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Category: ANATomy of a startup

Organic Growth Done Right

Organic Growth Done Right

Warning: Don’t read if you’re hungry.

For tech startups these days, it’s all about getting to scale. Bigger is better and the faster, the better. But for IRL (in the real world) companies, I believe in managed growth. It’s not a race to the finish but a race for longevity. So how do you grow your company, keep your culture and customers without sacrificing quality and service? A great local example is Sugarfish – my favorite sushi bar (now chain) in Los Angeles.

It’s been 5 years since I discovered Sugarfish in Brentwood. I fell in love at first bite. The sushi was fresh, the rice was warm, the flavors pure perfection. The atmosphere was casual and here’s my favorite part – while there was a menu, I loved ordering the “Trust Me” option so I didn’t have to make decisions. The Chef figured out the best order and combination of flavors so who was I to argue? I was hooked. And judging from the crowds that appeared through word of mouth, I knew that this place would take off and be a mega success.

Today Sugarfish has expanded to 7 locations in the LA area and is rumored to be opening a restaurant in New York City next year. So how do you go from one to seven hugely popular locations in 5 years with lines out the door?

Quality: The fish melts in your mouth, it’s that fresh. My sister who lives in Bay Area has begged the owners to open a restaurant in San Francisco. They say they can’t do it because they can’t find the same quality of fish up there.

Create Demand: They don’t take reservations. You have to show up, put your name down and wait. Even if you’re Larry David. This is in LA, land of entitlement yet no one complains. Regulars know to show up early for lunch or dinner so they don’t have to wait.

Production line approach to service: This isn’t Benihana but they do have the process down to an art. Part of the genius is having “Trust Me” menu options that appear to be the most popular. That way the kitchen and servers are bringing food out all in the same order as soon as it’s made. This speeds up service and assures that the tables turn faster than at a more traditional sushi bar.

Training and promoting from within: They are constantly training new folks (as the expand) and move people up the ranks. Kevin who used to be the manager in Brentwood is now in charge of all locations. I believe that succession planning is key to having a well-run organization especially when expanding geographically.

Slow and steady: While seven locations in five years may sound like a lot, it’s actually slow in the restaurant business. But the owners are controlling growth. They know that they need to ensure consistent quality in food and service so expansion is deliberate.

Location, location, location: They know their customers and select locations where they can expand on their customer base and reputation. No oversaturation here. It’s a smart move since the lines are part of the experience.

Loyalty: They have a mobile app that tracks customer visits. They get crucial customer data while you get a free meal on your birthday. It’s a win win.

Diversification: One of the best things at Sugarfish is their hand roll. So a few months back they opened KazuNori a hand roll bar – yup, just like it sounds – in downtown LA. It’s a stripped down version of Sugarfish serving a different clientele. They get to experiment but not at the expense of their flagship.

While we watch the hyper growth of tech companies, it’s nice to see entrepreneurs succeeding the old fashioned way. One store at a time. While continuing to provide a consistent customer experience.

Disclaimer: I have no affiliation of any sort with Sugarfish. The opinions expressed here are strictly my own based on personal observations and conversations with staff. I did get a complimentary dinner on my birthday in March. But you can too if you get the mobile app.

Finding Inspiration

Finding Inspiration
“How can I be inspired to innovate?” asked a young engineer following my keynote speech at his company’s “Innovation Day.” He said he appreciated the effort his company is making to foster innovation: creating a day where they can check out what special projects everyone else was working on, setting up special areas where employees can go to feel inspired, putting up inspirational quotes around the campus. But all that doesn’t work for him. He can’t just “pop out” new ideas. I told him that I wasn’t surprised. In my experience, finding inspiration isn’t something that can be scheduled or forced. That’s why so many brainstorming sessions fail to come up with big ideas.

Inspiration is often random. At least for me. It happens when you’re thinking about something else. I got the idea for this post in the shower today. Really!

On the flight home, I started thinking about how I’ve been inspired, especially as an entrepreneur. Here’s how I came up with some of my bigger ideas:

Travel Fanatic: I was sitting next to Martha Stewart’s table at Le Cirque on the night she was celebrating her big IPO. My friends who knew my background and passion for travel encouraged me to pursue a dream. Do for travel what Martha did for the home. When I got back to LA, I went for it. Built a website, became an expert on TV and online and got a book deal. Even raised a seed round. Unfortunately 9/11 shattered this dream but at least I got to see it come to life.

Beer Wars: Supersize Me had just come out and I decided (on the spur of the moment) to make a documentary film. I used an invitation to the annual beer industry convention as a starting point and 3 years later I had a finished film. Every time I got stuck (because it turns out it’s really HARD to make a movie without a script) I stopped trying and did something else. And the answers came. While I kept hiring editors and consultants to put the puzzle pieces together, in the end, I had to trust myself because the movie was playing inside my head.

StashWall: I got the idea for a tech startup by accident. Literally. That’s a story for another day. The design came to me when I was visiting the Griffith Observatory and saw the Interactive periodic table of elements. I sent photos of it to my designer and we went from there. I “borrowed” the concept from a completely unrelated medium and reworked it so it could inspire our look and feel.

So how can you get inspired?

  1. Stop trying so hard. The more obsessed you are with finding a solution to a problem or creating something new, the less likely you are to find it. And the more likely you are to become frustrated and give up.
  2. Take a new route. A friend wrote a book about dating a few years back. Her advice – get out of your own way. Stop following your routine. Pursue activities that you don’t ordinarily participate in. Basically change things up. She took her own advice. She met her husband walking up the stairs to services at a synagogue she had never attended before. Sometimes all it takes is a change of scenery to change your life.
  3. Get out in nature. Nothing beats a walk on a beach or a hike up a mountain to help clear your head and open your mind to new ideas.
  4. Exercise. This is a cliché but working out is good for your brain, not just your body. Changing your focus can help you hone in on the solution that’s eluded you.
  5. Take more showers. Since a shower (or similar “mindless” activity) is relaxing, your brain may release dopamine that can help boost your creative juices.

Pattern Recognition

Pattern Recognition

Pattern recognition involves identification of faces, objects, words, melodies, etc. The visual system does more than just interpret forms, contours and colors. Pattern recognition refers to the process of recognizing a set of stimuli arranged in a certain pattern that is characteristic of that set of stimuli.

Is “pattern recognition” the latest buzzword to explain away sexism and ageism in the tech world? Or is it simple human nature? Could it be that investors are more comfortable investing/believing in founders who (a) look like them or (b) remind them of their younger selves? And since most investors are white men, well, that may explain the statistics.

There’s been so much written lately about gender issues in Silicon Valley whether it’s GitHub or RadiumOne. It’s obvious in this digital age that there are no secrets and that what you say (even in private, just ask Donald Sterling) and how you behave matter. I disagree with Sheryl Sandberg, Leaning In isn’t the answer. Standing up for yourself is. Women need to feel empowered to speak out without fear of retribution. Otherwise, nothing will change.

Ageism has also become an “issue” that’s getting some press. Another ugly truth that no one wants to admit to. This too needs to be addressed. Sure, companies are free to hire as they see fit but at times I wonder if this leaning towards youth doesn’t ignore experience. After all, technology is obviously the key but knowing how to get the word out, understanding distribution and monetization are areas where experience and connections matter. A lot.

So increasingly tech is looking more and more like Hollywood. The players may be different and the two grumble about each other but basically they have a lot more in common than either would like to admit. I can only hope that the culture in both industries will continue to evolve. That people will be judged based on their ability and not based on sex, age or race. I just hope I get to see this new, more balanced world in my lifetime.

Be Bossy

Be Bossy

Here she goes again. Sheryl Sandberg, COO of Facebook and best selling author of Lean In has brought out the big guns like Beyonce to campaign against the word “Bossy.” #BanBossy

Really? Is it the word that’s the problem or the whole idea of women in leadership roles?

I’m bossy. There I said it. And I’m proud of it. I don’t think the word is the issue but rather our view of leadership itself. The real problem is that we have many examples of male leaders, some of who are known to be rather “difficult.” Steve Jobs comes to mind. Yet, his manner is excused by his brilliance and success. On the other extreme, there’s President Obama who is seen as consensus builder.

But women leaders? We simply don’t have many role models.

This struck me like a bolt of lightening while watching The Pianist of Willesden Lane on Saturday. There’s a scene in the play where photos of famous composers are projected on the stage and there isn’t a single woman among them. This of course isn’t unique to music.

Campaigns like “Ban Bossy” make noise. Especially in our celebrity driven culture. But our career/life choices aren’t external, they happen within us based on what we see and hear.

Let’s face it; we are all influenced by what we see around us — in real life, in the media, in pop culture. Our perceptions are shaped by our experiences. That’s why we need more Hillary Clintons, Mary Barras, Condoleezza Rices, Sara Blakelys, Amy Pascals, Diane Sawyers, and Susan Wojcickis. We need to see more powerful women in every field. But especially the visible ones: politics, media, entertainment, business, technology and science.

Young girls should be saying: “when I grow up I want to be like _____________” and be able to name a successful woman in every field.

I wish I had that opportunity when I was growing up. Instead I was the first woman “boss” in each industry I entered. I didn’t have an issue leading but my role models were all male. So I emulated their style. Which, it turns out is “bossy.”

So instead of banning words, let’s change our perception of leadership. In my fantasy world, more women will want to become leaders (because they won’t be deterred by being bossy) and in turn young girls will have great role models to look up to.

If you want more opinions on the “Ban Bossy” campaign check out these posts from other (smart) women:

Pushing a Boulder up a Hill

Sweat Equity

My sister sent me this article today after I brought up the difficulty I’ve had in raising money.

It begins like this:

“Women have it tough. Business propositions — whether presented in a boardroom, coffee shop or pitch contest — are discounted as soon as women open their mouths.

We’re not just saying that. There’s proof: Gender has a more significant impact on decision-makers than the presenter’s experience or the topic she’s discussing, according to a new study conducted by professors from Harvard, MIT and Wharton.

Researchers have uncovered “a profound and persistent preference for entrepreneurial ventures pitched by men.”

I’ve been meeting with potential investors for about a year now on and off. And while I rarely encountered sexism in my corporate career, lately I’ve been wondering how different things would be if I were a guy. (I almost called this post: “If I had a penis.”) There’s no question that tech is male dominated. Although the same can be said for the hospitality, entertainment, media and beer industries but in those cases I was brought in to strategize and execute. To make shit happen. Quite often, to turn things around.

This is a different ballgame. I’m asking investors to trust me with their money and make it grow. Exponentially. Just like the men they meet with. And the problem according to the research:

“The reason is simple: People connect with others like them and suffer from a self-selection bias. With so few women in tech, a woman standing before a group of men pitching her idea is about as foreign as they come.”

Will this deter me from my goal? Absolutely not. I believe that there are investors (of both genders) who will get the idea, the opportunity and see my passion and want to get behind it. I’m ready for “yes.”

Fresh Start

Fresh Start

I hate New Year’s Eve but I love the start of a new year. There’s something powerful about endings and beginnings. You can cast away the past and look ahead. I don’t make resolutions. They never last. I try to prioritize. But also to give myself a break when I make mistakes.

2013 was a year of transition. I moved (and got rid of ½ my stuff). I got new toys to make my life simpler. I regrouped. I started a speaking career on the side. And I got closer to my goal of building StashWall into a world-class company.

I try to spend new year’s at the beach. I drive up to my favorite spot in Malibu and walk barefoot on the sand with the water lapping at my feet. This year, while watching the waves, several schools of dolphins and a whale swam by. There’s something about the ocean that always balances me. It helps set the reset button.

I can’t wait to take on this new year. I’ll try to share more of my journey along the way (but that’s not a resolution…)

Great Expectations

Great Expectations

I set the bar pretty high. For others but mostly for myself. When I promise to do something, I do it. When I say I’ll show up, there I am. If I’m your friend (a real friend vs. LA friend) then I will be there for you. No matter what. Even in horrible LA traffic.

I’m not good at asking for help. I’m not talking the kind Siri can help with. I mean showing vulnerability and asking someone else for support, when you’re sick or just sad, or can’t do it all by yourself.

But raising money for a startup is all about the power of networks. So I’ve been asking. And what’s really interesting is how it’s people who are 2 or 3 degrees of separation who have actually come through, not so much my closest friends.

Is that because they don’t think it’s important? Or because they don’t realize the urgency? Or because they don’t believe in my vision? Hard to tell and impossible to discuss.

So I choose to focus on the believers. The folks I’ve met who not only get it and get me but are willing to reach out to their networks and open doors. I’ve learned to accept help no matter where it comes from. And to be less judgmental. After all, I’m the one setting the bar.

Female CEOs

Female CEOs

On the one hand, I was thrilled to read that GM named a new CEO who is female. The other part of me looks forward to the day when that becomes the norm. When “female” or “girl” or “woman” aren’t the biggest part of the story.

Here are just a few of the headlines:

A woman can dream can’t she?

Eye on the Prize

Eye on the Prize

I’ve been very focused on staying focused. Work. Work. Work. Keep your eye on the prize. Raise money to get to the next milestone.

I’ve limited my lunches and dinners to include only work related meetings (boring I know) but necessary for now.

An old friend who I rarely hear from started contacting me on LinkedIn. She launched a new company and wanted to get together and catch up. I put her off. After all we hadn’t talked for 3 years. And I was “busy.”

But she persisted and I relented. I agreed to meet her for lunch near my office.
It was great to see her and made me realize that being too focused isn’t always best. I loved the idea behind her new company. And when I told her about StashWall, her eyes lit up. She loved everything about it. So much so that she offered to invest.

Why yes, I’ll have a slice of humble pie with that.

Future of Healthcare

Future of Healthcare

I just participated in a panel to discuss healthcare in 2020. It was pretty lively. There were some very smart people on it including Jonathan Gruber, Professor of Economics at MIT and Coleman Peterson, former Chief HR Officer at Wal-Mart.

Here are just a few of my thoughts:

And here’s a link to full panel. We all had a lot to say: http://www.sunlifesummit.com/agenda/#jump-link-03 (you need to register to view it but I think you’ll enjoy watching us in action.)