Transition Strategy Part 5: Crossroads
Posted by: Carl Smith on Tuesday May 25, 2010
Over the last month a lot has happened that has been redefining the choices we have as we reposition nGen Works. The biggest involves the increase in current and potential work coming into the shop, which, of course, means we have more money at our disposal to change our course. While I’ve consulted with my fellow nGeneers quite a bit, ultimately the choice falls on me to decide how we respond. It’s been tough to write before now because I’ve been a little confused. Hell, I’ve been scared. I’ve tried so hard in my life not to make decisions based on fear or greed, and this decision could easily fall prey to both.
An obvious, and traditional, business choice would be to grab as much of the new work as we can and find a way to get it done. Of course, that would mean personal sacrifices from the nGen team as we all work more. In the last month we’ve pursued this path a bit. What I’ve found is that everyone is willing to do more. I know that good people respond to a challenge. But when an ongoing challenge becomes the new normal, eventually people wonder if it’s really worth it.
One option to deal with the new demands is to hire more people. Personally, I’d like to have a slightly larger team. Not out of necessity, but so we can choose to do more. Last month Travis Gertz joined the nGen team. He was already a friend and we knew he had skills we needed. More importantly he was funny as hell and we already loved him. We knew he fit in. It was an easy decision. We didn’t hire a designer or front-end coder, we hired Travis. If we continue to grow as the potential workload increases we would eventually have to hire someone we don’t know. That feels greedy and risky to me. At that point I’m gambling the great chemistry we have to capture more dollars. Once the team’s chemistry goes, the care and concern starts to falter as some really talented and loyal friends will start to ask what happened to the way things were.
Another issue that starts to become evident if we grow for growth’s sake is that my life will change considerably. I am having trouble managing the new business flow as it is. We have more than 18 solid opportunities that are in a proposal phase. Try as I may, I can’t manage this many opportunities and still have any kind of life. Those of you who know me know I started nGen Works to be with my family more. This moves me squarely in the wrong direction. One option is to hire someone to come in and help me with the new opportunities. I have two very good friends I’ve considered to play that role, and both times I’ve gotten cold feet. Part of the reason is fear that this increase in new business is just an anomaly and we won’t be able to sustain them financially if it wanes. The other side is the fear that we’re throwing gas on a fire and it will continue to grow. If that happens, I’ll get sucked into other new issues that arise and still lose control of my time while accelerating the discomfort of the current team.
What’s funny is all of this opportunity is showing up before we reposition the company. A lot of friends and nGeneers have suggested it may be silly to change anything with such a bright future in front of us.
One of the obvious reasons you reposition a company is to become more profitable. There’s nothing wrong with making money, and nothing wrong with making more money, especially if you’re doing something you already know how to do really well. At the end of the day, money is necessary, but feeling like you’re going somewhere in your life is more important. People leave high-paying jobs all the time to pursue something that inspires them. For me, this repositioning has been about staying inspired. I didn’t realize that at first, but I do now. In order to stay inspired we have to feel like we’re doing great work for great people. Right now, I’d say it’s a mixed bag. We have some great clients, and we have some we took because we had to. Ideally, we can get to a point of profitability and cash flow where we no longer have to take any projects. Actually, I think we’re already there.
Last week, I told a fellow nGeneer that we took a project because we needed the money, and missing payroll would be more painful than doing this project. Afterwards, I heard those words playing in my head and I realized I was wrong on two counts. First, we wouldn’t miss payroll. For seven years that’s been my goal — make it through the next two weeks. nGen’s reality has changed but my mindset hasn’t. Second, it would be more painful to keep taking projects for the money than to miss a payroll. Because then it becomes a job, not a place you hang out with friends and create cool stuff.
This weekend as I was crunching numbers and evaluating who else we needed on the team, I realized I was looking at everything wrong. It’s not about evaluating us, it’s about evaluating them. Just because prospects have enough money doesn’t mean that we’re a fit for them. And just because they don’t doesn’t mean we aren’t. When I look at that list of 18 opportunities, fewer than half of them are exciting. Of the half that’s left, seven have been awesome to talk with and want to focus on the process not the price.
Maybe there is no business Utopia. But there are some amazing companies. That’s the goal of this repositioning. It’s got to be about creating a way to work that is fun and profitable for us and the prospects we choose to work with. Some people may say that sounds like a cocky pipe dream. I couldn’t agree more. That’s precisely why we’re going to haul ass down that path starting right now.
As always, we look forward to your input and feedback. And, if you hadn’t noticed, Jeff has been dribbbling a bit here and there- and here on some new ideas on how we present ourselves.
Comment RSS Filed under: Interweb
Jen Hyde
05.25.10 at 2:20pm
It’s encouraging to see a company put their values, people, clients, and commitment to great work first – especially in today’s profit-driven, Darwinistic environment. There’s a marked difference between greed and wanting the resources to take on inspiring, meaningful, challenging projects for just compensation. It’s pushing the bar higher and refusing to settle for the so-so. There are only so many hours in the day and cutting corners isn’t an option when you’re committed to exceptional work. So many companies deviate from their core values when repositioning; nGen, on the other hand, seems fiercely determined to take on more great people, great clients, and great work while remaining true to its founding principles of trust, excellent work, and innovation. Looking forward to seeing what the next nGeneration brings…
Aaron Mentele
05.25.10 at 3:02pm
What’s it called when you point at your eyes and then at the other person’s eyes and then repeat? Regardless, here’s to being able to distinguish excitement from profit.
Seamus
05.25.10 at 3:28pm
Love the tone and honesty of this post. We are lucky to be in an industry where if you do good work and stick around for awhile, pretty soon opportunities are everywhere. I wish I worried less about growing a company and worried more about making beautiful things and enjoying a medium-paced, lower-budget lifestyle.
Keith
05.25.10 at 4:40pm
Hey Carl, you know I wish you the best of luck in all this – and it sounds like you’ve got your priorities straight, which is a great Step One!
“Those of you who know me know I started nGen Works to be with my family more.”
I started Blue Flavor to have more freedom with my time. And from day one I kept making decisions that pushed me further and further away from that goal.
That resulted in multiple burnouts and all sorts of badness. Which resulted to serious regrets about even starting the business. All of which I now chalk up to lessons learned and life experience. :)
You’ve got some tough decisions ahead and I envy the fact that you are able to look at it objectively; something I was only able to do long after.
Here’s to good work for good people and a happy future for you and yours!
Carl
05.27.10 at 6:13am
@Jen – Wow. Did you say a whole lot of smart things and then use the term nGeneration®? Not even sure what to say except… What’s it called when you point at your eyes and then at the other person’s eyes and then repeat? (By the way I’ve registered the term nGeneration now so please be careful using it in the future.)
@Aaron – Thank you sir. Both for my response to Jen and for reinforcing that profit isn’t the (only) goal.
@Seamus – You are correct, we are lucky to be a part of this industry. And I firmly believe we can work what I like to call a normal amount (less than 40 hours) and still make plenty of money.
@Keith – Your words me a great deal to me. Knowing you think we’re on the right path, and knowing there are many more decisions on the horizon will keep my eyes open. Also, I’m happy for where you are now. Seems like you’ve landed on the pulse of now.
Jen Hyde
05.27.10 at 10:28am
Carl, did you really just go and slap an ® on my intellectual property? Before you go talkin’ ‘bout my nGeneration, I think we need to talk to the US Patent and Trademark Office. Despite your ownership of nGen, I would think “nGeneration” and “nJen” would be mine, all mine, from the moment of creation until 70 years after my death…Maybe we can work something out ;)
Carl
05.27.10 at 8:50pm
@Jen – and now you reference a Who song? Then you claim the rights to an overused named like nGen? Hmmmm…