Robert White of Extraordinary People: Five Things You Need To Create A Highly Successful Startup

An Interview With Paul Moss

Are you so committed that you are willing to endure the many disappointments, mistakes, betrayals that come with creating a company? And, can you communicate that commitment again and again and again to your team, your investors, your bank, your vendors and, most importantly, your prospective customers.

Being an entrepreneur ultimately means being the committed chief salesperson.

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 experience about what it takes to create a highly successful startup.

I had the pleasure of interviewing Robert White.

Robert founded and led two successful companies, Lifespring and ARC International , who graduated a total of over 1.3 million people from their high-impact experiential leadership training programs and served over 1000 corporate clients. His history also includes founding the publisher Woodlands Press and living in Japan, Hong Kong and mainland China for a total of 21 years. Currently in his role as an Executive Mentor he serves growth-oriented entrepreneurs and corporate executives wanting to achieve extraordinary success while integrating a heart-centered approach that includes great personal joy and satisfaction.

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?

My first organized entrepreneurial effort was a sales company selling skin care via a party plan. In my late twenties I was divorced with attendant guilt; was experiencing daily chest pain from a heart condition; and used my introvert personality trait as an excuse for struggling financially. The summary: my life and business were a mess. A friend in a similar business disappeared to California for a week to attend one of the early human potential movement seminars, Mind Dynamics (MDI). He returned raving about the experience and urging me to attend — which I “made wrong” and refused repeatedly. Then I noticed positive changes: his business grew exponentially, his failing marriage was turned around and his long struggle with adult-onset acne “cleared up.”

So with arms-crossed and a cynical, negative attitude I showed up as an MDI student and expressed those habitual behaviors for the first three of a four day program. Then a miracle happened on day four and, though it seems like a cliché all these years later, I “woke up” and my life changed for the better. In the following year business doubled in size and profit; relationships improved and chest pain stopped. The year after that my business results multiplied by ten, I sold it and became a contract sales manager in New York City. One key to my success there was doing weekend sales and motivation seminars where I brought in a Mind Dynamics Instructor to speak which I followed with an enrollment pitch. I learned that attendees, just like what happened for me, became better salespersons and managers. Even though I was not paid a commission by MDI, enrolling over 400 MDI students from those sessions was one of the best sales efforts I had ever launched because it increased my sales results.

I didn’t even know the name of the founder and CEO of MDI so was surprised when he phoned and offered a trip to California to meet. I was curious and accepted. Ten days later I took a 70% pay cut to become President of Mind Dynamics responsible for the business side of that business. The founder, Alexander Everett, remained responsible for the course content and the training of the Instructors. I’ve remained grateful to Alexander for the opportunity to learn the business of training, setting up five foreign operations and eventually attending his Instructor Training. Then disaster struck: Alexander’s business partner died in a plane crash and Alexander sold his shares to the estate of his late partner. I ended up working for a Probate Judge — absolutely no fun so I resigned and launched Lifespring Inc.

Made about a thousand mistakes (which allowed me to learn lessons I teach today), sold my shares to my team and resigned as CEO. Moved to Tokyo on an agreement to spend 90 days setting up a company there and in return, being paid for one year. That led to launching ARC International which within our 22 year history developed 15 training centers in 7 countries with 240 staff and 70 full-time Trainers. We became the second largest personal growth training company in the world.

Then I quit. Semi-retired at 46 to a 14,500 sf home on 76 acres in Aspen, Colorado. Remarried, had two birth children and adopted two special needs children, traveled for six months with the late John Denver, skied 65–80 days per year and joined six non-profit boards. Life was very, very good. Then my absence led to losing the company and, even more painfully, my wife left me for an attorney. Life became very, very bad for a while.

That led to company Number Three: Extraordinary People LLC.

What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?

The massive betrayals that resulted in the closure of ARC and my divorce knocked me on my behind physically and emotionally. That I went through that process simultaneously with my friend John Denver helped tremendously and caused each of us to deeply examine our purpose, vision and values. For me, I realized that though I knew how to lead all of our programs and liked the applause, my real satisfaction was derived by working to develop and mentor our professional staff and corporate clients. I’ve learned that entrepreneurs and executives share similar stories to mine and benefit by being with a trusted Mentor who has “been there and done that” plus one who had learned valuable lessons that can help them in their journey.

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?

I traveled with John Denver where one night we would co-present an experiential environmental education seminar and the next night John would do concert in the same city. So lots of late night conversations while we wound down after the excitement of being with thousands of people. (There may have been some Tequila involved.) We talked about life, love and, frankly, how blessed we were to be doing this work. One night John suddenly asked me “why are we friends?” When I replied “what are you talking about?’ his answer was: “I love golf and you don’t play. I love to fish and you think it is a waste of time. I love to fly airplanes and you won’t get licensed. So why are we friends?”

Fueled by Tequila and lots of shared experiences, we had a deep, far-reaching conversation that led to these conclusions: (1) we were both hopeless romantics; (2) We were both, in our own ways, “up to something”; and (3) we shared a commitment to contribute to a world that works for all — for us and for our children.

That conversation was a turning point in my life and motivates me daily.

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

There are many fine Advisors, Coaches and Consultants. Few combine business leadership experience with an ability to create a quantum leap in personal effectiveness. My story is what I call an executive ambush: My client led the regional operation of a national professional services company from $15 million revenue with no profit to $75 million revenue with a 20% profit …. in only three years. Then he was summarily fired — a massive betrayal of trust and a failure to recognize his contributions beyond profit. The reason was that his “based on the increase” compensation far exceeded the corporate CEO’s. With me as Mentor, he took responsibility for his history of increasingly insensitive relationship behaviors with the national company’s leadership and was able to negotiate a generous separation package. He went on to do significant personal and leadership development work with me which led to launching an entrepreneurial effort that far surpassed any of his prior accomplishments. He recently sold the new company for an eight-figure exit.

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

Primarily by doing good work to bring more heart to corporate leadership and creating organizations with more mature, effective leaders. I’ve narrowed my charitable work to focus on my two passions: contributing to a sustainable environment as a Board Member of Plant-it 2020 (founded by John Denver with the slogan “Give us a buck and we’ll plant a tree.) and reducing child abuse and neglect as a Donor and Advisor to the Kempe Center and the Adoption Exchange. By publishing the award-winning photo essays One World One People and One World One Child I’ve been about to donate over $1,000,000 and found One World One People Foundations in Japan, Hong Kong and the USA.

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?

1. Single-minded Focus … the consciousness and application of strategic intent. ARC’s early success in the USA doing culture change work through experiential trainings and coaching was satisfying and profitable. Client companies were delighted. Then my Aspen lifestyle created conflicts with my time and attention and the results plummeted. I re-engaged and learned that we had drifted into doing what clients wanted instead of staying true to our knowledge and experience on what was needed. Getting focused again required significant “taking of our own medicine” and the departure of some key people. Painful and necessary.
2. The need for Alignment … everyone on the same page. Over the years I learned that when a Training Center’s results were in a healthy growth pattern, it was always because from top to bottom that local organization was clear on our purpose, vision and values and were acting in alignment with them in every internal staff and client interaction. Of course, the opposite was also true. No alignment = lousy results.
3. Unreasonable Commitment. I grew up in abject poverty with an alcoholic Father who died when I was 14 and an angry, negative and violent Mother. That’s my “sad story.” However, what I learned from Mom and that was later reinforced by attendance at that MDI seminar, is that commitment is everything in creating an extraordinary life. If I am willing to do whatever is necessary to create the results important to me and my organization, it will serve as a model to everyone. Letting go of the reasons, stories and excuses most common in most organizations leads to tremendous power being expressed by all.

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?

I ran my companies based not on revenue, cash flow and profit but on contribution: are we enrolling the maximum possible number of people and companies in transformative experiences that lead to a better life, organization and world? I hired a big company executive to run it all and descended from my hiding place in the mountains to attend his first big meeting with our world-wide executive team. The new CEO — hand-picked by me — then led all of us through a process where we declared the first financial goal we had ever had even though our revenue at that time was $45,000,000 with $12,000,000 in profit. Huge mistake and I joined in on it enthusiastically. It killed our culture and eventually killed our company.

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

I went to Japan for that 90 day consulting gig and ended up staying 12 years. Overall a great experience of success. However the second year included founding ARC which required sending my family home to California and sleeping on a friend’s sofa for eight months. I recall closing a US$20,000 sale on a Friday, distributing the money to previously unpaid staff and vendors and at 7:00 PM after the staff had all gone home, discovering I only had $14 for my personal food that weekend. Today, though I really enjoy a good bowl of Ramen, eating it always causes a slight physical and emotional reaction because that’s what I lived on for about a year in Japan.

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?

Every business journey includes unexpected detours, potholes in the road and other unwanted events. Plus, sometimes it is just tedious “doing whatever is necessary.” Learning to self-motivate is important. I’ve found that various ways of staying connected to my personal purpose, vision, values and strategic intent are a must. Visual reminders like a note on my mirror plus having friends, colleagues and family aware of those key aspects sourcing my motivation are good first steps. Only then can they remind me when I’m off track or feeling a bit battered by the realities of leadership. I also learned from participation in The Strategic Coach that celebrating “wins” is vitally important and often ignored. There needs to be an emotional balance … having some fun recognizing that I am accomplishing my goals.

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”?

It may sound too simple however, again from the Strategic Coach experience, “everything turns out OK in the end. We just haven’t reached the end yet.” It’s OK to fail — that’s how we learn the most. Having trusted advisors and a supportive family is ideal and yet many entrepreneurs fail to create that in their lives — which tends to make any emotional lows even lower. Regarding riding the highs, the story goes that when Roman Generals returned from conquering some foreign land and capturing the gold, silver, slaves and other treasures, a parade was held in their honor. The General rode in a chariot with a slave positioned just behind him whispering repeatedly “this too is temporary and shall pass.”

Let’s imagine that a young founder comes to you and asks 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?

It seems to take a special kind of entrepreneurial leader to accept venture capital or a private equity partner … and that’s not me. The good news is obvious: capital for hopefully rapid growth. The bad news is the loss of control and mixed agenda. Bootstrapping and perhaps having a few private investors is initially more difficult. However you remain in control and it forces you to go for positive cash flow from the start.

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. A passion for your product or service’s value to customers that is indescribably extreme. It keeps you up late and wakes you up early. Your friends and family think you have become insane. Zappos is a good example. They did everything “wrong” and still succeeded. Founder and CEO Tony Hsieh had many faults and one of them led to his death at just 46. However, no one could question his passionate commitment.
2. Is your idea/product/service both wanted and needed? The old joke is about the dog food company’s sales meeting with 800 present. The VP gives an arousing speech marked by questions: “Who’s got the best packaging in the industry?” with the shouted response from the 800 “We do!” Then he asked “Who’s got the best point-of-purchase display material in the industry?” and the response again was “We do!” Then “Who’s got the best marketing and advertising?” Once more …. “We do!” The final question was “Then why isn’t the dog food selling?” There was a moment of stunned silence until one brave salesperson stood up and shouted “The dogs don’t like it.” We must get feedback on our idea from a broad range of experts and more importantly, potential customers if they feel they might want, need and BUY your product or service. And, of course, whether they might “like it.”
3. You must have “a game.” And it must include all the aspects of a game: clear rules, fun to play, identified players, a strategy, a way to win …. The metaphor goes on and on.
4. Your first team and subsequent hires must first want to be there with no other agenda like it being a stepping stone or just a paycheck or a big win when you’re successful. Then they must “get it” … are they really clear and committed to your purpose, vision, values and strategic intent? Finally, are they capable? Can they really do the jobs necessary in a start-up to execute on your plan and adapt when something doesn’t work.
5. Are you so committed that you are willing to endure the many disappointments, mistakes, betrayals that come with creating a company? And, can you communicate that commitment again and again and again to your team, your investors, your bank, your vendors and, most importantly, your prospective customers. Being an entrepreneur ultimately means being the committed chief salesperson.

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?

The most common is a reliance on some hot idea to carry the day and cause success. The “I’ll build it and they will come” fallacy. No, that never works. The “game” must be structured to both produce and sell the product. On the people side, many entrepreneurs do what I did once … assume their initial partners and/or team are aligned at the level of purpose, vision, values and strategic intent. They often are not and unfortunately, some “talk a good game” without the commitment necessary for a start-up to succeed.

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?

It may sound politically and socially incorrect; however, if “wellness” is your first priority, don’t become an entrepreneur. Wanting to have some illusion of the entrepreneur’s lifestyle of freedom, travel and praise be present in the first few years is a fool’s errand. Of course, a basic routine of good nutrition, exercise and staying close to friends and family does help.

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. :-)

All of the great issues in the modern world are incredibly complex and beyond any individual changing “all at once.” However, General Systems Theory says that within all big systems (like education, politics, capitalism, medical care) there are leverage points — places where one unit of energy can produce multiple units of results. For me, one such leverage point is the media. We have severe breakdowns in the profession of journalism and reversing that trend could be a positive leverage point affecting all of society. I can dream, can’t I?

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.

I’m blessed to have some “prominent names” in my personal network. One who isn’t and who would be my candidate is Fred Smith, founder of Federal Express.

How can our readers further follow your work online?

LinkedIn: https://www.linkedin.com/in/robert-white-188b401ba/

Web: https://www.ExtraordinaryPeople.com

E Mail: Robert@ExtraordinaryPeople.com

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