INTRODUCTION
Deliberate Detours
Not long ago, I took my 14-year-old son skiing for only his third time. In getting off the lift, we accidentally took a wrong turn and ended up with nowhere to go but down a ridiculously steep, black diamond run. As we stood at the top of this cliff, this inexperienced skier looked down in sheer horror and exclaimed: “I am going to die!”
In an attempt to calm his understandable fears, I explained that he didn’t need to head straight down the mountainside, that even an expert skier would survey the drop we stood at the top of and decide to zigzag down the steep slope. I instructed him not to look at the bottom of the run, but to focus on skiing to a point across the hill and, once there, to turn and ski back across the slope to another preselected point.
As a concerned father, I knew my son’s chances of getting to the bottom without breaking his leg or neck were far greater with this approach than if he had just barreled straight down the mountain. No question, it took us a while to make our way down, but as he stood at the bottom of the run and looked back up to where he had started, he realized the full import of what he had accomplished—and the lesson he had learned.
When I graduated some 20 years ago with my MBA, my mindset was the exact opposite of what I had shared with my son. I was certain I could excel in business by sheer force and determination. I truly believed that my success would come by setting my sights on a goal and then going straight for it. With that as my strategy, I plowed toward my goals no matter what was in my way. In fact, I plowed through things that had no business being plowed through.
I clearly remember the person who first called me on my tendency. His name was Vish. Vish was always railing on me. He was a brutal boss, and he took every occasion to tell me what I was doing was wrong. He could drive me, a grown businessman, to tears.
One day, Vish came into my office and said, “Rich, let me show you what your problem is!” (This was how many of my conversations with Vish started, but this time our exchange was eye opening.) He walked over to my door and deliberately locked and then unlocked it. When it was unlocked, he swung it open and said, “This is a door that actually opens. You do not always have to try to bust the door down. All you have to do is unlock it and then turn the doorknob.”
As I thought about what he had said, I realized how many times I had chosen not to use the doorknob in my career. I had just tried to plow through the door—locked or unlocked. In so doing, I was living contrary to a law of nature. Nature does not intend for me to walk through closed doors anymore than it expects my son to point his skis straight downhill and go.
While working in corporate America after graduating from business school, I experienced some significant successes (Vish’s periodic rants notwithstanding). And, since striking out on my own, I have founded or cofounded 32 businesses. Of these ventures, 11 were ugly failures, 8 have enjoyed moderate success, 2 are in progress, and 11 have become multimillion-dollar wins. Even after Vish’s object lesson, it took me a long time to be willing to pause at the bottom of the mountain, look back up to the top, and see the epiphany that had been eluding me. When I was finally willing to take the time to look back, I saw that my most significant accomplishments—whether working for someone or for myself—did not come when I charged directly toward my goal. Rather, they came when I zigged and zagged my way to success.
I realized that the diversions and detours I had often found so frustrating had actually created more stable and solid businesses. On the other hand—and without exception—each time I had raced directly at a target with high velocity, I had failed.
This realization came to me several years ago as a business partner, Ron Porter, and I were writing a book titled Bootstrap Business: A Step-by-Step Business Survival Guide. As we wrote this book, we decided to start a business in order to test, prove, and illustrate for our readers the principles we were writing about. As I had done with several other successful startups, we each anted up $2,500 for a staggering total of $5,000 in startup capital. That was it. We could have brought more money to the table, but we were out to prove that we could bootstrap a business and turn it into at least a million-dollar asset.
With no idea of what this business was going to be, but with our working capital in place, the first thing that we did was to assess our resources. We had $5,000 in cash, several contacts in New York, some solid business and technology experience, and combined expertise in web development. We then ran what is called the “Porter Model” on various possibilities we had identified, ultimately deciding to create an online entrepreneurs’ social network.
We started down our chosen path by developing and then revising the website, www.bootstrapbusiness.org. But we very quickly realized that it would take a lot more money than $5,000 to reach our goal. So we immediately detoured and accepted some search engine optimization (SEO) consulting engagements with several large East Coast corporations. Why? We had to chase cash.
As soon as we were turning a profit with our consulting, we veered in another direction by hiring software engineers to do contract labor for several of our new clients. In doing so, we were adding resources to our business. And, serendipitously, we now had at our disposal developers who could work on our original website as well.
We then made another change in our course and started doing web link building. This is how we were able to start scaling our business as we created several supportive viral websites.
Before we went to press with Bootstrap Business, we were able to claim victory with the company we named CastleWave. This little test case we had started with $5,000 cash ended up being profitable every single month. It grew to become a multimillion dollar business, it won many awards in the community, and we sold it to a publicly traded company. Midway through the development of CastleWave, Ron and I were sitting at our whiteboard, plotting the paths we were taking toward our target. Originally, in keeping with the mindset I came out of business school with, we had outlined our starting point and our end goal. It was essentially a straight line. Somewhere along that line, however, we realized we needed a million to a million and a half dollars to hit our goal. Seeing that our original course was just not possible, we started drawing a sequential series of steps that needed to occur.
As we stepped back, we realized there was a big “Z” on the board. More specifically, there were three distinct targets we needed to hit in order to meet our first series of goals. First, we had to get to cash. Second, we had to add resources. And, third, we needed to scale our business. Each of these steps required an entirely different mindset from the one before. Even after having been subjected to Vish’s scolding years before, this was my moment of full clarity as I realized that—just like skiing down a ski slope—getting to our goals requires a deliberate set of zigzags. This was the moment when the Zigzag Principle was formally defined.
Since this realization, it has been interesting for me to see that before I defined the steps of the Zigzag Principle, my business model was that I would succeed one out of three times. In fact, I would create three businesses, consciously telling myself, “Okay, of these three, one is going to fail, one is going to be mediocre, and one is going to turn into a multimillion dollar business.” I figured I was batting about .333 with a series of strikeouts, easily caught pop-ups to left field, and hits that scored. Frankly, I was feeling pretty good about my average. But, in looking back, I’ve realized I was zigzagging, just without any real structure or discipline. Ever since my moment of clarity, I have been consciously applying the formal structure of the Zigzag Principle, and my success rate has dramatically increased. My partners and I have now had four out of five successes—an average I’ll take any day.
As I’ve considered this revelation, I’ve come to realize that the Zigzag Principle has its roots in the laws of nature, with evidences everywhere we look. Rivers don’t flow in a straight line from mountain springs to the ocean. They twist and turn as they adapt to the obstacles that impede their flow. Mountain peaks are formed by the violent acts of nature, which leave no straight shots to the top. So much of the beauty we see in nature is the result of its forces carving out paths that must wend their way around never-ending obstacles.
My family and I are avid hikers and love to climb mountains. We’ve scaled summits in the Rocky Mountains and in the Himalayas. In all our years of climbing, we’ve never been able to actually climb straight toward the peak. Instead, just as my son learned as he skied down the mountain, we’ve had to hike the switchbacks in order to reach the top of the mountain. In the process, we have found ourselves going around large canyons and cliffs, often hiking in directions opposite to the summit.
We have also found, while hiking in the Himalayas, that it is important not to gain too much altitude too quickly. Those who do, often succumb to high-altitude sickness and even death. Although it seems counterintuitive, much of the time, you actually have to lose altitude and hike away from your goal in order to stay healthy, build strength, and gain the altitude needed to get to your destination. As I have become more seasoned in both business and life, the lessons of the Zigzag Principle have finally begun to sink in. Life and business are complex and often messy, and there are always going to be bumps, dips, twists, turns, and detours along the routes we choose to pursue. It is unrealistic to think you can just charge directly at a goal without injuring yourself or others. Adjustments and course directions are always required.
I have an associate who has been extremely successful at racing directly toward his financial goals. He is charismatic, focused, business savvy, and driven. At the point we became acquainted, this man was well respected, a pleasure to be around, and an integral part of the community. Soon after, though, he became obsessed with becoming wealthy. In fact, he openly proclaimed that he would achieve his financial goal at any cost. In his pursuit to do so, there were marked changes in his demeanor and in his approach to life.
Within five years he had accomplished his goal of becoming the wealthiest individual in the community. But at what cost? His relationships with his spouse, his children, and his trusted associates were obliterated. He lost the love and respect of nearly everyone around him. Now, when his name is spoken in public, people recoil. Why? Because he ran roughshod over anyone and anything that attempted to divert him from his goal. Was his financial success worth barreling down the mountain with wild abandon? No! The end victory proved hollow and meaningless as he left behind the important things of life that he could and should have enjoyed. I would contend that he could have been successful in all aspects of his life had he traversed his way down the mountain instead.
The more effective and rewarding way of achieving long-term goals is to zigzag toward them. It is hard work in both hiking and in business, but the vistas and rewards are, without question, worth it.
COMPONENTS OF THE ZIGZAG PRINCIPLE
Before you can begin to zig and zag, there are certain foundational elements that you must build upon in order to succeed, as well as some critical tools you will need. This book is organized around the following tried-and-true principles that will help you make your way to the top of any peak you decide to summit.
1. Assessing resources
2. Identifying your beacon in the fog
3. Creating catalyzing statements
4. Driving to profitability
5. Defining processes and adding resources
6. Scaling your business
7. Staying within your guardrails
8. Developing reward systems
Chapters 1 through 3 provide your foundation, which I like to compare to a road trip. Think of the resources as your vehicle. It may be an old clunker that, on a good day, may get you across town. It may be a jacked-up, high-powered four-wheel drive that knows no fear. Or it may be a vintage Mercedes that you’ll only drive when there is not a cloud on the horizon. Think of the beacon in the fog as your destination. When you jump in your car in New York City and decide you’re heading to San Francisco, there’s no way you can see the Golden Gate Bridge. But you know it’s there, and, if you’re smart, you’ve mapped out a route that will take you there. Think of catalyzing statements as the fuel that will get you to your goal. Once you get the foundation for your business in place, then you can begin to zig and zag. The Zigzag Principle for growing your business follows a specific pattern:
Zig number 1: Always Get to Cash (Chapter 4)
Zag number 2: Adding Resources (Chapter 5)
Zig number 3: Scaling the Business (Chapter 6)
In Chapter 7, we’ll discuss how important it is to establish your own personal guardrails so you don’t find yourself driving off a cliff as you fly down the road. I’ll share mine, and I’ll encourage you to find yours.
Chapter 8 introduces the concept of reward systems. Zigzagging is hard work. And now and then you need to pause and reward yourself, your associates, and those family members and friends who are supporting you.
This book is a step-by-step tactical book. It is not a theory or a vague concept. You will get practical application tips you can use to succeed, not just in business but also in life. In addition, you will be provided with a suite of resources and tools that you can use online and offline to assist and use in your progression. To find these tools go to www.zigzag principle.com.
In my years in business—whether working for someone or pursuing my own dreams—I have had several multimillion dollar failures, in addition to several multimillion dollar successes. Many of the failures were of my own doing; and, thankfully, enough of them were not. I can honestly say that, in most instances, I failed because I tried to go straight for my goal and then ran out of gas before I hit profitability. The Zigzag Principle is not easy. It requires discipline, hard work, tenacity, and focus. It is not a lazy man’s game. And it is what will help you achieve the successes you seek.