What Lessons Did Kass and Mike Lazerow Learn on Their Startup Journey?

TL;DR

Kass and Mike Lazerow's entrepreneurial journey teaches that adaptability and perseverance are crucial for startup success. They emphasize the importance of listening to market feedback, building a strong company culture, and the need for transparency within teams and boards. Their experiences, shared in their book 'Shoveling $h!t: A Love Story About the Entrepreneur's Messy Path to Success,' provide valuable insights for aspiring entrepreneurs.

Transcript

hey folks Jeff Burman here I got the chance to talk to my very old and very dear friends Cass and Mike lazro on stage at South by Southwest earlier this month and we wanted to share that conversation with you Cass and Mike are two of the very smartest very best entrepreneurs investors and humans I know and I've had the pleasure of watching them wor... Read More

Key Insights

• Kass and Mike Lazerow's entrepreneurial journey began with the founding of golf.com, which faced a major setback during the dot-com bubble burst. Despite this, they persevered and eventually sold the company successfully.
• Their next venture, Buddy Media, was born out of recognizing the potential of Facebook's open platform. Initially, they pivoted through several business models before finding their niche in social media marketing software.
• The Lazerows emphasize the importance of listening to market feedback and being willing to pivot quickly. They attribute their success to not being attached to initial ideas and adapting based on customer needs.
• Building a strong company culture is crucial for success. Kass Lazerow focuses on creating an inclusive and supportive environment, eliminating cliques, and promoting transparency within the team.
• Mike Lazerow highlights the significance of clear communication with the board. Writing detailed letters outlining the company's status and future plans helps in maintaining transparency and gaining board support.
• The decision to sell Buddy Media to Salesforce was strategic, considering market conditions and the potential challenges of going public. The acquisition process involved evaluating offers from multiple companies.
• As investors, Kass and Mike focus on the founding team and their ability to adapt and pivot. They look for entrepreneurs who are willing to shovel through challenges and have a clear understanding of their business.
• Their book 'Shoveling $h!t: A Love Story About the Entrepreneur's Messy Path to Success' encapsulates their experiences and lessons learned, offering valuable insights for aspiring entrepreneurs.

Questions & Answers

Q: What was the initial challenge Kass and Mike faced with golf.com?

Kass and Mike Lazerow faced a major challenge with golf.com during the dot-com bubble burst. After selling the company to Chipshot, they received a call informing them that Chipshot was going out of business. This unexpected news left them without financial support, forcing them to quickly pivot and raise funds to keep their business afloat.

Q: How did Buddy Media come into existence?

Buddy Media was conceived in a hospital recovery room shortly after Kass gave birth to their third child. Mike saw the potential of Facebook's open platform and pitched the idea of a business that would bridge commercial advertising with Facebook. Despite initial challenges and multiple pivots, they eventually found success by focusing on social media marketing software.

Q: What is Kass's approach to building company culture?

Kass Lazerow focuses on creating an inclusive and supportive company culture by eliminating cliques and promoting transparency. She emphasizes the importance of celebrating small wins together and fostering an environment where employees feel valued and motivated. Her approach is rooted in her own experiences of feeling ostracized and wanting to create a better work environment.

Q: How do Kass and Mike handle board communication?

Mike Lazerow emphasizes the importance of clear communication with the board. He writes detailed letters outlining the company's status and future plans, which helps in maintaining transparency and gaining board support. This approach ensures that both the board and the team are aligned and understand the company's direction and challenges.

Q: Why did Kass and Mike decide to sell Buddy Media to Salesforce?

Kass and Mike decided to sell Buddy Media to Salesforce after evaluating offers from multiple companies, including a higher offer from Google. They chose Salesforce due to the alignment in values and the potential challenges of going public. The acquisition provided them with the resources and support needed to continue growing the business within a larger organization.

Q: What do Kass and Mike look for in entrepreneurs when investing?

When investing, Kass and Mike focus on the founding team's ability to adapt and pivot. They look for entrepreneurs who are willing to tackle challenges head-on and have a clear understanding of their business. Their investment strategy emphasizes the importance of knowing what you don't know and hiring around those gaps.

Q: What advice do Kass and Mike have for young entrepreneurs?

Kass and Mike advise young entrepreneurs to focus on large platforms with aggregated audiences, AI, and no-code development platforms. They highlight the importance of understanding market dynamics and being able to adapt to changes. They encourage aspiring entrepreneurs to pursue ideas that should exist and leverage the democratization of technology to bring those ideas to life.

Q: What is the main theme of their book 'Shoveling $h!t: A Love Story About the Entrepreneur's Messy Path to Success'?

The main theme of Kass and Mike's book is the messy and challenging path to entrepreneurial success. It encapsulates their experiences and lessons learned from building successful companies and navigating the ups and downs of the business world. The book offers valuable insights and advice for aspiring entrepreneurs, emphasizing the importance of perseverance, adaptability, and strategic decision-making.

Summary & Key Takeaways

• Kass and Mike Lazerow, successful entrepreneurs and investors, share their journey from the challenges of the dot-com bubble to the successful sale of Buddy Media to Salesforce. Their story is one of perseverance, adaptability, and strategic decision-making.

• Highlighting the importance of company culture, the Lazerows emphasize transparency and inclusivity. Their investment strategy focuses on the founding team's ability to adapt and pivot, looking for entrepreneurs who can tackle challenges head-on.

• Their book 'Shoveling $h!t: A Love Story About the Entrepreneur's Messy Path to Success' offers valuable insights into their entrepreneurial journey, providing lessons learned from their experiences in building successful companies.