum, automobile) Tesla is trying to disrupt. Guts.

Persistence, another word we associate with entrepreneurship, also involves fearlessness. When we fail, it takes a lot of guts to DO THE SAME THING again, knowing the results will likely end in yet another failure. Entrepreneurship involves repeated failure. Legendary Amazon entrepreneur Jeff Bezos recently declared that his failures are worth billions already.  Ballsy.

Entrepreneurs also are known as builders. In STORM, we find this important enough to include in one of our value statements, which says that “we like to build versus maintaining.” To build something also takes guts – because you are putting something out into the world and opening yourself up to criticism.

In his recent, wondrous book which every entrepreneur needs to read, Peter Thiel says that a great entrepreneur is essentially a contrarian at heart. The entrepreneur believes and works on something the rest of the world doesn’t think is true. (For example, Larry and Sergey thought web linkages produce much better search results) It takes A LOT OF GUTS to run counter to what the rest of the world thinks.

Fearlessness.

So I’ve now included a set of questions on fearlessness which I ask would-be employees.

What’s the ballsiest thing you’ve done?

Tell me about a time when you stuck your neck out for an idea.

Tell me about a time you were criticized for something you created or suggested.

When was the last time you tried something out for the first time? 

As you read this, try to answer them. It’s a good exercise that can give us clues as to what our fearlessness quotient is.

It’s a good indicator on your readiness to make that entrepreneurial leap.

The good news?

Even if you found yourself frustratingly giving crappy answers to these questions, I think fearlessness CAN BE LEARNED.

You need to exercise your fearlessness muscles. How do you build muscle? Reps.

Start with low weights.

When your boss asks your group for questions or suggestions, be sure you do a Hermione and give an answer, even if ESPECIALLY when you think your answer feels a bit stupid.

Suggest ideas. In STORM, one of our best employees, Ethel, suggests things to me very very often (she just emailed another one as I write this). Big ideas or small ones, in her scope of work or beyond it, she would just go for it and suggest. She knows that sometimes, her idea won’t go well with me. Sometimes, it does. But she just puts it out there and learns either way. That’s awesome.

Practice makes perfect.

(Subscribe now to Juan Great Leap and never miss a post!)

5 Reasons Why You Should Quit Your Job Now and Work for a Startup (With Traction)

5 Reasons Why You Should Quit Your Job Now and Work for a Startup (With Traction)

Peter Cauton

racecar1

So, you want to put up a startup.

You want to take the leap.

But it’s sooooo hard to let go of the cushy job you’ve spent numerous years cultivating…

You worry about the sudden disruption of that bi-monthly cashflow you’re now so accustomed to and built your life around.

So what now?

Here’s a solution – work for a startup. But don’t just work for ANY startup – work for a startup with traction.

What’s traction? I like Naval Ravikant’s (Angelist founder) efficient definition of traction: “Quantitative evidence of market demand.”

A startup has traction when it has increasing numbers – revenue, users, profitability, engagement, traffic, etc…

These are evident signs that the startup is WORKING, that the business idea has merit and potential.

I’ve been mulling about my own leap into entrepreneurship, and I think one of aspects of my own leap that I underrate the most was my stint in Chikka back in the mid-2000’s.

I underrate it because I started forming STORM before my stint in Chikka. But I think my 5-year stint in the startup (it was 3 years old when I joined) helped solidify my readiness in taking my full leap into entrepreneurship in 2008.

Recalling my stint in Chikka, and my own experiences in running startups, here are 7 reasons why you should quit your job now and pursue a job in a startup with traction.

Screen Shot 2014-08-12 at 1.11.54 PM

1. It’s Inspiring

After 5 years in a very “corporate” environment (IT consulting), I had a very different experience on my first day, when our CEO sent me an email welcoming me to the team, and on the last line saying: “Let’s kick ass and rule the world!” I don’t think I’ve ever seen the word “ass” in formal company channels.

But after that, I was sucked in. I loved the informality and culture they were trying to create. I loved that everyone was in t-shirts. (my previous firm made me wear a tie)

More than this, however, I loved experiencing the growth.

In seasoned corporations, you’d expect conservative growth figures of perhaps 12% or 15%. In startups with traction, we’ve experience numbers like 700%, or even 3000% growth. This is undeniably exciting for everyone in the firm. When a startup CEO makes announcements about growth figures – everyone feels giddy (because everyone feels he/she contributed).

I remember reading that in Amazon’s early years, they made a bell ring whenever a customer would purchase from Amazon. This made the culture electric, they created a real buzz (pun intended) in the air. (obviously they stopped this after there came a point when the bell just rang incessantly.

Traction makes things ultra-exciting for a startup.

6848823919_724f516a05_z

2. You Can Get Paid (!)

Here is where the big difference I think lies. At STORM, I tell people who come in: “You probably won’t get the same salary as you would command in a multinational – but present salary isn’t why you would join a company like us.”

But you know what? We would come close.

And combined with everything else we offer (culture, learning, excitement, contribution, input, upward mobility, etc…), this makes it a sweet deal.

You get to work in a startup without sacrificing that big a monetary sacrifice.

“But I won’t get equity.”

No, probably not the big 20%-30% ownership that you would get when you join a pure from-scratch startup with no traction, but….

3665234144_20c3ff3135_z

3. You Have A Shot at Significant Shares

Noah Kagan was one of Facebook’s first 40 employees. He was there when Facebook was still in that rented house we saw in The Social Network. He was fired in his first year (so he didn’t get his shares, because it was vested). He basically lost $100,000,000. Of course, not every startup will be Facebook, but what I want you to look at here is the shares given to Noah. No, as the 40th employee, he won’t have the same % as Zuckerberg or Sean Parker, but got a much, much larger percentage than current employees get. (and he doesn’t need to buy them at $100,000,000 if he bought the same shares now).

Let me break it gently to you: you have NO chance of gaining significant shares in a seasoned corporation, especially if its public.

On the other hand, a number of startups offer equity shares to strategic/loyal employees.  I know some young startups who give all their starting set of employees shares in the firm. In some startups, you need to prove yourself (if you do, most entrepreneurs I know would be happy to give you shares). Dino Alcoseba now owns a portion of the startup he leads, Strata.

If your goal in becoming an entrepreneur is equity (which makes a ton of sense, as this is how most billionaires acquire their wealth), then you might actually find it by working for a startup with traction.

You’re going to have to prove yourself, though. Bottom-line, you have a shot.

9009347869_76b1c3afc2_z

4. Learning From Success

You now have so many stories on entrepreneurs learning from their mistakes. We hear a lot of quotes like:

That company I started failed, but the learning I garnered from it was why I now succeed…yada, yada..

This is true, of course (in fact I write about it here).

But you know what? You can also learn from successes! Yes!

By joining a startup with traction, you can see what it takes.

You can work for a dozen failed startups, amass a TON of experience, and STILL have no clue about how a startup can succeed.

In working for a startup with traction, you can see and observe best practices. Want to be a successful startup CEO? Then learn from a successful one.

5. Upward AND Horizontal Mobility

Dino is my poster boy for upward mobility in a startup. 5 years from “Junior HR Consultant” to CEO. (We have numerous examples of less dramatic upward movements as well 🙂 I think this is a clear advantage of working for startups – you get to grow with the firm.

But horizontal mobility is extremely important as well. Increased horizontal mobility allows you to find your own traction within a firm, and contribute where you can do your BEST work (a tremendous difference)

In a large corporation, it is often very difficult to change departments. Let’s say you start a career in Sales. You go up the ranks. If, suddenly, after some discernment, you decide, “I want to transfer to supply chain,” don’t be surprised if it takes time for your request to happen, or more likely, it doesn’t happen.

With a startup with traction, you can be flexible. With traction comes growth. With growth comes the need for new positions. Hence comes the opportunity to not only contribute in different areas – and try them out!

Longtime JGL advocates would be familiar with AR, who originally worked as a recruiter in (the now defunct) Searchlight, then she was hired by STORM. She then became STORM’s HR Officer, then HR Manager, then transferred into Consulting, then became our Content Management Head, before occupying the position she holds now in STORM, which is Customer Service Head. All in 2-3 years!

For startups, traction is king. Once a startup experiences traction, the possibilities are endless.

Make your possibilities endless as well and join one.

(Part 2 coming up soon!)

 

 

 

Introducing Thursdays Unplugged – And Why I’m Limiting It to 4 People

Peter Cauton

While I like organizing events like Startups Unplugged or Open Coffee, where I really get my kick is when I go on one-on-one coffee-talks.

In the bigger events or in some of the speaking events I’ve done, I may be able to impart knowledge and help out, but obviously, the learning cannot be customized to the individual. Sure, after the event there can be informal networking and getting to know people, but I don’t really get to KNOW people that much.

This is why I like doing one-on-one coffee-talks.

More than just the startup idea, I get to know the entrepreneur’s story. I get to know his motivations. I get to read body language. I don’t just shoot from the hip and comment on just the idea. I can comment and help out on the journey, which I think is far more valuable.  True enough, I’ve had a number of memorable one-on-ones with certain people.

The problem is, over the past few years, doing these random one-on-one meetings has gotten to be quite challenging, given my schedule and where I live (Antipolo).

So here’s my proposed solution.

I know 2 posts ago I set a 10-man meeting next thursday. It’s pretty evident that it won’t be as intimate as I would like it to be.

Hence, I am reducing it to 4 people (so total in the meeting of 5 including me). I’ll also endeavor to this weekly and make it part of my workweek.

photo (2)
Perfect for five!

Here are some of the rules:

RULES FOR THURSDAYS UNPLUGGED

1) Venue and time

The venue will always be at the STORM Offices (Ortigas Center), at 5:30 pm. I would schedule it later to accommodate those coming from work, but I do want to go home in time for dinner. It would end approximately 6:30-645. There’s ample parking beside our building.

2) Unplugged

No powerpoint decks or demos. Let’s keep it simple and just talk.

3) Send me material

Do email me the idea or the problem at least 3 days before the meeting takes place. Be as concrete and concise as possible. If you have a deck or a website, this is where you should send it.

4) Transparency and Non-disclosure

You will be sharing your idea/situation both with me and the three other people in the room. (Honestly, this should be okay with you. Stealth doesn’t work) However, this doesn’t mean you should go around spreading what the other guy just shared with you – so we will agree that whatever was mentioned in the room, stays in the room.

5) 5 and 10

We have an hour. Let’s do approximately 15 minutes per person. In the first 5 minutes, do tell us about your idea or your problem, and also your journey. Then let’s spend the next 10-15 minutes discussing.

6) Reserving a slot

Let’s do this very simply. Just email me at peter@juangreatleap.com to reserve a slot for a specific Thursday. First-come, first served.

7) Yep, it’s free

Nope, there’s no need for any sort payment. I just really want to help out in my own way (it’s not even sure if I will be able to be relevant and helpful to you). That said, if you feel obliged to bring some snacks for a group of 5, no one’s stopping you 🙂 (coffee will be on me, though). Just tell me what you’re bringing so there won’t be any duplication.

First one is on July 24. This is already fully-booked.

Next one will be on July 31. Two slots left.

Not yet sure if I can arrange one on August 7. I’ll confirm here in the blog.

Excited for the 24th! Will tell you how it goes!

 

 

 

Building a B2B Startup? Here are 5 of the Most Crucial Lessons I’ve Learned

Building a B2B Startup? Here are 5 of the Most Crucial Lessons I’ve Learned

Peter Cauton

Building

I hope my previous post got you more interested in taking a longer look at building a Business-to-Business (B2B) startup.

If you’re interested in plunging into one, here are 5 of the most crucial lessons I’ve garnered in building B2B’s for almost one decade now (Can’t believe it!):

incomplete

1) Doing Lean Startup? You cannot use a traditional “MVP”

If you aren’t familiar with Lean Startup Methodology, then please buy Eric’s book as soon as you finish this post. Essentially, the book says that you have to validate your assumptions about the product and the market systematically before you spend money on building.

Specifically, it suggest building a “minimum viable product.” This is basically a bare-bones version of your eventual product (which won’t cost you much) that you can show to potential clients in order for you to get valuable feedback which you can then use to develop the product further. Typically, this “MVP” would consist of just approximations of the actual product that could show potential clients. Here are 10 examples. 

You CANNOT do an “approximation” with a B2B when you’re selling to a corporation. Companies will simply not pay for anything which isn’t ready. They cannot risk it. (Unless the CEO is your brother or its a smaller company and your product is something they desperately need)

(And no, application developers, you won’t be able to fool them with a wireframe demo – they will ask you to click on everything to see whether they work)

So yes, you do need to spend earlier on product development than you would do on a B2C product.

What you could do to balance this out is to spend more time getting data on the PROBLEM you are trying to solve.

Is it really a problem? What are the specifics? How MUCH is this problem costing companies?  What price point would it get bought? Is it a painkiller or a vitamin? 

Talk to boatloads of potential customers to get problem validation. Not only does this serve as a data-gathering exercise, but its a customer development exercise as well – you are priming all these people in buying from you (once you have a working product).

mutliple

2) Remember, you are Selling to 2-3 different people

This is what we quickly found out when I started selling in my first startup, STORM.

We sold an HR product, so we built a pitch to the HR Head. After getting approval from the HR Head? Turns out we then had to present a cost-benefit analysis and present it to the CFO. Then another presentation to the CEO (with the whole EXECOM).

You will need to incorporate the paradigms of different people in the organization you are pitching to.

Usually, you have to pitch to the functional head of the department which will end up using your product. Then, there has to be a pitch to the one who will disburse the funding, which (if your product isn’t a finance product) is likely to be another person. Sometimes, the USERS of your product will differ from the functional head, so you will have to get their approval as well.

Put yourself in the shoes of each of these people and customize your pitch appropriately.

Some questions they WILL think about when doing the buying decision:

How will this help my department?

Will I look bad/get fired if this fails? (this is an underrated one – everyone is thinking of this!)

Can I trust these guys to deliver?

Will this help the bottom line? Can I just accept that proof as gospel?

Will this make me do even more work?

Can this further my career?

due

3) Be sure you ALWAYS have enough cash on hand for the next 6 months of overhead

I remember when we built STORM, we wanted to pursue a service arrangement wherein we would bill the client every month (instead of a one-time, big-time approach). We figured this was best for cashflow management and put less pressure on sales.

Never did we anticipate that we would get delays of 60-90 days for payment! While we had safeguards in the contract for late payment (stopping the service, steep penalties, etc), we  quickly found out it would be very dangerous for us to make good on these penalties, after all they would endanger our relationship with  the hand which feeds us.

As a new startup, you would seldom have bargaining power in asking clients to pay on time. As a result, cash flow would usually be worse than you expect.

Plan accordingly.

friends

4) Get a natural networker in your founding team

A rather LARGE percentage of the clients you will land in B2B will be as a result of networking. It helps a lot if you would have someone in your founding team who can network well with MANAGERS in the industry, or better yet, ALREADY has a network.

Why?

Its extremely difficult to do a B2B sale organically.

You know, something like sending an email addressed to the “HR Head,” only you need to send it around 10 times to irritate the HR Head enough that he will ask one of his subordinates to talk to you. Then you will be at the mercy of a person who is 2-3 levels below the actual decision maker. Now you have to follow up with this person around 10 times again so he can tell his boss “these guys are ok to talk to.” Then you will go back to trying to get a meeting with the boss. If you do manage to one day get the HR Head to endorse you, you will now have to do the whole shebang with another department – finance.

This looks like I’m kidding/exaggerating, right?

Easiest way to not get yourself in this pickle? Get endorsed by someone with some authority in the office.

The difference is night and day. A great endorsement can get you right to the decision-maker in your first visit.

Get a networker in your founding team. It’s worth the equity.

gold

5) References are gold. Invest in them.

Pitching to a potential client?

The following is the question companies are MOST EAGER to ask you:

Who are your other clients?

Followed by:

Can we call them?

TRANSLATION: We don’t trust you! You have to prove to me I can trust you!

So – be sure you strategically gather and document references.

First and foremost thing to do here? Always keep your promises. If you do what you promise to do, then your current clients would not hesitate in giving a good recommendation.

Document these and spread them as widely as you can through different mediums. Some quick tips:

A) ASK for references. No one would volunteer them. You have to ask for them. Ask ALL your clients for references. If they delay because they say they don’t have time, then volunteer to MAKE one for them that they can then just validate and accept as theirs.

B) Be creative. You can, for example, give a discount if your client agrees to do a reference video (“these guys are so good!”) to be posted on your website.

c) Create a referral to incentivize your current clients to refer other clients. This can even be an incentive for your current service – for example, for every client they refer (and you land), you could give a 5 percent discount to their current monthly service fee.

5b. Bend over backward for your first client

The very first client is EXTREMELY crucial for a B2B firm. This is for obvious reasons – they will serve as your very first reference. In a very real sense, your survival will most probably hinge on how you perform with your first client.

They are naturally very tricky to land – to work with you means they are subjecting themselves to being the guinea pig.

So do bend over backwards for this first client. Mitigate the perceived risk for them. Give a massive discount (I actually recommend giving it for free, in exchange for detailed reference material).

But aside from pricing, give them your ALL –  your ball-busting, never-have-you-worked-this hard, absolute 1000%. Give your first reference something great to talk about.

Six Powerful Reasons Why Your Next Startup Must Be a B2B

Six Powerful Reasons Why Your Next Startup Must Be a B2B

Peter Cauton

To B2B or not to B2B? Ah. This is the question.

For me the answer is clear. With all things being equal, if you are a Philippine-based startup, you should try building a B2B first.

Let me get my obvious bias out of the way first – I am primarily a B2B guy. Most of startups I’ve been involved with – STORM, Strata, Stream Engine – have been B2B’s. (the notable exception is JGL)

Waitaminit! What do mean by B2B again?

You can generally classify as startup as being a B2B (Business to Business), as opposed to a B2C (Business to Consumer). A B2B company sells to other companies (also called enterprise business), while a B2C sells its wares directly to consumers.

I think there is an underlying reason for my own preference as well – I just find it a bit easier to build a B2B.

Here are six huge reasons why.

twotango

1) More than Two Can Tango

For direct consumer businesses, you mostly either have to be NUMBER ONE or NUMBER TWO to be  successful in a certain market segment.

Think about it.

Why has it been so difficult for a third telco to get established? Why has it been forever Mcdo versus Jollibee? Apple vs. Samsung? Coke or Pepsi? Jobstreet vs. Jobsdb? Nike and Adidas? There are countless examples.

In fact, for a HUGE number of  B2C industries, there’s only space for one or two players.

But in B2B?

You can secure a certain segment of the market as long as you can service them well.

This time, think about how many ad agencies there are, or headhunting firms, or IT development firms.

There are a lot, right? And yes, they’re able to co-exist.

B2B might not be sexier (for some at least), but its a hell of a lot safer.

hands

2) Experts Everywhere

I was DEEP in HR Management for ten whole years. I finished an advanced degree in basically HR Management. I know it well.

What’s the great thing about about knowing things well that from an entrepreneur’s lens?

I know a LOT of problems companies face when it comes to HR.

I can probably rattle off 20 different HR-related problems which companies are struggling with.

And of course, problems are where startups are born. That’s literally 20 startup ideas (which I mistakenly tried to pursue at the same a few years back – but that’s another story)

Guess what? Dive in Linkedin and there will be scores of people like me in a variety of different fields (sales, supply chain, finance, customer service, etc…) in a variety of different verticals (medicine, real estate, education, etc…). Heck, if you’re from corporate, over 30, and you’re reading this, chances are YOU are a subject matter expert who is knowledgable about big problems in specific areas.

Some of the best ideas for startups will come from these people. And there are a ton of them.

unlock

3) Funding Is Obtainable

While it may seem that funding headlines are always dominated by B2C’s (quite natural, because on the average, the addressable market for B2C’s would seem larger than B2B’s – and this return potential excites VC’s), you WILL get funding for a great B2B idea if you raise money for it.

Just last year, Kalibrr raised a ton of money. So did Payroll Hero. B2B firms.

I’ve had first-hand experience in raising fundraising last year as well, with both STORM and STRATA getting Series A funding.

You can also check out the portfolio pages of Kickstart and Ideaspace and see more B2B’s.

You got a sound B2B idea? There are a LOT of people who can help out with startup capital.

phil eco

4) Companies Are Flush

Over the course of the last 12 months, we’ve been hearing headlines like:

“The Philippines will be a top 50 economy by 2050!”

or

“Execs bullish on Philippine economy!”

Who’s feeling this sudden abundance?

Go have coffee with your friends who dabble in the stock market. They’re probably smiling. Most likely they have spanking new shoes.

Boatloads of companies are killing it in the stock market.

Businesses are flush. Companies who are flush tend to invest more – and tend to be just a tad more interested in improving things. Or even trying out new stuff, like you know, startups.

What does the first “B” in “B2B” stand for again?

Go where the money is.

Adding this one quickly: I remember when we first started Mobile Academy, we wanted it to be aB2C  – a place where anyone can learn about how to create a mobile app. We did “lean” methodology, developed some quick mobile courses and threw them out into the market, seeing who would bite.

We quickly realized  who the market was. Direct consumers waffled at our prices, with a good number saying they’d much rather learn on their own than pay up.

After a few weeks, some tech firms heard about our courses. Boom. Booked a whole class full, just like that. Then another.

I think experience can sum up this whole post.

bronto

5) Dinosaurs Create Opportunity

You know one thing I’ve seen in my years servicing and selling to corporations?

A number of them do things very, very, very inefficiently.

Some of them hire full-time encoders.

Some of them (actually, a LOT of them) use mammoth, outdated “legacy” systems.

Internet Explorer 5 (!) anyone?

Some of them don’t take advantage of mobile technology, even if there’s a big, obvious advantage in doing so.

A lot of them don’t understand tech and social media.

Opportunities abound.

chicago
(nope, couldn’t find any appropriate picture, so I ended up with the most obvious one – I love 80’s music anyway!)

6) Hard Habit To Break

So how does a B2C company lose a customer? He or she just stops purchasing if and when she feels like it.

If you’re a B2B, it’s MUCH more difficult for a client to drop you. For starters, deals are usually governed by contracts. These typically span 1-2 years.

They also KNOW you, so they’re going to have to tell you to your face that they’re not renewing your service. That’s MUCH more difficult

One other thing? They’re not using their own money to make the purchase!

So you know, unless you completely BOMB and make them look bad, you are MUCH MORE LIKELY to keep a business client.  Companies are creatures of habit. Once they get to get used to being serviced by your firm, you become a hard habit to break.

(Of course, what we missing in this discussion is a very key ingredient – what you are passionate for. But again, all things being equal – if you had one solid B2C idea and one solid B2B idea with roughly the same economic potential? For me, it’s a no-brainer.)

(While this post explains WHY you have consider building a B2B, you can find some crucial suggestions on HOW to build B2B’s in this post.)