Greetings from Medellín, Colombia!
I'd like to share a few lessons I’m learning as I’m running a company. Maybe it’ll be insightful for y’all. Go learning in public! 😄
Lessons from Running a Company
Raising Money. Woo! A few investor calls this week. My first time 😇. Since I didn't know what to expect, I phoned a few friends (and did a little research). My learnings:
Mom-and-pop investors contribute for a variety of reasons. They might just like the person or the idea.
As you get to more experienced investors (who want to make outsized returns), they typically look for three things:
People. Can you execute on the vision? Do you have early examples of success? A proven track record? What’s the relationship between the cofounders? Are they close?
Problem. Are you solving a real problem or one you just made up? Do you know your customer well?
Market. Is the market big enough? Eg. You can't build a billion-dollar company selling underwater-basket-weaving classes.
Guide to Investor Calls. Usually the CEO will take the first call(s). Then they'll ask for the CTO or COO to make sure that what is being communicated is actually being done. “Due diligence". Usually you have to submit a few things:
Data Room (Repository of references / work)
Legal Documents
Note: We're trying to raise as little money as possible. Right now we have infinite runway (ie. spending $0) but at the cost of development.
Speed of Execution. Can I develop the entire app myself? Yes, but it'll take me a while. Working with a design agency has made me realize that partnering with someone who knows what they're doing is much more efficient than me trying to learn design myself. Speed matters. Why stick with a B developer when you can hire an A+ one?
Hiring. Hiring is my #1 priority. People underestimate how much can be accomplished with a small but dedicated team. You'll notice that Delka Talents (our parent company) has extremely few employees.
David Perell 💁♂️: “Elon Musk was once asked about which product at Tesla he was most excited about. The Model S? Model X? Model 3? None of those. “The factory is the product,” he said. If you can get the factory right, quality cars are inevitable.”
Our “factory” is our team.
We believe that with the right people, we can do anything.
Why Do I Do It? "People over Projects" is my motto. I live by it. The most common misconception is that "people come and go" when in reality it's "projects that come and go." We are in it for the long run. I like the people I work with. I like going to work every day. That's what matters.
Culture. We are an HR company first; tech company second. We put people in the right places. Happiness first. Always. Both for ourselves and for our employees. You'll notice I'm still traveling the world, setting my own hours, and going out whenever I want. Nobody tells me what to do. (And I don’t tell anybody else what to do). We’ve established full trust in each other.
Differentiation. In the movies, startups are “tech first; marketing second”. “We have a big idea, now let’s find users.” We are the opposite. We have a specific problem we want to solve. We have the users. We just need top-tier execution to deliver the solution.
Roles. We have an A+ Sales team. I'm currently running Product + Operations. We'd love to have a stellar Engineering team. Eventually we'll need Customer Success, Finance, and Lawyers too.
Note 1: We are extremely confident in our solution, but we are not romantic about it. If the market evolves, we adapt with it. We live in the TikTok era; not the Victorian era.
Note 2: As a management company, we have influence over our influencers. If we tell them to move, they will.
(Mini-Essay) Leo's Guide to Psychology
The first rule of business? There’s no such thing as business. Only psychology. School doesn't teach you psychology. They teach you the history or theory of psychology, which is very different than actual psychology. (I laugh when book nerds try to teach psych. They have no clue.) People are emotional, not intellectual. I agree. Sorry readers, but Freud's Theory of Dreams won't upgrade your EQ. The frameworks. Pyramid of Needs, Ikigai. (Every single personality test). Fake. Bullshit. Nobody actually thinks this way. It's intellectual. (The only reason you'd learn these things is that they make for great conversation starters.) If you really want to learn psychology, start by observing other people. Start by observing yourself. When are you excited? When are you bored? When are you tired? --- Try to view the world through an "energy" lens. What's the other person feeling? Are their eyes twinkling? Are they passionate? Do they want to talk about something else? Can you sense when something's wrong? Tip: In your next Zoom call, observe the participants. Are they engaged? Are they not? Can you see their eyes darting left-to-right across the screen? New windows popping up in the reflection of their glasses? -- Addressing Needs What do they need? A comforting voice? A helping hand? Do they need a push? -- Making New Friends When's the right time to grab a coffee? When's the right time to invite them to an event? When should you escalate? You're living two separate lives. When should you close the gap? The distance between you and them. Can you sense it? -- Noticing Others Pay attention to how they speak. Loudly? Softly? Are they doing it on purpose? Pay attention to body language. Are they leaning back? Or leaning in? Are they doing it on purpose? Pay attention to their words. Are they giving a preface? A compliment? A ramble so that what's coming next is more palatable? Where is their gaze? Are they looking at you or somewhere else? Where are their hands? One holding the other? Rubbing their neck? Hands on hips? Sense it. But don’t overthink it. Learn to acknowledge someone. A head nod. A lift of the eyebrows. A wink. A wave. Are they truly "with you in the moment"? Are they distracted? If they're distracted, what's on their mind? Tired? Sleepy? Are you boring them? -- Conversation How do you enter a conversation? How do you exit a conversation? How do you keep two people engaged? How do you pace a conversation? How do you know when to wrap things up and move onto the next place? Usually one person leads and the other follows. Can you spot who's who? When do you hype somebody up? When should you bring a steady tone? (Try sneaking in a high five during a conversation.) Try to predict. Can you guess when they'll finish a thought? When can you interrupt? Try to time it perfectly. Will it be awkward? Maybe. Maybe not. ---- These are probably questions you've never thought to ask yourselves. You're welcome. Tips: The best way to score a free drink at a bar is to buy somebody else a drink first. Don't believe me? Try it. I've done it. It's worked. Maybe you'll make a friend too. People love to be heard. People love to be seen. The more emotional they are, the more true this is. Remember a small thing about them. Something they said, your last interaction, something they said, a shared hobby. Slip it into conversation. Ask questions. Get them talking about themselves. Share yourself too, so they don't get uncomfortable. When should you pass the baton? Pay attention to who you're talking to. Give them your full undivided attention. Be present with them in the moment. Now try switching your attention from your eyes to your ears. Can you do it? Can you hear what's going on? Can you see in your peripheral vision? Expand your attention. Then contract it. Switch from funny to serious in a moment. Do the reverse. Learn to regulate your emotions. Learn to regulate your behavior. Give a compliment. See what happens. Give two. Are they saying something because "it sounds good" or do they really believe in it? Can you spot the difference? Are they being naïve? Figuring it out? Can you spot conviction when you see it? -- Cafe Start a conversation with somebody at a cafe: Are they alone? With friends? Are they glancing around? Scrolling through their phone? Did they just switch between apps? Might be a good chance to make an introduction. Did something they say pique your ear? Might be a good time to jump in. An Invisible String: An invisible string connects you to them. Especially when you're strangers. Too slack and you never see them again. Too tight and you need your own space. Just right and you fall into orbit. -- Knowing Them Are they casual or professional? Are they schedule-in-advance or impromptu? Are they get-to-the-point or do they want to know you? People like people who are similar to them. Some things you can control. Dress, energy, topics you talk about. Some things you can't. Race, ethnicity, height. Learn the difference. -- Questions When they ask you a question, do they really want to know the answer? Pause. Seriously, think about this. Sometimes they want to know the answer. Sometimes they want to make a point. Sometimes they want the question asked back at them. Sometimes they're confused. -- Be Natural Conversations are not surveys. They're not "Q/A/Q/A". They flow. -- Who wants money? Everyone. But why? • Are they scraping by? Do they have a family to feed? • Do they want to look cool and impress their friends? • Are they motivated by "fairness", "getting paid what I'm worth", "entitlement"? • Utility? To start other ventures? To invest? • Are they in a bad place and lashing out at the first opporunity? No right or wrong. Just different. -- How to Learn Did you read these tips? Yes. But did you learn them? -- Closing High EQ people know what you think. They know how you feel. Well before you do. They know what you need and they know what you want. They know your intentions. They can give you insights about yourself that you would've never have guessed. We come in all different shapes and sizes. That's the point. Find the things you're good at. Then do those things. It takes humility, self-awareness, and self-confidence. But it's so worth it. END.
See you next week!
Leo A
The questions you’re asking and the culture you’re creating all point to the creation a tribe that is your home. Your self-awareness will take you far, Leo!
"Are you solving a real problem or one you just made up?" -- this is critical. Well done in highlighting it, Leo. And I don't have to go further, as it's self-explanatory. Especially in today's world.
I loved your psychology essay. "If you really want to learn psychology, start by observing other people. Start by observing yourself." -- this is so important, yet often so superficially tackled or just dismissed altogether. Paying (real) attention is key, starting by listening carefully to the answer to an apparently innocuous or useless question like "How are you?". We live in a distracted world, where it's harder and harder to focus and listen and empathize. Awesome piece man, bravo!