Archives For December 2012

Analysis of the #FiscalCliff abounds.  The issues are distilled into the categories of taxes versus austerity.  Revenues and spending cuts.  Who, if anyone, should pay more taxes?  What happens to investment related taxes?  What happens to social security?  What is the impact on entitlements in general?  Should we tackle Medicare reimbursements?  Is Obamacare in the deal?  You get the picture.

To me, however, there is a lot more at stake here that transcends economics.  The fiscal cliff was a steamroller that we saw coming a mile away.  There are crises that emanate from various sources that we cannot anticipate or prepare for — hurricanes that decimate Staten Island and New Jersey, grotesque acts of violence on school children, attacks on New York City, etc.  There are few, however, that we can prepare for, and, hence mitigate or avert altogether.  This crisis was one of the latter.  And in this era of great cynicism about what America has become and our position on the world stage, the fiscal cliff (a right hook to our economy was telegraphed for all to see) presented an extraordinary opportunity.  Yes, that’s right, an OPPORTUNITY.

I am a well documented two time voter of Barack Obama.  The first time I pulled the lever I did so with great enthusiasm and hope.  The second time I did so much more reluctantly, but still confident that he was the better man.  But what I have learned over the years is that leadership is defined by many a quality, with intelligence and integrity only being a couple of them.  Leadership is about consensus building, inspiration, and, unfortunately, salesmanship.  And so while I am of the opinion that Obama is faced with a great deck stacked against him, and that those named McConnell, Cantor, and Boehner are playing a binary game of “we win if Obama loses”, I am disheartened nonetheless at the lack of ability to get in front of the problems, bring unique viewpoints to the table, and show that we can act in the greater good.

So what was the opportunity?  The opportunity was for our leaders to let pragmatism prevail over dogmatism to show America’s citizens and the world that when it really counts we can get it done.  As Doris Kearns Goodwin stated after the election, we tend to glorify the “good old days.” We may long for the days of the Whigs and Tories, but they used to beat each other up on the House floor.  Maybe I am being naive, but that feels a lot more honest than what goes on these days.  In a media age it all seems so disingenuous and petty.  To watch Obama on Meet the Press this morning was painful.  “The Republicans can’t say yes.”  “I am fighting for the middle class.”  “I am not a liberal.”  Rhetoric, rhetoric, and more rhetoric.  He builds consensus with business leaders to do his bidding for him, but when did he invite the Republican leadership (a new oxymoron) to the White House, put a pot of coffee (or bourbon) on the table, and say “no one is leaving without a deal”?  And while they are all saving face on the Sunday morning news shows, Americans (like me) are fighting the anxiety over the fate of their small businesses, their earnings power, and their children’s prospects in a country whose government is ALWAYS behind the issues and NEVER in front of them.  Choose a topic, any topic — energy, education, social security, diabetes — each one a steamroller crisis.  Where is the pro-active leadership on these? And to think that one day, when it’s too late, we will say that we saw it coming but didin’t have the will or leadership to get at it.

So here we are on a Sunday night in the 11th hour before our nation faces a self-imposed calamity at a most fragile point in our economic history.  And that is awful.  But the true tragedy is that we let it happen.  To me, that is what keeps me up at night.  That we are so dysfunctional, inept, and dogmatic is the real issue that makes me most fearful.  When it really hits the fan we need leadership, not politicians who are more concerned with protecting their legacies or placating special interests.  Naive perhaps, but if it was going to happen, now was the time for everyone to check their egos at the door and recognize what was a stake.  No matter the outcome of a vote that may or may not happen before midnight tomorrow night, our leadership blew it–a squandered opportunity whose wake will perpetuate a crisis of confidence that long outlasts its economic ramifications.  So sad.

Fantastic piece from Kenneth Rogoff on Project Syndicate dissecting our current (and future?) economic malaise into its component parts.  I would argue that the financial crisis was the tipping point into the trough, but I agree that there is a tremendous innovation gap that will keep us at below trend growth for years to come.  Lack of credit to small businesses despite the flood in liquidity from central banks will only perpetuate the problem.

There are multiple ways to manage stress, some healthier than others.  Nearly a year into my career as a startup entrepreneur, I got to a point where I needed the stress management solutions to be on the healthier side of the spectrum.  After years of thwarting friends’ attempts to get me to join CrossFit, I decided to give it a try.  CrossFitNMB is about a block away from Bookigee’s offices — so the guilt felt when passing it every day was a driver of the decision, but I digress.  Without rambling on about the gory details of my initial path to fitness over the first three months that I have been there, I will just get to the point of this posting.  I owe a huge debt of gratitude to Jonas Grabarnick, who runs CFNMB.

We all know the explicit benefits of exercise – heart health, positive self-image, endorphins, physical strength, etc.  I have gotten something above and beyond that from training with Jonas and his team, however.  Best way to describe it would be a great sense of accomplishment that has translated into benefits far outside the gym.  At CFNMB they teach you how to overcome adversity and meet challenges that you otherwise would not think possible.  So while the tangible results have been great, the intangibles are what I am amazed by and grateful for.  The ability to get through their workouts, push myself to do things I would have never thought I was capable of, and adjust my mindset to believe that I will surmount the seemingly insurmountable has transcended the gym.  Startups are a battle, but the work done with Jonas is now evidencing itself on the business playing field in many ways: greater attention to detail, confidence, a willingness to go at the problems rather than around them, physical and emotional stamina, and a positive attitude — to name a few.  Entrepreneurship requires a lot of strength across the physical, mental, and emotional spectrums.  Thanks to Jonas for all the work you are doing with us to improve all of these components — both I and the company are growing from it.

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Originally Appeared in Huffington Post Small Business Blog on 9/26/12

If you had asked me back in 2007 what I would be doing in August 2012, I never would have said, “I’ll be standing in a room in Tampa during the RNC, demoing the first app from my tech start-up at the invite of The Huffington Post.” But in some ways, my journey is a parable for #WhatisWorking — in the face of great uncertainty, sometimes you just have to dig deep, take a risk, step out on the wire, and try something radical.

In 2007 I was a trader on Wall Street. Although I had a BA in English and aspirations for an academic life, the allure of joining my family business on the NYSE in was too strong to ignore back in 1994 when I got my start. In the early years I took great pride in what we did and how we did it, but I also watched the industry shift as mergers, increased automation, regulatory hurdles, and asset bubbles all conspired to change the core of the business. In the face of these changes the “human functions” of trading became less and less primary.

Things really shifted for me personally after financial collapse of 2008. A once proud career on the New York Stock Exchange had become not only less rewarding in a financial sense, but in an internal sense. The pride I had taken in my role in capital markets had devolved into something that lacked any real meaning or purpose for me.

I no longer wanted to sit on high, reading research reports, looking at trends in data, and pointing out problems that I did not have the courage to try to solve myself. I started to understand that innovation is not someone else’s challenge to take up. Job creation is not merely a topic for political pundits and Wall Street analysts. America’s stature on the world educational stage is not just a topic for New York Times op-ed contributors. It became clear that the path to a better economic future for my children emanated not from “policy”, but from my own initiative to effect change.

In the Spring of 2009 I decided I’d had enough. I wasn’t sure what I wanted to do, but I was pretty clear on what I didn’t want to be doing anymore. So, I packed up my family and headed for South Florida to press the reset button on a career that had been pretty much written in stone. Goodbye Wall Street, hello Main Street, and the start of an entrepreneurial adventure.

When I first got to Florida, I experimented a little, invested in some projects, and started to build my network. In a short two years I saw it all — good companies, bad companies, good people, bad people, good deals, bad deals — and then I met Bookigee, a young Miami-based tech startup.

Although it was early days, my Wall Street experience told me that the project had all the features of a company that could produce an extraordinary return — a large industry in acute need of innovation and change, a team with deep domain expertise, and a grand but well articulated ambition to disrupt the entire publishing industry. It was intriguing. I saw an opportunity to put my job experience to use in a completely new way and at the same time regain the sense of purpose that comes with solving a meaningful problem.

I joined the project first as an advisor, and later as a Board member. And the more I contributed, the more interesting it became. I dropped everything and joined Bookigee full time in January of 2012. I could see that value creation through entrepreneurship was the path toward a workable future.

And so, in a funny way, my narrative came full circle when I walked into The Huffington Post and Startup America’s “What Is Working Event” at the RNC on August 29th. Politics aside, it was a great personal and professional milestone. After a tough and not so linear transition from a career that was preordained to stay at 11 Wall Street to a world of lean startups, under-resourced and under-capitalized small businesses gamely trying to make something happen during the worst economic environment in over 75 years, this event felt like an affirmation of my choice to enter this pursuit called #TheStartupLife.

Here is what I think: What our country is enduring is not a cyclical issue where the jobs will re-emerge through a waiting game. This is a structural economic phenomenon that will require a re-training of America’s workers, a recalibration of our short run expectations, and a new approach to bringing solutions to industries that have not kept pace with technological trends. This is a generational issue that requires a redeployment of our human capital into jobs that are valued by the 21st century.

So to hear Startup America’s CEO Scott Case promoting concepts about job creation that go beyond the usual rhetoric and into tangible grassroots public/private education initiatives is exhilarating. To hear Arianna Huffington give genuine thanks to the risk-takers that intend to pave a better economic path for our children is empowering. And to be a part of an extraordinary team at Bookigee that embodies all of the qualities that these great minds are promoting is confirmation to me that I have followed the best path to accomplish my goals.

Bookigee is proud to have been in that room and aligned with these initiatives. I believe we will not only impact the industry we are setting out to reshape, but that we will share that stage one day as advocates for education, business building, and risk taking.

Here is the meaning, here is the value, and here is a future we can be proud to pass on to our children. What I realized in Tampa is that Bookigee — and all the other adventurous entrepreneurial experiments taking root out there in our local communities big and small — are #WhatIsWorking.