Podcast Summary
Persistence and calculated risk-taking: Surviving and scaling a business requires persistence and calculated risk-taking, even when it means securing a loan from an unconventional source like a loan shark.
Persistence and calculated risk-taking are essential for building a resilient business that can weather unexpected challenges. This was evident in Adam Miller's experience when his educational technology company, Cornerstone, faced a near-death experience in 2005. Despite being short of the necessary funds to pay payroll, Miller managed to secure a loan from an unconventional source – a loan shark – to keep the business afloat. This experience, and others like it, taught Miller the importance of not only surviving but scaling in the face of adversity. The Masters of Scale Summit, featuring visionary leaders like Mustafa Suleyman, Steve Huffman, and Tracy Ellis Ross, is an opportunity to learn from such experiences and gain insights into building successful businesses.
Entrepreneurial Decisions: Successful entrepreneurs face pressure and uncertainty when making pivotal business decisions, requiring multiple plans and the courage to adapt to changing circumstances.
Successful entrepreneurs, like Aparna Saren and Adam Miller, face significant pressure and uncertainty when making pivotal business decisions. Aparna shares her experience of leading a team to sunset a profitable product and the subsequent feelings of responsibility and pressure. Meanwhile, Adam recounts the origins of Cornerstone on Demand, starting as a direct-to-consumer business using CD-ROMs and later evolving alongside the internet to become a global leader in on-demand education. Both stories illustrate the importance of having multiple plans and the courage to catch the right wave in the market. Additionally, they demonstrate the entrepreneurial spirit of problem-solving and adapting to changing circumstances. Whether it's pivoting a product or starting a new business, entrepreneurs must be prepared for the rollercoaster ride of innovation and growth.
Building a team and scaling operations: Making important business decisions based on gut feeling can lead to missed opportunities or costly mistakes. Carefully consider all aspects of a deal.
Starting a business may seem easy with financial backing, but it's important to be prepared for the challenges that come with building a team and scaling operations. Adam, the founder of a B2B software company, had a smooth start with investments from colleagues and a clear business idea. However, he soon realized that he needed more than office supplies to build his business. He hired a team based on potential and ambition, as no one had experience in their field. Despite initial success, such as peaking the interest of AOL, Adam learned that making important business decisions based on gut feeling and without proper due diligence can lead to missed opportunities or costly mistakes. It's crucial to carefully consider all aspects of a deal, even if it means passing up a potential partnership with a big player in the industry.
Entrepreneurial Persistence: In the face of significant challenges, entrepreneurs must persist and adapt to succeed. Even when faced with rejection and setbacks, continuing to build relationships and listen to potential customers can lead to future opportunities.
Persistence and adaptability are key to entrepreneurial success, even in the face of significant challenges. The story of Adam's company illustrates this well. After losing a potential deal that could have put them out of business during the internet bubble, Adam and his team found themselves with no capital and no clear path forward. They spent the next several years begging for money and refining their offerings based on feedback from large organizations. Despite numerous rejections, they continued to build relationships and listen to their potential customers. These efforts paid off when they started to receive requests for proposals and eventually attracted big-name clients. However, just as their business was gaining momentum, the 9/11 attacks caused their entire pipeline to disappear. Instead of giving up, Adam was inspired by a TV show and decided to hire new staff and press on with their mission. This story demonstrates that even in the most challenging circumstances, it's important for entrepreneurs to stay focused on their goals and be open to new opportunities.
Proactivity during crisis: During uncertain times, taking calculated risks and being proactive can help businesses grow and overcome challenges, as demonstrated by Adam Miller's decision to continue hiring and closing deals during the 2008 financial crisis and Parnisseran's approach to addressing fears with contingency plans.
During times of crisis, it's better to keep moving forward and take calculated risks rather than hibernating and waiting for things to improve. Adam Miller, the founder of Cornerstone, faced this decision during the 2008 financial crisis. He chose to continue hiring and closing deals, which ultimately paid off and helped his company grow. On the other hand, Parnisseran of Capital One Business shared her experience of being in a vulnerable position with a new product and how she overcame her fear by sharing her concerns with her peers and coming up with contingency plans. Both stories illustrate the importance of not giving up and being proactive during uncertain times. Additionally, Adam's decision to raise venture capital when the business was still growing efficiently but needed more resources to compete with larger companies, ultimately leading to exponential growth, is another valuable lesson.
Board support during financial crises: Having a supportive board during financially challenging times can help a company grow despite economic downturns, even if it means not raising funds as advised by some investors.
Even during financially challenging times, it's essential for a company to have a supportive board that believes in its potential for growth. During the 2008 financial crisis, Adam Evans' company was instructed by its board to raise funds from other venture capital firms, despite Sequoia, one of the largest VC firms, warning of a recession and advising companies to cut costs. The experience was a critical learning moment for Adam, as his company ended up growing 60% that year without using the raised funds. The importance of having a strong board and raising funds when necessary was a lesson that stuck with him, leading him to fulfill his dream of taking the company public in 2011. Personal experiences, such as learning about the stock market from his father, also played a role in Adam's determination to take the company public and secure a NASDAQ listing.
Perseverance and continuous learning: Perseverance and continuous learning are crucial for success, even during crises. Adam, the CEO of Cornerstone on Demand, worked tirelessly to expand his business and approached his own role with dedication. Despite setbacks like poor timing for acquisitions during a crisis, his commitment to learning and adapting led to significant growth and eventual sale for over $5.2 billion.
Perseverance and continuous learning are key to success. Adam, the CEO of Cornerstone on Demand, worked tirelessly to expand his business into the HR space and approached his own role with the same dedication as a client. Even after going public, he continued to learn from his peers and experts. However, he eventually realized it was time for him to retire and pass the torch. In 2020, he aimed to make his mark by acquiring his biggest competitor, Saba Software. But the timing was poor, with the market focusing on financial viability during the COVID-19 pandemic. Despite the challenges, Adam's company thrived as more businesses shifted to remote work, and Cornerstone acquired Saba Software in April 2020. In 2021, Adam sold the company for over $5.2 billion. Through it all, his determination and commitment to learning allowed him to navigate crises and achieve significant success.
Passion, adaptability, and contingency plans: Staying passionate about your mission, making bold counterintuitive pivots, and having multiple contingency plans are crucial for entrepreneurs and business leaders to scale their impact. Embracing uncertainty and learning from setbacks can help turn challenges into opportunities.
Passion, adaptability, and having multiple contingency plans are essential for entrepreneurs and business leaders looking to scale their impact. Adam Miller's journey from a lonely entrepreneur to the CEO of a multi-billion dollar business demonstrates the importance of staying passionate about your mission, making bold counterintuitive pivots, and having a humble and empathetic approach during times of disruption. Capital One Business, a brand partner of Masters of Scale, emphasizes the value of having multiple plan Bs, which not only expands your options but also opens doors for thoughtful conversations. By embracing uncertainty and learning from setbacks, entrepreneurs and leaders can turn challenges into opportunities and successfully navigate the ups and downs of business growth. For more resources and advice, visit capitalone.com/businesshub.
