War stories from the front lines

With a transitioning presidential administration promising hope and change in one of the most dramatic economic downturns of the last 75 years what better time to host a forum on building a successful business during challenging times. A recent CalTech/MIT forum entitled “War Stories from the Front Line: Critical Insights on Building a Successful Venture in Challenging Times” captured the seemingly conflicting ideas of starting a business when so many others are struggling.

With unemployment over 7% and 2 million people having lost their job in the last 3 months alone it was no surprise that the room was packed even on an early Saturday morning but the audience may not have expected some of the advice.
“Start your business now so you’ll be ready for the upswing,”
“If you are wondering if you are an entrepreneur wonder no longer…you are not.”
“Businesses are not built on one big idea,”
“Businesses are built on a big idea…just not the one they think.”
“Drive value with a values based business.”
“Treat investor money like you’re borrowing it from your own mother.”

These quotes and many others came from a very distinguished panel of techies, entrepreneurs and venture capitalists who each took their turn with a short presentation and an extended Q&A.

Devoting profits to non-profits in tough times?
The first speaker was Jonathan Greenblatt, CEO of GOOD Worldwide, Inc. and founder of Ethos Water which was purchased by and can be found at your local Starbucks store. Jonathan also teaches social marketing at UCLA and has found success by focusing more on good than the profit margin.

Jonathan’s advice is that values need to be integrated into the brand and the business must have a return but make it up in volume through engaged consumer base. The idea being if a business is doing good people are going to be attracted to it.

“You must always be optimistic. Our companies promote an economy of integrity and transparency to meet needs.” Said Jonathan and went into his most well known example of Ethos premium water aspired to help people in need with 50% of profits going to help provide fresh water in underdeveloped countries. “We started during post 911 and investors didn’t believe but consumers understood that every bottle makes a difference.”

Starbucks soon bought the brand which began a close relationship that has been a distribution vehicle for other businesses such as GOOD magazine and a place on the board of directors of the coffee company.

Critical Insight:  Avoid venture capitalists; your first investor is your mom. You need to be able to sit across from her table and say I’m doing you right.