I launched a business in 2008 — a home security company — and I went and raised money. Of course, when you're young and dumb, what better place to raise money than your own family!?
So, I went to my father-in-law, who was a pretty successful farmer and I got him to invest $1M into our business. Then my dad, who was a school teacher.
I grew up fairly poor. My dad was a school teacher, my mom didn't work, and there were seven kids in our household, so we learned to work from a very young age. After the age of 12, anything besides underwear and food on the table was provided by ourselves, so I had my first job when I was nine years old.
My dad, even though he was only making $50k - $60k a year, had been able to put away some money. He invested $100k in my business and put a pretty big vote of confidence in us.
2008 was probably the worst year you could launch business. The banks started shrinking up their lending power and a variety of different things began to happen. At that point, our business model was to sell alarm contracts to monitoring companies. We needed 120 contracts to break even each month and they (the alarm company) suddenly started limiting us to 100 contracts per month. Add to that, we also had a UCC-1 filing on us, which was a lien against our business — that meant we couldn’t sell those contracts to any other monitoring company.
Poor partnerships and overly confident decisions ultimately led to me filing bankruptcy for $2.2 million and having to go to my father-in-law to tell him that I'd lost everything. I had to go to my dad and tell him I lost over half of his retirement money. I had my Mercedes repo’d out of my driveway and had less than $1,000 in my bank account. I had to sell assets to cover things.
That's where I found myself exactly 10 years ago from today. January 26, 2011 was when my bankruptcy officially filed.
[Editor’s Note: coincidentally this interview took place January 26, 2021]
So, from there I had to pick myself up off the floor and figure out what I wanted to do with life — either go back to school to get a real job like everybody was telling me to do or take the lessons that I had learned and grow from it. Luckily, I chose the latter and built a few different businesses that I did okay with.
Eventually I went and worked for some large competitors and looked at it as a paid education for a period of four years, where all I did was study the growth techniques of some rapidly growing businesses from the inside. My business partner and I both did this — we kept our nose down thinking this is paid education, this is this is why we're here - we're here to learn and grow. We looked at it from a completely different angle than most employees do, who are there to get a paycheck and be done. We were there to dissect and really understand the science of a rapidly growing businesses.
One of the companies we'd worked for did their first private equity deal for $50 million in 2007. By 2012, they had grown it from $50 Million to $2 Billion and today they're sitting around a $12 billion valuation, so we were a part of that growth for a couple years.
Sitting down with the CEO and seeing what he was doing and all the inner workings of the business, that's where we got a lot of our philosophies around building culture. Put culture first, before anything else: above strategy, above product, above service.
We learned to build a good culture and you'll naturally be able to pivot during times when most people panic. This last year was a prime example. It could have been an easy time to just tuck our tail between our legs and run but we decided to pivot into some different methodologies and the way we ran our business and it's paid off really well.
So that's how I've used failure and struggle to really grow. It's also helped me make much wiser decisions. We've bootstrapped Solgen from the ground up and haven't done things to impress other people. A lot of my mistakes in my earlier years was because everything I did was to appear successful. It had to appear to the customer that we were offering the best price. It had to appear to the sales rep that we were paying them the most. It had to appear to other people that I was a great business owner, driving the nicest car and doing all these things — versus making decisions based off of what's best for the business and best for the culture.
Those are those are the strategies that we that we've used to grow and it's working so far.