“It is really fun to sit and think outside the box, you just don’t want to confuse it with what’s in the box.”- Walt Kallenberg Last time my dad was in Seattle we had dinner with my sister, her boyfriend and my uncle Jim. As Kallenbergs usually do, the evening was spent pontificating (i.e. BSing) about life, the universe and the conscious experience.
A few days ago I posted an entry called “Tribal Economics,” in it I talked about respect as an essential ingredient to any group (such as a startup) whose members depend on each other. I put forth that respect isn’t something a person can earn but rather something everyone (and everything) deserves. This got me thinking about leadership. In some ways, leadership is the exact opposite. Leadership ought to be something that is earned rather than ascribed. Localcents’ management team is comprised of 4 individuals, including myself. There simply isn’t enough structure to enforce leadership in our group. Instead, because we respect each other, I often find each of us taking on different leadership roles where we have earned a certain amount of authority with the others.
If you know me, you have probably heard me make reference to “tribal economics.” I often use this concept as a way to justify working 18 hours a day in a startup (villij.com). Tribal economics is the concept that everyone contributes to her or his full capacity, and with that understanding, everyone is taken care of to the extent that the group either succeeds or fails. Please don’t mistake this concept for communism or socialism, or any other ism. The brutal fact is that all people are not created equal. Everyone does not posses the same abilities, or even comparable abilities for that matter, and all people do not have the same needs. In order for a group to operate under the premise of tribal economics - as I believe many startups do, or rather are forced to - individuals must maintain a respect not only for each other’s abilities, but for each other as well. This is the acknowledgment that whether we like it or not, we are all in it together. The larger a group gets the harder it becomes to recognize this. (If you try to institutionalizes respect it becomes discipline and looses its power.) My father, who grew up as one of the only white kids in a rural Alaskan village, always used to tell me, if you lose respect for anything, you lose respect for all things. In short, respect is not something to be earned; it is something to be given without reservation. Respect is the basis of tribal economics and of surviving a startup with your integrity intact.
A few days ago I posted a video of one of my friend’s houses in Homer, Alaska. I grew about a half mile from him on 4 acres of beachfront property facing the Homer Spit. We had the best view in the world! I still remember helping my dad and grandpa build our house. It was two stories, 32′ long and 16′ wide, with visqueen windows and no running water! We had “run and get it water,” meaning that we hauled our water every week from the local store. Also, with no indoor pluming we used an outhouse. To be honest, I can’t think of a better childhood. Much to my disappointment, my parents sold the property two years ago. Last summer I went to Homer and the new owners had erected the beachfront mansion you see below. But, above it, slightly to the right, you can still see the house I grew up in!
Lately, I have been talking to a lot of angel investors about Localcents. The importance of being able to quickly determine each investor’s intent, interest level and motivation is becoming clear to me. I’ll admit, when it comes to raising capital, I am a rookie . However, I have noticed that there are two basic types of prospective investors. There are those who feel compelled to subject you to a pedantic self-indulgent ego-driven inquisition and then there are those who are legitimately interested in learning about your company. Both have money to invest, but, in my opinion, only one of them is a true investor. On the surface it is hard to tell the two apart, but dig a little deeper and the differences become blatantly apparent. The type of questions asked by each differ greatly; no doubt because they are motivated by a different core. One will enjoy picking your company apart to no particular end, while the other, even when supplying you with harsh criticism, will still manage to inspire you. In my limited experience, the more successful investors seem to be good at leaving their egos at the door. Funny how that works!
Here is a short video clip my sister took of one of my best friend’s houses in Homer, Alaska. I’m guessing the video is at least 5 years old by now. They just don’t make them quite like this any more!
