Rand Fishkin has walked the entrepreneur’s journey from Point A to Point B multiple times over. Co-founder of Moz and current CEO of Snackbar Studio, his career in the startup world is what many would consider a roadmap to achieving success. I’m excited to have him back on the show to discuss a few unpopular opinions that he’s formed over these past decades, everything we don’t know about the startup world, and his thoughts on how entrepreneurs can prioritize their mental well-being while pursuing their dreams.
Meet Rand Fishkin
So, who is this guy exactly? Rand Fishkin is the co-founder and CEO of two major tech companies, SparkToro and Snackbar Studio. A specialist in web marketing and design, he got his start all the way back in the nineties when the internet was just beginning to take off. The early days were about understanding Search Engine Optimization (SEO) and the inner workings of a nifty little platform called Google. Rand then launched a blog in 2003, SEOmoz, which eventually turned into a consulting and software company. Within a matter of years, that budding enterprise managed to raise roughly $30 million in venture capital from investors while bringing in a revenue of $50 million a year.
In other words, he’s experienced the definition of entrepreneurial success. And that’s not even counting the second business, which we’ll touch on again later.
Hustle Culture is Overrated
Contrary to what you might assume after hearing that story, Rand hasn’t always been happy. In fact, he fell into a significant episode of depression after achieving success with his first company and eventually stepped down. It was a lot of pressure, running what would become one of the world’s most recognizable SEO companies, and draining an unhealthy number of hours a week from his life.
He decided to reevaluate things in favor of change. This started with a greater focus on family and personal endeavors and has since evolved into a new outlook on the world at large. Even as things have sped back up with a second business, Rand now actively works against the non-stop hustle culture that he once believed was necessary to achieve success.
The Venture Capital Trap
People want to hear that being an entrepreneur is easy and that being a creator is always fun. Spoiler alert: it isn’t. We only get the highlights of successful individuals’ journeys – when they made their first IPO, when they landed a big client, or when their product went viral. What we don’t see are the countless struggles and failures that came before those moments of glory.
Moreover, most of us have no idea what kind of money or outside support it takes to even get a project off the ground until we try it ourselves. Everyone needs to start somewhere, and for those who weren’t born into riches, that somewhere is with venture capital.
Venture capital (VC) is a form of financing that investors provide to entrepreneurs and startup companies that show potential for long-term growth. Essentially, these investors give money in exchange for equity in the company, with hopes of seeing a return on their investment in the future. It can seem like an ideal solution for cash-strapped entrepreneurs, but it comes with its own set of dangers.
“I would not have raised venture if I could have avoided it, which I don’t know that I could have. There were not a lot of opportunities out there to raise money. I did not grow up wealthy. I couldn’t go to friends or, you know, use family money.”
So we absorb the risk.
The main problem with venture capital is the pressure to perform and show a return on investment. Investors expect their money back, plus a hefty profit, and they want it in a timely manner. This puts significant stress on entrepreneurs who are already working tirelessly to make big business ideas a reality.
There’s also constant oversight and a lack of control. In Rand’s case, the board had decided to base his salary on the amount of equity he held in Moz, which he says was less than what a Level Two engineer at Amazon earns. Is that the definition of success? It’s a tradeoff many people have to make when trying to grow their business with venture capital.
Starting a Business is Hard, Mental Health Is Important
Lots of us have big dreams of starting a business – or even better, starting a successful one. It’s a desire baked into some people from birth. Natural entrepreneurs don’t choose to be the way they are but live life embracing that difference. And that’s great. But everyone has limits. Rand discovered his after years of hard work at Moz. Now, he’s a staunch advocate for mental health awareness and self-care in the startup world.
His current venture is a video game development company called Snackbar Studio, which proudly bases its working model on French 35-hour weeks. This company culture has allowed Rand to prioritize his own mental health and balance it with the demands of running a business. It’s similarly enabled those around him to become better versions of themselves, all while attracting top talent to their team.
“What’s the goal of an entrepreneur? It’s to make the best decisions we possibly can, which I don’t think you do if you’re working 60 or 70 or 80-hour weeks.”
If there’s one thing to take away from my conversation with Rand Fishkin, it’s that the world’s understanding of “success” needs a major overhaul. We don’t have to work ourselves into the ground, sacrifice our mental and physical health, or give up everything else in our lives to achieve success.
In fact, it’s quite the opposite. Just take a look at this real-world example.
Enjoy!
PS – If you’re interested in how Rand funded SparkToro, he writes and shares his docs here.
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