Dr. JD LaRock of NFTE On Five Things You Need to Create a Highly Successful Startup

An Interview with Doug Noll

It’s good to have people around you who can provide advice and be an honest sounding board, whether that’s a cofounder, mentor, board member, spouse or loved one. Be open to at least hearing the messages others have for you, rather than counting only on what you see with your own eyes.

Startups have such a glamorous reputation. Companies like Facebook, Instagram, YouTube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles. Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup? In this series, called “Five Things You Need To Create A Highly Successful Startup,” we are talking to experienced and successful founders and business leaders who can share stories from their experiences about what it takes to create a highly successful startup. As a part of this series, we had the pleasure of interviewing NFTE CEO Dr. J.D. LaRock.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

It goes back to my career being significantly focused in Massachusetts. Because of all the universities in Massachusetts, including Northeastern University where I’m currently affiliated, there’s a strong startup culture since universities are significantly responsible for knowledge creation.

When universities do research, many times it is used by people to launch new companies. I saw a lot of that when I first came to Northeastern in 2010. Later, when I was head of the Commonwealth Corporation — the Massachusetts workforce development authority for Governor Baker — a piece of our mission was to support small businesses. The state of Massachusetts is relatively unique in that it has special trust funds to support small business growth. Our agency was responsible for reviewing the growth plans of many different types of new businesses in Massachusetts and awarding grants to support their expansion and scale up.

That experience taught me a lot about not just startup culture overall, but the challenging period between launching your business and scaling it. I grew an appreciation for how precarious the take-off period is for many businesses and the types of support and nurturing they need to stand on their own.

It was quite easy to translate that mindset to NFTE in the context of learners and alumni who are even more in need of the types of supports and networks that help small businesses take root.

What was the “Aha Moment” that led to you joining the NFTE team? Can you share that story with us?

Part of my ‘aha moment’ was during my time at the Commonwealth Corporation running a statewide entrepreneurship program at scale in the juvenile justice system in Massachusetts. The other piece came with the knowledge that small businesses are responsible for the overall economic health of the nation.

I’ve always been a bit struck by the fact that, perhaps understandably, big corporations and flashy CEOs tend to get a lot of attention when it comes to business coverage. But it’s the work of small business — the sole proprietorship, the two-or five-person shop — that really defines commerce in this country and all other countries.

So NFTE is contributing to the overall economic health of the nation and the world by doing something that is really the backbone of local, regional, and national economies. All net new job growth in this country is from small businesses and in addition, small businesses make up the lion’s share of enterprises in this country.

It feels good to be involved in creating the next generation of people who are going to be part of something so fundamental.

Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?

A lot of people helped me along the way. There are many whose example, in one way or another, I’ve admired — from teachers at my elementary, middle and high schools to bosses I’ve had over the years. These are people I remember for making it clear that education is a powerful vehicle for self-advancement. They showed me how that applies to me and to anyone in any field or stage of life, including entrepreneurship.

What do you think makes your company stand out? Can you share a story?

So many things make NFTE stand out. I can’t think of any other entrepreneurship education organization that …

• Has among its alumni ranks notable CEOs of big companies along with game changing social entrepreneurs;
• Educates as many students at scale as we do across 30 states and 21 countries; and
• Is invited to be a voice in consequential conversations in Congress, state legislatures and on global stages.

Our alumni also tell us how important their interactions with volunteers are. By receiving coaching from real-world entrepreneurs and business leaders, NFTE students build their businesses and their networks in tangible ways.

Many of our alumni have such positive experiences that they come back to volunteer and pass on their knowledge to NFTE students. I’m thinking of NFTE Alumnus Darius Davie, who advocated for supporting NFTE at our recent Entrepreneurial Spirit Awards Gala — noting that entrepreneurship is a gateway to economic freedom when youth are given the proper tools.

I’m proud of how we’ve amplified the pieces of who we are and believe NFTE’s impact has never been greater or more visible.

How have you used your success to bring goodness to the world?

I get a lot of personal reward from contributing to my community and doing work that is public-spirited. When I went to law school, I did not want to be a prosecutor. I wanted to be a legislative lawyer, so I could create laws and avenues that would help people.

I like to teach because I enjoy passing on knowledge. I’m also pretty involved in my community at the neighborhood level, with my local Community College; at the state level; and now at the national level with the Education Commission of the States. I get as much, if not more, out of it than I put in. I enjoy helping people. It’s an easy way to do something constructive and positive that also fills one’s cup.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

That’s a thought-provoking question.

1. First, I’m fortunate that I’ve always had decent self-esteem. Growing up, when kids would tease me or when my parents would maybe criticize me or my teachers might discourage me, whatever reason, I often had enough inside me to say, “No, I think that’s wrong. I’m going to follow my own judgment.” I’m not always right 100% of the time. But I know that a lot of people look to others for their external validation. That’s less of a trait for me, which has helped me over the years.
2. The second thing is I’m very focused and goal oriented. Believe it or not, I don’t really enjoy achieving the goal. For me, the thrill is all in the pursuit of the goal. That’s been a defining feature of my life, which is why I’ve frequently tried to shoot for big things. I definitely have failed many times, but that goal orientation has kept me going.
3. The third thing that has served me well is to be creative and generative. At a certain point in school and in working life, I realized that a lot of what we do doesn’t have a particularly right or wrong answer. There are just choices and trade-offs, but what matters is to have a go and put something out there — to take a chance and make something happen, whether it’s large or small.

Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?

There are two ways to look at leaders: one is as exemplars and the other is as cautionary tales. Many of us have had more ‘cautionary tale bosses’ than exemplars in our lives. While I wouldn’t say that they gave explicit advice to lead in this way, I have often watched leaders attempt to lead by fear, pressure, inequity, anger and force. While these types of leaders may experience this as effective in the short run, it is never effective in the long run. That method of leadership does not engender any warm feelings or loyalty. It engenders resentment and the feeling that you are looked upon as a utensil as opposed to a real person. Instead, lead with thoughtfulness, equity, and understanding.

Can you tell us a story about the hard times that you faced when you first started your journey?

Early on in my career, I determined that I wanted to work toward being an organizational leader and CEO. I had a certain pathway in mind. Places where I would work. Things I would do. Experiences I would have. Concrete steps along the journey that would ultimately culminate in leading an organization. I actually wrote those steps on a little slip of paper.

I’ve had long periods of my life, sometimes 2–4 years, in which I’ve felt very off track in terms of that progress. And I think the key for me during those times was to not get discouraged and remember that old phrase, “the best part of the setback is the comeback.” Just sticking to the plan and understanding that it’s the nature of things to get many more rejections than successes has helped me get through tougher times.

Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?

The drive came from that slip of paper! I put it in my wallet and carried it around with me.

Sometimes I completely forget about it. Sometimes I look at it as a very helpful reminder and motivator for the path ahead. Because, as I set out to achieve the different things on that little slip of paper, I probably got 10–20 more no’s for every yes. But having a plan in mind and being committed to it, even in the face of disappointment, is what I tried very hard to do.

The journey of an entrepreneur is never easy and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?

Knowing up front that there are highs and lows to the entrepreneurial journey, just as there are highs and lows in life, is the key.

At NFTE, we teach our students to pivot and persevere in the face of challenges. We teach that because we know students who are starting up a business will inevitably face challenges. Roadblocks and challenging times go with the territory and surmounting them is crucial in developing a flexible mindset.

It’s also important to pause to celebrate the wins. That’s often overlooked but is one additional way to cope with more challenging times. Really luxuriate in the moments of success when they come.

Let’s imagine that a young founder comes to you and asks for your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?

As part of our continuum of services, NFTE spends time during our annual Founders Forum program working with alumni who are looking for investors and capital.

But to answer your question, it fundamentally depends upon the nature of the founder’s business and the entrepreneur’s established network.

At NFTE, we work with many founders who don’t have the established networks that other founders do, so they have no choice but to bootstrap. Bootstrapping may be the right thing to do by necessity. We swoop in to provide what support we can in terms of cultural capital, as well as actual capital where appropriate.

What’s more important than this bootstrapping-versus-venture-capital discussion is helping entrepreneurs capitalize on their own passion for their idea. Many ventures rise and fall, not so much due to a lack of money, but because the founder has no sustained commitment to that business.

Our Founders Forum works with alumni who show sustained commitment to their ideas, regardless of the capital they may need for it.

Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need to Create a Highly Successful Startup”? If you can, please share a story or an example for each.

1. An idea that resonates with a real need.
2. A passionate commitment to both that idea and meeting that need.
3. A shrewd plan for communicating your business or startup to your target market, which is why we focus so intensely on the marketing and business plan aspects of business.
4. A rigorous accounting of the financials of the business. We teach founders how to build that strong financial foundation into their business from the start.
5. Finally, once founders get past the ‘solo entrepreneur stage,’ it’s time to build a good team around you to support your efforts.

There are so many examples of these things on NFTE.com. But let’s go back to Darius Davie, who founded and owns Groom Guy in Washington, D.C. Before his pop-up shops offering unique haircutting and personal care services took off, he identified a need in the nation’s capital — desire for an experience beyond the traditional barber shop.

Darius invested in some good marketing and found a moment in time — as people re-emerged from their homes after the height of COVID — when the demand for male grooming increased. He was committed to the idea and plugged away at his initial business. Now, his business is really taking hold and expanding rapidly.

What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?

Believing they’re infallible. Everybody makes mistakes, has hiccups, runs into roadblocks sometimes. It’s important to have a sense of humility at those times and not let your passion for your idea obscure your view when there’s a need to change and pivot to keep things moving in the right direction.

It’s good to have people around you who can provide advice and be an honest sounding board, whether that’s a cofounder, mentor, board member, spouse or loved one. Be open to at least hearing the messages others have for you, rather than counting only on what you see with your own eyes.

Startup founders often work extremely long hours, and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?

Though I haven’t necessarily taken care of my needs as I should, I’m learning. I’ve learned that the simple things are important. Get a good night’s sleep. Try to eat well and exercise. Do the things that help feed you in a positive way — whether it’s listening to music, carving out time for a favorite hobby or spending time with loved ones. Have that one decent stretch of time per day when you’re not thinking about your work. There is such a thing as diminishing returns, and no one makes a good decision when they’re physically and mentally exhausted.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

NFTE started that movement 36 years ago. We’re working every day in some of the highest poverty countries around the globe. And we’re doing this work because our purpose is to lead the global movement for equitable access to entrepreneurship education. I’m so lucky that I get to be a part of this movement.

We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.

Tag 50 Cent, Curtis Jackson. He has a book out, “Hustle Harder, Hustle Smarter.” We could talk about that over lunch and about how his reality of working his way up out of a difficult situation is not foreign to so many of our learners. He has done something relatively rare by parlaying a career in rap into an acting and producing career and branching out into a variety of other business interests. He developed an enterprise around himself and his brand. He knows all about those highs and lows of entrepreneurship that we discussed earlier. He’d be a vivid example. Another reason I’d like to meet him is he’s also from Queens. I’m from Northeast Queens and he’s from Southeast Queens. Put two boys from Queens in the room together.

How can our readers further follow your work online?

You can learn more about the Network for Teaching Entrepreneurship by visiting www.nfte.com. Follow me on LinkedIn here.

This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!

About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.