Work in the Real World
Occasionally one of our investors will call us and ask "Hey, how's it going in the real world?" which is a clever way of alluding to the fact that our portfolio (waterproofers, pools, fences, etc.) may not look a lot like the rest of their portfolio (tech, startups, and levered exotics). But we like being in the real world even if it's a bit passe.
So I was interested when Suzy Welch wrote recently in The WSJ about an MBA class she's started teaching at NYU. In it, she bemoans the fact that so many smart people get advanced degrees and go into one of big tech, consulting, or high finance, where they sell advice and services but not "real stuff." Their choices make sense, though, because the pay is good and the title strokes the ego.
But she also chides other sectors for not actively recruiting these people on campus. And that's a fair point too, but side by side real companies don't tend to compare favorably to glamorous ones. For real companies the action is out in the field and not behind a booth at the student union.
The talent problem in the real economy is real though and it's particularly acute at small, real companies like the ones we invest in and even more so if that small, real company happens to be in rural America. Yet the jobs, while challenging, are fun and the upside tremendous if you can get it right. It's just at the outset small companies don't have the resources to commit to eye-popping base salaries.
We have one Kellogg MBA/Deloitte refugee in our portfolio, though, and I don't think she'd mind me saying that she has had a blast building a company with us and is excited about where it's going. Were we the most attractive offer she had when we brought her on board? Maybe not. The difference, though, is that I think we offered a wider range of potential outcomes and that she was willing to bet on herself.
— By Tim Hanson
