Senin, 03 September 2012

Thank the People Who Really Matter

Take a moment to remember all the people, seen and unseen, known and anonymous, on whose work your success depends.

Labor Day Construction

shutterstock images

A European friend of mine recently interrogated me about Labor Day. "I guess," he concluded, "this proves Americans appreciate irony. Not working on Labor Day--that's pretty cool!"

His sense of humor aside, I always think that Labor Day--in contrast with the various May Day holidays celebrated in Europe--might be more meaningful if we thought about it as something other than the beginning of a new school year and end of summer vacations.

It's a useful day on which to contemplate how much we all depend on the labor of others, without which we really could do nothing. I'm talking about the food we buy that's grown, delivered, and sold by an army of farmers, truck drivers, and store assistants, the Internet we access because someone somewhere is minding the servers (as Andrew Blum has demonstrated, they're not in the "cloud" but mostly underground), and the garbage collectors who ensure we aren't sitting in a mess of our own making. Almost all labor is invisible, but we depend on it and would soon notice its absence.

What's ironic in this context, I believe, is that most business coverage focuses on the heroic soloists: the Steve Jobses, Mark Zuckerbergs, Martha Stewarts, Irene Rosenfelds, or even Julia Childs who single-handedly created huge companies or brands. Why is this myth so potent? We all know, if we take the time to think about it, that none of these people accomplished anything alone. Each needed moral support from friends and families, financial support from investors and backers, technical support from engineers, scientists, and accountants, and honest feedback from those brave enough to proffer it. The solitary heroic narrative disguises these stagehands, but they are always there and always necessary.

Great leaders know this, and many struggle (often ineffectively) against their own canonization. The most honest come to recognize their dependence on the gifts and talents of people around them and work hard to diffuse the applause. This isn't (or shouldn't be) just modesty. Great companies are built through collaboration, argument, debate, and dissent that take good ideas, test them, and stretch them. The most endangered leader is the one surrounded by sycophants and yes men and women; their ubiquity goes a long way toward explaining the series of banking fiascos we've witnessed over the past five years.

So this Labor Day, while you're not laboring (if you're so lucky), spare a thought for all those people, seen and unseen, known and anonymous, on whose work you depend. They're everywhere you go and inside everything you do. And most wouldn't mind the occasional thank-you.




I'm Still Getting My Hands Dirty

He got rich flipping houses, then became famous doing it on television. But he really hit his stride when he began thinking of himself as an educator.

 Hit It Armando Montelongo gets back to his roots in business.

Gregg Segal

Hit It Armando Montelongo gets back to his roots in business.

COMPANY PROFILE

Company: Armando Montelongo Companies

2012 Rank: No. 90

3 year growth: 3,215%

2011 Revenue: $74.5 million

Eleven years ago, Armando Montelongo was $50,000 in debt, had a credit rating of 501, and was living with his wife and toddler son in his in-laws' garage. He changed his fortunes by learning to flip houses: buying them on the cheap, fixing them up, and reselling them for a profit. That led to a three-year stint on the A&E show Flip This House, and then to a business selling books and DVDs and giving seminars to would-be flippers around the country. As told to Darren Dahl.

I grew up in San Antonio; my dad worked in the construction business. But in 1986, the economy changed dramatically, and the real estate market tanked in Texas. A lot of people lost a lot of money, including my family. We lived through some hard times, and it made a lasting emotional impression on me.

By 2001, I had gotten married and had a son, but I hadn't done much with my life.

My son was two and a half. I remember thinking, One day, he'll think of his dad as either a winner or a loser when it came to money. That's when I decided to enter the real estate game.

I made a few friends who knew the business and who helped mentor me. My dad let me borrow $1,000, and I began buying and selling distressed houses locally. At that time, there was a huge mold scare in Texas, and houses were dropping in value by up to 40 percent overnight. At the same time, homeowners were in litigation with their insurance companies over paying their claims. I began offering myself as an expert witness to the attorneys. I would put in an offer to buy a house, which helped them establish a value for the house in court.

"It's like if someone had been out there studying how Hearst or Getty or Trump did it from the ground up. That's what I'm offering."

Whenever I didn't know what I was doing, I adopted the philosophy of "fake it until you make it." I would walk into any situation the way I did with the lawyers in the mold lawsuits. I would act like the biggest and best real estate investor around who would buy any house in any condition. By working extremely hard and finding people with a need, that's what I started to become.

With the help of an investor, I would buy a house for $60,000 that was originally valued at $150,000. I then put $20,000 into repairs and got a microbiologist to certify that it was clear of mold. I would put the house on the market for $120,000, and it would sell within 30 days. I kept doing this over and over again. It was a volume game. Within three years, I had made $3 million.

The TV show was probably one of the greatest things that ever happened to me. It was a life changer, and I'm grateful for it. It will be cool to show the videos to my grandkids.

There are two types of people: those meant to be on camera and those who are never meant to be. I was meant to be on camera, because I have a lot to say. When you're the seventh of eight kids, you learn how to speak up.

I once told my wife that if I ever learned how to make money, I would teach the world. That's the truth. Flip This House became the platform for me to do that. So I made the commitment to build a $100 million business teaching people to get rich'or I'd go bankrupt trying. We did $74 million in 2011 and are on track to hit $100 million this year.

Since starting the company, we have come in contact with 300,000 of what I call our "students," people who want to learn the real estate business from attending our seminar or buying our books and videos. Our seminars are held in anywhere from six to 18 cities a week. I personally do nine three-day advanced seminars a year.

We teach people how to assess houses by looking at things like the roofline, the foundation, and the condition of the paint. When you flip houses, you can't afford to get the rehab numbers wrong. We can teach only part of that in the classroom. The rest comes from seeing and touching the house itself.

I am building the next great American brand associated with wealth. That's why I've sponsored Indy 500 cars and the final table of the World Series of Poker. It's like if someone had been out there studying how Hearst or Getty or Trump did it from the ground up, following what they did every day and seeing how they banged their head on the table and overcame challenges. That's what I'm offering.

I still invest heavily in real estate. I'm out there making deals. That's separate from the seminar business. I will only teach people how to flip houses if I'm doing it myself.

When I was 25, I wrote a list of goals. I found that list the year after I started my seminar business and realized I had surpassed every goal I had set. It's my belief that if you have a dream, it should be your only action in life to go after it without a backup plan.

The foreclosure market has created an incredible inventory of distressed properties. If people aren't getting educated about the real estate market, foreclosures, and banks, they are missing a phenomenal time to get really rich. When I look around, I feel like a shark in a minnow tank.




Minggu, 02 September 2012

Set a Crazy Goal. Then Blow It Away

Life After the Inc. 500: It was not enough for William Roetzheim to launch Marotz and then sell it for millions--he wants to do it again and again and then again.

judges holding up score cards, perfect 10

Getty

William Roetzheim 2

Courtesy Subject

Life Accomplishments William Roetzheim, founder of Marotz, runs an arts colony-cum-bed and breakfast with his wife, Marianne.


Jamul Haven, an 1890 luxury Victorian bed and breakfast in the mountains of San Diego

COMPANY PROFILE

Company: Marotz

2000 Rank: No. 384

3 year growth: 691%

1999 Revenue: $4.7 million

William Roetzheim is not a delusions-of-grandeur kind of guy. He sets an achievable goal, achieves it, then moves on to the next thing. So, a year after making the Inc. 500 with his software company, Marotz, he sold the business and launched Cost Xpert Group around a cost-estimating tool he had developed at Marotz. He built that business to a few million dollars and then, yes, sold it. "I always plan to sell when I get to $5 million," says Roetzheim. "I like starting companies. I don't want to run something big."

Retired at 50, in 2005, Roetzheim made a list of all the things he hadn't done "because they didn't pass the litmus tests of, Will this help me in my business pursuits?" First off: writing poetry. But he didn't want to waste time wandering lonely as a cloud. "I treated poetry the same way I treat everything," says Roetzheim. "There's a mission, there's a goal, and there's an objective. I even had Microsoft project plans for it."

For a year, Roetzheim spent six hours a day reading books of and on poetry. He eventually self-published a volume of verse and compiled an anthology, The Giant Book of Poetry, which is taught in colleges across the country. That anthology underwrites the small press Roetzheim founded to publish his work and the work of a dozen other writers. He also began writing plays about famous poets; four of the works have been staged in New York City. He paints and has had a gallery show.

In 2008, Roetzheim bought and restored the Victorian house next to his own in Jamul, California. He helps his wife run it as an arts colony-cum-bed and breakfast. Guests go there to paint and work on scripts. Playwrights come by for readings, and patrons are introduced to artists at monthly dinner parties.

"I hate to spoil the illusion, but I'm not doing much of the arts stuff anymore," says Roetzheim. "I had met all my goals and objectives there. So now I've started another company." Level 4 Ventures offers project-management help to companies such as IBM and Accenture. Roetzheim plans to expand the company to a few million, then sell.

 




Sabtu, 01 September 2012

The Man Who Built Burning Man

As the annual Burning Man festival rages on in Nevada this weekend, founder Larry Harvey discusses what it's like to be at the center of one of the world's most popular--and wildest--events.

Photo courtesy of Burning Man

Larry Harvey founded Burning Man, an annual music an art festival that takes place in Nevada's Black Rock Desert.

About 50,000 attendees gather each year to build a temporary city known as Black Rock City. The structure seen here is known as

Photo courtesy Michael Holden

About 50,000 attendees gather each year to build a temporary city known as Black Rock City. The structure seen here is known as "the temple".

At the annual art and music festival known as Burning Man, Larry Harvey is regarded as something of a deity.

He's the founder of the festival, which brings about 50,000 attendees together each year to build a temporary city in Nevada's Black Rock Desert. He's also the author of the festival's highly altruistic guiding principles, which include lofty ideals like "radical inclusion" and "decommodification." As a leader, Harvey is widely credited for making Burning Man not just a business, but a movement.

But being a leader as established and respected as Harvey comes with its challenges. In our July magazine issue, Harvey discussed how he struggled to keep Burning Man together when money issues threatened to tear the 26-year-old company apart.

Now, as this year's Burning Man is underway, with the ritual burning of the 40-foot-statue known as "the man" taking place this Saturday, here's a look at an extended interview with Harvey, as he tells Inc. reporter Issie Lapowsky about the festival's history, hardships, and, most importantly, future.

Tell me a little about how Burning Man began.

When I was in my late 30s, I lit a figure on fire on Baker Beach in San Francisco. It was me, a friend, and maybe eight people, tops. There wasn't any premeditation to it at all. It was really just a product of San Franciscan bohemian milieu. Forms of self-expression are rewarded in a city of self-expression. As soon as we lit the figure on fire, our numbers doubled. I guess if you light a figure on fire in the right way at the Republican Convention, people would yell, "Down in front." Fire's just a primal attractor. But if you asked my friend and me on the beach in 1986 if we thought that act would become what it is today, I suppose the very notion would astonish us. Year after year, a few people joined. Then a few more people joined, and all of a sudden, I was at the center of something big.

Was that strange for you?

Well, I'm actually a very shy person. You'd be surprised how many leaders are shy. They're not all extroverts by nature. My early life in many ways made me feel extraordinarily isolated from others. I grew up on a farm in Oregon, an adopted child, with one sibling, and parents the age of all my peers' grandparents. We lived in isolation from the people around us, and it was always a struggle to cope with as a child. The heart can really expire under those conditions. I always felt like I was looking at the world from the outside. 

You'd be surprised how many leaders are shy. They're not all extroverts by nature.

I don't think I was unique, but I know I felt all too unique. Well, with Burning Man, I'm surrounded by all these people who believe in what I believe in, I have the privilege to enunciate it, and everyone joined me! Freud said that there's no happiness in life except the realization of a childhood wish. In some sense, Burning Man is the fulfillment of my first conscious wish in this world.

So did you design Burning Man for people like yourself?

 Burning Man isn't about my story, but it does tend to attract people who feel they can be themselves when they can't be at home. When you come to an event, we say, "Welcome home." You've finally found that group of people who accepts you for who you are.

Last April, you announced that Burning Man would be transitioning from a for-profit to a non-profit entity. How did that decision come about?

It all started around 2007, when we were sued by a very early partner, who had resigned. The early partners had kept the intellectual property, and the lawsuit surrounded that intellectual property. The terms of the settlement don't allow me to be absolutely frank, but it was settled for an undisclosed sum. When we settled, other members of the board began wondering, "What about us? How do we take care of our personal futures and square that with our ideals?" Burning Man wasn't about profit-making. It never was. We had an agreement that annihilated equity. We said anyone who leaves the partnership gets just $20,000. But here we were sitting on all this property, the event, the income from the event, and the capital investments we'd made. We started asking ourselves what would happen to that when we were gone. None of the partners ever considered selling the event. We didn't want to liquidate the company, make off with our piles of money, and have it cease to be, either. We'd always been acting for something greater than ourselves. No one could bear to sacrifice that. As far as we're concerned, there wouldn't be enough money in the world to compensate us for that. So we applied one of our guiding principles, "gifting." It's based on the notion that what we're doing is a kind of gift. There are institutions in the very business of giving gifts and acting for social good, and those are non-profits. We decided that's what Burning Man should become. We'd liquidate our own interests over three years, maybe four years, then we'd give the rest of the money to the non-profit.

When you announced the change, you also mentioned that the decision caused some infighting among the board members. You said it "felt like the band was breaking up." What happened?

The big question was, how big of a bite could we take out of the enterprise, ourselves, without destroying it? What's enough? That was the issue. People muddle along in life and say, "I have enough to live well." But show them the chest of millions of dollars that could be theirs, and it can unhinge people. It can absolutely unhinge them. My job had always been to adjust the differences between my partners. I would go back and forth and explain one to the other, but that really took a toll on me this time. Every time one of them came to me to complain about another, I just heard this beeping sound, like a truck backing up to dump off a load of garbage. I couldn't help in the depths of night thinking, "I'm the one who's internalizing all of this all the time. I don't have anybody." What always kept us going is that we supported one another. But who supports the supporter?

So how did you resolve it?

The only way to resolve it was to get people talking to one another. The problem was they thought they didn't have to talk to one another, because they could talk to me. That's when I began to realize that my method of leading was no longer adequate, and to think it was would be egotism. I had to get people to realize I was as frail and as mortal as they were. I had to humble myself in the faith that they would step forward. We spent a lot of time in closed rooms together.

That's when I began to realize that my method of leading was no longer adequate, and to think it was would be egotism.

There were instances when people got really mad. But we came through because we held true to our values, and, ultimately, our values were always aligned. It comes back to the philosophical question: What makes life worth living? That's our model. It may not be a business model, but look at what we've achieved as a business. We've survived. We've grown. And this new non-profit entity has enormous potential.

Will the non-profit serve the same purpose as the for-profit, or is there more to it?

Burning Man has come to have great celebrity in the world. The new non-profit is focused not so much on the event in Black Rock City, as it is with applying those values and growing our culture worldwide. There are many Burning Man-inspired events around the world now. We haven't instigated them. People just organized events because they wanted to be the way they'd been at the festival. We're not getting any money for it, but we think down the line the Burning Man Project, as the non-profit is now called, can create a consultancy relationship and help them. We learned every lesson you could possibly learn the hard way. They're soulful lessons. We know why we know what we know.

In the new entity, you'll be one of 17 board members and will no longer run the day-to-day operations. How do you feel about that?

I don't want to offend community members, but to be constantly set at task-managing the event is like having a terrier continually biting at your trousers and dragging you back every time you take a step forward. The scope of Burning Man is worldwide. This gives me the chance to see what home the culture we've created can find worldwide. I want to remain a useful contributor. Even though we did all this to extend our legacy after we're dead, as long as I'm alive, I want to grow until the day I die.

Are there any key lessons you've learned from all this?

I've learned never to expect people to be better than they are, but to always have faith that they can be more. I've seen it proven out enough times that I don't think it's naive at all.




Relax: You Don't Need All the Answers

Robert Kaplan: Simple Strategies to Be an Effective Leader

Robert Kaplan, professor of management at Harvard Business School, says true leadership is constantly reassessing your company's most basic priorities and goals.

Highlights: How to Deliver Value to Your Customers1:32

Leadership isn't just about answers, it's about asking the right questions says Robert Kaplan, professor of management at Harvard Business School.


Robert Kaplan, professor of management at Harvard Business School, says leadership is much more than just answering questions.


Basics: Why Your Start-up Dreams Shouldn't Be About Making Money8:00

Robert Kaplan, professor of management at Harvard Business School, says that defining your business' vision is one of the most difficult things for an entrepreneur to do. (Hint: It has nothing to do with making money.)


Priorities: Never Stop Questioning Your Strategy5:44

Robert Kaplan, professor of management at Harvard Business School, says a leader should never have more than three priorities. Here's why.


Tools: Your Most Valuable Asset Is Your Time5:54

Robert Kaplan, professor of management at Harvard Business School, says you should make sure your time is spent on top priorities.


Vision: Don't Get Sucked Into Complacency2:33

Professor of Management Practice at Harvard Business School Robert Kaplan says an entrepreneur must constantly question the long-term plans for the company.


Q&A: What's the Difference Between Goals & Priorities?6:08

Robert Kaplan, professor of management at Harvard Business School, talks about adding real value to your company via a clear vision.


  • HIGHLIGHTS How to Deliver Value to Your Customers1:32

  • LEADERSHIP You Don't Have to Have All the Answers6:48

  • BASICS Why Your Start-up Dreams Shouldn't Be About Making Money8:00


  • PRIORITIES Never Stop Questioning Your Strategy5:44

  • TOOLS Your Most Valuable Asset Is Your Time5:54

  • VISION Don't Get Sucked Into Complacency2:33


  • Q&A What's the Difference Between Goals & Priorities?6:08



9 Wildly Successful Kickstarter Campaigns

This wireless sensor square can do things like tweet you when your laundry is done drying or text you if someone opens your front door. You'd never know from looking at it, but it's got an internal temperature sensor, an internal accelerometer (for vibration, impact, and motion detection), a magnetic switch (useful for doors and anything else that moves), and a moisture sensor. To use it, you go to a Web app to set up rules for what kind of message it should send you if one of the sensors is tripped. Twine also can send you email messages if that's your preferred medium.

Pledged: $556,541
Funded 1,590%



Jumat, 31 Agustus 2012

Hate Networking? 3 Ways to Get Over It

Here's how to make networking work for you--and your business.

Texting Addicts

Getty

Networking is at the top of the list of things that make me the most uncomfortable. 

Most people who know me are surprised to learn this, because I am a consummate extrovert, but, in truth, I find it daunting to talk to people I have never met, and I hate pretending to be interested in people who are clearly networking to social climb. In the past two years, however, networking has become a very important part of how I grow my business.

Consider these three ideas to take the discomfort out of networking and use it to create real value for your business:

Listening is the best way to start a conversation.

Most people think about networking from the perspective of what they are going to say. Instead, think about networking in terms of what someone else might have to say to you. Last week, I was at an event with other business owners, and a woman mentioned a new sales manager who had just joined her team. Rather than bringing up my own recent hiring challenges (which happened to be at the top of my worry list), I asked her how long it had taken her to find the new recruit, and when she confirmed that the process had been long, I asked what resources she had found most helpful in her search. She gave me several ideas I had never even thought of, let alone tried.

Honesty begets honesty. 

Networking tends to bring out the braggarts, the people for whom everything is going just great: stellar sales, smooth cash flow, and growth potential to last a lifetime. We can all spin our stories to sell the audience on how great our businesses are, and doing so is sometimes a great survival skill. However, I find that ditching the PR pitch and honestly talking about my challenges has saved my business more than once. About a year ago, at a networking event, I had a powerful conversation with a business owner I had just met about some financing issues I was having, and it's a damn good thing I did. He gave me excellent tips on how to assess the potential peril my business was in, and several specific ways to reverse the problem. Had I kept quiet about my woes, I would have missed a valuable learning opportunity.

Everyone has something interesting to impart. 

Networking makes people nervous, because they worry they may be thrown together with people with whom they have nothing in common. In my experience, the people who are the most different from me are also the most likely to teach me something valuable. Stepping outside of your circle is one of the most effective ways to begin thinking outside your box--and networking is the perfect chance to get access to a bevvy of different types of thinkers, all in one location. At an entrepreneurs breakfast earlier this year, I sat at a table with no one I knew. I gave myself the assignment to learn about each person's business, and in the process, I discovered--from a leadership researcher!--a print-on-demand method I could use to make T-shirts to promote my brand. I also found out from the owner of a consulting business about a website-creation tool that would let me sketch out how I want my site to be reorganized. And, just by chance, I wound up talking to an IT guy who tipped me off to an alternative resource for searching for new suppliers, and they proved to be more effective than the one I had been using. None of these people are in my industry, nor did their products overlap with mine, yet they each told me about something I could use.

So think again before you consider skipping a networking opportunity or contemplate hiding out by the buffet table. Networking can make the entrepreneurial journey less lonely, provide you with great nuggets of advice, and force you to do something outside your comfort zone--all of which are fundamental to growing your business.