Caroline O'Connell Communications

CONFESSIONS OF A SERIAL ENTREPRENEUR

Why I Can’t Stop Starting Over

By Stuart Skorman

In CONFESSIONS OF A SERIAL ENTREPRENEUR -- Why I Can’t Stop Starting Over (Jossey-Bass, 2/26/07, $22.95 cloth), Stuart Skorman shares many valuable lessons he’s learned on his roller-coaster ride as a “Start-Up Guru” – from a chain of trend-setting video stores he started from a “hole in the wall” in Vermont; to creating Reel.com in three years and selling it for $100 million; to successfully beating the odds and becoming a winning high-stakes poker player; to building Elephant Pharmacy (the first “big box” holistic pharmacy combining the medical traditions of the West and East in one shopping experience).

Confessions of a Serial Entrepreneur also shares Skorman’s spectacular losses. After selling Reel.com, he decided to create the premiere website for online learning that would offer classes by universities and other organizations on every topic. He learned that good intentions in business don’t contribute to success. “You better have a plan that will make you a profit.” HungryMinds.com lasted one year and lost $20 million, half of which was Skorman’s money.

In this entertaining, personal account of his coming-of-age in the business world, Skorman gives an insider’s view of what it takes to start a business from the ground up. Not written for the faint of heart, some of Skorman’s unconventional wisdom includes:

• A large ego is not just good for an entrepreneur – it’s necessary. We want to make things happen. We are determined to achieve greatness.
• Starting a business is rampant with emotional extremes. You’ll need to harness the terror, joy, greed, passion, and desperation to work in your favor.
• Don’t be afraid to ask for support. Be prepared to give up your life. Learn from your mistakes.
• Choose your business based on who you are.

Stuart Skorman grew up in a retailing family in Ohio and worked every kind of job from cab driver to managing a rock band. He has created many successful businesses, including Reel.com, the Empire Video chain, and Elephant Pharmacy. He is currently working on two new Internet start-ups – stay tuned. Skorman has been featured in numerous publications including Forbes, Business Week, USA Today and Business 2.0, to name a few.

CONFESSIONS OF A SERIAL ENTREPRENEUR

Mixing Business and Revolution Is Dangerous

When you start a business you need to focus on profit. (That is unless you start a non-profit.) If you prioritize helping people, your attention won’t be on making money, and your business will fail. The trick to starting a business that is both sustainable and socially conscious is to pick a model where helping people is profitable. I’ve worked hard to strike this balance – sometimes it worked, other times it didn’t. Elephant Pharmacy’s customer education component is my favorite example of this win-win principle in action. The classes, advice practitioners, and learning opportunities provide retail theater, sell products, attract customers, foster community outreach, and help people be healthy.

Slow Down When Necessary

Speed is a boon for some, but for me it can be problematic. I have the attention span of a flea. Each of my mentors has tried to slow me down. Not slowing down long enough to fly to Europe and solidify the relationship between Reel.com and the Internet Movie Database (IMDb) was costly. The partnership was crucial for Reel.com’s future. For four months I told myself I should visit their London-based headquarters to cement the relationship, but I was too busy. A fear of slowing down didn’t keep Jeff Bezos, founder of Amazon.com, from going. He went to England and bought IMDb right out from under me.

Be Financeable

You have to convince others that your idea deserves their money – and that you’re the one to turn that idea into a reality. Part of making yourself financeable is paying your dues: making contacts and building a reputation while learning the ropes.

Never, Ever Underestimate Technology

I’m afraid of machines. They call for slowing down and being precise, two things that drive me crazy. Not prioritizing technology at Empire Video cost a fortune. For two years, we couldn’t collect late fees, which cut our profits in half. Bumbling the technology at Reel.com was my most expensive mistake ever. In concept, Reel.com was ahead of the curve. If it hadn’t been for our inadequate technology, our company could have been another Amazon.com

Don’t Fly Blind

The time I blindly flew into a huge mistake was when I started Hungry Minds.com. Driven by arrogance and a windfall from Reel.com, I jumped into the education business – an industry where making a profit is notoriously difficult – without a viable business model. Worst of all, I had never worked in the education industry before. On the other hand, Empire Video was just the opposite. Video was a new industry, so I knew as much as anybody. With my movie-buff background and my experience with the James Montgomery Band, I knew something about both film and entertainment. Before I jumped in I spent six months researching video stores. Best of all, the industry was a perfect fit for my talents in marketing, merchandising, and real estate.

CONFESSIONS OF A SERIAL ENTREPRENEUR

SUGGESTED INTERVIEW QUESTIONS

1. You exhibited entrepreneurial traits at an early age. What was your experience managing a rock and roll band and what did you learn?

2. How did you make $17 million in 2 ½ years when you started Reel.com?

3. Please share the lessons in customer service that made your chain of video stores, Empire Video, unique (right personality, right location, made customers fall in love, revolutionized customer experience, movie matchmaking, made customer value profitable). What one area did you fall short in (underestimating the value/need for good technology)?

4. Why do you think mentors are important for entrepreneurs, and how were you helped by your mentors?

5. Why did you decide to “make a living” playing on the high-stakes poker circuit? How long did that last and what did you learn?

6. What drew you to Silicon Valley in the mid-1990s, and why did you decide to pursue a ‘future online’? What were the ups and downs of founding and selling a dotcom (Reel.com) for $100 million in less than three years?

7. After the success of Reel.com, why did you “lose your shirt” on your next Internet venture, HungryMinds.com? Why do most start-ups fail?

8. What are the necessary traits for being a successful entrepreneur? What makes start-ups different from mature companies?

9. Why are your drawn to socially conscious ventures? Can entrepreneurs be just as successful financially while adhering to their values? Why is a socially conscious start-up harder?

10. What was your goal with Elephant Pharmacy? How did customers respond, and what hard lessons did you learn? What was your biggest challenge at Elephant Pharmacy? Did you make or lose money in that venture?

11. What are the Seven Top Pointers for what it takes to be an entrepreneur? Why do most people start the wrong businesses?

12. Why do you prefer to be a “serial entrepreneur” rather than staying with one company? What are your current ventures?

13. What is the biggest mistake you’ve made? What is the wildest and craziest thing you’ve ever done?