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Interview with Tom First, Co-Founder, CEO & President of O Beverages

BrownHEN interviewed Tom First, Brown '89, Co-Founder, CEO & President of O Beverages, Cambridge, MA.

1. Tom, how important is it to have a detailed plan before your start an enterprise?

I think it is important to have a solid vision for your product. A plan can be helpful in understanding your requirements for reaching that vision, but plans always change. I’m not sure I’ve ever written a plan that actually came to life—you hope to get close. Understanding how to change your plans and having the ability to adjust to the realities of the marketplace is much more important than writing a good plan. I have seen many people who write elaborate, detailed business plans, but have no ability to execute in the light of day. I have also seen a lot of people write wonderful plans for businesses that they never start!

2. On the face of it, Nantucket Nectars seems far removed from your undergraduate concentration. What recommendations do you have for an aspiring entrepreneur about choosing a concentration?

I was an American History major, which would not typically lead you into the juice world. I enjoyed many of my professors at Brown and learned to enjoy learning—whether it was from the faculty or from my friends. In business, with Tom Scott, I learned to love what I do and do what I love. Tommy and I always said that if it stopped being fun, we’d go do something else. We found a way to make our business fun—that’s why we stuck with it and ultimately, that’s why we were successful. I think that Brown was much more about the process of learning than a means to an end. 

3. What is it like to now be leading a company in the same industry as Nantucket Nectars?

I have always enjoyed making and selling things that people can relate to and get excited about. Our products have flavor, color and style. I don’t really think of myself as a beverage person or a consumer products person—I think of myself as a marketer and I’m happy that I market and sell something fun. In many industries, people seem to get caught in the trap of marketing or selling in the same style as other people in their industry. I try very hard to have an outsider’s perspective to my industry because I want to have a fresh approach to product development, marketing and sales. Today, Tom Scott and I are in totally different industries, but we talk all the time and you would be amazed at how similar our challenges are.

4. What are some of the challenges you have faced as co-founder of O Beverages? Who is the CEO and who is the President?

I am the CEO and President. I think my biggest challenge is remembering how tough it was in the beginning at Nantucket Nectars—the first five years were brutal and most people, thankfully, don’t remember what the product was like in the early days. Free rides in the business world are very rare. Instant success may come if you have a new technology or an absolute break-through concept in some industry. Typically, however, success comes by gutting it out, having staying power and being relentless about refining your product, your marketing and your sales. Competition is fierce and mediocrity is not rewarded. With O, we have been working to refine our product and our packaging for two years, and we have made enormous strides. My experience and reputation as “the Juice Guy” has been great, but it doesn’t mean that O can survive without being a top-notch product. When you are 23 years old and you can work seven days a week for 15 hours a day, it’s a bit easier to carry the burden than it is when you have a family.

5. At one time you had a company selling business software—perhaps you still do. What is the big difference between that business and a business selling consumer products?

I’m not a software guy. I’m very visual and I’m pretty impatient. I love the instant feedback that you get in the consumer product world. I enjoy the relationships with our customers (distributors, retailers and consumers). 

6. What advice do you have for an entrepreneur selling the business?

First of all, I think it is hard to build a business with an exit strategy in mind. Tommy and I were blessed with ignorance. We built our company because we loved being on Nantucket and we wanted to find a way to keep our lifestyle. Out of that grew a business that eventually became valuable. Nantucket Nectars was about our product, our people and our passion—not about building to sell.

When the time does come to sell, you should work hard to sell under your ideal circumstances. If one offer comes, it is almost certain that others are out there and patience brings great opportunity. Once you’ve created the value, you hold the cards and offers create anxiety and emotion. The greatest weapon you have in a negotiation is time—if you have more time and more patience, you will often get what you want.

7. What are the top five qualities you would ascribe to an entrepreneur?

• Passion for what you do – product or whatever
• Paranoia – never believe that you or your product is good enough
• Honesty
• Drive
• Communication – the ability to tell your story and communicate it to people

8. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

You have to look at failure as a learning opportunity. Failure is a big part of business and making the same mistake twice is a no-no. People who fear failure are not entrepreneurs. Failure tests the limits as long as you are honest with yourself and you can use your mistakes as a tool for future navigation. Failure is a great teacher.

9. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Business is about people—people create ideas and products and bring them to life. Tommy and I talk all the time—and after a few years apart and some distance from 14 years of day-to-day grind with him, I have really gained perspective on what we had. It was so rare—we became like brothers even within the tense framework of building a business. We built a great product, had a great experience and made money. However, I think my experience with Tommy and the learning that we went through together and the relationship we developed outshines all of the other rewards. It is about people—and I am lucky to have the opportunity to share the ride with him and many others at Nantucket Nectars and at O.

10. You and Tom Scott each had a dog? Do you still have yours?

Pete is still alive; he’s 14 years old. We got him a girlfriend, Izzy. She’s a puppy Portuguese water dog. Tom Scott’s dog, Becky, died a few years ago. Pete always thought Becky was the coolest thing; he worshipped her.

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Copyright 2007 – BrownHEN.org

Interview with Joseph Colagiovanni, Jr., Partner at Sonnenschein Nath & Rosenthal LLP

BrownHEN interviewed Joseph Colagiovanni, Jr., Brown '78, Partner at  Sonnenschein Nath & Rosenthal LLP, St. Louis, MO.

1. Joe, what are the most important legal issues that entrepreneurs must be aware of?

I would focus on three issues. One, asset protection and liability. Many entrepreneurs are unaware of different ways to invest their capital and protect the balance of their assets. Two, intellectual property. There are different ways entrepreneurs can protect their ideas and also make sure that those ideas do not infringe on others’ intellectual property. Three, regulatory concerns. Entrepreneurs need to know about different multilayered regulatory concerns that exist at the local, state and federal levels.

2. How can an aspiring entrepreneur best get legal help? How can one such find a suitable attorney?

The first time an entrepreneur thought thinks of it, it’s already too late. Lawyers in today’s world are business consultants; the earlier entrepreneurs enlist their help, the better. The trick is to find a good attorney who is experienced and who fully understands your business—whether it’s construction, manufacturing or technology—and can interpret and apply the law to your company’s unique facts and circumstances.

3. Did you ever produce another play since your undergraduate days? Are you involved in the arts in other ways now?

Actually, it was a skit that Gary Simon and I produced. I studied philosophy and political science, and was a musician during college, but I haven’t written any music since I got married. (Laugh!) Our 14 year-old son is musically inclined and is also involved in theatre. So we support his artistic efforts as well as the St. Louis Art Museum and various art-related organizations.

4.  You have had much experience in the construction industry. Please comment on the state of infrastructure in the United States at present—is Minneapolis an exceptional case? What, if anything, needs to be done?

I have spent a lot of time looking at infrastructures, roads, bridges, and power plants. Many of these were built as large scale public projects during the FDR administration. These infrastructures are aging and breaking down, and there are signs that the problems are burgeoning. In other countries, many infrastructures were built with privatized money. In America, we will probably need to review different ways of financing repair and build future infrastructure projects.

5. You were an Assistant Attorney General for the State of Missouri. Are you glad you had that experience? Why?

Yes, I am. At the time, I wanted to be a litigator and I got into the court room quickly and served as a lead trial lawyer. I learned more in my two years there than I did in two years in the private sector. The skills set that I acquired helped me later on in private practice: how to engage with my clients, how to learn and understand how their businesses operate and what they need, and how to develop legal expertise in their niches and help them.

6. Did you know you want to be in an attorney when you were at Brown?

I was interested in law and wanted to learn more about it. Fortunately, a family friend, Chief District Judge Raymond Pettine, suggested that I intern with his office. I spent the mornings and early afternoons of my entire senior year in the Chief District Judge’s office. I was exposed to many facets of the law and got very comfortable being around lawyers. I started out as a litigator, but now work as a transactional attorney who specializes in construction and development. I really enjoy helping my clients.

7. What about your expertise in construction?

Many people know in Rhode Island know about my dad’s family, which was involved in the wholesale food business. My mother’s side of the family was involved in the construction business, and I grew up around it. I understood design and construction. My first client in private practice was related to construction.

8. Does your family still live in Rhode Island?

My brothers still run my father’s wholesale food business, which is very different from 20 years. I return a couple of times a year for a visit.

9. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

As I watch my son transform from a child to a 14 year-old adolescent, I am reminded how fast life goes by. We can’t spend enough time with our family and friends, and what seems important at work is not that important, at the end of the day.

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Copyright 2007 – BrownHEN.org

Interview with Sheeraz Haji, President of Convio, Inc.

BrownHEN interviewed Sheeraz Haji, Brown '94, President of Convio, Inc., Austin, TX – Offices in Berkely, CA and Washington, D.C.

1.  Sheeraz, you have done many interesting things in your career. Do you believe a new college graduate should plan out the succession of jobs to be sought or do you recommend that s/he simply be open to new opportunities?

I believe new grads should stay open to opportunities as they arise. When you are fresh out of school, it can be difficult for an individual to recognize his or her shortcomings. My advice is to seek out individuals who motivate you, and from whom you can learn. Avoid pigeon-holing yourself into a certain profession simply because you think it’s where you belong. Keep an open mind and explore new opportunities as they present themselves. It may take a while to find the ideal one, but it can be worth the wait. I speak from experience—I studied civil environmental engineering at Brown and ended up in an exciting career in software.

2.  What is GetActive and how did you start this software-as-a-service company for nonprofits?

GetActive provided software to help nonprofits raise money and run advocacy and marketing campaigns. While I was working at Digital Impact—a provider of online direct marketing solutions for enterprises—I noticed that nonprofits weren't taking full advantage of the internet to interact with their constituents. I had the good fortune to connect with a number of talented technologists who were struggling with the same issues from within a nonprofit (Environmental Defense Fund). To address this gap in the market, we co-founded GetActive in 2002.

3. Please share with us the analysis process you went through in deciding to merge GetActive with Convio.

At GetActive, we took pride in looking after our clients and focusing on their long-term interests; we also wanted to be forward thinking in terms of the company’s strategy. We were committed to delivering as much value as we could to our clients, so we decided to marry what we were best at—advocacy and content management—with what Convio is best at—fundraising.

4. You began your career as an engineer for a medium-sized company. You then worked with a respected consulting firm before co-founding a startup. Would you share a bit more about your background and compare the learning experiences at these respective companies?

I started out working for an environmental engineering company because I was, and still am, passionate about the environment. I wanted to solve environmental problems. When I was at the engineering firm, I realized I also needed business skills to complement my engineering skills. I was advised that McKinsey would be a good place to learn about business, so I contacted them, participated in a rigorous interview process, and was offered a position. McKinsey provided lots of resources and useful training; their consultants know how to solve business problems. My time at McKinsey was a fabulous learning opportunity and provided me with great exposure to how large companies operate.

At McKinsey everything was very structured, whereas in a startup environment like GetActive, I was required to wear different hats: operations, strategy, marketing, to name a few. GetActive offered plenty of opportunities for development and growth. I quickly learned that startups were a perfect fit for me. I also discovered that I was more effective in a startup because of the time I had spent in established companies.

5.  Much software creation is being outsourced to Asia these days. Do you see opportunities for entrepreneurs in managing outsourcing?

Yes, I do, but it is not as easy as people once thought it was. In some ways, outsourcing to Asia has come full circle, and we are now seeing a rise in outsourcing to Eastern Europe and Africa. While it may be cheaper to outsource, there is no shortage of communication and operational challenges in trying to coordinate a development team that’s on the other side of the world.  Unquestionably, the opportunities exist, but so do the headaches that accompany them.

6.  Are you presently involved with a not-for-profit organization working for social good? If you are, describe the organization and why you are involved.

Yes, I am. The organization, Direct Change, builds grassroots financial support for community-based African projects that are directly helping children. I am involved for a number of reasons. First, I know the founder (Ken Deutsch) and think the world of him. Second, Africa needs our help; and third, Direct Change focuses on children’s health and community building, both of which I believe are critical to long-term change in Africa.

7. What are the top five qualities you would ascribe to an entrepreneur?

• Passion - it should be evident to everyone you interact with.
• Positive attitude – an optimist’s perspective, especially when everyone tells your venture is not going to work out.
• Leadership – the ability to convince people to follow you when you have no cash, no product, and no clients.
• Ability to notice trends that are not well understood.
• Strong work ethic.

8. And how does one learn to spot trends?

For me, I learn by talking to clients and spending time to understand their needs and how those are changing. Talking to industry experts can be helpful, but the analysts don’t always understand what customers really want—in the short and long term. If I spend a day with customers, I always come away with a better appreciation for their needs, what’s working and what’s not working.

9. Would you speak about fear as a motivation or hindrance toward accomplishment?

For me, definitely a motivation. There were times during GetActive's early days when I was concerned about running out of cash and not making payroll. When you hire people to work on your team, you feel responsible for them and you want to make sure you take care of them. The fear of disappointing colleagues and clients was highly motivating!

10. What advice do you have for entrepreneurs who possess some of the qualities you mentioned above, yet at times get stuck because they haven’t been able to figure out how to adjust their product line, meet their revenue goals, etc.?

My advice is to think big and dream big. Envision your success and then understand what you need to accomplish in the short term to make progress towards your goals. Work hard until your dream becomes a reality.

11. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Events happen. It’s up to us to decide how we interpret them. For example, if a large enterprise decides to compete with your company, you probably had no control over that. You could interpret this as a negative event, stress out and worry about potential revenue loss. Or you could focus your team's time and energy on finding a creative way to make this development work to your company’s advantage.

12. So the outcome depends on how you choose to respond and on your decision to focus on the positive.

Exactly!

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Copyright 2007 – BrownHEN.org

Interview with Bob Stearns, Co-Founder and Managing Director of Sternhill Partners

BrownHEN interviewed Bob Stearns, Brown '71, Co-Founder and Managing Director of Sternhill Partners, Houston, TX

1. Bob, you must have read many proposals in your life, what advice do you have for entrepreneurs writing a document asking for money?

Entrepreneurs need to know that venture capitalists are interested in reviewing proposals that are expressed succinctly, without spurious details. We are not interested in lengthy documents with five-year projections that are speculative. We usually focus on three things: the quality of the individuals who are starting the venture, the nature of the products or services, and the market opportunity.

2. What were you doing at Compaq and how did you end up at Sternhill Partners?

I was CSO, CTO and Senior VP at Compaq. Part of my responsibilities as Senior VP included running a VC fund for Compaq, where I really enjoyed working with young companies. Compaq reached a point where its direction diverged from mine, so I left. I co-founded Sternhill Partners with Marc Geller in 1999. Sternhill was a VC startup; it faced all the issues related to starting a business: raising money for a limited partnership, establishing our geography and niche.

What was your biggest challenge?

Our biggest challenge was raising money from high net worth individuals and institutions. That said, we were able to raise our initial funding quickly.

3. What advice do you have for a person leaving a large corporation for a venture of her/his own?

Entrepreneurs who are striking out on their own need to be pragmatic and optimistic, and have high energy. They need to correct their mistakes rapidly and move on. They also need to surround themselves with people who possess relevant skills and seek help from their advisors.

4. Why was your venture fund at Compaq so successful?

Partially, it was the right timing. In the mid-1990s, venture capitalists generated tremendous returns in general. Second, Compaq invested in companies with products that could be incorporated and sold through its distribution system. There were a lot of opportunities for Compaq to benefit from these investments. The venture fund enriched Compaq’s shareholders. The best of the best technologists would come to Compaq. We were very successful; the fund’s return was 20 times the investments.

5. Your formal education was science-based. Did you feel you had a lot of catching up to do when you went into management?

I studied chemistry and physics at Brown. I felt the need to supplement my education with business skills so I went to graduate school at MIT and took additional courses at the Sloan School.

6. Do you think entrepreneurial opportunities still exist in the computer industry? Has the industry reached maturity so large organizations have an insurmountable advantage?

Absolutely! The industry has reached maturity some areas, but not in others. Entry levels to IN semiconductors, computer hardware manufacturing, and storage hardware are difficult. IBM dominated in the 1960s, and then came the personal computers. Opportunities still exist, but less so in computer hardware.

7. What are the top five qualities you would ascribe to an entrepreneur?

• Has a passion for whatever and for getting things done.
• Possesses honesty with oneself and with others; accepts what one can and cannot do.
• Is bright.
• Possesses people skills with at all levels; is able to attracts money and customers.
• Does not fear failure.

8. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Life is what happens to you while you are planning. Allow it to take you where you want to go rather than where you think you want to go to please somebody else. Enjoy every day and don’t take yourself too seriously; don’t chase after money or title. People succeed because they enjoy what they do.

9. How long did it take to understand the Texas accent?

Very quickly. I’ve been in Texas for 15 years and I love living here.

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Copyright 2007 – BrownHEN.org