StartupAZ Newsletter: Issue 15
A little over a decade ago, Paul Graham, entrepreneur, venture capitalist and co-founder of Y Combinator, published a blog post about the difference between towns that save startups and those that don’t. Though the post is approaching 11 years old, it’s still highly relevant.
For the last two years, various challenges have rocked businesses large and small. Some have experienced a decline while others seemingly stepped aboard an F-15 to rapid and magnanimous growth.
Investment has also cinched up for many sectors and regions, and the number of exits has declined (which we explore in this month’s “By The Numbers” below). Certainly, many could argue the odds are stacked against startups right now. But, perhaps it’s the severity or type of challenge, but the community in which the startup was born that makes all the difference.
Paul put it best in his post: “Having people around you care about what you’re doing is an extraordinarily powerful force. Even the most willful people are susceptible to it.”
He believes environment is just one of the antidotes to the “startupicide” that kills so many startups. The second is chance meetings with people who can, and are willing to, help you. But making a powerful antidote is a numbers game — you need volume for it to work. In other words, you need a lot of people in the ecosystem who care about, and are vested in, startups.
We see this hypothesis holding true in Arizona. Early successful startup founders have gone on to help other startups get going. They’ve launched subsequent startups, and created funds or invested in other local businesses. They’ve cultivated talented individuals who’ve left to launch startups of their own. And over time, this created a thriving startup ecosystem. It’s the circle of generosity + performance at work.
And it’s this type of community that will prove to be the antidote to whatever the future economy has in store for us.
Below, a few local founders share how they overcome challenges in their businesses. And there’s one common thread: they lean on their community.
And in this month’s Collective Conversation, Bobby Adams, CEO and founder of Motovera, shares how he pivoted the business and the role his StartupAZ Collective tribe has played in supporting his growth. Read on for more!
Malcolm Gladwell once said, “Truly successful decision-making relies on a balance between deliberate and instinctive thinking.” And if you look at most successful startups, this seems to be a shared trait among the leadership.
Get Beth Cochran’s stories in your inbox
Join Medium for free to get updates from this writer.
Still, as much as they rely on calculated and intentional thinking, many also lean on trusted advisors.
“I rely on my board, attorney, fractional CFO, leadership team, advisors, and mentors,” said Rachel Mertensmeyer, CEO and founder of Rivia Health. “Expertise and integrity are equally important when it comes to selecting the people who surround you in these roles. It’s crucial to be surrounded by those who you trust to give you sound advice and who you know will have the company’s best interest in mind when push comes to shove in difficult times.”
Similarly, Eli Chmouni, founder and CEO of Neon, turns to his advisory board because they already know everything about the business, which allows him to be transparent and vulnerable. But he also relies on a specific process when it comes to difficult decisions:
- Should I be the one making this decision? “Sometimes we take on the responsibility of making all the decisions in the business when a fellow team member might be more suited for a certain decision.”
- Map out the consequences. Are you okay with these consequences?
- Be decisive and accept what happens. “The most difficult part of every difficult decision is taking action on it. Difficult decisions should be uncomfortable and stressful otherwise you waited too long to make that decision.”
That brief pause and time to think through outcomes can bring greater clarity to challenging decisions, especially when you can set aside emotions.
“I first do my best to set my personal feelings like stress or anxiety aside so I can think more clearly,” Mertensmeyer said. “I’ve learned to act swiftly and decisively in hard times but also to take a pause when initially confronted with a difficult decision and take a walk before taking an action to ensure my mind is clear and not clouded by the stress of the situation.”
Finally, as important as trusty mentors and advisors are, seeking too many opinions can cloud clarity.
“I will often make one or two phone calls to experts or mentors to get an outside check on my judgment,” she said. “However, I’ve learned too many phone calls can cause lost time and sometimes create more confusion than clarity.”
Bobby Adams was raised in the car industry and became a third-generation auto dealership owner. An intrepid entrepreneur, however, he was always looking for growth opportunities. Though his business was thriving, he began to question if technology could make the process even more efficient. This questioning soon turned into Motovera, a platform for sellers to get bids directly from dealers, alleviating many of the pain points that come with selling a vehicle.
In this Collective Conversation, Bobby shares how he went from auto dealer owner to tech startup founder and the challenges and opportunities he’s navigated along the way.
Watch the full interview (or check out the Q&A).
Don’t miss the next newsletter! Sign up here.
