Hey y’all,
So, yep: I skipped the last couple of Sundays. Obviously there’s a lot going on in my life right now. But I’m jumping back in with the business update I’ve been promising, and sharing my heart on what all of it looks like right now too.
Here’s the thing: I can’t get into the sensitive details of the business, for a number of reasons. Out of respect to our employees, because there are competitors out there. All kinds of stuff. But what I CAN talk about are the things I’ve already made public, and more importantly, how they made me feel as a business owner.
The 24-hour pause
Many of you know I mentioned an acquisition we were working on. After a 24-hour pause, we decided it wasn’t the right fit.
The 24-hour rule
That pause is something I’ve really gotten to rely on; enough that it might get its own newsletter down the road, and a spot in the Vault Docs. The idea is simple: when you’re about to make a major decision, specifically something that’s a contract, or that could impact people’s jobs or the direction of your company, even if you’re 100% sure and ready to go…. pause. Put it away for 24 hours. Then come back to it with a clean slate and a clean mind.
Even this week, there have been a couple of emails from people that just infuriated me, or could have led to further issues or complications with the direction we’re trying to go; and we’re in a critical moment right now. Instead of responding, instead of reacting, it’s become almost second nature to pause and wait 24 hours. And all of a sudden, it’s not that big of a deal. Or you’ve had a new thought. Or you can approach it more rationally. Or something may have even changed in just that 24 hours.
I highly encourage each of you to implement a 24-hour rule in your own business. Probably a good idea for life as well.
Walking away from York
Then the big one: walking away from our York location. That was something we put out a press release about. I was personally very excited about it, for a number of reasons. It’s where the idea for the company originally started. My past with living in York. There was a lot of personal pride behind going to that location and what I thought was going to work.
But when it comes down to it, you have to listen to the numbers. You have to listen to your gut. And there were a number of things that just didn’t line up the way they needed to. My business partner and I didn’t feel right about the decision, and we started pursuing thoughts and ideas in different directions.
I remember when the York call actually got made. Jordan and I had just come out of a conversation around funding and financing. Some of you know we’re still in a capital raise; what we’re doing is expensive, and we’re going after it. And there were a lot of questions about where we put that money as the company grows. It’s very typical and common for a company our size, scaling the way we are, to operate at a loss. But if you’re going to operate at a loss, you have to be super intentional with every dollar that comes in.
So it was this really big moment for Jordan and me, sitting in the room with our executive team; our CFO, CMO, Chief of Staff. We all kind of looked at each other, and there was this moment of: okay, this is what we’re doing. Yep. All right…. it’s up to me now, and I’ve got to make the call. I went out, got in my Jeep, and called the developer: “Hey dude. Here’s an update.” It wasn’t earth shattering, but it was certainly a pivotal moment in my development as a CEO, and in the business; changing something we had been so publicly promoting and so excited about.
I’m fortunate to have a great leadership team. A few of us can really sit down, come together, talk things out, ask hard questions, and give each other real and sometimes difficult-to-hear answers. I’m grateful for that.
But as one of the founders, as the CEO, and as just an entrepreneur? These decisions are hard to deal with, and so is the pride that comes with them. Walking away from York was it. Moving most of my business in one direction just so it’s set up to go a different direction is already hard for some people to understand. And when it’s finally time to make that shift, and the door is open…. it’s a pretty scary feeling, honestly.
The weight of other people’s trust
A lot of you know I have a great number of investors, and they are all fantastic human beings. That’s a pressure I feel too. The way we started the business, and what they thought they were getting involved in, changed after a couple of years. And even now, the business has had ups and downs. We’ve done some really great, fantastic things. We’ve also made some dumb decisions. Nothing intentional; you live and you learn. The reality is, we have not done this before. And the niche we’re focused on now, the lane we’re going down, really hasn’t been done before either. That requires trial and error. And trial and error is sometimes expensive.
So it’s a lot to tell investors we’re going to acquire this place, we’re going this direction, we’re doing these things, with every intention of actually doing them…. and then find out later, sometimes 24 hours before it’s about to be final, that it’s not the right move.
At the end of the day, it’s my job to make that call. It’s my job to operate in the best interest of the company, the 70 to 80 plus employees we have, and the shareholders who have trusted me with their money.
Where we’re going
In all of this I’ve talked a lot about where we’ve been, and mentioned where we’re going. That’s the part I’m super excited about: we’re doubling down on where we already win.
I’d love to attribute that to a lot of things investors have said, but also to one of my great forum mates in EO, a guy I have a lot of respect for. Zeb says all the time: experiment quickly. Anything that doesn’t make money, get rid of it. Whatever does make money, double down. Right now in the retail space, not everything actually makes money; but some things have the promise of making money, and even that is enough to focus the direction. So instead of chasing new retail, the goal right now is more events, more stadiums, more doubling down with the universities and the sports teams.
I have a lot of people to thank; not really for setting that vision, because we already saw it, but for encouraging us to trust it. Thank you to each of you.
And there are lots of small wins happening. Knowledge Perk was named Small Business of the Year, awarded by the Columbia Chamber. We have two locations in Columbia that have been growing, and we’ve gotten to be a much bigger part of that community; just an incredible win for us. On top of the local wins, there’s what we’re doing now with Live Nation, and the amount of people we’ve taken care of; from the PGA event we just did, to taking care of the Jonas Brothers, or Smashing Pumpkins, or Ed Sheeran, or the Carolina Panthers…. you name it. We’re winning right and left. Even if the picture below seems like I am just losing it.
So this isn’t all about what’s gone wrong. It’s a lesson in how we can adapt, and focus our time and attention on what’s actually going right.
The balancing act
I think one of the hardest things for me is the balance. Living my life and paying myself a decent wage while still paying others. Trying to be a good and present dad. Building a relationship with the love of my life, who lives on the West Coast. And understanding that at the same time, I’ve got a responsibility to build a company that gives a return on investment to so many others.
I think I’ve done an okay job. I know I’ve always been honest and well-intentioned in all of my dealings. But I also know it’s hard for an investor. It’s hard to know what’s in my head. It’s hard sometimes to trust, or to see the long-term vision. Right now I can see it playing out. But that doesn’t mean there aren’t days where I doubt myself and wonder: did I do the right thing with other people’s money? Did I do the right thing for the company?
Why I’m sharing this
I know this is a bit of a ramble, but it’s what was on my heart and mind. I’m sharing it in hopes that other people think through what it’s like to raise capital and have investors. What it’s like to scale a company. What it’s like to believe so wholeheartedly in a direction, just to have to change that direction, and then explain it to your team or your partner or your spouse or your investors.
Changing direction doesn’t mean you were wrong the first time. It just means times changed, and things changed.
Business is tough. We have days where the company is doing fantastic. And then we have days, like in recent weeks and months, where we can barely make payroll, and my business partner and I go a month or even two without getting paid at all. It’s what we signed up for, and it’s part of the gig. But that doesn’t mean it’s easy, or that it’s for everybody.
So no, not a perfect update on where we are. The company is fine, and I’m incredibly excited about the direction we’re going and what we’re pursuing. I’m just aware of the challenge of being an entrepreneur while being a dad, while being a husband, while being a friend and a community leader; all of it at once. And still trying to manage it all, understanding that your company is built on the backs of your team, the customers who expect great service, and the investors who expect you to deliver the best bang for their buck.
It’s hard. Which is probably why therapy is necessary, among other things. But that’s another newsletter.
Your turn
So that’s where I am mentally; the strain of building and scaling, and me being honest and vulnerable about what that looks like.
I’d love to hear from you. What’s your mental hurdle to overcome? What’s your struggle right now as an entrepreneur? What are your thoughts on raising capital and dealing with investors, the transparency that’s required, and the responsibility that comes with it? Hit reply and let me know. And as always, if you reply, it stays anonymous unless you tell me otherwise.
Obviously, I don’t quite have it all figured out. I’m not quite there yet, never will be, and that’s the whole damn point.
Talk soon,
Ryan
Not Quite There Yet Guy
CEO & Co-Founder, Knowledge Perk | Chair, Gravity Center Foundation | EO Charlotte