Double Duty

I’m bossy. Very, very bossy.

At least, I assume I must be. Because I have the bad habit of taking increasingly demanding leadership roles in any organization with which I get involved.

Take, for example, the gym, CrossFit NYC. As one of the four founders, my role was largely fiscal (bankrolling the first year of startup) and ceremonial (teaching a handful of classes each week). But, with some recent personnel drama, and the growing sense that CFNYC could actually be very, very big (given our explosive membership growth over the past few months), it seems I’m now stepping things up, and becoming Managing Director.

Which is on top of Cyan, and everything we’re working on here. I haven’t pimped Cyan’s activities much of late, as after an over-slow 2007 I’ve been waiting for significant, concrete progress rather than vaporware to point to. But suffice it to say that we’re making surprisingly big strides on a lot of fronts – from a five-film slate to a $200m film hedge fund – that should make 2008 a considerably more exciting year.

And by ‘exciting’, I mainly mean ‘time consuming’. Two full time jobs, planning a wedding, heavy drinking. I think I’m going to have to go back to giving up sleeping and going to the bathroom to make it all fit.

Lazyweb

Though poor Jess is now laid out with a cold (caught on the tail end of our immuno-supressed flu state; she’s predicting AIDS next on the rotation), I’m (for the time being, at least) feeling good, and working hard.

I am, however, pulling out my hair a bit on CrossFit NYC’s ongoing space search. In short, thanks to explosive membership growth, we’re now bursting at the seams in our current location, and though we’ve been searching hard for a suitable new home, we’ve mostly been coming up blank.

Our requirements:

  • 3000 sft or more;
  • $10-12k a month;
  • allowed to build in showers / locker rooms;
  • able to jump around and drop weights without bothering downstairs neighbors (whether that means basement or ground floor, or just an upper-floor light industrial space);
  • and, centrally located with good subway access (we’re currently at 38th and 6th, which is just about perfect).

A laundry list, I know. But, if you have any hot leads, I’d hugely appreciate an email, as I’m pretty sure bald isn’t my look.

Bigger and Blacker

About three years ago, I started doing CrossFit workouts, following the free routines posted daily on the crossfit.com website. They were brief, they were intense, and they worked. I made faster progress in far less time than with anything else I had tried. I was hooked.

About two and a half years back, I started getting together with a couple of other idiots who had tried this CrossFit thing, for monthly workouts in Central Park. Misery loves company, and I quickly found I had more fun, pushed myself far harder, when working out with a group.

When the weather turned cold, we found a small gym on the Upper East Side that would let us, for ten bucks a head, use their space for our group workouts. A few more people heard about it and joined in, and they, too, made fast, significant progress. People would walk in the door unable to do a pullup, and six months later they’d be doing sets of twenty. Other clients at the gym, who over the same stretch of time might have moved up one notch on the lat pulldown machine, would leave their private trainers to work out with us instead. Then, fairly predictably, the trainers would get the owner to ask us to leave.

Lather, rinse, repeat. We lived through that find a place, grow the group, inadvertently steal clients, get kicked out cycle five times. After which, we were just bright enough to start seeing a pattern.

So, back in January of this year, we opened up a space of our own, the Black Box, just below Times Square. It was only 1500 square feet, up on the fourth floor of an old building. I cash-flowed the place myself, unsure whether it was a really dumb idea to have just opened a gym, unsure of whether anyone might actually show up.

But show up they did. And so did their friends. People would get results and brag about it, and now, ten months later and with zero advertising, we have more than a hundred members and nowhere near enough space.

My brother David very kindly took some time out of running his real estate development company to play unpaid broker, and helped find us a new space. We’re still trading lease documents back and forth, but by December 15th we’re hoping to be in our new home.

This second Black Box is nearly six times the size, and on the ground floor (which is good, as we inadvertently knocked down part of our downstairs neighbors’ ceiling in our current space with all of our jumping around). This time through, the stakes are higher. And so is the rent. I’m equally unsure whether opening this considerably larger space will turn out to be a really dumb idea.

But, as they say in CrossFit: get some, go again.

Trading Places

A few months ago, I had lunch with my friend Daniel Adamson, who runs the very intriguing (to me, at least) Blue Funds. The company, in short, manages a family of mutual funds that invest in public companies that both ‘act blue’ (meet a list of social and environmental responsibility requirements) and ‘give blue’ (give at least 50% of their campaign contributions to democrat candidates). It turns out – both in historical back-testing, and the first year of actual investing – that these companies handily outperform the S&P. So, they’re succeeding on sort of a triple bottom line.

Anyway, he spent lunch telling me about his company and what they have planned for the next year or so, and I told him about what we’re doing at Cyan, the First Cut Film Series, and some bigger institutional financing things we’re brewing up (both a tax-arb production fund, and a capital-protected distribution fund).

By the end of lunch, we both wanted leave our own companies to work for the other’s. Which, it seems, happens almost every time I meet up with another young entrepreneur.

The reason, I think, is that entrepreneurs tend to thrive on hope, on possibility. We get excited about new ideas, about big-picture innovation. And when you’re hearing about someone else’s projects, all you have to think about is that fun, strategic, high-level stuff.

But then you go back to your own company, where you have to worry about cash-flow and execution and all of the detail that actually makes or breaks a company. Which, frankly, often sucks in the doing, the day to day.

I still haven’t figured out a way to reconcile the two. But I have, at least, penciled in a few times a week for me to sit down and formally re-pitch myself Cyan’s plans, the big-picture fun stuff that we’re trying to achieve. It doesn’t spare me the pain of executing, but it does, most of the time, get me re-excited about why I’m doing it in the first place.

On the Road

Off to the University of Rochester early tomorrow morning, where I’ll be giving a speech cleverly titled “Get Off Your Ass: Start a Company (and Avoid a ‘Real Job’)” as ‘inspirational keynote’ of the Extreme Entrepreneurship Tour‘s stop there.

That’s right. The Extreeeeeeeeme Entrepreneurship Tour. Like the X Games of motivational college speaking.

Don’t worry, mom, I’ll wear a helmet.

“Humor”

This clause was in a contract Cyan just finished drafting:

14) Headings. The headings of the paragraphs of this Note are inserted for convenience only and shall not be deemed to constitute a part hereof.

We therefore changed the clause to read:

14) Fishsticks. The headings of the paragraphs of this Note are inserted for convenience only and shall not be deemed to constitute a part hereof.

I am embarrassed to say we then laughed so hard as to almost wet ourselves.

Yes, we are losers.

For the Money

Earlier this week, I headed out to dinner with my brother David, his business partner, and an investor they knew, who was possibly interested in putting some money into Cyan’s next project.

The investor owned some nightclubs, and was therefore an alcoholic. So, after dinner, he suggested we all grab a round of drinks nearby. And then another round. And then another.

My brother and his partner, at that point, wisely bowed out. But I could tell the guy was sizing me up, trying to see if I could, as the kids say, bring it.

So, I kept on drinking. And he kept on drinking. And, when we parted some hours later, it was with much increased mutual respect.

Or so I assume. Actually, by that point, I had totally blacked out.

I’m not entirely sure how I made it home, though Jess tells me I came in the door talking gibberish and laughing hysterically, barely able to stand.

But the next morning, I woke up feeling great. I wasn’t hung over at all!

Instead, I soon discovered, I was still drunk. Still totally, plastered drunk.

It’s a miracle I didn’t fall onto the subway tracks on my way to work. I could barely type once I arrived. But I still felt fine. Until about 11:00am, when I suddenly and violently crossed out of drunk, and into terribly, horribly hung over.

For reasons that aren’t entirely clear to me, we have a small ironing board in our office at the moment. Which, it turned out, is precisely the right size and height for use as a pillow when lying on the floor, something I preceded to do for the next hour and a half.

I rallied in time for a business lunch, which I managed without tossing my cookies in the restaurant bathroom (something, unfortunately, I did last year in a similar situation), though I was otherwise utterly worthless the rest of the day – couldn’t write emails, answer the phone, or even focus on a piece of paper well enough to read.

Still, it looks like the investor will be coming through, and may even be bringing the deal around to a couple of his angel investing friends. So, in the end, as I told a friend yesterday afternoon, happy as ever to take one for the proverbial team.

He pointed out that approach, essentially, made me a whore.

To which I replied, no no, given the amount of money we’re talking about, I’m fairly certain I qualify as an ‘escort’.

Contingencies

Everything, apparently, hinges on everything else. Which is how a handful of minor delays and small problems can cascade their way to a slew of disasters that consume months with non-stop firefighting.

Or, at least, that’s how things have been going here of late. Fortunately, looks like all the flames are nearly extinguished, and I’m still holding my breath. Here’s hoping I end this all no worse scathed than thickly covered with soot.

Back to it.

Update!

As hoped, I survived this latest stretch of standard startup-wrangling disaster with company, sanity and personal relationships all fortunately and firmly in tact. Regular blogging now to continue apace.

Hurry Up and Wait

People often ask me what I actually do as CEO of a small company. In short: fundraise. First for seed capital to turn the notional company into something real. Then for more capital to keep the young company moving ahead while its expenses still outpace its income. And then, once the company turns profitable, for capital to fund expansion, to underwrite the large new projects that drive growth.

And, frankly, fundraising sucks. Not least of all because you have to ask people to give you large sums of money. But also because, even when they want to, you’re still a far, far back priority to the main concerns of their own lives.

So, in short, you wait. You wait for emails and calls and faxed contracts. And you balance a ‘squeaky wheel gets the grease’ tack with the knowledge that if you pester them too much, they’re more likely to wash their hands of the whole thing, rather than cough up cash.

Even once papers are signed, things are often no better: by then, you’re waiting for their wire to arrive, obsessively reloading the online banking site.

And, the whole time, bills pile up, along with demands for that still-not-arrived money, money that you can’t really make arrive any faster than it is. But, since you’re the middle man, the face that they see, people tell you again and again to do the impossible: to make all of this process, which moves on investor time, move instantly, on their time instead.

That said, if it’s the film business, then at least once every couple of months you get to walk down a red carpet somewhere. So it’s all worth it. It’s all worth it. Or, at least, that’s what you repeat to yourself, like a mantra, as you reload, reload, reload Chase and WaMu.com.