Master of Scale – Stacey Abrams: How to harness risk

Intro

In this episode of the “Master of Scale” podcast, host Reid Hoffman interviews Stacey Abrams, a successful social entrepreneur and political leader. Stacey shares her experiences in entrepreneurship and how she has harnessed risk to achieve her goals. From co-founding multiple businesses to navigating challenges and failures, Stacey provides valuable insights for aspiring entrepreneurs.

Main Takeaways

Stacey Abrams’ Entrepreneurial Journey

• Stacey Abrams, known for her work in American politics, is also an entrepreneur.
• In 2006, she co-founded a small venture called Insomnia Consulting with her friend Laura Hodgson.
• Stacey’s approach to entrepreneurship is ruthlessly efficient and focused on achieving the goal, rather than being competitive and tenacious like Laura’s approach.
• Both approaches are valid and can lead to success in entrepreneurship.

The Importance of Taking Risks

• The experience of fly fishing in Katsubu, Alaska taught Stacey the importance of taking risks and not being afraid to fail.
• There is a place in entrepreneurship for both “yes” and “but” mindsets, if they work in harmony.
• Essential risks are important to take in entrepreneurship.
• Taking only essential risks can lead to creating something new, important, and valuable.
• Having a team with different risk management tools and outlooks is important.

Lessons from Co-founding Nourish

• Nourish was founded after a conversation about the difficulties of mixing baby formula on the go.
• Stacey and Laura learned about a new industry by investigating and asking questions.
• Partnering with small sellers helped Nourish mitigate risks to their own supply chain.
• The hand assembly of their product made it expensive to produce.
• The push and pull between Laura and Stacey ensured they could scale up capacity without jeopardizing the product or relationship with suppliers and customers.

From Failure to Success with Now Account

• Now Account was created to address a major gap in the market for small businesses to get paid immediately.
• The company intentionally sought out businesses that traditional lenders considered too risky and partnered with the federal and state governments to move capital to small businesses.
• Now Account built strong relationships with credit unions and community banks to gain trust from small business owners.
• Stacey left day-to-day operations at Now Account to scale the New Georgia Project.
• Now Account expanded from serving small businesses in Georgia to serving customers all over the world.

Summary

Stacey Abrams’ Entrepreneurial Journey

Stacey Abrams, known for her work in American politics, is also an entrepreneur. In 2006, she co-founded Insomnia Consulting with her friend Laura Hodgson. Stacey’s approach to entrepreneurship is focused on efficiency and achieving the goal, while Laura’s approach is competitive and tenacious. Both approaches have their merits and can lead to success.

The Importance of Taking Risks

Stacey learned the importance of taking risks and not being afraid to fail through an experience of fly fishing in Katsubu, Alaska. She believes that both “yes” and “but” mindsets have a place in entrepreneurship if they work in harmony. Essential risks are crucial for creating something new and valuable, and having a team with different risk management tools and outlooks is important for success.

Lessons from Co-founding Nourish

Nourish was founded after Stacey and Laura discussed the difficulties of mixing baby formula on the go. They investigated and asked questions to learn about the industry. Partnering with small sellers helped mitigate risks to their supply chain, but the hand assembly of their product made it expensive to produce. The dynamic between Laura and Stacey ensured they could scale up capacity without compromising the product or relationships with suppliers and customers.

From Failure to Success with Now Account

Now Account was created to address the gap in the market for small businesses to get paid immediately. They targeted businesses considered too risky by traditional lenders and partnered with governments to move capital to small businesses. Building trust with credit unions and community banks was crucial. Stacey eventually left day-to-day operations to focus on scaling the New Georgia Project. Now Account expanded its services globally.

Conclusion

Stacey Abrams’ entrepreneurial journey showcases the importance of taking risks, embracing different mindsets, and learning from failures. Whether it’s co-founding businesses like Nourish or creating innovative solutions like Now Account, Stacey’s experiences offer valuable lessons for aspiring entrepreneurs. By harnessing risk and staying resilient, entrepreneurs can overcome challenges and achieve their goals.