60 days ago I was in Miami visiting family before my daughter, Taj, and I headed back to Europe after our 3-month road trip around the United States. It was a difficult and turbulent time.
A week earlier, I was at The Fontainebleau Las Vegas attending RFDC, surrounded by restaurant industry friends who were all encouraging me to follow my heart and to continue building. Meanwhile, a few people close to me wanted me to find a stable job at a stable company.
I seriously considered it…
But I had investors telling me, “Whatever you do next, I’m interested.”
I had restaurant executives telling me, “You need to go build your vision, because the industry needs it.”
I had a team of people telling me, “Build something new, I’m in. Don’t worry about the money. We will figure it out.”
I had a network of followers reaching out and telling me, “Whatever I can do to help, just say the word.”
It felt like the universe had made up its mind for me. How could I ignore this inertia and go find a job with an established company? It felt like I would be letting so many people down. Most importantly, it felt like I would be letting myself down.
In December I posted my opening bank balance after opening my business account for High Margin. Investors have now started wiring funds. It’s real now. I don’t have the words to express my gratitude to all of you for helping me create this company.
I’m turning 49 on Saturday. Lots to do over the next 365 days before the big one.
This morning I saw an article in Business Insider called “Silicon Valley’s Hot New Buzzword: High Agency.” I wasn’t familiar with the term, so I decided to do some research. I came across an article called “20 Characteristics of High Agency Men” by Brett and Kate Mckay (Clearly these same characteristics would apply to everyone, not just men).
On a side note… as I was searching for a relevant photo for this article, I noticed that most stock photos related to ‘leadership’ had some image representing one person out ahead of the pack, or on top of everyone else. I think this is the wrong way to think about leadership. That’s why I chose this image specifically, because it implies that the leader is one of the cogs in the middle of all the other cogs that helps them all work together in synchronicity (can’t help think of The Police when I use that word).
Here is the list of the 20 characteristics mentioned in the article I referenced above:
They are never satisfied with their level of development; they always want to exceed what was previously done.
They avoid comfortable situations. They do things they may not like because they understand the importance of doing them.
They have pressing goals. They not only feel they SHOULD do something, but they are driven by their own will that they HAVE to do it.
They never blame others. They solve problems. Any task is a challenge to be overcome.
They like and encourage taking risks. However, they take these risks judiciously and in moderation—never recklessly or without calculation. They evaluate and proceed with tact and without fear.
They have VISION; they can foresee in their minds the outcomes before embarking on the execution of the proposed plan.
They are not slaves to work. However, if they need to accomplish something, they will work 24 hours a day if necessary.
They handle pressures well. They recognize that no one is interested in whether they are nervous or pressured. They know that only they decide what to do with their lives. They need the tension of demand but trust in their decision-making capacity.
They are objective. They are not selfish. They let others receive recognition for an achievement when it is deserved.
They understand the nature of energy. They know that if they apply enough energetic force, they will be capable of moving anything.
They know the meaning of nurturing. They build and nurture others, always leaving things better than they found them.
They understand sociability. They enjoy others but do not depend on them, stepping away from friends and fun if there are more important or higher-priority tasks to handle.
They use and understand self-discipline. They do not let habits, desires, and faults control them because they have developed the ability to control themselves.
They have COURAGE. They are not reluctant because others do not dare to do something. They make decisions and do not hesitate (I personally love this one).
They have confidence in themselves. They do not doubt or waver. Their confidence is nourished by action and deeds.
They understand the importance of living in the present. They do not live on the laurels of yesterday nor with the aspirations of tomorrow; they aim for the best in the present.
They do not worry about past mistakes and never base today’s decisions on yesterday’s errors. They expect and live for the success of the present.
They recognize that experiences come individually and not in groups. When they receive training, they apply the lessons to themselves and do not hide behind or dwell on the mistakes of others.
They are quick to forgive, forget, and move forward from where they are. They know how to forgive their own faults.
They understand the importance of empathy; they are capable of interpreting the feelings of others, developing this quality to the fullest.
When I reflect on these 20 characteristics and think about how they apply to me, its fascinating to think back on moments in my career when I hadn’t yet learned the lessons that make me who I am today. I also of course wonder what lessons lie ahead that will help me to realize my full potential. There are at least 4 things on this list that I need to actively work on improving. How do you measure up as a high agency leader?
One of our potential customers was at an offsite last week. He had indicated to me that by the end of the week, he would know whether or not we would have a green light for our data analysis project. Although he promised to call me this coming week, I couldn’t wait. I figured I’d text him on Friday at the end of the day so I didn’t have to think about it all weekend.
He responded immediately saying that the executive team was in ‘all hands on deck’ mode because of the announcement on Friday that the US would be implementing tariffs on February 4th. The concern about how the tariffs would impact their business may actually accelerate our path to a project and commercial agreement. Turns out that the sudden implementation of tariffs creates a great deal of uncertainty.
It got me to thinking how the tariffs may impact the restaurant industry. The most obvious, direct impact will be that ingredients imported from Mexico and Canada will become significantly more expensive. But it turns out that tariffs can also disrupt global supply chains. Demand for products from Mexico, for example, may shift to other countries that are not subject to tariffs. Sudden demand from countries with limited supply or bottlenecked import channels will likely cause shortages and delays.
Restaurants will inevitably have to adjust purchasing, menu design and prices accordingly.
I’m curious to hear from restaurant companies that are thinking about this. It’s something that High Margin is looking at very closely.
High Margin was incorporated on December 9, 2024. The idea was to #bootstrap the company to profitability by January 31st, 2025. But the only certainty when launching a #startup is that there is no certainty about anything. It was a long shot that we could close deals and have revenue coming in within 53 days. It’s day 53 and I believe we’re close.
Last weekend I decided that with the #momentum we have building, it wasn’t worth the risk of running out of funds. I decided to start #fundraising to have a safety net: A plan to build our product, even in the unlikely event that all of our potential short-term deals fall through. The immediate interest was greater than I had anticipated.
I asked myself what would I do if we get commitments from investors and then close the deals we have in the pipeline? The conventional response would be “Well you’re not obligated to take the money.” True… but I don’t do “conventional.” I believe that I owe these people for believing in me and for jumping in so quickly. I need to show my gratitude for that.
The day I started High Margin, I reached out to a group of about 20 investors that had invested in a previous venture that I led, and I said some version of the following: “I want to thank you for believing in me, and for investing in me. I am giving you equity in my new venture, High Margin, and I am not asking for anything in return.”
Without exception they were all shocked (in a good way). One said to me “This is highly unorthodox and ‘not in market’. But the fact that you’re doing this is exactly why I invested in you in the first place.” I replied, “Well… I don’t really care what’s ‘in market’. It’s the right thing to do and that’s just the way I do business.”
Unreasonable Hospitality should apply to all aspects of business, including how we treat investors. So I’m going to take care of my supporters. If we close one of the deals in our pipeline, we would no longer need the investment. But I’m going to accept the funds from those that have committed by then anyway to show my #gratitude.
This is a win-win. It gives people an incentive to get in early. It also shows people my commitment to delivering a return on their investment. If we close a deal and find ourselves in a situation where we could #bootstrap, then the investors who committed early get a piece of a much more valuable company.
It’s fun to break rules that were meant to be broken.
Yesterday I experienced something that I never thought I’d hear. An investor told me that my valuation was… wait for it… “too low”. The call started out with us getting to know each other. I explained how my family and I moved to Europe in 2018 after I sold my first startup and how we immersed ourselves in France, Italy and Austria. I also told them how I leveraged that personal experience to create digital story-telling content, and how that helped raise money and grow a network of customers and mentors in the restaurant industry.
During the second-half of the conversation, I explained what we are building here at High Margin. When I told him the valuation I was using to raise money, they said it should be between double and triple what I had suggested. I found myself suddenly justifying why I thought the valuation was fair given where we are as a company (while the voice in my head said “shut up” “shut up”…).
What came next was an extremely valuable pep-talk that I think I needed to hear. He said that investors looking at early stage companies are investing more in the founder than anything else, and that although I told him my personal story about raising our kids across several countries as a personal anecdote, it was actually an illustration of unconventional out-of-the box thinking that investors love. He said that doing what we did took a lot of work and courage to do something in a way that 99% of the world would never have the guts to do. That’s what they look for in a founder.
I proceeded to tell them about how my 12 year old daughter, Taj, and I traveled around the US in a pink polka-dot unicorn RV for 3 months, attending restaurant industry conferences and visiting restaurant executives in their offices.
He said that I was under-selling myself with the valuation that I had suggested. With a track record that shows that both in my personal and professional life I’m able to achieve ambitious goals while approaching them in creative and unique ways, investors should and will see why that makes the company much more valuable than a typical pre-seed startup. “Your humility is your own worst enemy.”
The early stages of entrepreneurship come with constant extremes of highs and lows. The trick is to prevent the lows from diminishing your will to keep going, and to remember that there’s something good waiting around the corner.
Yesterday as the day went on, I could feel the level of excitement growing and by the time I went to bed I had so much adrenaline flowing that it took me longer than usual to fall asleep. That’s a good sign.
I caught up with my good friend Moin Islam yesterday, Co-Founder & CEO of Shipday. Moin is just one of those really good guys. The type that just invites you out to dinner with his company and prospects even though you or your company do not represent any potential financial gain for him. We’ve met at several conferences and have since become friends. Yesterday I was explaining the vision of what we’d like to build here at High Margin and he very astutely said, “You can describe that in 3 words.” Suddenly I had a crystalized elevator pitch. More importantly he helped me realized that what we had in mind is even bigger than we realized. By the end of the call he was so excited about the product vision that I hung up thinking, “wow I think we’re really on to something here.”
Time to make some edits to our website, LinkedIn page and investor pitch deck. This is just another tiny step in the evolution of a startup from the tiny seed of an idea to the amalgamation of conversations and ideas that come from the team, our advisors, potential customers and of course, industry colleagues like Moin. At the end of the conversation I said, “I can’t tell you how valuable this conversation has been. Thank you.”
As Jimmy and Schatzy always say, “It takes a village.”
Within 1 hour of posting on LinkedIn yesterday that I was opening a pre-seed funding round for High Margin, I had inquiries from interested investors. This particular note came from a well-respected CEO in the restaurant industry.
I continue to be amazed by the power of social media. As of January 1st, I started posting not only on LinkedIn, but also on Instagram, TikTok and X. Soon afterward someone asked me why I decided to do that. What was the benefit? Truth is, I don’t know.
When I started to post daily videos on LinkedIn during the summer of 2021, I also had no idea what the benefit would be. It was a gut feeling that it would one day pay off, but I could not produce any hard evidence that it was a good investment.
Why did I suddenly start writing a daily blog post in addition to the videos starting yesterday? Do I have a business plan with projections showing what the return will be on all this investment of time and energy? No. But I can tell you that posting daily videos on LinkedIn for the last 3 1/2 years has been personally and professionally rewarding.
“What if people don’t like what you say?”
“What if people don’t take you seriously because of the clothes you’re wearing?”
“I don’t see anyone else posting videos like that on LinkedIn… it’s not the right forum.”
I don’t believe in making decisions driven by fear. I especially don’t allow fear of what others might think to influence what I think is a great idea. This gives me agency over my personal brand.
“You’re putting all of your failures on public display. Don’t you think people won’t want to do business with you?”
Actually I think it has the opposite effect. Painting a rosy picture on social media is the ubiquitous modus operandi. How can you trust someone who creates the appearance of being flawless? Of never having any failures?
Messages like these… asking for a call to learn more about High Margin offering to help and potentially invest from a successful widely-respected CEO is all the evidence I need that a transparent, authentic approach to sharing on social media works.
Do some people watch my videos or read my blog posts and smirk or shake their heads incredulously at the ease with which I share so much about my approach to business and life? No doubt. Are they the people I want to do business with? Nope.
I incorporated High Margin 7 weeks ago and so much has already happened. It has been 7 weeks of non-stop hustle, of deep soul searching and self-reflection, of hope and resilience.
“This time, I’m going to bootstrap it,” I told myself. All the pieces are in place.
We have:
A great idea for a solution that can show immediate value and impact.
A team of smart, hard-working individuals ready to roll up their sleeves and work for the promise of future compensation and of being a part of building something great.
Enterprise customers interested in what we have to offer.
What could possibly go wrong?
It takes so much more to achieve that one spark that ignites the fire that can become a new, successful business.
It always takes longer than you think. Always.
I thought that if I explain to potential customers with full transparency that we can really help them, but that we don’t have the luxury of a 6-month sales cycle, they would understand.
The truth is, not having a runway is a “we” problem. What we have to offer is good. Really good.It will solve many pain points for restaurants. But that doesn’t mean restaurant companies will shift priorities and find budgets to work with us, no matter how much they like us and what we have to offer.
Very early on, we had three solid deals and it has been my goal to close at least one of them. One deal would be enough of a basis to build a long-term sustainable business. Three deals would be ah-maz-ing. I mean… we’re going to have a KILLER 2025 amazing.
I gave myself until January 31st.
With 4 days left, the deal status is:
We’re committed, but we might have to do it later, not right now.
Happy to give it a try. We will pay you as soon as we see value.
I’ll let you know by the end of the month.
I’m thinking it’s time to raise a pre-seed round. The feedback around our product vision is very positive and it would take little time to stand up a first version to get a few case studies under our belts.
These 3 deals are likely to turn into long-term successful partnerships. Is it worth the risk of running out of air just to avoid taking any outside capital? The answer is clearly no. It’s time to raise some money.
Recently I was helping my older daughter Luka study history. She was learning about the 2nd Persian War, started in 482 BC. I could see she was deflated. She looked at me and said, “Papa, why do I have to learn this? Am I ever going to need to know this?” Her question was representative of her recent disdain for learning in general. I turned to my go-to pep talk. “Maybe not,” I explained, “But the important thing is that later on in life you can choose to do whatever you want. In order to have as many choices as possible, you have to do your best at everything, even if it doesn’t interest you so much.” The next words out of her mouth were heartbreaking: “Papa, I don’t want to do anything.”
“People Get Paid to Work at Disney”
‘Quick, say something inspirational…’ I thought. I started to pull out all the stops. “Luka I think you will find a career that you love, but until you figure out what that is, think about the kind of life you want. Do you want to be able to travel around the world and live anywhere you want the way we have?” I then realized that I wanted her to strive for a career that was fulfilling and not just a means to live her life outside of work. But sadly, although the girls do enjoy our outings to explore ancient Rome and the surrounding areas, or our travels around Europe and beyond, the truth is the unlimited streaming content on their iPad is what they truly crave.
So I decided to get creative. “Luka, do you know that it’s someone’s job at Netflix to decide which shows to choose and show subscribers? ” I could see her eyes lighting up. “REALLY???” she asked in amazement. I decided to double down. “Yes! And someone at Disney decides which rides to build or replace in the parks.” Her mouth dropped open. “That’s a job that they pay you for?” I could see I had broken through.
How Can we Expose Kids to Amazing Careers?
I started to think about when I started working with Meliá after finishing my Masters at Cornell. My job was to fly around to gorgeous resorts in Mexico and the Caribbean to teach hotels how to increase their e-commerce sales. I remember having plenty of “I can’t believe they’re paying me to do this” moments. But by that time, I was already 27 years old. That was the first time I was so fired up by my career that I literally couldn’t wait to get started everyday. It didn’t feel like work at all.
I also remember, however, what it felt like to be 10 years old, asking myself what the point was of learning things that didn’t interest me. I wish so much that back then, I could have experienced 1 day of my life at the age of 27 (or later). It would have opened my eyes and given me an undying motivation to get as much out of school as I possibly could. And while I was reflecting on my childhood and thinking about what would have motivated me, it hit me.
KINDerships
What if certain companies that are likely to appeal to kids, such as Disney, Netflix, YouTube, TikTok, Tesla, Apple (I think the list could be quite long), created 1 or 2 day internships for kids? The idea would be that once per quarter, each company invites a certain number of families to their headquarters. Parents could bring their kids and learn all about what happens behind the scenes. Each company should have a scholarship program so that at least 50% of the kids can at least get a domestic flight and lodging paid for.
It seems to me that if we can give younger children a glimpse of potential ‘dream jobs’, then they would have something real to aspire to. Of course kids get some exposure to what their parents do, but how many of us follow in our parents’ footsteps? Why wait until they’re in their 20s before they realize what incredible career paths lay ahead? How many kids would be saved from boredom, apathy toward learning, social difficulties, and bullying if they had a North Star to work toward? Let’s find out.
I would like to ask someone to put me in touch with a contact at Disney or Netflix to put together a program like this. I would be thrilled to bring my kids, and I will sponsor another family that the company selects. Thank you!
It is very difficult to be successful professionally if your house isn’t in order. I get the sense that couples everywhere are re-evaluating their marriages, most likely driven by being forced to spend more time together because of the pandemic. After getting the green light from my wife, Sina, I’ve decided to share our story in the hopes that it helps anyone else out there gain some perspective.
The Portrayal of Love in the 80s and 90s
As a boy I was always more emotional than my other male friends. Growing up in the 80s and 90s, watching movies like Karate Kid, It Could Happen to You, When Harry Met Sally, Pretty Woman and pretty much anything with Tom Hanks, I had no chance. The story was always somewhat similar. Man meets beautiful sweet woman and they fall in love. I remember watching those movies and falling in love every time, thinking “That’s what I want.”
The movie never shows you what happens later after they’ve been married for 10 years. Furthermore the female characters in these movies never had any real grit, and rarely had their own professional careers or life goals beyond being rescued by that perfect man.
One of the movies I remember growing up with was Flashdance. I recently watched it with my 9 and 10 year old daughters and was completely horrified at the blatant sexualization of the main female character and the portrayal of her as a helpless jealous girl needing to be rescued by her rich boyfriend. It’s amazing how as a child you don’t necessarily question what you see on screen. I just knew I wanted to be one of these men that rescues a beautiful woman and lives happily ever after.
How will new generations view marriage?
It was hard enough being a kid in the 80s and 90s and trying to figure it all out. I’m a boy, why don’t I like football? Why do I cry at an emotional TV commercial? Why don’t I like beer? Am I gay? If so why am I so attracted to women and not at all to men? What about all the movies where the nerdy, nice, sensitive guy gets the beautiful girl? Can’t buy me love, Back to the Future… can’t that really happen? Or is it only in the movies? It wasn’t until college that I finally felt that girls were attracted to me because of these character traits.
I’m glad that kids today are not growing up with such rigid definitions of gender and roles. I wonder how today’s movies and shows with the boy meets boy and girl meets girl storylines are shaping what love looks like for kids. Marriage is no longer defined by society as a man and a woman creating a family. I remember seeing older couples on the dance floor and hoping that I too would have that. What will kids today want for their future? It can’t be easy.
The New Focus on Self
Wellness, self-fulfillment, find yourself, love yourself, figure out who you are and be happy and secure with yourself before you can be happy with someone else. These are all trends and messages that have increasingly emerged over the last 20 years, and I believe that’s a good thing. But can marriage still work today if we truly put ourselves first and ensure that we are fulfilled and happy?
I think the answer is yes, but only if the two people involved in the marriage both acknowledge to themselves and to each other that this is their approach to life. The commitment then becomes, I love who you are and respect and support whatever you want out of life, and will be with you regardless of how that changes over time. But it takes a tremendous amount of tolerance, empathy, self-confidence and security to be in a relationship like that. Frankly, I don’t know many people that have enough of all those things to do it.
Marriages Everywhere are Struggling
I’ve made it a point lately to reconnect with friends that I haven’t spoken to in years (in some cases decades). The one common theme in every single conversation is how surprisingly difficult marriage is. Many have split up, some more than once, or at best, their marriage is struggling.
The reasons behind the struggles are also similar. Money, sex, stress, kids are among the many factors, and not necessarily in that order. People are pursuing their dreams, focusing more on themselves and their own happiness first, and with today’s complex always connected world, there just isn’t time to focus enough on a spouse and kids. Too many of us spend our first and last minutes each day with our phones instead of our spouses.
I now have a newfound admiration for older couples that I see that are still together. I’m sure they faced their own set of challenges, but certainly not the same technology-driven distractions, and complex professional and social dynamics that we face today.
We are no Exception
In 2009, I fulfilled my childhood dream that I grew up seeing in the movies, in which a gorgeous woman falls in love with a nerdy, sensitive man. My wife Sina, who could easily have been on magazine covers, married me. But unlike the movies which end after the happy couple gets married, our relationship continued to change and evolve.
Sina was not the simple passive girl waiting to be rescued. She had a successful career and worked her way up to a key executive position. She had strong opinions, grit, and attitude. These are all traits I am glad my 2 daughters will learn from her. I’ve learned a lot from her and she has opened my eyes to new ways of seeing things about life and the world. That said, she is not the sweet, loving, maternal woman that I always thought I would end up with.
Ironically, that doesn’t mean that our marriage doesn’t work since we have reversed gender roles in that regard. I invest a lot of time in providing emotional support to Sina and the girls. But if I invest so much into my wife and daughters’ happiness, how can I focus on me and make sure I am fulfilled and happy with so much responsibility at home?
What I’ve realized is that Sina brings things to the table that I never even knew could make a family and life so interesting and fulfilling. On a recent catch up with a close friend I said “Having a family has been one of the most incredible experiences, but it came with sacrifices that I never thought I’d be able to live with.”
Rebuilding a Solid Foundation
Marriage is messy, it’s complicated, and it’s fucking hard. Now imagine doing it while trying to bootstrap a tech business from the ground up, with all of the pressure and economic uncertainty that comes with it. Being an entrepreneur comes with even more ups and downs than a marriage. I don’t know what the marriage survival rate of entrepreneurs is compared to the average, but I can guess. Mistakes will be made. You can bounce back and forth between the brink of bankruptcy and the possibility of economic independence multiple times. This can be scary for both partners and requires the unconditional support on behalf of the spouse for a marriage to survive.
The pandemic has likely forced a lot of couples to reevaluate. There’s nothing like being trapped in a house or apartment together to make you take stock of where you fall on the spectrum of love and hate. No more business travel to give people some much needed space and time alone. Lots of time at home to think about life and if this is the one you want.
In line with my theme for 2022 of “New Beginnings”, I have had some much needed open conversations with Sina. I’ve realized that it’s ok if our marriage doesn’t fit the unrealistic mold that I painted for myself in my childhood. It’s also ok if it’s messy and difficult. It’s supposed to be. Sina and I are extremely different people and that’s what makes us a strong couple and parents. We have a mutual passion for exploring new countries, cultures and languages. This is what brought us together in the first place and what we want for our kids. We are partners, and we are best friends. We agree that everyday should be lived like it’s your last and to live life with a purpose. That said, I do need to be more proactive about doing what makes me happy. The key is communicating what I need and taking responsibility for those things.
Marriage is Like Business
You can’t fire your kids, but you do have the ability to influence who they become as a team member. You can of course fire your spouse. As a CEO I focus on open dialogue and transparency. I have the same approach and philosophy at home with my wife and daughters. When I build a team for a company, I focus more on who the person is. I know everyone will make mistakes but the intention is what matters. Does this person’s values align with the company’s core values? Everyone brings strengths to the table. The key is to recognize those strengths, value them, and remember that that’s why you hired them in the first place. Startup life is full of unexpected twists and turns, but it’s your team and their strengths that help the company survive. The same applies to your family. I certainly don’t have the answers but I hope this story helps in some way and helps some of you find some perspective.
