Change of Course During Crisis

Last weeks announcement of The Wing, a network and community space for women, closing its doors made my heart hurt. I don't know the founders, but I know the feeling. I ache for what they are going through. What so many of you are going through.

The founders of The Wing will be ok, their eventual bounce bigger than the drop, they just may not know it yet. You may not know it yet.

For many founders, a wondering day dream turned actual business is now a present nightmare. Perhaps there is momentary solace in knowing this situation is not necessarily corned on what you 'did or didn't do' to make your company thrive. Rather, the entire world is hurting and now your company is too. This knowing may provide temporary assuagement only to dissipate quickly in the reality of letting go something you've loved so much.

Coming to terms with the reality that things are not turning out as they could in other, "normal" times is a process. To the founders that are walking through the stress of this new reality, where the concern has manifested from sleepless nights to an entire body ache of dread, it will be ok. I promise you, there is a rebound after this.

I can still tell you where I was sitting when the, 'it will be ok' part hit me following a period of intense unknowing after I had to close a company I poured myself into. One month I was leading a thriving business and developing technology to support our national presence only to abruptly undergo an event that led to a change of course and our exit. I was reeling from the wind down, exhausted. I was able to move forward by allowing myself to know that if I had come so far, built something that people loved so much once, I could do it again. It may be different and it hurts, but the story wasn't over. I accepted that the learnings would make me a more compassionate leader and that it would all be worth it some day, for the time being however, this chapter was simply wrapping up with a much, much different ending than what we saw coming.

So know this - you will be ok. This event does not define you. What you do out of it will. To The Wing founders, you have already spoken immeasurably with the effort taken to care for your employees in this transition. You are still badasses. Take a breath, take some rest, then get going again. Not out of fear, but out of new opportunity. The world needs what you've got and we'll be excited to consume your next chapter.

Show me the seed money

Seed money – to borrow or not to borrow from family? Early in my career I heard directly from a guest lecturer, an entrepreneur, “don’t take money from family.” This person then reiterated, “whatever you do, DON’T". The point was belabored, enough to where it stuck with me and then, I went on to completely ignore their advice.

If you are already in a family business or have taken money from friends and family to start your business, you know that it can be challenging. So how can you continue down the path of borrowing or working with this close group and still emerge on the other side with your relationships in tact?

1. Establish expectations - When expectations are agreed upon (up front) it lessens frustration. Consider formalizing borrowing conditions and plan to communicate progress in routine investor updates. Communication is key to any successful venture, this includes sharing difficult news along with the good. Avoid going dark on the people that believed in you enough to sign over savings. Also, clearly articulate individual areas of responsibility with visibility into activities and accountability for results.

2. Guidance - You can only go to friends and family for so long before they may begin to question why they lent you the money in the first place. Seek subject matter experts or other business owners (particularly in a specific field related to your area of need). Consider joining a mastermind group or organize a dinner ‘club’ – the later sounds antiquated however breaking bread in an informal gathering with other business owners can help you reset, refuel and lead to relaxed conversation around solving some of your pressing concerns. This group will get ‘it’ and you need these people.

3. Fuel yourself – Just as your body can get tired and sore, so can your spirit. Don’t ignore what makes you your best - your team (including investors) will be taking signals from you. The well-being of a founder is intertwined with their business. Entrepreneurship is tough and many seasoned founders will attest to having ignored their own needs early on. Learn from this and take care of yourself along the way. You’ll be better for it and this will reflect in your business.

4. Have non-work topics on the ready - The day to day largely follows you to gatherings. An incessant string of business matters to attend to along with curious, well-meaning loved ones may result in never ending business talk encircling you. If you don’t want to forfeit the friends and family time that made you close before going in business together but your tired of all the work talk, offer up an alternative. Be ready to ask questions or share takeaways from books, shows, etc. that you have taken in. Point being, don’t lose interest in the things that initially made you interesting. Have other topics at the ready. This may feel silly, but it works when your brain can only think about your business.

5. Gratitude and realism - Adopt a pragmatic approach. You did this to yourself (after all the ignored advice) so be consistent with incorporating the above suggestions. You’ve got this. Also, maintain a spirit of gratitude - you are fortunate to have people believe in you so much that they would literally invest in you!

All ventures have ups and downs and investors shoulder the journey with you. Are you ready to share the ride with your friends and family? Are they? Communication is at the center of all relationships. Remember this as you journey through highs and lows – difficult news should travel as fast if not faster than the good.

Some of life’s greatest gifts include sharing experiences with our people - our friends and family. As you go through your seed round, who do you want on this journey with you?

You've Got This

In 2014 I was five years into taking a business nationwide. We opened 50 markets in a 12 month period of time, developed a predictive valuation tool to value inventory and were powering the backend for some of the countries most notable vehicle search engines. I had another business going at the time and I was pregnant with my second child. Did I mention I was exhausted? Within this time (about a month before Christmas) I was at a technology conference listening to Sheryl Sandberg discuss her Lean In initiative. I was a million months pregnant, hoofing it around San Francisco to meet with our with our partners and was ready to kick back and take in Sheryl’s keynote. As I settled in to the session, I noticed a call coming in from my parent organization, the company that was funding me. I stepped out to take the call. Due to the time change, it would have been unusually late - something was urgent. It turns out the call was to inform me that the board wanted a change in direction. I was to wind down the business. Just.Like.That.

While sitting in a session with one of the worlds most influential business leaders, discussing the initiative to “Lean In”, I received a call to Get Out.

Offers followed to buy our business. I was tempted but it wasn’t the right move. Accepting a deal would have been taking the option out of fear of becoming irrelevant, not having more work after baby vs. a true opportunity to charge toward. I paused.

I went on to partner with experienced tech founders. We developed an industry changing business and three year

s after being told to get out while listening to Sheryl, we sold the company to the very group that called me and told me to hang it up! I led the discussions.

My story illustrates that scary things happen but it doesn’t have to be where the story ends. Also, relationships are everything. If I had blown up on those involved in my initial funding, I may not have preserved the relationships that helped me secure our exit down the road. You absolutely never know what future role you’re currently being evaluated for. So, keep going, protect your reputation and preserve your relationships. You’ve got this. 💪