Freelancing Won’t Help You to Build Wealth

Guest Post by Patrick J. McGinnis, a venture capitalist and private equity investor who founded Dirigo Advisors, after a decade on Wall Street, to provide strategic advice to investors, entrepreneurs, and fast-growing businesses. He is the author of the new book THE 10% ENTREPRENEUR: Live Your Startup Dream Without Quitting Your Day Job.

The gig economy is here, it’s real, and it’s global. As many as 53 percent of Americans can now be classified as freelancers. While that number includes your (hopefully) friendly Uber driver, it also encompasses a growing number of white collar workers as well, who offer legal, financial, accounting, or design services on demand. This is a direct result of recent instability in once-staid industries like law and finance that has pushed many professionals out of firm life and into consulting roles. As a result, software giant Intuit projects that temporary workers will represent 40 percent of the workforce by 2020. It seems that in the future, nearly half of workers – no matter the color of their collars – will be free agents.

While the rise of the “gig” economy, as the growing dominance of freelancing is often called, has been great for consumers and small business owners, it isn’t necessarily good news for the people providing all these services. Freelancing offers flexibility and a home for workers displaced by the changing labor market, but it also suffers from a fundamental flaw: When you’re a freelancer, there is no company stock plan. You get paid based on the hours you work and nothing more. You have no ownership in any of your projects and you don’t have the possibility of owning a share, even if it’s a small one, of something that can grow in value over time.

Given that reality, how can you make the most of your time as a freelancer in the gig economy?

 Think like an owner

When you’re a freelancer, you are also, in a fundamental sense, an entrepreneur. Over time, you will build a list of clients, expand your network, and assemble a track record of achievements that are your own. In that sense, freelancing can offer a path to building your own firm, so it’s never too early to establish credibility before the wider world. That means taking some time to create a brand, build a website, design a logo, and order slick business cards. Thanks to the sharing economy and inexpensive online platforms, you can accomplish most of these tasks by investing a few days and a couple of hundred dollars. You can also legally incorporate your company quickly and easily with a minimal investment of capital. Even if you’re not yet sure whether you plan to work for yourself over the long term, you’ll always have these resources if you want to moonlight on the side.

Be a 10% Entrepreneur and look for opportunities to earn sweat equity

Don’t restrict thinking like an owner to your own firm. You can also endeavor to own stakes in other people’s businesses as well. Specifically, you can become a 10% Entrepreneur, allocating at least 10% of your time and energy to offering your services in exchange for shares of a company – commonly known as earning sweat equity. This practice is relatively common because most startups have more to offer in the way of equity than they do in cash. As a result, there are many services, such as advising on a business plan or legal documents, making critical introductions, or creating a logo or website, that young businesses will consider as an in-kind capital contribution in exchange for stock.

While it it naturally riskier than simply walking away with a pocketful of cash, getting paid at least partly in equity can be surprisingly lucrative. Take the case of David Choe. Choe is the graffiti artist who took stock in Facebook as payment for murals he painted at their headquarters. Today, those shares are worth hundreds of millions of dollars.

With freelancing here to stay, thinking like an owner, with respect to your business, as well as the businesses of others, can represent a powerful strategy to build long-term wealth. Not every company you work with is going to be the next Facebook, but as you gain experience, you will learn to spot the companies that are poised for growth. Not only will these companies become reliable clients, but if you earn sweat equity, they can also become long-term partners.

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Interview with the Co-Founder of Solemates Monica Ferguson (B’00)

What has been the most rewarding moment of your career?

There have been a lot of rewarding moments as an entrepreneur, but I think when Oprah Winfrey devoted a half page in her magazine and called my invention/product “genius”. It was great.

What do you wish you had done earlier in your career?

I wish I had learned basic HTML/CSS earlier in my career.

What trends do you see in your profession or industry?

As a retail brand, we are constantly navigating the changing face of brick and mortar retail (i.e., its decline), as well as how to strike the right balance in the digital space with the investment that goes into our branded website in a world dominated by Amazon.

What is the hardest thing you have ever done professionally? 

For sure it was the decision to leave Goldman (the second time) to start my company.

What is the best career advice you have ever received? 

Be comfortable being uncomfortable.

How has Georgetown shaped you?

Georgetown helped me understand what it was to have the courage of my convictions; and the importance of acting in accordance with my beliefs.

What was your favorite professor or class at Georgetown?

Advanced Financial Management (unlikely a common answer). It was the first class that showed me how numbers tell the story of a business. Accounting did not do that for me!

What is your favorite Georgetown memory?

Any memory that involves spending time with my friends; whether it was a class project, a dinner, or just sitting around our house. It was all so much fun.

Who is a source of inspiration and strength to you in your life and why?

My parents. They raised 4 children, have demanding careers, more friends than they can handle, and they have always made time for everyone and everything. I am inspired by their work ethics, sacrifice, and their energy.

What is on your desk right now?

An old fashion (paper) date book, an amazon Echo, a bottle of Smart Water, a to-do list, and a mess of sample products and packaging.

Who is your favorite author? 

Amor Towles, Jonathan Franzen, and Kristin Hannah

What is one part of your daily routine you couldn’t live without?

Coffee and exercise

What are your words to live by?

Gratitude is happiness doubled by wonder (Gilbert K. Chesterton), but I erroneously attributed it to David Brooks for years.

 

Creating a High Performance Organization Culture

Guest Post by: Susan Levine (I’89)

There is a strong correlation between highly engaged employees and high performance organizations. Our people are our assets, our engine and our lifeblood. And no one would dispute the fact that our long term success will be driven by our ability to attract, retain, motivate and develop the best team in the industry. But not every organization has a base of highly engaged employees. So how can you take the pulse on your employees? Ask them!

There are a variety of ways that you can ask employees for their views – pulse surveys targeting a few topics the leadership team would like to understand are becoming even more popular. Whether you outsource or insource, the most important thing is to regularly engage your employees. If you do, it will be the beginning of an ongoing change in the way your company conducts its business.

First, decide what it is you want to measure and take the pulse on – firm strategy, firm culture, professional development, career path and incentives, lifestyle. Organize a team to design the questions. Senior leadership on the team in critical. Skeptics on the team are invaluable to the process and will ultimately enhance credibility and buy-in to the process.

Write questions that are simple and direct. For example, “I am engaged and motivated by [my firm’s strategy]”; or “[My firm’s] culture fosters collaboration and teamwork.” Don’t hide or ignore questions about topics you know will be potentially controversial. Your employees will appreciate your asking the tough questions. Finally, make the survey totally anonymous. If you really want to get honest feedback, you will want people to feel there will be no repercussions for the feedback they may provide.

And the most important question, by far, is the “Net Promoter Score”: “I would recommend [my firm] as a place to work to a friend or relative.” The question is asked on a 10-point scale. Promoters are those who answer a ‘9’ or a ‘10’; those with a neutral response are those who answer a ‘7’ or ‘8’; and detractors answer a ‘1’ to a ‘6’. The net promoter score is the percentage of promoters minus the percentage of detractors.

Ultimately, asking employees about organizational topics and being ready to share the results is the first step in the journey to creating a more engaged workplace. But you have to be willing to commit the appropriate amount of time to tackle important issues highlighted in the results and communicate progress to the organization.

In the next topic, I can discuss what to do with survey results and how you can develop a prioritized set of actions coming out of your high performance organization efforts.

Interview with Halo Top President and COO Doug Bouton (COL ’07)

What has been the most rewarding moment of your career?

If I had to choose, I think the fact that we employee more than 100 people right now. It’s very rewarding to create great jobs for great people.

What do you wish you had done earlier in your career?

Unfortunately, my “career” has largely been Halo Top so not sure I would’ve done anything differently. I went to law school out of college and practiced law for a year or so before Halo Top. My legal background helped tremendously with the founding of and raising money for Halo Top so can’t say I even regret that aspect of my short career.

What trends do you see in your profession or industry?

There are plenty of trends in the food industry. When Halo Top started, it was in the middle of the healthy eating trend that continues to this day, which Greek yogurt largely spearheaded. In that sense, we’ve been fortunate to have the right product, right time – aligning with food/beverage trends like low-calorie, high-protein, and low-sugar. As far other trends, non-dairy/vegan is a big one that will last for a long time. I suspect things like gluten-free are more fad than trend and will pass but time will tell.

What is the hardest thing you have ever done professionally? 

The first few years of Halo Top were really tough, really stressful. I would’ve been easy for my business partner and me to give up. Persevering through those 3-4 years, in hindsight, was probably the hardest thing that I’ve done professionally. I’m also most proud of what we’ve done and what we’ve accomplished because I know personally just how hard and precarious it was. We could just as easily not be here today, Halo Top wouldn’t exist, and I would be personally bankrupt if we didn’t catch a bunch of lucky breaks and keep on keeping on.

What is the best career advice you have ever received? 

If you’re not happy, stop talking about it and make a change.

How has Georgetown shaped you?

Georgetown has shaped me in more ways than I can count. I think the two most important ways in which it shaped me are:

  1. critical thinking (especially as it relates to self-reflection)
  2. holistic education

Georgetown was the first time that I was really challenged to critically think about all of my beliefs and opinions, and the importance of critical thinking – in business and in life – cannot be understated in my opinion. Georgetown also emphasized the importance of a holistic education – focusing on activities, relationships, and social education beyond the classroom.

What was your favorite professor or class at Georgetown?

Professor McKeown – Problem of God

What is your favorite Georgetown memory?

House parties, Georgetown Day activities, 2007 Final 4 trip to Atlanta, pretty much all of my theology classes. Too many to count.

Who is a source of inspiration and strength to you in your life and why?

The easy answer is my parents. The values they taught me, the work ethic they instilled in me, and the love and support they have given me are the main reason why I am who I am and have accomplished what I have accomplished.

What is on your desk right now?

Papers, clutter, and more crap than I care to admit.

Who is your favorite author? 

Don’t really have one. I read anything – biographies and other non-fiction, fiction, fantasy, sci-fi, etc. Literally anything.

What are your words to live by?

Pick just about any Drake lyric.

The Number One Thing You Need to Get Started on Becoming Part-Time Entrepreneur

Guest Post by: Patrick J. McGinnis, a venture capitalist and private equity investor who founded Dirigo Advisors, after a decade on Wall Street, to provide strategic advice to investors, entrepreneurs, and fast-growing businesses. He is the author of the new book THE 10% ENTREPRENEUR: Live Your Startup Dream Without Quitting Your Day Job.

In less than a generation, two clear and unrelenting trends have transformed the workplace.

First, traditional careers have lost a lot of their luster. Corporate roles are notoriously less reliable and less lucrative than they were in the past. Even once highly prestigious paths like law, finance, and medicine, have lost their appeal thanks to falling pay, layoffs, and an unwillingness by many companies and industries to change with the times.

Second, even as many traditional careers and companies remain stuck in the past, transformational change is afoot when it comes to how we work and live. In less than a generation, our society has been transformed by technology – it is now deeply woven into the fabric of our personal and professional lives. As such, it is ubiquitous, it is cheap, and it is only getting cheaper.

When you’re carrying around a smartphone, it’s almost too easy to forget the considerable investment you needed to make to run your own business just ten years ago. Building a website represented a considerable investment and telecommunications were expensive. Now, thanks to companies like Squarespace, Skype, and Google, you can basically put yourself in business with an investment of a few hours and a few dollars. The basic infrastructure you to get going, from email to storage in the cloud, is basically free. Once you’re up and running, you can then promote a business with a very minimal investment thanks to social media.

The falling price of technology, coupled with widespread connectivity is a game changer for anyone who has dreamed of doing something entrepreneurial. It’s never been cheaper and easier to start and manage a business, technology focused or otherwise. You need little more than a laptop, an Internet connection, and a smartphone to run the day-to-day operations of a small business. You also probably need very little money or to hire full-time employees to get started. Most importantly you don’t need to punch a clock from 9 to 5. You can make the rules, working when you’re like and from wherever you’d like.

You Can Become an Entrepreneur on Your Own Terms

The decline in the price of starting businesses, coupled with the falling appeal of traditional careers means that a growing number of professionals are opting to become part-time entrepreneurs. Rather than shouldering the considerable risks of leaving their jobs to launch new ventures, they enjoy the best of both worlds. They can try new ideas and perhaps even fail, but they do so without jeopardizing all of the rewards that have come with years of success and hard work in their careers. By spending at least 10% of their time, and if possible their money, working on new ventures, either as an investor, an advisor, or a founder, they can build lasting value – and diversification – for themselves. They are 10% Entrepreneurs.

It comes down to a change in mindset. Full-time entrepreneurship is a terrific path for some, but it’s not obligatory. If you’re looking to pick up skills that will help you at your day job or even put you on a path to the next step in your career, there’s another option. Why not take a more sustainable path by integrating entrepreneurial opportunities into your current career? It’s a simple, yet somewhat radical idea: you don’t have to be an entrepreneur, but you can be entrepreneurial.

 

This new mind-set is based on a completely new set of rules: just because you work at an established company and receive a steady pay check doesn’t mean that you cannot join the ranks of the innovators and the disruptors. As a 10% Entrepreneur, you will search out and engage with projects, drawing on all of the skills and relationships you have built over the course of your educational and professional lives. By leveraging your base of experience and your network, you will develop new skills. Plus, you will be the owner of everything you create, no matter what happens in your day job.

10% Entrepreneurship is All About Mindset

If you’ve never really viewed yourself as an entrepreneur – even a part-time entrepreneur – changing your mindset can take time. When I meet people who are looking for more in the careers, whether in the form of diversification, upside, or satisfaction, I’m often surprised at how quickly they discard the idea of integrating part-time ventures into their lives. Their reasons are remarkably uniform: “I’m too busy,” or “I don’t have any good ideas,” or even “I’m afraid.”

One of the hardest things about exploring new ventures is the temptation to feel outgunned. You might ask yourself why should you, of all people, think that you can start something new if you’ve never done it before. Sure, you’ve got experience and relationships, but it’s natural to feel a little (or a lot) intimidated. when you’re putting yourself out there rather than representing a corporate brand on a business card. As a 10% Entrepreneur, you will need to put yourself out there. You will constantly be pitching to people, telling them what you can bring to the table, seeking to establish credibility based on your past experiences, your relationships, and your vision. It can be intimidating or even downright scary.

I get it. When I took part in my first few projects as a 10% Entrepreneur, I felt like I was walking around in a dark room in search of a light switch. Now 5 years and 20 projects later, I have built a valuable portfolio of investments in startups, real estate, and even a theater production in London. Each endeavor brings new experiences and challenges that assure me that I’m on the right path.

As little as a decade ago, there were plenty of other barriers to worry about if you wanted to start a new venture, but in their absence, mindset is now, in a fundamental sense, the new constraint to entrepreneurship. The challenge today is to to have the courage build something that is sustainable and that will create value, both financial and personal, over the course of your career. So if you’re convinced that part-time entrepreneurship is for you, remember that it’s mindset that will take you you from daydream to action. Also, remember that you really have very little to lose – when you are investing just 10% of your time and capital, what’s the worst that can happen? Even if you fail, you’ll have learned something. And when you succeed, you’ll see the world from a new and far more entrepreneurial perspective.

From Surviving to Thriving

Guest Post by: Linda Hardenstein

“I don’t know what I’m supposed to be doing, but I do know this isn’t it.”

It’s frustrating to be unsure about your career path, or to be unhappy at work. Especially when you have talent, knowledge, skills, and abilities to contribute.

“Making it Work” Doesn’t Work

Being miserable in your career causes stress and burn out. It can have a profound, negative effect on your health, your relationships, and your wellbeing.  I found that out the hard way when exhausted, overworked, and burned out, I fell down a flight of stairs on the way to a business meeting. I heard my neck crack and wondered if I’d ever walk again. The emergency room brought a stark reality into focus – I was miserable. I had no life. It was time to stop tolerating unhappiness and start living!

How did I go from just surviving to thriving in my career? Here’s 5 steps I took, and you can too:

  1. Decide. There is great power in letting go of what is no longer benefitting you. Deciding to release what’s in your way opens the door for what’s next to show up.

“Everyone has been called for some particular work and the desire for that work has been put in his or her heart.” – Rumi

  1. Find Your Purpose. Each of us is born with a distinct set of talents and gifts with a special role to play and a unique contribution to make. Knowing your purpose shows where you fit. It helps you understand where you don’t. One of the quickest and easiest ways to discover your purpose is with the unbiased guidance and support of a career coach.
  2. Align With What You Were Born to Do. You can’t help but live out your unique design. The problem arises when you’re doing what you are designed to do in a job, or a place, that doesn’t resonate with who you are. If you’re at odds with something — a boss, a co-worker, your company’s mission, work that takes away from living the life you really want, or a lack of recognition for what you contribute — you’re out of alignment with who you are. Doing work that is in alignment with who you are, brings ease, joy, a sense of meaning and accomplishment.
  3. Be Open. Giving up what you think you “should do,” or going against what a well-meaning parent or teacher told you to do, isn’t easy. For fulfillment, meaning, and motivation, let go of who you thought you should be. Be who you are.
  4. Take Action. Once you’re clear that it’s time to find the right job, synergies and opportunities will line up to support your intention to fulfill your purpose. Inspired action will lead you to the next step and the next one. Before you know it, you’ll be thriving in your job and life because you’re doing what you were born to do.

Linda Hardenstein, MPA, PCC, coaches professionals to find their purpose and authentic careers to have more meaningful lives. Contact her at linda@lindahardenstein.com.

© Linda Hardenstein, 2018

GU@SXSW

Georgetown is headed to SXSW. Are you?  4 events are happening for Hoyas – we hope you’ll join us! #GUatSxSW

Georgetown SxSWedu Panel
: Designing the Future University from the Inside
Wednesday, March 5, 2014 
1:30-2:30 PM
Why college? Is the degree doomed? Can universities be unbundled? Higher education is at a critical juncture point. We believe that the decisions we make over the next 2-3 years will determine what Georgetown is going to look like 20-30 years from now.  Our panel will convene “ed” (academic) and “tech” (digital, technology) to discuss how universities can be proactive in their evolution amidst the potential disruptions in higher education. We’ll share how we’re experimenting with ways to deliver a valued education and using a university-wide design challenge to explore the future(s) of the university

Georgetown Reception
Wednesday, March 5, 2014
6-8:30 PM
Malverde at La Condesa: 400 B W 2nd Street, Austin, TX
Join us for cocktails and conversation with education thought-leaders, our senior University leadership, and fellow alumni. Featuring Robert M Groves, Ph.D, Provost, Lisa Davis, Chief Information Officer, Randall Bass, Ph.D, Vice Provost for Education. Space in limited.
RSVP here by February 27
Host: Alex Shoghi, B’04

Redesigning the Future of Georgetown
Friday, March 7th
12-1:30PM
Conjunctured Coworking: 1309 East 7th Street, Austin, TX
Help us imagine the Future of Higher Learning at Georgetown. Dr. Randy Bass, Vice Provost for Education, will lead us through a lab exercise modeled on an undergraduate design course to explore issues facing higher education. We will pick a point in the future, define the features of that world, and create a Georgetown that will most effectively produce leaders of industry and society.
Invite-Only. RSVP here to Molly (mkb101@georgetown.edu) by February 28 

Georgetown Meetup
Saturday, March 8, 2014 
1PM
Little Woodrow’s: 520 W 6th Street, Austin, TX
Meet fellow creative, digitally-savvy Hoyas and watch the Hoyas taken on Big East rival Villanova

Meetings… And Meeting About Meetings…

We’ve all been there… Another meeting on our calendar… Another seeming waste of time.  Meetings. Meetings about meetings.  We all have so many meetings to talk about our work that often it doesn’t leave us enough time to actually do our work.

The Year Without Pants talks about the culture of the corporate offices of WordPress.com and how they do their work and think about their work.  Most meetings are online which is somewhat of a different beast, but, for the most part, the same issues prevail. A few highlights from the book specifically about meetings that I found interesting:

“If what is being discussed is important, people will pay attention.”

“If the people in a meeting think its a waste of time, then either they’re the wrong people or what’s being discussed is not important enough to justify a meeting.”

“A good sign as a leader is when output is high and meetings are short.”

Here are some tips for leading your next meeting… Keep in mind these apply to everyone, including you!

1. Start and end on time.  Being late implies that your time is more important.  Value the time of others and the ripple effect one late meeting can have on and entire day’s schedule.

2. Keep it consistent and hold people responsible. Create a process and stick with it.  Use the same form for your agendas, create some consistent themes or practices. For example, have a round-robin in the beginning of every meeting where each attendees states their most pressing issue or project.  Or have employees bring an article of interest and give a 30 second summary.  While it may take a while for everyone to get in the habit of new procedures, if you are consistent and people know you’re serious it will catch on.   There is nothing worse than a lack of consistency.  It makes people unsure as to when and if your next idea will actually stick.

3. Delineate action items. Take it a step further by assigning responsible parties and create deadlines.

4. Send follow up notes.  And within 24 hours. Summarize the meeting and action steps so everyone is on the same page and you create a record of your team’s progress.

5. No smart devices.  Put the smart phones and Ipads away (except for taking notes).  If you’re meeting in person, make sure people are connecting in person. Otherwise it could have been done via email or phone and probably in a shorter amount of time.

6.  Be patient.  We tend to be uncomfortable with silence and fill the room with rambling in order to fill that silence.  Give people time to warm up, think, and respond.

7.  Leverage brainpower. Use meeting time to not only report out but leverage the brainpower in the room for discussing and brainstorming about strategic objectives.

8.  Do you really need to meet?  Think about whether you can accomplish the goal in another way (email? phone? quick chat?) or how you can leverage one meeting for multiple goals in order to maximize time.

9.  Be the scribe.  In Year Without Pants, the author suggests that while this is often seen as a chore, it can help establish your credibility as a leader and inspire the trust of your team.  According to Berkun, your team will see how you think and if/how you summarize things accurately, clearly and concisely.

10.  Share ownership.  Make others feel engaged in the meeting by letting them own a piece of the agenda.

What we’re doing
In a world of meeting after meeting, Alumni Career Services has started “White Paper Wednesdays” in order to focus on the future as opposed to the here and now.  Once a month (the first Wednesday) we block our calendars – there are no meetings and less emphasis on email responses.  We do strategy work the entire day – those projects that are often the most important but we put on the back burner because we are too busy responding to fires.  Similarly, Sarah will post later this month about the book she is reading called Quiet which mentions one company’s policy of “No Talk Tuesdays” where individual work could be done with a thoughtful approach.  For our chatty team, we haven’t quite gotten to these yet!

We want to know: what do you think makes an effective meeting?  What are you biggest meeting pet peeves?

Make sure you check out our upcoming webinar “The Art of Meeting Facilitation” on Tuesday, November 12th!  Register here