After launching in the summer of 2007, we were coming to our first holiday season. We were adding as many products as we could and things were starting to get busier. I was still working at AIG but was able to spend much of my time working on BuyGreen.com. I remember going to an industry conference in Chicago, and my partner’s husband was there as well. He and I were entertaining some mutual clients. He came to me just before a business lunch to say his wife had called him and she was having a hard time. He asked me to call her. I returned to my hotel room and gave her a call. Basically, she was struggling keeping up with everything that had to be done both for the business and being a mother of two kids. We agreed that she could and should hire someone to help out a few hours per day. After I got off the call, I thought to myself that I really needed to spend all my time on the business, and I began preparing to quit my corporate job. I took out a credit line against my home and with my savings, I had a cushion for two years. As I look at this point of time in retrospect, I have two basic thoughts; one, I was being pressured both by my partner and myself to contribute more time and two, that leaving my well paying corporate job was an act of selfishness. In respect to pressure both internal and external, there was an optimistic sense that the business could really take off and not dedicating my time could both jeopardize that potential and I was worried there would a perception that I needed to carry my weight within the partnership, valued strictly by time; this was a perspective largely imposed on me by myself and I am not sure that it was every areal issue to my partner. The second issue was selfishness, which was basically because this decision potentially could have a huge impact on my family and as a result, I was not being a good father and husband. I knew I was taking a financial risk that realistically would likely not pay any returns; i.e. nine in ten businesses fail. All that being said, I REALLY wanted this and completely bought into the entrepreneurial dream. I felt I had a winner. So in March of 2008, I quit my job and worked full time on the business.
Allison and I spent two years running the business as a partnership in total. Things started off well. We were growing at a pretty quick rate, even from a month over month perspective. We were working out of our respective houses and doing packing and shipping of orders from Allison's house. In a few months, we decided to rent a self-storage locker and put all our inventory there. Allison also had a relationship that owned a PR company and we entered into a relationship with them. We spent a lot of our time adding new products. This we believed was very important to our model which was offering a broad selection of carefully vetted products. We were also starting to meet with a number of potential suppliers, partners and investors but did not have an office. This I believed was a real shortcoming. How can you be a business without an office and warehouse? So I began to look for new space, and in short order, we found a good space. It was in Irvine which I thought held some cache from a national perspective and was a very reasonable distance from both our respective homes. The space was new as well which was very nice. And by July (2008) we were in the new space. I had found a defunct mortgage company that sold me a bunch of cubicles cheap, from a Herman Miller perspective, but expensive from a new startup perspective. This also required a great deal of sweat equity on my part but we were trying to get out in front of our anticipated growth so we would have space to expand. Things seemed to be shaping up. And then the fall of 2008 hit and everything changed with respect to what we had planned. Originally our plan was to address proof of concept for about 12 or 18 months and then seek investment. As the world economy was imploding, getting investment was a dream that vaporized. So as we watched what was happening and preparing for the holiday season, we forged on. We then assessed everything shortly after the Christmas season and decided that all things considered, we were still OK and that we should hunker down and forge ahead.
During this time, Allison was struggling with a number of personal issues and this impacted both her ability to dedicate time to the business and maybe more importantly, I think her enthusiasm for the struggle disappeared. We had hired a neighbor of hers, Nicole Roach who would handle a lot of the customer service and shipping duties with Allison overseeing these areas. However, Allison’s activity over time dwindled, which effectively was fine because Nicole was very competent and ultimately I think managed these areas better. However, Allison's shrinking participation began to have a negative impact from morale and enthusiasm from my perspective as her partner, but also our now one employee. She would spend less and less time at the office and it was harder and harder to tell what she was doing to contribute to the company. When she would show up, our relationship was good, but not great. Things grew more strained and I began to dread her arrival. She also felt that the company was not growing fast enough, it was losing money and on top of it all, we were not getting paid. She just thought we should throw in the towel. Her concerns were real and not only accurate, but they were also rationale as well. My thought however was it takes businesses often more years than the two we had invested to show profits; I would always reference that Amazon made no profits in its first eight years. And realistically, I really had no great options to get a paying job. So while I recognized our challenges, I did not think they were particularly unique for a young company, particularly based on the state of the economy. I would tell her that if she could find a buyer, that I would take any offers presented very seriously, but until then, I was NOT just going to close the doors.
I wanted to make the business work and thought we should dedicate ourselves to changing the issues she raised, and we were both very concerned about it. We should not quit but double-down and make the business a success. But in the summer of 2009, her father became sick and then died. This was the straw that broke the camels back and she wanted out. She had asked me to buy her out. However, my assessment of the business was it was not worth anything and that not only was I not going to write her a check for her 40%, but that she would need to pay-off her portion of the liabilities to get out. Needless to say, she did not share my perspective. She then elected to just walk away. I assessed the business to decide if the one asset that I thought had real value, the URL BuyGreen.com was worth letting her walk away. And while it was hard to truly asses the URL's value, I opted to let her walk away.
And so I pressed on. My employee Nicole Roach stayed with the company which was very important with respect to our ability to both function and have the possibility of continuing to grow. We were both relieved when Allison was finally gone and Nicole was effectively a better 'partner' than Allison ever was. We also had a young man working for us part-time who started out as an intern and we elected to bring on. Daniel Givechian was young and eager to learn. He too contributed to the growth of the company. Essentially the three of us worked to grow the business over the next few years and we were successful, but not at a pace that was really required for this type of business. We opened a new site called GreenCouture.com which was going to focus on higher-end clothing and accessories. I had plans to open up a number of different eCommerce brands with a focus on sustainability, the environment and social causes. I tried twice to raise money in the summer of 2009 and for about 6 months in late 2011. I had many discussions during the second effort, but nobody wrote a check. During those years I worked extraordinarily hard day in and day out but could never get the company to a place where it could even be a 'lifestyle' business. In the fall of 2013, Nicole left for a better job. She had been very dedicated and I could not have gotten as far as I did without her efforts, but she was capable of a lot more and I was not paying her a lot of money. I lucked out and found a very good replacement, Loren Anselmo. I also had a bright and hardworking young man reach out to me by the name of Kambiz Sharvhini who started interning as a bookkeeper and quickly took on many additional roles. The business continued to grow but again the pace was not fast enough. I looked for a number of strategic partnerships that were either in our space, or other retailers that might be looking for an eco-friendly channel. I had many conversations, but no one made any meaningful offers. I began feeling trapped. The course I was on, was not personally sustainable, but I had committed so much, it was hard to rationalize how walking away would be a good solution. I even began to look for 'regular' jobs and I would then just let the business run with Loren and Kambiz who were certainly capable of running it with only some guidance. Nothing really came of any of these efforts. In the spring of 2014, I had made the decision that I was going to sell. I found a broker who specialized in eCommerce businesses and so the process began. I had a couple of very early offers that were bottom-feeding and at my broker's recommendation, we passed. I did get one solid offer (and in hindsight a very good offer), but it was a good bit under my asking price. I countered and the buyer found another business that distracted her and while she remained interested in mine, the offer fell through. I terminated the contract with the broker after 90 days and put my head back down to continue slugging away. And the progress continued, but still, the pace was never fast enough. My 'runway' was really coming to an end. After the 2014 holiday, I contacted a new business broker and put the business up for sale again.
I sold BuyGreen.com in April of this year, 2015. I had put in seven years which seems unbelievable to me and in many ways, committing that much of my life was crazy. I think the business was a good idea and the timing was reasonable, but with the collapse of the economy, maybe not ideal. In some ways, we were too early with respect to broad acceptance of these kinds of products, but with respect to eCommerce, I think starting earlier would have been better. That being said, we could never get investment which was critical to scale and bringing in talent. Ultimately, Amazon and the competitive landscape that it created was a headwind that became too much. The last round of putting the business up for sale created a fair amount of interest, but we only received two real offers. One from an outfit that had some real eCommerce experience, and one from a husband and wife that was looking for a lifestyle business but lacked both eCommerce experience, and what seemed to be an entrepreneurial business experience. The offer from the latter was better and I knew that the due diligence was going to be easier from that offer as well; although there was nothing really to hide. And while I wanted to hand it off to someone who might be able to at least keep it at the status quo, and hopefully grow it, I went with the offer that was better for me personally. I had dealt with the emotional aspects of walking away the summer before in my first attempt to sell, and so the actual sale was pretty straight forward and quite honestly a relief when it was all over. And while I could never make it a success for me personally and kept at it much longer than I should have, the experience was personally rewarding. All that being said, it was definitely time to move on.
So, what did I learn and what is my final assessment? One of the things I really struggled with is whether there was a certain and proven singular business strategy I should embrace and follow. I think we all seek knowledge and a proven path when we are 'walking through the wilderness'. To me, there always seemed to be at least two paths in business to potentially pursue. As an example, which leadership strategy should I embrace; the 'devil is in the details' or 'get the right people on the bus' and delegate approach? And there were always examples of each option that had great success; and in this case, the Steve Jobs verse Jack Welch approaches were great examples of two very different and successful styles. As these challenges and questions arose, I found it difficult to know which of these paths to pursue. And so when you are alone in this journey as I was, you tend to flail around a lot. I would have debates with myself wondering what was the best approach. I was often hoping and searching for some guidance that stated you need to do these finite number of things to lead you to success. When there is such risk, looking for the right answer is what I suspect most of us do. Now in retrospect, I think you need a clear path and vision that you developed yourself early on and pursued it relentlessly. The goal or destination is so clear that you just march ahead down your own path, and with some luck, your vision wins out.
I have not had good luck with partnerships. I think it is mostly because when I start something I go all out and generally the other partner does not reciprocate in kind, or at least that is my perception. I definitely struggle when I feel someone is not pulling their weight. Generally, I have found that you cannot make a person be devoted. They either are or they are not. The worst part of it is that you generally don't know what their commitment is until you have gotten into the opportunity. Most people say they will be fully vested and engaged, but as I have grown to really appreciate, saying and doing are often very different. I had a construction company early in my career and I had convinced my best friend at the time to become my partner. He was intrigued, but not enthusiastic about the idea. In this instance, the writing was on the wall before starting, but youth and enthusiasm created a condition where I wanted it to happen and thought through shere will, I could make it happen. I had a record company that worked largely with one band, and this was a relatively good partnership; although the drummer was the weak link. What is it with drummers? This partnership ended up eroding over a period of a year or so after a few years of some marginal success. In the final analysis, things never progressed into anything substantial enough to be considered either an effort worth continuing, much less a 'going concern'. We ended up spending more money than we made and this was a great lesson in the difference between a hobby and a business. The BuyGreen.com experience resulted in two failed partnerships. I believe and certainly have been told by many investors, that any good startup has ideally either two or three founders. When I was the only owner during the second 'half' of BuyGreen.com, not having a co-founder or partner was definitely lonely. To some degree, I think the company's shortcomings were in some way because of the lack of a multi-founder condition.
The one thing I did learn is perspective is very important, and that often getting the correct perspective took both experience and time. One of the easiest examples of this, and something I was able to actually employ on a regular basis was when something really bad happened, and really good as well, I would wait at least 24 hours before deciding what to do. And I think with very few exceptions, my view of an event when it first happened and the following day was always different. And generally speaking, the day-old view was not nearly as bad as it initially seemed. The distance allowed me to come up with a better strategy and to create a good resolution. One great lesson on perspective revolved around a company called ecoMom.com. There have always been a number of companies in our space, and one that came along a couple of years after we started was ecoMom.com, and wow, I thought they really were 'nailing it'. I was very envious of what they were doing. There two co-founders seemed to have the ‘good story’ that every successful startup seems to have. Emily Blakeney was a mother, an entrepreneur in her own right and her sister was a prominent figure in the green and eco-friendly space. Jody Sherman was also an entrepreneur with some successes under his belt and he also had the all-important contacts with investors. He was able to raise 12 million over four rounds and caught the eye of Tony Hsieh from Zappos. From my vantage, they seemed to be hitting all their marks and I was quite envious. I had called Jody Sherman to see if he was interested in investing in a company that was selling to everyone other than mothers, and he had expressed interest. We had a number of conversations by both email and phone during the summer and fall of 2012. We had agreed to get together to see if we could figure out a deal, but in early November he had sent me an email saying that he really needed to focus on his holiday season and we should get back together in the new year after the dust settles. He and I emailed each other in mid-January to set up a time to speak on the phone. A few days later I had come home on January 18th and was late as I often did (one of many joys of being an entrepreneur) and found myself alone as I did many nights. I was flipping through Twitter and saw a tweet that said something to the effect of 'I am sorry to hear about Jody and our hearts go out to his family'. It sounded bad but I wasn't a hundred percent sure what exactly happened; it seemed that maybe he was dead? Shortly thereafter, his wife had a post on Facebook confirming his death, but no discussion as to how. And to find out later it was suicide was even more shocking. I had quickly gone from a perspective of being very envious of everything he had achieved with his very similar business, to realizing perception was not reality. Talk about perspective! I barely knew Jody, but I often think about his situation. And as I learned all the details of what apparently was happening with ecoMom.com and him personally, it certainly makes you think about perception and reality.
So in conclusion, I certainly learned a lot of important lessons. Among them was the grass is not always greener on the other side of the fence. However, the real lesson learned is that building a successful business is REALLY hard. An image in our culture has been created suggesting there is a lot of glamour around being an entrepreneur, particularly in the last couple of years. Really doing it is not glamorous. It is a grind that comes with a lot of failures and thankless hard work. I loved the grind, the challenge and just trying, but it definitely lacked a lot of the sizzle you see on TV or read about when media highlight just the winners. I wish there were a lot more stories about the many more losers. I am glad I tried, but for now, I am content collecting a paycheck.