The Power Combo

A framework for partnering with entreprenuers

The more I’m able to work along teams, the more helpful it’s become to construct a philosophy around where to invest time, attention, and money. Three factors I’ve found to be most telling are the Idea, the Customer, and the Entrepreneur. These three areas are not boxes to be checked, rather key areas to focus on. The more elements are in alignment, the more exciting I’ve found the opportunity.

Keep in mind, this is for building startups and partnering with entreprenuers. If you’re looking for a broad hiring framework, this is not it. I’ve included experience driven insight based on the four companies and teams I interface with; Polar Notion, Tenrocket, Sharpp, and New Story. I’ll also sprinkle in some learnings from the hundreds of projects we’ve served over the years.

The idea.

Does it solve a meaningful problem? It’s not enough to solve a problem. The problem needs to be big enough that people are willing to change their behavior. The world is filled with problems that aren’t worth solving.

Not everything has to be as massive as the work we’re doing at New Story. Ending survival mode living is a meaningful problem that impacts billions of people but there are meaningful problems that hit much closer to home for billions more. A larger problem for a small group of people often trumps a small problem for a large group.

Years ago we noticed a lot of confusion and uncertainly around startup founders. The noise in the market continues to grow and the buffet of options can be immobilizing. We created Tenrocket as a means of cutting through the noise and providing entreprenuers with a trusted source for taking the next step in their venture. It doesn’t matter to millions, but to the people lost in a haze… it matters a whole lot.

In 2016, we launched an event for startups and entreprenuers called Startup Picture Day. The problem was simple… most tech entreprenuers interact online but the photo attached to every email or tweet is usually pretty crappy. It may seem superficial but it matters, especially to a niche group.

What is unique about it? Competition is healthy. The idea doesn’t have to exist completely in a league of it’s own. However, there should be something unique about the value it provides. Vague pursuits of ‘trying harder’ than the competition are rarely enough.

At Polar Notion, transparency and and clear communication is a key differentiator in a pretty crowded market. In tech, being relatable and taking extra time to educate is rare.

At New Story, proving impact and investing in innovation are very unique to the social impact space. Rather than asking donors to operate on blind trust, the unique value is around increased trust and leveraging funds to have a greater impact.

With Sharpp, our newest venture, the simplicity and clarity is unique for the franchise owners. The tool we’ve built does create something that’s not already there, rather it breaks it down in a way that is easy to understand and take action on.

How sticky is it and why? Is the solution candy or oxygen? Once it’s adopted, is it nice-to-have or a must have for the consumer or business. One of the reasons businesses like Facebook and Twitter can be such a grind is that they’re largely candy-level-consumption. Take it away and (once the dopamine addiction subsides) normal life resumes. Slack, by comparison, has become the lifeblood of communication within many business. It’s an integral part of conducting business. From the communication to it’s third party integrations, remove it from the equation and a massive hole remains.

Sharpp is the best example we’ve invested in of a sticky idea. Customers are using it multiple times per day. The more they use it, the more positive results they have for the business. Identifying the potential here was something I found particularly intriguing about a franchise budgeting tool.

The customer.

Who is the customer? It’s important to differentiate between users and customers. Customers are the ones who pay money, not merely consume. A clearly defined customer, even if it’s a temporary guess, is an important differentiator. Too many people build a widget and try to find customers, but starting from the customer and working out is far more productive.

This is a point we’ve actually had the hardest time landing on at Polar Notion. We’ve seen a lot of diverse ideas while the business has also evolved quite a bit. As we’ve reflected and looked back, we have identified a trend around content distribution systems for thought leaders and event-driven businesses. The journey of identifying a customer for Polar Notion was somewhat haphazard.

Conversely, Sharpp has a crystal clear customer: franchise owners within food service. Speaking their language and understanding problems, the clarity here is compelling.

What are the buying habits of the customer? Do they have a history of spending money on things like this? Are you trying to completely alter their behavior or shifting it. Are they committed or flighty? Just because it’s easy to get customers to buy doesn’t mean it’s going to be easy to keep them.

With New Story, building a business around the philanthropy and generosity of others is proven. Organizations have been doing it for centuries. It wasn’t a matter of asking donors to do a 180 degree shift. Donors need to just make a small shift. For New Story, this shift does not take a lot of convincing and aligns with where the market is headed.

With Startup Picture Day, we knew the attendees wouldn’t be the ones to fund the venture. While quality headshots have an obvious value, we were able to look at the buying habits of participants to determine that business partnerships and sponsors are the obvious customer.

Do customers intersect? Siloed customers, separated from their peers, points to a much longer sales process than when they gather together and share ideas. The further apart the customers are, the better the margins have to be. When customers are in close proximately, it requires less effort grow and for your idea to spread.

In the early days of Polar Notion, we threw a lot of energy behind a site for homemade baby food recipes. While seeming strange, when you look at the customer you’ll see they actually produce a lot of intersections. The largest audience for homemade baby food recipes are often moms whose full time job is family management. This group, more than any other, share ideas, discuss latest trends, and make recommendations. To be pointed, ‘soccer moms’. They gather in groups, share ideas, and champion things they enjoy. Also, with an above average level of disposable income and owning a high percentage of buying decisions, it’s no surprise that this demographic is highly sought after.

The entrepreneur.

What have they done before? It’s not likely to find young entreprenuers with a mountain of success, but do they have a track record of following through on their commitments? We interact with a lot of people with great ideas, but a drive to see that idea through is quite unique.

Diana, our cofounder with Sharpp, demonstrated a massive amount of persistence and resourcefulness when she built the proof of concept for the product over many months of research and using a spreadsheet tool. When faced with a complex problem, she not only broke it down very deliberately but took multiple attempts at refining it into something valuable.

Jim, who is leading the charge with Tenrocket, continually demonstrates a level of tactic and attention to detail that uniquely positions him to create clarity from chaos. Having the benefit of knowing Jim for years, we have seen these skills play out personally and professionally. You years, I also admired Jim’s willingness to take ownership of someone else’s mission and drive it forward with just as much care and passion.

Are they hungry? It takes persistence and creativity to build something from the ground up. Passion about the idea, both in explanation and in action, make for a better partner and a more likely candidate.

This has become particularly interesting to me recently. There is a focus and intensity within hungry people. Most people can resonate with how physical hunger nags on your mind but few approach life with a similar longing. When times get hard, which is inevitable in an early stage business, most people quite but the hungry start hunting.

Can they handle feedback? Humanity is part of growth and leadership. An entrepreneur who won’t ask good questions or listen to feedback learns everything the hard way. They may survive but it’ll take longer and cost more than one who is embodies humility. Handling feedback can we separated into two parts, both receiving and giving feedback. Being willing to give feedback becomes important over time as a team is being built. Motivating others and moving forward requires giving encouraging feedback and constructive criticism.

At New Story, we define this as a humble pursuit of excellent. We want to remain humble and teachable while still holding ourselves to ever higher standards.

At Tenrocket, Jim does this very well. He solicits ways to help and improve. He also takes the time to provide feedback in a manner that’s well received.

Would you work for them? I’ve borrowed this idea from a interview I heard with Mark Zuckerberg, founder of Facebook. It’s an impactful question when partnering with entreprenuers. In an alternate universe, if the roles were reversed… would you work for them? If you’re investing time, energy, and building a business around someone trust and respect are paramount. If they’ve been able to elicit trust from you, chances are they can do it with others.

Though each for different reasons, the founders at New Story, Jim at Tenrocket, Diana at Sharpp, and Josh at Polar Notion each demonstrate a philosophy and vision I’m comfortable submitting to. This came to life with New Story. Not being a part of the founding team, I wrestled with a willingness to yield to someone else’s authority. Through that process I’ve realized that when it’s the right people, it’s a worthwhile decision.

This overview isn’t cannon. It is a compilation of observations and experience that has proved most valuable over time. I welcome feedback, thoughts, and experience that challenges and improves these principles.