My Business History: Reflections and Lessons Learned

I've been an entrepreneur since 1998, when I was 16 years old. Since then, my passion for entrepreneurship has been all consuming. This blog entry takes an candid look at my entrepreneurial experiences and shares my reflections on them.

Between our sophomore and junior year in high school, my business partner and close friend, Cal Newport, and I co-founded a web development company. We started off doing the work ourselves and then began outsourcing to India. We charged our clients $75/hour and the web development team in India charged us $25/hour. So, we made $50 for every hour the team in India worked. Things were going great until the bubble burst, our MBA CEO left the company to start a competing company, and my partner and I left to go to college. We tried to pick things up, but it never got off the ground again.

While I was disappointed, I realized how the experience had dramatically changed my life. At the same time, I realized that the entrepreneurial way of thinking was not talked about at all in school and if anything was discouraged. One night I wrote an manifesto called the "student entrepreneurship manifesto", which I sent out to many of my friends. I got great feedback and also started receiving emails from people in other countries who enjoyed it.

In my sophomore year (2002), I decided to take the spring semester off and write a book developing the ideas of the manifesto. I shared my ideas with Sheena who had similar ideas of her own. We had nightly discussions that lasted hours as we refined our ideas into what eventually became known as Extreme Entrepreneurship. The book eventually came out in August of 2003. Sheena and I officially co-founded Extreme Entrepreneurship Education, LLC in April 2003 and we've been working on it ever since part-time, until we took the full-time plunge a few months ago.

With that said, below is my financial history from these two businesses:

After looking at this chart and reflecting on my experiences, the following things come to mind for me:

1. A J-O-B would have made me more money. If I had spent the same amount of time on a paying job (even one paying minimum wage), I'd be doing very well financially right now.

2. A J-O-B almost definitely wouldn't have given close to the same... branding, networking, knowledge, and character-building.

3. I don't regret a thing. I made a huge amount of mistakes and have thus learned quite a bit. I think I've learned more from my entrepreneurial experiences than from my academic ones. In that regard, the entrepreneurial experience was much cheaper! At the same time, over the past few years, Sheena and I have built the foundation of Extreme Entrepreneurship to the point where it is poised to grow very quickly over the next few years.

4. I don't feel like a risk-taker in the least bit. For me (everybody is different), it would be much greater of a risk to do something that I wasn't passionate about. When I look back on my life, I want to see somebody who has lived their life to their fullest, someone who has unwaveringly followed their inner voice (the good one, of course). To me, doing anything else is a risk.

5. Markets can make dumb people look smart and smart people look dumb. Cal and I made more money off of web development working less time than Sheena and I have made off of Extreme Entrepreneurship even though we have more experience under our belt. At the same time, Sheena and I made the decision to go into an industry that was less profitable than other opportunities because it matched our values and interests in making a social impact.

6. My Interests in Entrepreneurship Have Changed. My initial goal with entrepreneurship was to make a lot of money. Over time this has been superseded by the lifestyle benefits it provides, the ability to control how I think and spend my time, and the ability to build the company around our values.

7. Entrepreneurship is more of a mindset than about starting and running a business. Ultimately, an entrepreneur is an employee of his/her company. As the company grows, the founder's position gets closer to that of a traditional employee at any company. At the same time, I think there are a lot of opportunities to join outside companies in very entrepreneurial roles.

8. Starting in School is the Way to Go. I think that starting in school is definitely the way to go if you're interested in entrepreneurship. You have the student, faculty, and alumni resources of the school at your disposal and many of your living expenses are taken care of. Upon graduating, you must deal with student loans, health insurance ($500/month), rent, and other living expenses. What this means is that if you want to start a business after graduating, you will either have to become profitable very quickly or take on a fair amount of debt so you can grow quickly to the point of supporting yourself. If you start in school, you have the leeway to grow slowly and organically and have a foundation by the time you graduate. Furthermore, you will have a great of practical knowledge on entrepreneurship, most of which a traditional job could never teach you. This will make future ventures less risky. I've met many people in their thirties making very basic entrepreneurial mistakes, but now they have much more to lose.

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October 21, 2005

Keynoting at CEO Conference - You Should Come

I will be delivering a keynote address at this year's Collegiate Entrepreneurs' Organization (CEO) Conference in Orlando that goes from 10/27-10/29. Every CEO conference I've attended in the past has had over 800 students and has been extremely worthwhile. If you can go, I would highly recommend it.

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October 20, 2005

Random Ruminations on China

I'm back from China and had an incredible time! I really enjoyed myself. Below are some ruminations:

1. Many people who work in factories stay in dormitories at the factory. During the Chinese New Year, all work in the country practically comes to a standstill for three weeks as people visit their families.
   
2. Many of the people who spoke English, have a British accent as well as a Chinese accent.
   
3. People who work for an American company in China are called expatriats. They are often treated extremely well and have a huge home with a driver and maids.
   
4. I was about 10 times more attractive in China. Many females, probably a few a day, told me that I was very handsome. Also, I noticed many looks. I don't get this in the US. It is interesting how attractiveness can change so much depending on the country.
   
5. People are very nice, at least the ones I met.
   
6. Students take one examination before they graduate high school and this one test determines what college they can get into.
   
7. Coming to America is extremely difficult because it is expensive for the plane flight (about the equivalent of $10,000-$12,000 for them) and because the American Consulate will often not grant a Visa.
   
8. I’m used to seeing national communities in NYC with Little Italy, China Town, and Spanish Harlem. However, it was funny to me that there is an American community in Shanghai where most people and stores are American. I have a new understanding of the importance of these communities.
   
9. When negotiating in markets, start with your initial price at 1/10 of what they ask.
   
10. To communicate with business leaders in China, an interpreter is often necessary. This slows down conversation by 50% and a lot of nonverbal cues and timing are lost. Humor is difficult.
    
11. Massages are dirt cheap. At one place I visited, a 1-hour massage was the equivalent of $5.
    
12. There were 30 million Chinese killed in World War II at the hands of the Japanese. There is a still a bad feeling of the Chinese toward the Japanese.
    
13. Young woman holding hands as they walk is very common.
    
14. It is uncommon to open a gift right away when given it. This is a Western practice.
    
15. 95% students are from single family homes as a result of limits on the number of children that parents can have.
    
16. When introduced in front of an audience and the audience is clapping for you, it is common to lightly clap as well.
    
17. There is a city in China with over 30 million people. New York City, America’s largest city, has a little over 8 million.
    
18. I often heard that the three things China is most proud about are: Hard work, Rich Cultural History, and Face (self-dignity).
    
19. People’s teeth seemed to be more crooked or stained than in the USA. I don’t know if this is because the culture doesn’t value the appearance of teeth or because it costs too much.
    
20. All my meals were served in a dim-sum fashion with at least 6 plates of different food and everybody sharing. People used the same chop sticks they were eating with to take food from the large plates.
    
21. The difference between the East and the West is perhaps most pronounced with communication. If you go to any major city in Europe, you’ll probably be able to get around pretty well and find people who speak English. In China, everything seemed like gibberish including numbers.
    
22. Shanghai has similar temperatures to that of the South of the USA
    
23. Cabs have no seat belts.
    
24. Many, many people ride a bike in the city and there is a separate lane for them on the streets.
    
25. The pollution in Shanghai was very high. Most of the other foreign CEOs had burning sensation in their throats the first few days.
    
26. ABC = American Born Chinese
    
27. Just as someone from Asia who talks about spirituality or alternative healing automatically has some level of credibility in the West, so to does an American business person have a lot of credibility right off the bat. There is huge potential for self-help literature.
    
28. There are over 6,000 Chinese characters in their written language.
    
29. Across China, the written language is the same. However, the dialects are very numerous and they’re also extremely different to the point of it being impossible to understand somebody else with a different dialect.
    
30. As a result of labor being so cheap, there were many people providing extra services. At the hotel, there was somebody to open the door for you when you arrived, somebody to carry the luggage to your room, etc. Also, at the hotel, there were people actually weeding the grass by hand!!!
    
31. Popular web sites in China for youth are:
    • sina.com
      
    • sohu.com
      
    • Taobao.com
      
    • 163.com

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October 14, 2005

Day 1 China

I am now at the Radission in Hangzhou. Below are some ruminations on the trip so far:

1. I had the opportunity to speak with two senior college students from China for aobut two hours today. In terms of mindset, students in China seem very similar to the USA. One thing I thought was interesting is that about 10% students are handpicked by their teachers and advisors to be part of the Communist party. Angela, the student, I spoke with said that it was an honor and that some of the key beliefs (roughly) are:
   • Love for one's country
     
   • Helping others
     
   • No belief in religion
2. At one point she asked me what happens in the USA when everybody votes for one person. This showed me that we're coming from completely different frameworks regarding politics. I want to learn more.
3. Angela asked me which country I thought was more stable, India or China. She was very surprised that I said, India.
   
4. I've met a few Americans that live in Shanghai and help companies move here. Seems like they're doing very well as many Americans see opportunity, but don't know anything about China.
   
5. I heard today that China's middle class is about 10% of its populaition. This means that an astound percentage are from a lower class. What does it mean to be lower class in China? I know that I'm going to really, really enjoy my stay here. However, I know that going from 5-star hotel to 5-star hotel isn't going to give me a real view of China.
   
6. Talking with the CEOs from CEO Clubs is a lot of fun, and I'm learning a lot!! Many of these people started companies when they were my age, so it's interesting to see the trajectory their careers took.

We meet the Chinese CEOs tomorrow!

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October 13, 2005

I am in China!

I just got into Shanghai last night and will be here for the next 8 days with CEO Clubs in China. During our trip, we are going to a business conference, a fashion show, and doing sight seeing - all of which I'm extremely excited by.

There will be 20+ American CEOs and 100+ Chinese CEOs interested in doing business with each other. The idea is that big business in the USA has already penetrated China. However, small- to mid-size firms haven't really and the Chinese government is very interested in changing that.

I'm here as a result of being an alumnus of the National Foundation for Teaching Entrepreneurship and am extremely grateful. I'll share updates on the blog!

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September 29, 2005

It's Inside of Me! I just know it.

In Helen Keller's autobiography she talks about how her early childhood was filled with temper tantrums. Even though she didn't know what traditional verbal and nonverbal communication were, she knew that she couldn't fully express what was inside of her.

This really touches me, because I feel the same way. I feel that there is something and inside of me impatiently thirsting for expression. My personal and professional accomplishments are partial expressions of this, but, I feel like there's more, so much more. I just don't know what IT is or how to fully quench its thirst.

All I can say for sure is that I'm listening, ready, and willing.

It is my prayer that my life and that of others can be an expression of that which rests inside of us.

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September 21, 2005

The Good Life

I don't want to have a good life. I don't want to get drunk on weekends. I don't want to watch TV. I don't want a safe job that I don't enjoy. I don't want to be paralyzed by fear, anger, disillusionment or any other feelings. And, I don't want sugar, McDonalds, or any of that stuff.

I want to do what my conscience tells me, at any cost, even if I suffer and even it involves losing my life someday. Over the last few months from personal experiences and from studying people I admire via autobiographies, I've come to realize what I must give up. I've begun to realize how difficult it will be to do that, and my body has balked. I've gone back-and-forth only praying that I somehow will muster up the courage to live the life I want to. For the first time, everything inside of me knows that I will live that life.

In the end, one of the things that saves me is knowing that I could never forgive myself otherwise.

A year ago, after attending a 10-day silent retreat, I realized that I could be broken. That was scary. Now, I must push myself to that level repeatedly. I don't know what happens beyond the breaking point, but I want to. I've gone from being atheist to agnostic to now believing in God. I hope that God will give me the strength to follow this journey wherever it may lead.

It starts Today! It starts now.

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September 18, 2005

Gratitude to My Ancestors

I'm here, but barely. My ancestors have all been the victims of injustice and even extermination as a result of being themselves; Jewish, Black, or Native American. When my grandparents were my age, they were in concentration camps. Their whole family - brothers, sisters, and parents - had been destroyed. The only way my grandmother survived was by risking her life to steal potato peels. My grandmother on my father's side marched in the civil rights movement to gain basic rights and moved to New Jersey where my father was the first one in his family to graduate college.

Today, for the first time in my life, I realized at a core level the sacrifice my ancestors have made to survive and to ultimately give me the opportunities I have today. They succeeded so much, that for my entire life I've felt disconnected from their struggles. My mom's beckonings for me to remember my past have fallen on deaf ears as I wanted to look only to the future. I've never felt the need to fight for basic rights or money to survive, because I haven't had to, having grown up in a middle-class, predominantly white, suburban community.

I hope that someday, after I've passed on, my grandchildren will tell their children how their grandparents struggled not against an external oppressor, but against themselves - their fears, their disappointments, their feelings of inadequacy - to make a large, lasting positive difference not only for their family, but for the world as a whole.

I hope.

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September 12, 2005

The Power of Autobiographies

I've long been a reader of self-development and how-to books. I love the fact that you can have almost any goal and find books by people who've accomplished it and that tell how you can too.

I've now begun to appreciate autobiographies as well. Good ones provide an honest (albeit biased) and open retrospection of the author's life. They are entertaining, provide a new perspective on history, and are extremely valuable for understanding how great people think and the path their lives took. Recently, I've read the following books:

1. Gandhi An Autobiography: The Story of My Experiments With Truth
   
2. The Autobiography of Martin Luther King, Jr.
   
3. A Life In Leadership: From D-Day to Ground Zero

These books have given me the inspiration and determination to make some very large changes in my life, which I'll write about in a future entry. If you know of any great autobiographies, send them my way!

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September 02, 2005

How to Win at College

If you're in college, about to be in college, or know somebody who is either one of these two, then you should immediately read How to Win at College. Written by my good friend and former business partner, it is extremely powerful. Cal interviewed many of the country's top students and distilled their wisdom into counterintuitive, punchy, and specific ideas that can all be read in one sitting. I've purchased many copies of the book for friends/acquaintaces and they've all been raving about it, even people who I thought would dislike it. Even though I read it after I graduated, I still found it it very applicable to my life. Check it out on Amazon.com.

Disclaimer: Although Cal is my good friend, I would not recommend something this strongly without really, really believing in it!

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September 01, 2005

Turning Weaknesses Into Strengths

Last Monday, I had one of the most important business dinners I've ever had. Things were going well until, half way through it, one of the guests asked, "So, what does the young entrepreneur have to say?" All the heads at the table quickly turned to me and multiple side conversations turned into complete silence.

Taken aback, my mind froze like a deer in headlights, not even letting me scan through possible things I could say. I looked down at the table and started to smile trying to buy time or sympathy...No such luck. The situation had not changed.

After a few moments, I saw somebody's mouth open (presumably to change the subject), and thought to myself, "Finally!". However, to my dismay, that someone added, "Oh..and it'd better be funny."

Once again I tried to think of something, but nothing came. This time I was able to visualize myself saying something funny and everyone laughing, but the words didn't come along with the image. Damn!

Next, someone trying to help commented, "Ok. What are some things you've learned then?" That's an easy one, I thought to myself, but still nothing came and there was silence until somebody finally changed the subject.

On my one-hour subway ride home, I involuntarily kept playing the situation back in my mind, undoubtedly making it bigger than it actually was. After talking with people about it and them saying I had blown things up too much, I felt better about it, but still not at peace.

That is until I got to the top of page 62 of Gandhi's autobiography where he says, "I must say that, beyond occassionally exposing me to laughter, my constitutional shyness has been no disadvantage whatever. In fact I can see that, on the contrary, it has been all to my advantage. My hesitancy in speech, which was once an annoyance, is now a pleasure. Its greastest benefit has been that it has taught me the economy of words."

This reminded me of the importance of learning to accept and be who you are and turning perceived weaknesses into strengths. I'm now at peace and know what to say should this situation happen again, "Well, Norm, nothing comes to mind. I prefer not to say things unless it's meaningful or important."

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August 10, 2005

On Long-Term Relationships: An Inside Story

There is no textbook on having a close relationship. In high school I believed that I would find a soul mate and that we'd spend every momemnt in happiness until death did its part. This has not been the case. I'm a big believer that what society doesn't talk about seems to get worse. Therefore he goes...

Sheena and I have been dating since the third day of our freshman year at NYU - 5 years ago. We moved in with each other 9 months later and started working together 20 months later. Here have been my experiences of what a relationship is like:

1. There maybe nothing else that forces you to confront yourself in the same way. If one takes repsonsibility for how one experiences a relationship, the growth can be absolutely amazing.
   
2. You will see each other in your worst moments. You and your partner may do things you never thought you would. Sheena and I have thrown things at each other and said terrible things to each other. It's embarrassing to admit to myself, none-the-less to other people. I'm used to laughing about petty arguments on reality series, not it happening to me. With that said, a relationship can be humbling and an opportunity to learn forgiveness of oneself and others.
   
3. Being interrdependent can be a good thing with the right person. Normally, when you have big disagreement with someone the relationship ends or goes on hiatus. However, since we live together and work together, it only makes sense to discontinue the relationship if things are going very poorly over a stretch of time without hopes for improving. Quite frankly, I doubt Sheena and I would still be together if we hadn't taken steps to weave our lives closer. The more your lives are interwoven, the more it makes sense to deal with issues as they come up and grow from them.
   
4. All huge arguments seem to be based on at least one major thing that I could change or learn about myself.
   
5. It is up and down. We could be having the most romantic night ever and then all of a sudden get in an argument because one person doesn't feel listened to because the other is biting their nails.
   
6. There is an infatuation period that lasts for varying amounts of time depending on the couple. During this time it is hard to be away from the other person and it is hard to even see one thing the other person could change. This stage seems to be in large part physiological. It could end in a moment. Moving on to the next stage can be trying for the relationship as the other person seems to transform into somebody else.
   
7. Having somebody you trust, who understands you, and who you can share anything with is extremely nice.
   
8. Coming home to, going to sleep with, and waking up with somebody who you love and loves you is a beautiful thing.
   
9. Having intermittent periods of solitude has been very important for my growth and perspective.
   
10. To me, the most critical parts of successful relationship are trust, similar values (at first), communication, and similar life aspirations.

I feel like it is important to say my experiences with a close relationship, because it is hard to get truthful perspectives on this topic. For me, it is hard to share because I don't know how other close relationships are. Are we the only ones who get in big arguments over silly things? It's hard to know since nobody talks about it.

But it feels like a duty to share this stuff. I'm inspired by other people in my life who are able to accept themselves and in so doing make it easier for others to do the same. I don't want to spend any portion of my life being afraid of the truth.

My side of the story is obviously biased. Sheena will be posting her perspective too on her blog. I personally look forward to reading it.