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Interview with Barrett Hazeltine, PhD.

BrownHEN interviewed Barrett Hazeltine, PhD – June 25, 2007

1. Dean Hazeltine, for thousands of Brown grads, you are known as the father of entrepreneurship who has advised and helped countless of former students start their own companies and guided them to success. What many people don't know is that you yourself have had your own entrepreneurial success. I kept hearing from different alumni vague stories about your patent way back when. Would you speak to this and share some of your experience with us?

I am really afraid to disappoint you because the actuality is much less exciting than the rumor. About 25 years ago, a Brown graduate named Dick Simon came up and said he owned a company, U.S. Billiards, which made coin-operated pool tables. In these kind of tables one gets the cue ball back if it goes down a pocket. He needed some way of distinguishing the all-white cue ball from the other balls. His competitors either made the cue ball slightly smaller or heavier but both approaches had faults.

Another Brown professor and I designed and built a device using small lights and light-sensitive detectors that recognized the cue ball. Not to bore you with the details, the hardest ball to detect was the one with a yellow and white strip but it turned out that the three detectors would work. The device worked and was deployed but the market for coin-operated cue ball dried up.

I have a vague memory of getting my name on a patent when I was working at Raytheon in 1965, but the group of people working on the project was large, and I do not remember the details.

Matt Paknis, whom you know, another Brown alumnus Ray Steele and I formed a company to do management consulting. We mostly worked on work force motivation and team building—Matt’s specialty. The company did fine, but I did not want to give up my day job (Brown) so I did not spend as much time with it as it needed. After a few years, I went off to Africa and the company got reorganized with Matt as the sole proprietor. I still collaborate with Matt on various projects.

Another entrepreneurial venture is a new charter school in Providence—called the Paul Cuffee School. I was on the original board and still am. We had our first 8th graduation last Saturday (6.23.07).

2. Time and again, I have heard from fellow Brown alumni of your creative input in helping them solve their entrepreneurial and professional challenges. When did this entrepreneurial instinct surface in your life?
You ask hard questions! One quality of an entrepreneur, I think, is curiosity about many different things and I think that came out early. A related characteristic is wanting to try new ways of doing things—which is not an endearing trait for parents and colleagues trying to get a short-term goal accomplished. But I did not think of staring a business until much later in life—did not realize how exciting, challenging, and exciting it would be. Like many aspects of a persona, the entrepreneurial spirit is present in many people, but needs to be allowed to flourish.

Did you receive support from friends and family to nurture it?
Not much. I think I got the most support later in life by watching students succeed with their own ventures. My impression is that many successful entrepreneurs start out as a lonely gladiator with perhaps a single partner; only after achieving some success will they have credibility to attract a team, or a mentor. Being strongly involved with a group early dilutes the passions and slows the process.

3. How do you advise young entrepreneurs to cultivate this entrepreneurial DNA?
In early stages inspiration is probably most important and one place to get that is reading about the efforts and successes of other entrepreneurs. I like FAST COMPANY magazine because the articles are suitable and have a nice combination of insight and brevity. I am sure there are other magazines or even books that are equally exciting. After one has read a few articles, my advice is to go out and do it—be an entrepreneur, walk the talk. The rest of what you need to know, you learn as you go.

4. What are the three common factors that you have noted among your former students, which contributed to their successes?
Persistence, desire to learn about many things, appropriate blend of wanting to be independent and a willingness to listen to others. This is turning into about five common factors. Persistence has two aspects: 1) sufficient confidence in one’s self and one’s idea to continue despite discouragements and 2) willingness to work very hard.

The entrepreneur has to make a whole lot of things work together; unless she or he really enjoys learning about each of these things a project will not come to fruition. On the other hand, an entrepreneur must be relentless in pursuing the core of her/his vision—else why work so hard? On the other hand, most of the entrepreneurs I know about seem to have benefited significantly from advice originating from outside the enterprise.

5. What advise do you have for this next generation of entrepreneur hopefuls? How has the landscape changed since 20 or 30 years ago?
Seems to me entrepreneurship is much more generally accepted now than it was even a decade ago. My impression is that it used to be the case if a college graduate went home and told her/his parents that s/he wanted to be an entrepreneur, the reaction would be horror and disbelief. I think that has changed. People recognize much more than in the past the need for this country to have new ventures and the overall social value of entrepreneurship. Loneliness used to be a big pain for an entrepreneur, “Am I the only one facing these problems?” More support and resources are now available: nonprofit groups, state agencies, as mentioned earlier, magazines, etc. There seems to be more venture capital around and more angels—certainly there are more investment firms than in the past and most states have agencies to encourage entrepreneurs.

6. You’ve given so much of yourself to your students. What do you hope that they in turn can pass on to their students and protégés?
I hope young entrepreneurs—successful or not—will encourage the next set of entrepreneurs. Not all can give advice or funds, but all can spend a few minutes listening and offering some kind and helpful words. An appropriate mixture of praise and realism is needed. The confidence of young entrepreneurs is often fragile, even if hidden by bravado; an advisor should not damage that confidence. I hope senior people will also pass on to others a need to consider the implications of what is being proposed—will it make people kinder and more generous? Will it protect the environment? And so on.

Copyright 2007 - BrownHEN.org

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Interview with Randy Haykin, Managing Director of Outlook Ventures

BrownHEN interviewed Randy Haykin, Brown '85 and Managing Director of Outlook Ventures, San Francisco.

1. Randy, although you always wanted to be an entrepreneur, you took a job at Apple early in your career, right after business school. Looking back, do you think that was a good decision?

Yes, it was a good decision and a very deliberate one. While at HBS, I learned that I wasn’t quite ready to go out there and start a business. As a future CEO, I knew that I needed finance skills, sales skills, etc. I knew that Apple attracted entrepreneurs and would give me the functional experience that I needed. I purposely took a sales job, which was uncommon for an MBA grad.

What did you learn from your sales job?
There is no substitute for one-on-one contact. I managed several channels and learned much from working with my Apple customers. My sales experience made me valuable internally later on as a product manager. I was responsible for key products and I could reach out to contacts in the field to learn what features interested them. My field experience served me well.

Did you hold other positions at Apple?
I moved on to head worldwide multimedia developer programs for Apple. I started from scratch, created content, training and multimedia programs for developers. I was a senior editor of Demystifying Multimedia, which was published by Random House. I went on to work on the content side in Paramount’s Media Kitchen and created digital startups for two years. This got my career going in the direction of the internet.

One of the startups was Yahoo. I joined the founding team as VP of sales and marketing. When it was time for Yahoo to talk with venture capitalist, I observed how Sequoia VCs operated and got interested in the venture side.

2) How do you advise an aspiring entrepreneur to decide between several job opportunities, one of which may be starting a new business? How can an aspiring entrepreneur decide when it is time to be a real entrepreneur?

I believe you know when you possess enough confidence to create a start-up on your own. You will know when the time is right. If you are not quite sure, it’s a good idea to obtain experience as a part of a start-up team.

3) What process do you use to assess the non-tangible aspects--artistic, social benefit, etc.--of an investment opportunity?  How do you use that assessment in making the final decision to invest?

As an angel investor, I look for opportunities for social benefit and returns. I’ve invested my own money in Alzheimer research, cancer research and colon diseases. I serve on the board of the American Cancer Society in the California State Division.

How did you get involved with that?
My mother passed away eight years ago because of cancer. My three young daughters got involved in fund-raising for cancer research and they presented a check to the American Cancer Society. We met the executive director who learned that I am involved in finance, so the board offered me a position. So my daughters were delighted that they found me a job.

On the social side, I’ve done pro-bono work with Opportunity International, which provides highly leveraged assistance to impoverished families around the world. We give an impoverished family a loan to help them get set up. They would pay back the loan and it goes to the next needy family. We have a 98% retainment rate, globally.

4) What advice do you have for an entrepreneur who is looking for a partner?

You should look for partners with complementary functional skills. If you are not strong in technical skills, look for someone with technical skills. If you are not good in sales, look for someone who is great in sales.

5) How do you deal with situations where your clients or your superior in an organization expect you to act in a way which conflict with your values?

Every person is different. In my case, I have tried to guide my career so that my values are in alignment with what I am doing. In the VC world, it is a bit tricky. Some VCs are known for their ruthlessness, which doesn’t match my values. Although I do not have a boss, I find that I need to be sensitive at times with venture boards, and let people know where I stand on issues. It’s very easy to get to the slippery slope. Often entrepreneurs and VCs are faced with strong leadership and ethical issues. One must draw very sharp lines because if one isn’t clear about it, things can get a bit sticky.

6) How can entrepreneurs ensure that they continue to learn?

One, entrepreneurs should surround themselves with great advisors on their board because they constantly learn from the masters. Two, entrepreneurs should collaborate as often as they can, and learn and listen from their customers.

7) Will you speak a bit about your involvement with fellow Hazeltine alumni?

I have been involved in Brown’s Entrepreneur Program for 10 years now. I have enjoyed being a part of the EP, advising Hazeltine alumni and connecting with various Hazeltine entrepreneurs.

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Copyright 2007 – BrownHEN.org

Interview with Tom Gardner, CEO of The Motley Fool

BrownHEN interviewed Tom Gardner, Brown '90 and CEO of The Motley Fool, New York.

1. Tom, in a recent FORTUNE article, you discussed societal trends. How does an entrepreneur learn to recognize such trends?

I recommend three ways. First, ask questions, be curious. Get in touch with people, seek out leaders. Do what you are doing: contacting a CEO and asking for 15 minutes of his/her time. One needs to be disciplined and methodical about asking questions and insights on trends.

Second, listen and take good notes. File your notes online or in folders in a cabinet. Take note of what you’ve learned. The very act of note taking, of writing down new information and insights helps one learn.

Third, read. Read what’s on Amazon and Google. Read books and articles. Read about demographics. Read at least an article, a book or two by Peter Drucker, whose writing integrated many issues that are relevant to entrepreneurs: a company’s knowledge of its products and of the market, its mission, its values, and its entrepreneurial aspect.

What do you think of Drucker’s article, ‘Managing Oneself?’

Very insightful. I would also add that 90 per cent of what you do is not very impactful. It’s the 10 to 20 per cent that really makes a difference. So focus on what you do well and dedicate yourself to excelling in that area instead of starting with something that you have no competence in.

2) In your business you probably often get asked to do things you do not want to do.  How does one gracefully say "No" to such requests?

Personally, I am inclined to say, “Yes” often. Before I became CEO in February 2007, I was a founder and a producer. My responsibilities were different then. As CEO, I push my  direct reports to prioritize, delegate and focus on higher priorities. And it is okay to make mistakes. I prefer that they do not waste time on inconsequential things and doing them well. I prefer that they assume more responsibilities and make mistakes. I find that we need to be deliberate and intentional about our high priorities.

3) Do you have advice about being in partnership with a family member?

Recognize each individual’s strengths and weaknesses. Be as transparent as possible. The foundation is communications; you need to communicate frequently and clearly. Anyone interested in family-run businesses should read about the Nordstrom or the Mondavi family. One family could work together while the other fell apart.

4) The Motley Fool has a great many services and activities. How do you manage such a diverse portfolio?

Methodically. From our launch 13 years ago, we aimed to hire smarter and more talented people. In my experience, I have encountered egoism from MBA grads, who tend to hire people who can do it right, rather than hiring people who will challenge them. I believe one makes a better CEO if one allows criticism and debate. We have such talented individuals in our company that I could leave the day-to-day operations to my team and feel assured that everything will be running smoothly.

5) You are well known for your light-hearted (non-threatening) presentation of a serious subject. How do you keep your good-humor?

Having fun is so core to me. I discovered that I learn best when I am having fun. As someone who is curious, I am constantly engaged and learning. A piece of my mission is to challenge conventional wisdom. Classic cases for investors are to buy when it’s good and sell when it’s bad. They should go against human nature and do the reverse. But most people don’t. I learned that people tend to receive instructions (contrarian or conventional wisdom) better / easier when the teaching is infused with humor.

6) What are the top five qualities you would ascribe to an entrepreneur?

One, focus on building an ownership culture. In some of the greatest companies, people care very much about their organization’s wellbeing and performance. As people care about the house or the car they own, they care about their company because they have partial ownership.

Two, be passionate about what you are pursuing.

Three, be adaptive to change.

Four, focus on long-term.

Five, be disciplined. It usually takes 10 years to develop a high level of proficiency. This applies to mathematicians, violinists, chess players, etc.  To acquire any kind of expertise, one needs to practice daily.

7) Does everybody in the organization get to wear a jester's cap?

(Laugh!) More people prefer to wear baseball caps with our fool’s logo, but we do have bell caps around the office.



Copyright 2007 - BrownHEN.org

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Interview with Tom Scott, Chairman, CEO and Founder of Plum

BrownHEN interviewed Tom Scott, Brown '89, Chairman, CEO and Founder of Plum, New York.

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

It is only important in thinking about it. Most likely you won’t follow it. Flexibility is a huge factor. There are so many nuances to developing a product or a service. You will find that a lot of it is trial and error, especially if you are breaking new grounds.

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 recommend that you study what interests you. I focused on American Civilization at Brown. Tom First and I started out operating a floating boat because we loved being on a boat. Juice was one of the things we sold. One thing led to another and we ran with Nantucket Nectars.

3. The folklore about Nantucket Nectars has much about basketball and you were an athlete at Brown. Do you think sports experience is significantly beneficial for an entrepreneur?

It is somewhat beneficial. Commitment and teamwork are critical to an entrepreneur’s success. In addition to athletics, there are other ways one can learn to develop these skills.

4. How did you learn all the intricacies of the juice business—where to source fruit, where to get bottles, how to get the product fresh, how to structure an investment?

It was all trial and error. We put one foot in front of the other. We had passion, it was what we loved. We did not take no for an answer. If we had known how hard it was going to be, we might not have ventured forth.

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

I believe you run a business to run a business; you shouldn’t run a business with an exit strategy. You will know when the time is right to sell.

6. Recently, as President/CEO of Plum TV, you were named among the 27 most innovative thinkers in the worlds of media, entertainment, politics, and technology by Details magazine in their second annual “Mavericks” issue. What do you do to keep yourself growing creatively as a person, as a business leader?

Thanks! Those awards are flattering. I just pursue what I like, what interests me. If you are passionate about your work (your products / your services), you are going to spend a lot of time thinking about it, working on it, and improving it. If growth has slowed, you should take actions to mix it up. 

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

• Passion.
• Perseverance.
• Survival instinct.
• Faith in yourself, in your vision. A belief in the unknown. You may be dreaming of what didn’t exist, what seemed unlikely to exist.
• Trust. Before we got into juice, Tom First and I started a painting business with four people. Our business evolved and it ended with us two. Trust is a rare thing—trust and the ability to have an open dialogue, which is essential.

8. Who has the dog now?

Well, we had two dogs. Tom has one and I had Becky, and she passed away in 1990.



Copyright 2007 - BrownHEN.org

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Interview with Matt Paknis, CEO of MattPaknis.com

 

BrownHEN interviewed Matt Paknis, Brown '85 and CEO of MattPaknis.com, Boston, MA.

1. Matt, what are the biggest differences between working for a corporation and working for yourself—in terms of daily life, employer expectations, etc.?

Working for someone else:
• Goals and agendas are established for you; you are part of a team.
• Decisions are often made for you.
• Expectations / reporting relationships can readily change.
• Travel may be required.
• Structured days, steady paychecks, benefits, and insurance.

Working for myself:
• Set my own goals with clients.
• Clients, friends, family, and associates become my team.
• Day is structured to complete client tasks, administer, and build business.
• I have the freedom to help at school and around the house when I choose.
• Marketing my work is critical and challenging.
• I’m part of the decision-making process.
• Travel is optional.
• I generate my own income and pay for all my benefits.

2. Describe how you made the move from an employee of a big corporation to independent consultant. What advice do you have for people thinking about a similar move?

Here’s the road I took:
• Started designing and delivering team building programs in 1991.
• Facilitated corporate programs at a university retreat center.
• Consulted inside these organizations and developed management improvement programs.
• Worked as an internal consultant for a large financial services corporate client.
• Designed management development programs for this firm nationally.
• Certified in selection, coaching, leadership, facilitation, dialogue, training assessment and evaluation, and communications programs.
• Worked with people and teams in conflict.
• Certified and trained in conflict management, dispute resolution and mediation.
• Created for Brown, with Barrett Hazeltine, a 50-hour “Practice of Management” certificate program. This led to additional consulting opportunities.
• Stepped out on my own in 2003 after nine years of consulting and working a full-time job.

My advice: learn what you really enjoy doing, and what people recognize you for doing well, and then find a place you can practice this to support yourself while you can grow independently.

3. You have been involved in coaching—both college football teams and business professionals. Can you give advice about coaching entrepreneurs?

Entrepreneurs tend to see solutions fast, so coaching them should include:
• Brevity.
• Incremental goals, clear focus, vision, and targets.
• Reflective listening to help them hear and assess ideas.
• Explorative inquiry to help them refine an idea or process to create their solutions.

Football coaching tends to be one-way communication. Corporate and 1:1 coaching are more reflective and exploratory. It’s intended to help the entrepreneur realize his or her goals with support, encouragement, and reflection.

4. Many successful large organizations claim they strive for entrepreneurial and innovative cultures. Their record at innovation, at best, is mixed. Why aren't these large companies—rather than startups—on the cutting edge of innovation.

Earlier this year an established manufacturer hired me to facilitate the creation of its innovation team, comprised of its best international talent. The team’s leader questioned their ability to rock his industry with new concepts and ideas because:
• Established, publicly-traded companies are rewarded for maintaining incremental growth and for avoiding risk.
• The innovation and risk expected from his team might cost money in the short term.
• He felt they could thrive only if they were given a separate budget—free from the  corporation to explore and take chances, like a startup.

5. How does having a family with (fairly) young children influence being an entrepreneur and a management consultant?

There are varied benefits and challenges. Here are some benefits:
• I travel less now than when I worked for a corporation.
• When I do travel, some of my clients have offices in great locations. I do my
best to blend work with family vacations when I visit these spots.

And some challenges:
• My office is in my home. There are times when I have to lock the door to complete proposals and reports, or to conduct phone calls.
• I try to structure my day like my office is out of the house. This does not always work. Thus, it’s hard to have down time.
• Challenges also occur when my kids are home on vacation, and I have a home workday scheduled. My son tends to win out and I do the work after he goes to bed, or before he gets up.

6. Did lessons gained from being president of Delta Tau Delta fraternity at Brown contribute to your entrepreneurial/consulting success?

I was president of Delta Tau during its transition back to campus. We were the first fraternity to regain Brown campus housing after being removed by the University. I applied some of the lessons learned to my consulting work:
• Observing culture change via shifts in values, beliefs, and behaviors.
• Tying culture to performance. I was very interested in seeing whether or not
better off-field behavior would improve the football team’s performance, as many athletes were in the fraternity. It did.
• Determining what interpersonal, organizational, and environmental factors can influence people to achieve great things.

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

Most great entrepreneurs I’ve known or read about:
• See relationships others miss.
• Are creative.
• Demonstrate spatial thinking.
• Are driven.
• Are great at problem solving.
• Rally others around their vision.

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© BrownHEN.org – 2007

Interview with Ralph Rosenberg, Managing Partner of R6 Capital Management L.P.

 

BrownHEN interviewed Ralph Rosenberg, Brown ’86 and Managing Partner of R6 Capital Management L.P., New York, NY.

1. Ralph, have just gone from a highly respected large enterprise to your own entrepreneurial venture. What advice do you have for others who are thinking about making the transition?

When making a decision like this, be sure you are prepared to deal with all of the small details that go into starting a business. Also be sure you are prepared to be emotionally invested 24/7. The successes lead to the most satisfying emotional highs and the disappointments lead to emotional lows.

2. Goldman Sachs employs many Brown graduates and a writer from FAST COMPANY magazine once commented on the large number of entrepreneurs he knew from Brown. How can a Brown graduate best leverage her/his undergraduate experience?

Learn how to think critically—do great analysis and then step back and view the big picture. Also learn great presentation skills—both public speaking and written.

3. You have done a great deal for Brown. What motivates you to make such a major commitment?

I think we all have an obligation to support the institution so that future generations get the benefit of an even better experience than the one we had. Also we all benefit from the “aura” of the Brown reputation. Let’s do what we can to preserve it.

4. One reads much about ethical issues in the financial industry, as well as other industries. How do you deal with situations where someone—whom you want to continue to work with—asks you to do something you do not believe in?

No matter what field you pursue, integrity and honesty has to be the core philosophy. In the example you are giving me, I would say “I’m not comfortable doing what you are asking me to do, sorry.”

5. You must have looked at many proposals in your life. What advice do you have for an entrepreneur preparing a proposal or business plan?

Lead with your differentiating strategy. Keep it brief, yet substantive.

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

• Can deal with rejection/disappointment
• Good “big picture perspective”
• Even-tempered disposition
• Good sense of humor, and
• Ability to lead and motivate people.

7. Any thoughts of going into business with your brother, Harry?

I’m a big believer in keeping family and business separate. In fact I’ve already told my kids that they can’t work with me. I’ve seen too many tragic situations where business has divided families.

8. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN? If not, do you have a motto that you would like to share with BrownHEN?

Keep your job in perspective. It’s not life and death.

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© BrownHEN.org – 2007

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