THE RIGHT CHOICES Warren Buffet once said (paraphrased by me), 'if I had any advice to someone who wanted to get a job and make money, just go into the highest growth active industry and take it from there.' What he meant by that is, a lot of time we take a job in whatever comes across our path, but say, if you just pick a really high growth, high end industry like recruitment for the oil industry or something to that end, you wouldn't be working any harder, but you'd be making so much money- just because the average of that industry is set so high... (if you don't know who Warren Buffet is, google him, it's worth to read up on him - I think he is like the 4th richest man still globally).
ANY CHOICE I WANT I've had the fortune to pick which industry I wanted to settle into after being a management consultant. I've had a lot of exposure before I went corporate executive mode, from high fashion licensing to fighter jet radar systems to concentrated solar power cell set-ups. I still consult on a wide variety of industries related to main one, from a sea port, airport, data centers and construction, obviously I have a lot of exposure, lots of choices, but my main industry, well it's getting really really tough now.
BAD SITUATION I could say, I'm one of the top in my industry globally, no shit. Of course I think I'm number 1, but I guess the industry could reasonably peg me in the top 5. But I've been at the same project now the last 5 years and the industry itself has faced massive consolidation (meaning that nearly all the smaller players have been wiped out or absorbed) and it is no longer a growth industry. This means, then when we compete, it's really really a blood bath and I'm where I'm at, yes, there is a chance things will work out, but the opportunities are very slim and while I say I'm one of the best out there as an individual, as a company, I'm really a non-entity- other than I have massive backers and the reputation, but in terms of market share, we just relaunched back into the market 6 months ago, and it hasn't been pretty- some progress, but it's a far cry from where we need to be, like light years away.
SWITCH NOW I'm not daunted, I'm not scared, I am ballsy enough to think I can do it, but the question turns up, do I know better to keep at this as my top priority? I mean I spend all my time on this, and I've gotten to a point where I can breath to look at other projects, new projects in growth industries where my basic knowledge can make a major impact there where it takes everything that I know to simply survive in my current industry. And it's not a matter that the grass is greener on the other side, if you know business, it's clear like night and day, it's just that for most people they don't have the option to switch industries at will, but I do and so far, even people in the industry are telling me, switch.
EASY CASH IS GOOD, OBV. The first temptation of it all is the effort, then the cash. In a high growth industry where everyone is running around like a headless chicken and still making cash, the amount of effort is minimal, and the cash is great- no brainer right? Yes/no, I mean you still need to understand and get in early, and the understanding comes from being open enough to spot the potential apart from being an early adopter consumer/hobbiest. That commercially you think this industry will actually keep growing and take off into the mainstream and also is big enough that it won't just fizzle out.
Normally, I keep ear to the ground, if I hear the same thing from 3 different people from 3 different groups, I then pay attention. I'm not such a guy to jump into everything new, actually I'm pretty conservative, but I'm also pretty pragmatic, I'm not against something just cause it is new or it's a change. Also I maintain a high level of childishness and immaturity, so I'm not above watching adventure time with my kids and really enjoying it. lol.
TOO HARD AND TOO STUPID TO KNOW BETTER But anyway- but why do people stay put? Well it's comfortable, it's what they know, but for me, honestly, I can't walk away because I haven't done what I set out to do, but I'm hearing it from multiple sources, that it's too late for me to do what I wanted to do, the strategy, it's outdated, it's too hard, and opportunity cost wise, maybe I have a 1% chance to succeed or else I could start to engage hardcore into these new growth areas and chances are 50% plus to hit it big.
I AM A PRIDEFUL FUCK I think at the end of the day, if I wanted to just make money, I wouldn't have gone this path of the entrepreneur, I've come to see most entrepreneurs didn't have a choice to be an entrepreneur, either they were wired differently or they had no options so had to be an entrepreneur, but not me, for me, I wanted to show that I am the best of the best - so frankly, it has always been about pride. And we all know- pride fucks with you the most.
THE CHOICE At the end of it all- I actually don't have much more time to make this work, maybe a 18 month window, and even if I want to continue I don't think I'll have the support to, and maybe I'll have missed the boat on other things, but still, I don't think I would regret to keep at it as I am. For me to succeed now, that is the mark of true greatness, when it is really is near impossible to make it work - but to be the single person that does make it work, well I like that idea, that one man can still by force of will be a force of nature.
It clear that it is the stupid or prideful course of action, I acknowledge that.
But it's what I want. To be that force of nature. To be great. Even if it is only for my own self satisfaction. I could respect that in others -and respect myself.
Hey man. We don't know each other, but I wanted to say that you're one of the reason I joined TL. I remember checking out one of your blogs back when I was just lurking on TL but didn't have an account, and everyone in the comments were like "oh man, we haven't had news from you in a while, what are you up to ?" and all. Really showed me the community aspect of TL, and that's what got me to join. So thanks man !
Also, your blogs really make me wonder what it is you do for a living. Apparently you've done lots of different things in several industries, which seems impressive (this is based on the little info I have gathered from your blogs). I'd be really interested in hearing more on all the stuff you've done so far (and things to come) ! Also, about your studies and your different positions, and how you got to switch from industry to industry like that.
I roll my eyes whenever I meet someone who starts/joins a startup for the financial upside; startups have strictly inferior financial EV propositions for the typical high achiever type [1]. High finance, consulting, bigco management, or engineering at a typical SV bigco have much better financial prospects.
Personally, I think the two reasons someone should consider startups are (1) the product, or (2) the people [2]. "Personal growth" is often cited, but I think this a fallacy, since much of the work you do at a startup is basically "take out the trash" style grunt work that just has to get done.
GL. See you early next year.
---
[1] Maybe it can make sense if their background would preclude them from a traditional career route, but they have very high aptitude despite the lack of obvious "on paper" signals.
[2] Maybe "winning" is another one, since both you and another friend of mine (CTO at a Series B stage company) seem to have that as your primary motivation. This might make sense since "winning" at a startup isn't about yourself but is instead about the company. No matter how many promotions and raises you get at a startup, if the company fails, you've failed to win as well.
Being a quite young entrepreneur myself I find it relaxing to read your blogs. I've never chosen short or long term winnings instead of my personal goals, and from what I can tell I've done right doing so. I'm quite comfortable in my current market, even though it's heavily niched and I can literally see the end of great profit for me, still I want to struggle and make it work somehow. Although I must admit that a part of me has given up as I've gotten into the industrial property market to have safe investments with good ROI.
The choices you have to make are difficult for sure, but I've always thought that a great entrepreneur can adapt in basically any market. Also, most successful entrepreneurs have big egos. I'm not totally convinced neither you or I will ever be satisfied. If I ever will be, I've misjudged myself, gotten different priorities or hit a brick wall. Not sure what I wanted with this post, but I can safely say that I enjoy reading your cryptic blogs.
you're really full of it eh? like im top 5 here, could do what i want there. Nice for you if you think your good, but perhaps you'e self assesment is a bit off.
my best wishes, i hope you're happy doing the work you're doing, even though its hard and for the sake of proving you can. always nice to hear from you on TL . i hope miniatom is doing well too!!
On November 25 2014 17:41 maggle wrote: You never know until you try right?
I think that is the issue, that I have tried, but at what point is it just pride, especially when there are other opportunities out there? But anyway, going for it regardless, who needs to be rational and safe, not me!
On November 25 2014 20:57 iseefor wrote: as always amazing read. i feel like you could wright about grass growing for 100 pages and i would still read every last word.
Thanks ^^, I know I don't give enough details, but I hope if I come out on top after all this, I can do a really detailed 100 page recap. lol.
On November 25 2014 23:25 LoneYoShi wrote: Hey man. We don't know each other, but I wanted to say that you're one of the reason I joined TL. I remember checking out one of your blogs back when I was just lurking on TL but didn't have an account, and everyone in the comments were like "oh man, we haven't had news from you in a while, what are you up to ?" and all. Really showed me the community aspect of TL, and that's what got me to join. So thanks man !
Also, your blogs really make me wonder what it is you do for a living. Apparently you've done lots of different things in several industries, which seems impressive (this is based on the little info I have gathered from your blogs). I'd be really interested in hearing more on all the stuff you've done so far (and things to come) ! Also, about your studies and your different positions, and how you got to switch from industry to industry like that.
First off, I just wanted say, I appreciate the comment, we're all randoms here, but you I try to write sincerely and as a real human being on the other side of the screen, it does mean something when someone does express their thanks too. So thanks as well ^^.
Well, I think most people know what I used to do, senior management consultant PwC, international technology gov't negotiator and I was even an apprentice sushi chef when I was doing my undergrad and masters for pocket money. Got scouted, joined the industry as a senior executive, climbed the corporate ladder and when I was pretty much at the top, I jumped off and started my own firm in the same industry and have been getting smashed every since. ^^ Being an entrepreneur was kinda of the last thing on my list to accomplish in the field of management - not realizing that being an entrepreneur has nothing to do with management (lol) but really learning and completing my education in what business is really about.
I came to business really late. I studied political theory in my undergrad and theology in my master then finally my masters in international business when my gf's father at the time asked me how I was going to support his daughter. keke.
At the end of it all, I think for me, it's all about the competition. If you win, you want to crush, if you lose, you want to be better next time, and if you were meant to lose, but you win, well that is just the glorious moments I personally live for.
On November 26 2014 05:36 thedeadhaji wrote: I roll my eyes whenever I meet someone who starts/joins a startup for the financial upside; startups have strictly inferior financial EV propositions for the typical high achiever type [1]. High finance, consulting, bigco management, or engineering at a typical SV bigco have much better financial prospects.
Personally, I think the two reasons someone should consider startups are (1) the product, or (2) the people [2]. "Personal growth" is often cited, but I think this a fallacy, since much of the work you do at a startup is basically "take out the trash" style grunt work that just has to get done.
GL. See you early next year.
---
[1] Maybe it can make sense if their background would preclude them from a traditional career route, but they have very high aptitude despite the lack of obvious "on paper" signals.
[2] Maybe "winning" is another one, since both you and another friend of mine (CTO at a Series B stage company) seem to have that as your primary motivation. This might make sense since "winning" at a startup isn't about yourself but is instead about the company. No matter how many promotions and raises you get at a startup, if the company fails, you've failed to win as well.
You know haji, when we talk or discuss, it's always pretty short cause we both are on the same wavelength (or at least we are always clear on each other's positions) but out of all your replies that I've ever read, this particular one was super spot on, really articulating it crystal clearly. I think most of the time, your explanations are clear, but it is usually explaining an acute observation, but this one, pure insight.
When I did start, I didn't realize what I was giving up financially, especially when my family friends would be like, 'why don't you go for being a public company CEO' and I'm like in my mind, why settle for a few million, when I could be making a billion, but in reality, if you make it as a listed CEO of a major corporation, you could be pulling in 15M a year, which is solid. But the caveat here is that you're the 'high achiever type'. You do need a certain background, certain achievements and a certain attitude to be a list company CEO or brought on as an executive of a major company i.e your point 1 which is a real point.
Now these high achiever corporate types may never found a company like google or have their names in the in history books, but being hired as the chief strategy officer of google, wow, what an awesome job and the impact you have - leaving out the financial side completely - is just so sick amazing.
And I agree on the product side for doing a start-up- I mean if you are a builder/creater or see-er of gaps in the market and can fill it with something and it moves you, great. Your point about people, I guess you mean as a team going at it, the adventure, I personally wouldn't want to curse anyone with that kind of adventure because of what a start-up entails, namely, a shit load of work that is super grunty. I get what you're saying about the personal growth thing - but to I'd say, doing a start-up for personal growth is more naivety - what you really learn is resourcefulness and the end result is that, whether or not you are successful, everyone gets a sick dose of reality and that always develops character lol.
But that leads up to your last point [2] and this stood out for me,
'if the company fails, you've failed to win as well."
and if anything comes come close to summing it up, for me that would be it.
I still do consulting on the side, I still make cash for others, I still got the juice, but no matter what happens, what I count as the real proof of my accomplishments is all tied here.
But it goes a bit deeper than needing to win, I never needed to win, but I want the power to crush.
On November 25 2014 20:57 iseefor wrote: as always amazing read. i feel like you could wright about grass growing for 100 pages and i would still read every last word.
Thanks ^^, I know I don't give enough details, but I hope if I come out on top after all this, I can do a really detailed 100 page recap. lol.
I just pretended you were George Clooney in oceans eleven. just got to get though one last job.
You're wrong about pride, IMO. Pride is the greatest, cleanest of motivators. It also should not conflict with your rationality. What I'm wondering is, why would you need to achieve growth in a low-growth industry in order to achieve pride? Being "the guy who switches" could be your thing, in a historic way if you're capable. That strikes me as a unique and important role, to shift your investment of skill toward whatever is in the earliest stages of development in order to accelerate the initial growth across all industries, like an investor. But, of course, if you just really love this industry you're in, and think you see something important that nobody else does, that could be all the reason in the world for you to stick it out.
I'd like to know how you analyze and manage risk when dealing with big life decisions.
I don't like the "Go big or go home" attitude. In a poker tournament, if you get pocket aces on the first hand of the tournament, are you going to go all-in right away for a pretty big potential gain? Hell no, because even if you've got a 90% chance to win that hand, on that chance that you do lose, you lose out on all potential opportunities that may come up again in the future, which more than outweighs the rewards. In poker, I have a decent understanding of how to balance that risk vs reward, because the numbers are, for the most part, easy to calculate to a rough accuracy. Life is not so easy.....
On November 26 2014 07:20 JollYRoGeR wrote: Being a quite young entrepreneur myself I find it relaxing to read your blogs. I've never chosen short or long term winnings instead of my personal goals, and from what I can tell I've done right doing so. I'm quite comfortable in my current market, even though it's heavily niched and I can literally see the end of great profit for me, still I want to struggle and make it work somehow. Although I must admit that a part of me has given up as I've gotten into the industrial property market to have safe investments with good ROI.
The choices you have to make are difficult for sure, but I've always thought that a great entrepreneur can adapt in basically any market. Also, most successful entrepreneurs have big egos. I'm not totally convinced neither you or I will ever be satisfied. If I ever will be, I've misjudged myself, gotten different priorities or hit a brick wall. Not sure what I wanted with this post, but I can safely say that I enjoy reading your cryptic blogs.
Have stability makes a massive difference, most of my corporate achievements only happened when I had stability to make a routine, but I was always flexible enough to create some exceptional value - but- it was always on the shoulders of the established system. But on a personal note, when you don't need to worry about your monthly rent or paying your staff on time, it does lessen your mental stress.
You know there is always that issue, when do stop, when it becomes unnecessary to go further - whether it be Alexander or Napoleon, pushing too far when they had everything - I guess that would be great problem to have, or taking a stock that this victory will be pyrrhic.
Maybe, if I get to where I want, I wont' be satisfied, but you know we grow, we change and mature, but right now, this blog reflects something really on my mind right now. And thanks for the complement, I know the blogs are cryptic and maybe one day they wont be keke ^^ but thanks for appreciating them anyways lol.
On November 26 2014 15:08 Cele wrote: you're really full of it eh? like im top 5 here, could do what i want there. Nice for you if you think your good, but perhaps you'e self assesment is a bit off.
And if it isn't? Then what does that make you sound like?
On November 26 2014 16:32 Juliette wrote: my best wishes, i hope you're happy doing the work you're doing, even though its hard and for the sake of proving you can. always nice to hear from you on TL . i hope miniatom is doing well too!!
Always thankful, and both mini and tiny atom are growing up well ^^ Hope you're doing well as well. Cheers.
On November 27 2014 04:01 Advantageous wrote: Mighty... you're like the Mark Cuban of TeamLiquid.
I wish,lol, that is a comparison very much out of my league - ^^ - I think when I was doing the TL knowhow project, I was amazed how many very accomplished business professionals are on TL. The more I've stepped away from my corporate career and have less to show on my entrepreneurial track record, it's not like I have some major achievement yet on the later to show like Mark Cuban does and I think from reading some of his material, I do respect him and his knowledge is broad. I'm very much more specialized in my industry, but thanks- I mean at the very least TL gives me a place to vent/express and whatever I can contribute back to the community is always my pleasure ^^
On November 26 2014 05:36 thedeadhaji wrote: I roll my eyes whenever I meet someone who starts/joins a startup for the financial upside; startups have strictly inferior financial EV propositions for the typical high achiever type [1]. High finance, consulting, bigco management, or engineering at a typical SV bigco have much better financial prospects.
Personally, I think the two reasons someone should consider startups are (1) the product, or (2) the people [2]. "Personal growth" is often cited, but I think this a fallacy, since much of the work you do at a startup is basically "take out the trash" style grunt work that just has to get done.
GL. See you early next year.
---
[1] Maybe it can make sense if their background would preclude them from a traditional career route, but they have very high aptitude despite the lack of obvious "on paper" signals.
[2] Maybe "winning" is another one, since both you and another friend of mine (CTO at a Series B stage company) seem to have that as your primary motivation. This might make sense since "winning" at a startup isn't about yourself but is instead about the company. No matter how many promotions and raises you get at a startup, if the company fails, you've failed to win as well.
Your point about people, I guess you mean as a team going at it, the adventure, I personally wouldn't want to curse anyone with that kind of adventure because of what a start-up entails, namely, a shit load of work that is super grunty.
For me, people means people you want to be around: character, trustworthiness, commitment, shared values, competence.
I get what you're saying about the personal growth thing - but to I'd say, doing a start-up for personal growth is more naivety - what you really learn is resourcefulness and the end result is that, whether or not you are successful, everyone gets a sick dose of reality and that always develops character lol.
Many (younger) folks seem to believe that startup = smaller team = more ownership = more personal growth. But as you say, what you end up doing most of the time is scrappy, "resourceful" (as you say) work where you're often doing very unglamorous work day to day. This contrasts sharply with the expectations of the candidate who is seeking personal growth, because such people envision sexy work that "looks and sounds good". You probably will end up learning more than a typical bigco job, but not likely in the path or manner you envisioned.
But that leads up to your last point [2] and this stood out for me,
'if the company fails, you've failed to win as well."
and if anything comes come close to summing it up, for me that would be it.
I still do consulting on the side, I still make cash for others, I still got the juice, but no matter what happens, what I count as the real proof of my accomplishments is all tied here.
But it goes a bit deeper than needing to win, I never needed to win, but I want the power to crush.
Reminds me of HF managers for whom success isn't about money but winning and crushing their peers at the game.
What do you actually do? Read through a few previous blogs and can't work it out, other than being in "business".
I'm genuinely curious, spent the last 10 years in the bubble of medicine, which also encompasses most of my friends. I literally cannot understand that people do in offices that comprises a 50 hour week.
Admittedly my only exposure to the MBA/management/business crowd are hospital managers and our Director all of which are shit, and sit in our Emergency department gassing all day ahout how they are "on call" which really they are sitting on a desk doing fuck all. It's like all they've done is brought in software that doesn't work, an in house locum "agency" that underpays staff (and is thereofre ignored), and a shitty poster about how the hospital is "proud" of the department. Shit showing for the last year. I do assume these guys are truely the bottom of the barrel.
I'm considering doing a part time course in something like that just to see what the fuss is about.
On November 26 2014 15:08 Cele wrote: you're really full of it eh? like im top 5 here, could do what i want there. Nice for you if you think your good, but perhaps you'e self assesment is a bit off.
And if it isn't? Then what does that make you sound like?
On November 26 2014 05:36 thedeadhaji wrote: Personally, I think the two reasons someone should consider startups are (1) the product, or (2) the people [2]. "Personal growth" is often cited, but I think this a fallacy, since much of the work you do at a startup is basically "take out the trash" style grunt work that just has to get done.
[2] Maybe "winning" is another one, since both you and another friend of mine (CTO at a Series B stage company) seem to have that as your primary motivation. This might make sense since "winning" at a startup isn't about yourself but is instead about the company. No matter how many promotions and raises you get at a startup, if the company fails, you've failed to win as well.
I was wondering about that too, and decided there are two reasons worthy of making a decision to join a startup: 1) You're so passionate about it that you have to do it and you're going to do it anyways. 2) The world needs you to do it.
This makes "wanting to win" an auxiliary benefit of working in a startup where hustle and bullshit are proportionally rewarded in a visceral, immediate way you can't get in most larger companies. This strongly appeals to people of a certain character, but ultimately I don't think it can replace 1) or 2).
But where does reason #1 stop, and pride start? When you start doing things you weren't going to do anyways, because you're scared.
If you take outside investment, that means you've explicitly agreed to either grow huge, or crash into the ground. For the startups in my city, I see that focus on competition in 'unknown spaces' often dilutes energy towards concentrating on the areas that will 10x or even 100x you in favor of justifying to investors in the short-term.
Of course, merely having 1) or 2) doesn't mean you'll win. It just means you've got a chance to win.
EPT
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