You've got to find what you love - Steve Jobs commencement speech

This has been circulating on twitter. It's awesome. Read the whole thing. I didn't write it -- Steve Jobs did.

You've got to find what you love,' Jobs says

This is the text of the Commencement address by Steve Jobs, CEO of Apple Computer and of Pixar Animation Studios, delivered on June 12, 2005.

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I've ever gotten to a college graduation. Today I want to tell you three stories from my life. That's it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: "We have an unexpected baby boy; do you want him?" They said: "Of course." My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

And 17 years later I did go to college. But I naively chose a college that was almost as expensive as Stanford, and all of my working-class parents' savings were being spent on my college tuition. After six months, I couldn't see the value in it. I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out. And here I was spending all of the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back it was one of the best decisions I ever made. The minute I dropped out I could stop taking the required classes that didn't interest me, and begin dropping in on the ones that looked interesting.

It wasn't all romantic. I didn't have a dorm room, so I slept on the floor in friends' rooms, I returned coke bottles for the 5¢ deposits to buy food with, and I would walk the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed. Because I had dropped out and didn't have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, its likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking backwards ten years later.

Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

My second story is about love and loss.

I was lucky — I found what I loved to do early in life. Woz and I started Apple in my parents garage when I was 20. We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation — the Macintosh — a year earlier, and I had just turned 30. And then I got fired. How can you get fired from a company you started? Well, as Apple grew we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out. And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating.

I really didn't know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down - that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me — I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.

During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the worlds first computer animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, I returned to Apple, and the technology we developed at NeXT is at the heart of Apple's current renaissance. And Laurene and I have a wonderful family together.

I'm pretty sure none of this would have happened if I hadn't been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle.

My third story is about death.

When I was 17, I read a quote that went something like: "If you live each day as if it was your last, someday you'll most certainly be right." It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something.

Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago I was diagnosed with cancer. I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas. I didn't even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctor's code for prepare to die. It means to try to tell your kids everything you thought you'd have the next 10 years to tell them in just a few months. It means to make sure everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day. Later that evening I had a biopsy, where they stuck an endoscope down my throat, through my stomach and into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and I'm fine now.

This was the closest I've been to facing death, and I hope its the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept:

No one wants to die. Even people who want to go to heaven don't want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life's change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960's, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.

Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: "Stay Hungry. Stay Foolish." It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.

Stay Hungry. Stay Foolish.

3 years of startups is like 10 years of marriage

I had coffee with a young entrepreneur that I've become quite a fan of. This particular entrepreneur, age 28 (best guess), started his company almost 2 years ago. His business originally was an online marketing and promotions company aimed at the college market.  After about 6 to 9 months, he realized that business wsn't going to work and started to marketing and promotions on twitter. His business has continued to evolve -- as it should. I met him about 4 onths ago and he was "rudderless". He didn't know what he wanted his business to be when it grew up. He came to the coffee with a piece of paper with 5 very different strategic opportunities on it. The common theme: all were based upon twitter. He was thinking about customer service, lead generation, and marketing business all using twitter. I told him he had to decide what he wanted his business to do.

Well, at yesterday's coffee, he articulated for the first time a business that could be a business. Since the last coffee, he's met with lots of customers and gotten input and has figured out what he thinks he could sell NOW. He's realized he needs a "need to have" not a "nice to have" product. I don't know if he's right but it sounded directionally credible to me. That's Good. He knows what business he's building.

And now is where startups become hard. He's tired and his cap table is a bit upside down.  He has 2 other people that have been working with him. They've taken little to no salary for 2 years. They raised an initial 300K but most of that is spent. They now spend 10K per month in total expenses including salary for 3 peopel (if you call it that). I told him founder weariness starts to set in around the 2 year mark and really kicks in around the 3 year mark.  I told him it's a bit like what happens in marriages around the 7 to 10 year mark (for me it was 10 years).  Things get REAL and get hard. The fantasy and dream of starting a business give way to the reality of no salary and limited success. This is when most people either push through or bail. He seems prepared to push through but....

His cap table is kind of upside down. He's raised 300K in a convertible note that assumed he'd raise a venture round in 12 months. Well, the venture round never came. The 300K is all from family. His dad recently agreed to give him 50K more into the same instrument. The problem is that when he makes traction in his new business and goes out to attract money for it...he's going to either get massively diluted himself or need to deal with those shareholders and cram them down. 

I had a lot fo respect for him. I hope he succeeds. It's stories like this that are the real startups. We all dream about building the next Facebook, Google, or Twitter-- but mroe often than not success comes more slowly and with greater challenges and difficulty. Start ups are hard. They're not for the faint of heart. And capitalism isn't kind.

Rookie entrepreneurial mistake or professional move? Probably both

I have been talking to a potential investor in one of our deals and we were talking about syndicating the round to other institutional investors. He said he wanted to have a say in who the other investors were. I told him I understood this conceptually...but specifically, what did he think about investor x....and I gave the name of the investor. He said he didn't see a problem if x wanted to invest. Then he followed that up with the question : "so who else are you talking to" and I answer "y and z" and actually gave the names of firms -- I'm leaving the names out here to protect the innocent)  The conversation continue for another 30 minutes. 

On the way home, I was beating myself up for telling him the names x, y, and z. I told him for a simple emotional set of reasons: I like him, trust him, and feel like he's going to be a lead investor and so wanted to treat him like one.  In that way, answering his questions, theoretically advanced our relationship and was a pro move. But he is not yet the lead investor -- and I just gave him the names of some of the people that I've been talking to and that information in no way can help me. One of the first lessons I learned in raising capital is don't tell the investors who else you're talking to. It's raising money lesson 101! What a rookie mistake.

Since that conversation, I actually talked about whether this was a mistake with the investor -- I'm not overly worried about it and it probably was both a mistake and a pro move. If he ultimately invests, then it was a pro move. If he doesn't, I'm sure I'll view this as one of my errors!

Lessons from selling "hot botties" -- what's that? Well, read this post...

Hot botties photo

My daughter made her first hot water bottle cover over a year ago. She got into sewing and decided to make 2 of these covers for her teachers as a Christmas gift last year.  The teachers loved them. She was inspired to make more. The idea evolved into making a bunch of these "hot botties" (that's the name she gave the hot water bottle covers) and to sell them to rabid University of Washington fans at the UW vs Washington State Apple Cup football game this year. As you can see from the photo -- they're cute, purple, and home made. All told, she made 20 of these water bottle covers...and the Apple Cup was this past Saturday. This post attempts to summarize my lessons learned from the rich first entrepreneurial experience.

Our experience on Saturday was rich and emotional. At about 11AM we started the process of boiling water and filling water bottles. We placed the water bottles in a cooler with wheels and the "hot botties" into 2 garbage bags (in case of rain). Also, since my wife and I had not yet been to a UW football game, we weren't sure about the security issues -- and since my daughter was not a permitted vendor the garbage bags would hide the merchandise. We packed up the car and I drove my wife, my daughter and my son to the tailgate area, dropped them off and went to go park. Due to traffic and parking challenges, I met back up with my family 15 minutes later. By the time I met them, they had only sold 1 "hot bottie". My wife indicated that they could use a shot in the arm -- i.e. they needed me to help them sell.  The sale consisted of me going up to a group of people with my daughter -- I'd start the conversation and my daughter would offer the hot botties for sale. Initial price was $30.

The next 30 minutes weren't much better. I'd approach a fan or group of fans -- who were more interested in their hot sausages grilling on the bbq and their beer than my daughters "hot bottie". We sold 2 more -- but got a lot more no than yes. A lot more! My daughter was becoming dejected. She had the look of "this is hard and this sucks".  It was the look that I would have had if I was being honest!  Price was quickly reduced to $20. 

As a family we verged on becoming desperate.  My sales strategy evolved to emphasize the following points:

  1. The hot bottie will keep you warm all game long -- here feel them (i.e. get the potential customer to hold the warm cute product)
  2. These were made by my daughter for school and to learn entrepreneurship
  3. Price is any donation amount you want (now no longer $20)
  4. Focus on selling to older alum and to women.  This product was lost on most males.

As a parent, there was a lot at risk to failing at sales. I kept thinking about how many hours she had put into making these things at my suggestion.  My daughter's confidence and trust in me was at stake. No way were my wife and I not going to sell these things.

We pressed on. And we got a break -- one group of older alumni bought 3 at once. Ahh...some relief. By the ninety minute mark, we had sold half of them. The project was now respectable -- at least it wasn't going to be a failure. I suggested that we should sell a bit more and then go -- but my daughter now was feeling the mojo and she said she wanted to stay and try to sell more.

We sold all of them! And could have sold more! The last customers asked my daughter for her business card!  The day was a huge family success. 

Some reflections -- and think about how obvious a metaphor this is for your startup:

  1. When we got home my wife and I laughed at how close to failure we had been. If my daughter had gone from a look of "this sucks" to breakdown -- we would have had to deal with internal breakdown and would not have had success.
  2. Initial selling was hard!  Price was wrong. Process was wrong. We needed to press through the "hard" part to get a few wins.
  3. The blue bird sale of 3 botties blew wind in our spirits and carried us through to success
  4. The line between success and failure is slim -- very slim
  5. It would have been smarter to make 5 and try selling them before making 20 and trying to sell them. Testing the whole process would have taught us a lot!
  6. When failure costs a lot -- success can happen. But it rarely is easy.
  7. We would have had more success selling beer than hot water botties -- product market fit was off even though we had a unique cute product. It wasn't needed. Accessing the right customers was hard.
  8. Be careful what you suggest your offspring get involved in!

Fans of Metallica and The Doors pose as two middle aged white businessmen

I was at a meeting at Voyager capital yesterday and was talking to Geoff Entress and Bill McAleer. Photos enclosed. Bill and Geoff -- and myself are middle aged white guys. Both Bill and Geoff can come across as straight and narrow. Somehow the conversation turned to best concert we had seen of all time. I learned that Bill McAleer had been to a live Doors show and loved Paul McArtney. Geoff Entress has been to Metallica and loved the Smiths.  The conversation totally changed the dynamic of "business" as usual and got us all to talk about experiences that were highly personal and that we were passionate about. It was fun and got the meeting off to a great start. It got me thinking that asking questions about people as a starting point for business meetings is a great way to start off a business meeting. It connects you with the people you're talking with on a personal level.  That is good!

 McAleer

Geoff Entress_2009 (1 of 1)(1)

The regret index

I just watched this video of Josh Petersen of 43 things talking about the process of filtering ideas to see which one is worth pursuing. This process is a critical one -- and one that is filled with contradiction and emotion.  in the video, he talks about using the notion of "regretting" not doing an idea as a way of sorting through ideas. I think he's totally right -- some ideas -- you just have to get out of your system...otherwise you'll regret not doing them.  That doesn't mean that the start up is going to be a raging success if you only use this method of sorting through ideas -- I just think it's one of the more important ways to sort through your ideas. So along side your spreadsheet of market size, capital needs, skill fit, add a column for the regret index when analyzing which of your ideas to pursue -- and which ones not to pursue.

Advice for wannabe entrepreneur from big company

A big company executive who is ready for a change asked me for career advice. He wants to work at a small company.  I told him that he should take a project and start small -- work out of his house. Having a project to work  on that's interesting and takes advantage of his past experiences will be super useful in moving him from point A (big company) to somewhere else. The reason I gave him this advice is that I've found many people -- myself included look for an insight that's the BIG idea -- as if big companies were born out of strokes of lightning in a bottle. I think that may happen, but more often they come from mucking around with ordinary things and putting things in motion. Once things are in motion -- extraordinary things can happen.

Open - my vote for the title of new book by Charlene Li

Charlene Li is one of the great analysts in the technology sector. Read about her and her company here. I just read her tweet:

"Wanted: Your vote on the best title for my next book, takes 2 minutes. Thanks! http://bit.ly/18l7oE"

I clicked the link and it brought me to a book description and then a list of 5 titles to choose from. I think this kind of crowd sourcing is just beginning and we're going to see a lot more. I think it makes all the sense in the world. When communication is key -- and you don't know what words work best -- just ask the audience. It's the ultimate "ask the audience" hotline used in "who wants to be a millionaire"

I voted that her book be called "Open". We'll see if it wins.

Entrepreneurs need to find that extra gear

Below is a story I told to 2 aspiring entrepreneurs in the Founder's Co-op portfolio today:

I used to swim in high school. I had a coach, named Mark O'Reilly, who had been my swim coach since I was 7 years old. I swam competitively -- I was a back stroker and used to practice everyday after school from 3 to 5PM. About midway through my Junior year of high school, I went to practice and that day had an awesome practice. I swim every "exercise" as if it were my last. I kicked ass during that practice. When I was done with practice, my coach came up to me and said if you do that everyday, you'll be able to compete nationally. He told me that "that extra gear" is what was required of me. I knew what he was talking about. My commitment that day in practice was extraordinary.

I told the entrepreneurs today that they needed to find their own extra gear if they wanted to make their company a success. I believe they have that extra gear -- but I can't do it for them. 

We'll see how practice goes the next couple months. I'm watching and cheering them on! My tip for all of you aspiring entrpeneurs is the same : find your extra gear. Leave all that you have on the game field (or in the pool).

Pho vs BLT -- battle of the lunches at Founder's Co-op

We have a tradition at Founder's Co-op. Every Tuesday, we have lunch together at our offices. For the past year of existence the predominant lunch offering was Pho. We get the pho from Eastlake Terriyaki on Eastlake Ave East.  The owner of the store is nice and she boxes our lunches up. As the number of pho has increased to around 20 per week, we started asking for a discount on the $7+ soups. We weren't looking for much but we were spending about $600 per month on soup at the same restaurant and at least wanted to be appreciated. Various members of Founder's Co-op asked for a discount. We told her that we liked the soup but the cost of the soup in aggregate was going to force us to look elsewhere. Her response to our repeated requests for some discount was to say, "I give you a good portion".  I'd say, yes, we know but we'd like a discount or a buy 10 get 1 free given the regularity of our business.

Along came Hamlin deli. The high end convenience store next door. It's closer to us. Their sandwiches are great. I told the manager there that we ordered about 20 lunches on Tuesdays and would appreciate a discount. She response was warm, affirming, and decisive. I'll give you 1$ off every sandwich when you order 10 or more sandwiches. That's about a $20 savings per week and $80 per month.

Granted this is small dollars...and tribal to talk about. However, in the land of bootstrap businesses and frugal start up living, $80 per month is $80 dollars per month! And more important than the money is the emotional acknowledgment that our business matters to the business. So for now -- goodbye to pho and hello to BLT. 

My advice to start up companies --pay attention to customers desire to have their business appreciated!  It doesnt' take much to get customers to switch when the competition doesn't show appreciation.