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My Highlight Reel

  • A big list of small victories

    Failed Miserably as a Student

    I just wasn’t meant to be in a classroom.  I graduated at the bottom of my class in High School and got rejected from every college I applied to.  When I finally got into college I dropped out as quickly as possible.  I went to school with the intent of studying Theatre and being an actor in Hollywood.  It didn’t exactly pan out.

    Founded Blue Diesel
    (Interactive Marketing Agency)

    When I was 19 I started my first company, Blue Diesel. It was the dawn of the Internet era and I was starting a Web development company. Who would have guessed? Landed huge clients - BMW, Bank One, Best Buy and Eli Lilly, grew it to $65 million in capitalized billings, and sold it to inChord communications.
        
    Co-Founded Kelltech Internet Services   
    (Software, Content Management)

    While still running Blue Diesel in Columbus, Ohio, I decided to co-found Kelltech Internet Services in Cleveland, Ohio.  We started off doing consulting and morphed into a company with a simple content management software platform. Running two companies in two cities wasn't exactly a picnic but Kelltech was later sold to GTCR at a value of about $10 million so we must have done something right.   

    Entrepreneur of the Year Awards   

    I became the finalist and recipient of the Ernst & Young and U.S. Small Business Association Entrepreneur of the Year Awards in 1999 respectively.  I think everyone in 1999 had +30 points added to their perceived IQ.  They were all subtracted in 2001.

    Joined inChord Board of Directors
    (Healthcare/Pharmaceutical Ad Agency)
       
    inChord went from being a tiny little ad agency when I joined to becoming one of the fastest growing ad agencies in the country. I had the privilege of sitting on the board while also growing one of the largest lines of business while at Blue Diesel (we sold Blue Diesel to them when they were small). Watched the company grow from $50 million to over $650 million in billings in five years.
        
    Founded Powerhouse.com
    (Residential Real Estate Startup)   

    Great idea, no opportunity. In 1999 I co-founded Powerhouse.com to help "roll-up" 185 unsigned real estate franchises to create a $8 billion national company. The idea made tons of sense to the founders, just not to the 185 unsigned real estate franchises. Hey, it was 1999.

    Founded Atomica   
    (Not-for-profit Arts Organization)

    Founded a not-for-profit organization to help promote the convergence of art and technology. Put on some amazing shows and events with some unbelievably talented artists. Still have a hard time understanding how to ask for money with no intent on giving it back! Not-for-profit fundraising is the world's hardest job.   
        
    Ohio Businessperson of the Year Award   

    Named one of Ohio's most distinguished business leaders among past recipients such as Dave Thomas (Wendy's), Robert Lazarus (Lazarus Department Stores), and John McCoy (Bank One). Unfortunately you don't get a billion dollars to go with it like they did.   
        
    Joined Swapalease as CEO
    (Automotive Leasing Marketplace)

    Joined Swapalease.com as the CEO and learned how the auto industry works. Within a few years we became the world's largest auto leasing marketplace with over $1 billion in vehicles listed. Also learned how to negotiate a better lease.

    Opened a Nightclub
    (Entertainment Industry)

    Had a stupid idea while nursing a post-New Year’s hang over that it would be a great idea to have a party like New Year’s every weekend.  Six weeks later we opened up “Status”, a nightclub that held about 1,000 people and was home to acts such as Danny Howells and the Crystal Method.  Closed it the same year.  Somehow working from 8 a.m. on Friday (at my regular job) and then on til 4 a.m. Saturday got old really quick.

    Created Two Collegiate Scholarships

    Created two collegiate scholarships for Washington State University and Marietta College. The irony being I could barely pay for my own tuition a few years prior and dropped out of college completely.

    Launched LeasePower
    (Financial Services)  

    After growing Swapalease we realized there was a great opportunity to lease new cars, not just transfer existing leases. So we launched LeasePower. You could pick a car, choose a lease payment, and apply for financing right on-line. It turned out to be a great service for people to get a price low enough to take to a dealer instead of using us.
        
    Published LeaseAdvisor on Paperback   

    Wrote an entire book about how to lease a car. Sold pretty well, primarily through Swapalease.com. If you ever find yourself suffering from insomnia, I highly recommend reading (or writing) a book about leasing a car.

    Launched the Go BIG Network   
    (Business to Business E-commerce)

    Create the world's largest community of startup companies and entrepreneurs. Go BIG took off practically overnight and now tens of thousands of users turn to Go BIG to grow. That's a big deal to me.

    Became a nationally syndicated columnist

    In preparation for writing a book I asked American City Business Journals if they would let me author a bi-weekly column about starting companies and raising money. Within the first year the column would go on to get syndicated in 42 markets to over 4 million readers.

    Published Go BIG or Go HOME

    Wrote a book about how to grow a company as fast as humanly possible. Wrote 900 pages in one year which left me with 200 published pages (and a hangover from the amount of caffeine it takes to write 900 pages).

    Joined the Board of the Columbus Symphony

    Was pleasantly surprised to be asked to join the Symphony's Board. Partly because the other people on the board are so well regarded and partly because I'm nobody.

    Joined the Board of the GroundWork Group

    The GroundWork Group is helping bring technology to non-profits. Up until now the idea of "non profit" and "technology" was a fear of mine, not a goal.

    Joined the Board of Young Isaac

    Young Isaac is one of the most creative and energetic ad agencies in Columbus. I can't get enough of the work they've been doing, and their founder, Artie Isaac is a genius.

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« You're Already Ready | Main | You can’t teach motivation »

December 11, 2006

Investors are sharks, not lifeguards

I hear this a lot from entrepreneurs saddled with debt:

"I’m just looking for an investor to come in, bail us out of debt, and create some expansion capital to help grow the business."

I don’t want to freak you out, but I have to be straight with you - investors have no interest in bailing you out of debt. Investors are sharks, not lifeguards - they’ll eat you alive long before they’ll save your life.

Every startup is different, but the fact remains that no matter how sweet your opportunity is, no investor is interested in buying up someone else’s debt. There are enough great business opportunities that are debt-free for investors to spend time with. There’s no reason to go into the red right out of the gates with yours.

If you’re one of my fellow entrepreneurs in the unfortunate position of not being able to climb out of debt to attract an investor, let me offer some help.

1. Stop looking for investors to bail you out.

Entrepreneurs adopt this "save our ship" mentality that causes them to hope for an angel to come and save the day. It’s not going to happen. The more time you waste chasing this fantasy the more leveraged you’ll become.

2. Cut your losses - fast.

The best way to keep the ship from sinking is to lose some dead weight. It’s time to make some real hard decisions that probably won’t be fun - like letting people go, dropping your expensive office, or cutting every expense that doesn’t directly keep the business alive.

3. Get back on track.

The only way you are going to survive is to get the business back on track and in the black. If that means cutting down to just you and one customer, so be it. It’s a lot easier to build back up than it is to manage yourself through destruction.

4. Look for investors when you have something to invest in.

Until your story changes and you have something that investors can see a clear path to profits on, you don’t have a story to tell, so don’t waste your time telling it. Focus all of your efforts on getting the business on a positive growth curve, even if that means starting from scratch.

If you’re reading this article and you’re in this position I know it sucks (I’ve been there.) I know that being in a load of debt feels like you just OD’d on a bottle of anxiety pills. But instead of sitting around waiting to be saved, you need to make some hard decisions and do what it takes to put things back on course. It’s the only way to attract an investor.

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Little Known Facts About Me

  • Stuff you probably don't even care about...

    I graduated at the bottom of my class in High School

    Someone had to be at the "top" of the class, someone had to be at the bottom. I was the one at the bottom out of 250 students. I graduated with a remarkable 1.2 GPA after barely making it through a Home Ec class that my teacher let me take to graduate. I got rejected from every college I applied to Needless to say with a 1.2 GPA you don't go very far in the admissions process.

    I got rejected from every college I applied to.

    Instead I just started "showing up" in college and eventually they let me start getting credit. That's no exaggeration, I really just started showing up.

    I dropped out of college at OSU

    I'm a big fan of the Ohio State University ("let's go Bucks!"), but when I was there the Internet was just taking off and it wasn't a very good time to be hanging out inside a classroom. Besides, I was a terrible student.

    I've written two children's books

    They aren't published (yet) but I've written a whole series of stories about a superhero cucumber named "Cucumbro" who rules over "Home Pickle" and fights colorful characters like "Bananaman" and "Radishian". Yes, I know these are juvenile concepts but I wrote the books when I was 16 and Vegetales hadn't come out yet.

    I used to own a nightclub

    When I was younger (not much, but younger) I opened up a nightclub in Columbus, Ohio called "Status". We went from concept (me waking up New Year's day and deciding we should keep the party going permanently) to implementation (six weeks later we opened up the club) in record time. We closed it that same year, but still played host to some great nights and great acts like Danny Howells and The Crystal Method.

    I ran a BBS on my Commodore 64 Computer when I was 10

    Call it "way before the Internet bubble", but in 1985 I was running a Color64 Bulletin Board System on a Commodore 64 Computer with a 300 baud modem tying up my parent's phone line. Ten years later when the Internet boom hit this would prove to be a real helpful move.

    I auditioned for the lead role in the movie "Primal Fear"

    When I was leaving high school all I ever wanted to do was pursue acting. So when I got into college I got a talent agent and started going on auditions. I did some commercials and such, but at one point I got to audition for the lead role in the movie "Primal Fear". Needless to say I didn't come close, but the guy who did get it (damn you, Edward Norton) went on to become a huge superstar. I suppose if you're going to lose the role to someone, it may as well be Edward Norton.

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