Walsh X Talk - DBA Candidate Christopher Naidoo

Summary

The speaker draws inspiration from Theodore Roosevelt's 'Man in the Arena' speech, emphasizing the importance of resilience and adaptability in entrepreneurship. Through personal anecdotes, the narrative illustrates the challenges faced during the 2008 financial crisis, the strategic pivot into LED lighting, and the necessity of a Plan B. Lessons learned include the need for empathy, the importance of making calculated bets, and the power of resilience in overcoming setbacks.

Takeaways

• 🏋️‍♂️ Persistence in the face of adversity is crucial for success. The speaker emphasizes the importance of continuing to strive despite setbacks and failures.
• 💡 Entrepreneurs must be willing to take risks and embrace change to keep their businesses relevant and growing.
• 🔄 Pivoting is essential for survival in business. The speaker shares personal experiences of adapting to new circumstances to avoid stagnation.
• 🏭 The 2008 financial crisis had a significant impact on the automotive industry, leading to a drastic drop in sales and forcing the speaker to rethink their business strategy.
• 💡 Innovation and diversification can help businesses survive economic downturns. The speaker transitioned into the LED lighting business during the 2008 crisis.
• 🛠️ Having a Plan B is vital for resilience in business. The speaker highlights the importance of having backup plans to mitigate risks and failures.
• 🔄 The need to pivot again in 2016 when the industry shifted towards onshoring, leading to the establishment of a new factory in Michigan.
• 🏗️ The importance of strategic planning and foresight in business expansion, as demonstrated by the speaker's acquisition of a neighboring property for future growth.
• 🔧 The harsh reality of business is that even with the best planning and execution, external factors can still lead to failure, as seen with the speaker's decision to shut down the Michigan factory.
• 🌐 The COVID-19 pandemic brought unprecedented challenges, requiring businesses to prioritize employee safety and adapt quickly to new working conditions.
• 👨‍👩‍👧‍👦 Empathy and support for employees during crises can strengthen a company's culture and resilience, as the speaker did by providing resources and support during the pandemic.
• 🎯 The value of making strategic bets on growing industries, as the speaker did by investing in a South Korean company that saw significant growth.

Q & A

What was the main theme of Theodore Roosevelt's speech mentioned in the script?

The main theme of Theodore Roosevelt's speech was the importance of striving and taking risks in the face of challenges, rather than being a critic or avoiding failure.

What does the speaker suggest is essential for an entrepreneur to do in order to keep their business growing and relevant?

The speaker suggests that entrepreneurs must embrace change, think of new ideas, and be willing to take risks by constantly pivoting and trying new things to ensure business growth and relevance.

What major event impacted the speaker's business in 2008?

The major event that impacted the speaker's business in 2008 was the financial crisis, which led to a significant drop in sales and the bankruptcy of major automotive companies like General Motors and Chrysler.

How did the speaker respond to the financial crisis in 2008?

The speaker responded by cutting work hours and days, focusing on practical measures to survive, and pivoting to a new business in the LED lighting industry to diversify and reduce reliance on the automotive industry.

What was the speaker's strategy when facing the decline of the LED lighting business in 2016?

The speaker's strategy was to seek advice from a board of advisers, who suggested focusing on one business at a time. This led to the decision to shut down the dream plant and develop a plan B from the beginning.

What was the speaker's approach to building a new factory in Michigan in 2016?

The speaker's approach included researching the risks, investing in state-of-the-art equipment, hiring seasoned sales staff, and even purchasing the neighboring property to position for future growth.

What challenges did the speaker face when trying to attract customers to the new Michigan factory?

The challenges included a lack of customers willing to be the first to use the new facility, despite its modern and clean appearance, and the need to increase the win rate to sustain the business.

How did the speaker handle the COVID-19 pandemic in early 2020?

The speaker ensured the safety of employees by providing masks and sanitizers, pivoted IT infrastructure for remote work, continued shipping as an essential supplier, and adopted safety protocols for those who needed to work in the office.

What measures did the speaker take to support employees during the COVID-19 pandemic?

The speaker allowed mothers to stay home with their children, provided meals to employees' homes, and prioritized the well-being of families, which ultimately made the company a stronger employer.

What was the outcome of the speaker's investment in a growing company in South Korea in 2019?

The outcome was positive, as the business increased more than five times in three years, demonstrating the speaker's resilience and ability to take risks.

How does the speaker describe their resilience and ability to overcome setbacks and failures?

The speaker describes their resilience as a result of learning from failures and using them to strengthen their resolve, ensuring survival and the ability to continue taking risks and facing challenges.

Outlines

00:00

🏋️‍♂️ Embracing Challenges in Entrepreneurship

The speaker begins by quoting Theodore Roosevelt, emphasizing the importance of striving and taking risks in the face of challenges, rather than merely criticizing or pointing out failures. This sets the stage for the theme of resilience in entrepreneurship. The speaker shares personal experiences, starting with the 2008 financial crisis, which forced a pivot in business strategy. Despite initial success, the crisis led to a significant drop in sales and the need for immediate and drastic measures, such as cutting work hours and days. The speaker also discusses the importance of having a backup plan, as demonstrated by the decision to enter the LED lighting business during the crisis, which helped the company survive and adapt.

05:01

🛠️ Pivoting to Survive: Lessons from Business Setbacks

In this paragraph, the speaker recounts the story of opening a new factory in Michigan, which initially seemed like a strategic move but later faced challenges due to a lack of customers. Despite investing heavily in state-of-the-art equipment and a skilled workforce, the business struggled to attract clients. The speaker learned the hard way about the importance of having a Plan B, which in this case involved selling the factory to a customer who needed a new site after a fire. This experience reinforced the lesson of resilience and the need to be adaptable in the face of business setbacks.

10:03

🌐 Global Adaptation and Empathy in Crisis Management

The speaker discusses the impact of the COVID-19 pandemic on their business, highlighting the importance of empathy and proactive measures to ensure employee safety and business continuity. By pivoting IT infrastructure to enable remote work and maintaining essential operations, the company was able to weather the storm. The speaker also emphasizes the importance of supporting employees during this time, including providing meals and allowing flexibility for parents. This approach not only helped the company survive but also strengthened its position as an employer.

🚀 Resilience and Growth through Strategic Risk-Taking

In the final paragraph, the speaker reflects on the importance of resilience and strategic risk-taking in business. Despite facing numerous challenges and setbacks, the speaker remained committed to growth and innovation. A key example is the investment in a South Korean company, which paid off significantly over three years. The speaker concludes by emphasizing the role of resilience in leadership, using failures as a means to build strength and prepare for future challenges.

Keywords

💡Critic

A critic is someone who evaluates and offers judgments on various subjects, often in the form of reviews or commentary. In the context of the video, the critic is contrasted with the 'man in the arena,' suggesting that it is not the critics who make progress but those who take action despite potential criticism. The script mentions, 'it is not the critic who counts,' emphasizing the importance of doing over observing.

💡Man in the Arena

The 'man in the arena' is a metaphor for an individual who actively participates in the challenges of life, striving and facing difficulties head-on. This concept is central to the video's theme, which celebrates the courage to act and the resilience to persevere. The script describes this individual as 'whose face is marred by dust and sweat and blood,' highlighting the effort and sacrifices made in pursuit of goals.

💡Resilience

Resilience refers to the ability to recover quickly from difficulties or adapt to change. It is a key theme in the video, with the speaker sharing personal stories of overcoming adversity. The script illustrates resilience through various business challenges, such as 'I was bruised, battered, defeated, deterred, disappointed, despondent, and disillusioned,' yet the speaker did not give up, demonstrating resilience.

💡Pivot

To pivot means to change the direction or orientation of something, often used in business to describe a strategic shift. The video emphasizes the importance of pivoting as a means of survival and growth. The speaker recounts, 'pivot or perish,' illustrating the necessity to adapt and change in response to market conditions and challenges.

💡Risk

Risk is the possibility of loss or injury, often associated with the potential for gain. The video discusses the entrepreneur's willingness to take risks as a component of growth and innovation. The script mentions, 'using your gut and your appetite for risks,' indicating that embracing risk is part of the entrepreneurial journey.

💡Emotional Armor

Emotional armor is a metaphor for the psychological defenses or coping mechanisms that individuals develop to protect themselves from emotional pain. The video uses the concept to describe how one can use setbacks to strengthen these defenses. The speaker says, 'do you let those blows your armor or do you use those blows to strengthen that armor,' suggesting that emotional resilience can be built through adversity.

💡LED Lighting

LED lighting refers to light-emitting diode technology used in lighting applications, known for its energy efficiency. In the video, the speaker mentions starting an LED lighting business during an economic downturn, highlighting the opportunity to innovate and find new paths for growth even in challenging times.

💡Offshoring and Onshoring

Offshoring is the practice of moving a company's operations to a foreign country, while onshoring is the reverse, bringing operations back to the home country. The video discusses the impact of these strategies on the speaker's business, illustrating the need to adapt to changing industry demands and global economic factors.

💡COVID-19

COVID-19 is the disease caused by the novel coronavirus, which led to a global pandemic. The video recounts the speaker's experience during the pandemic, emphasizing the need for empathy and adaptability in the face of unprecedented challenges. The script describes measures taken to ensure employee safety and business continuity, such as 'we then pivoted our IT infrastructure to ensure their employees could work from home.'

💡Empathy

Empathy is the ability to understand and share the feelings of others. In the context of the video, empathy is portrayed as a critical leadership quality, particularly during the COVID-19 pandemic. The speaker's actions, such as providing masks, sanitizers, and meals to employees, demonstrate the application of empathy in business practices.

💡Plan B

A plan B refers to an alternative strategy or course of action to be taken if the primary plan fails. The video emphasizes the importance of having a backup plan in business. The speaker recounts a situation where 'I had developed a plan B from the beginning,' which allowed for a smoother transition and recovery when the primary business venture faced challenges.

Highlights

Theodore Roosevelt's famous 'Man in the Arena' speech emphasizes the importance of striving and taking risks, rather than just criticizing or pointing out failures.

Entrepreneurs must constantly embrace change, think of new ideas, and take risks to keep their businesses growing and relevant.

In 2008, the speaker's business faced a major challenge when the financial crisis led to a significant drop in car sales, impacting their automotive industry.

The speaker had to pivot their business by cutting costs and exploring new opportunities, such as entering the LED lighting industry, to survive during the crisis.

Having a Plan B is crucial for business resilience, as demonstrated by the speaker's decision to shut down their dream plant when it was no longer viable.

In 2016, the speaker took the risk of opening a new factory in Michigan to meet the industry's demand for local suppliers, despite the challenges.

The importance of having a strong advisory team was highlighted when they helped the speaker make the difficult decision to shut down the struggling factory.

Empathy and prioritizing employee well-being were key during the COVID-19 pandemic, as the speaker ensured safety measures and support for their team.

The speaker's business was able to pivot again during the pandemic, adapting their IT infrastructure for remote work and continuing to operate as an essential supplier.

Investing in a growing company in South Korea in 2019 allowed the speaker's business to diversify and grow, despite setbacks in their core industry.

Resilience is a key trait for leaders, as demonstrated by the speaker's ability to bounce back from failures and continue striving for success.

The speaker emphasizes the importance of not giving up, even when faced with numerous challenges and setbacks throughout their career.

Building emotional and business resilience is crucial for long-term success, as it enables leaders to withstand and recover from difficulties.

The speaker shares their personal story of resilience, highlighting the lessons learned from various challenges and failures in their entrepreneurial journey.

Adapting to change and being willing to pivot are essential for businesses to survive and thrive in a constantly evolving market.

The speaker's experiences underscore the importance of taking calculated risks and being prepared to pivot when necessary to ensure business survival.

Transcripts

on April 23rd

1910 in saborn Paris Theodore Roosevelt

said it is not the critic who counts nor

the man who points out how the strong

man

stumbles or where the do of Deeds could

have done them better the credit belongs

to the man who actually in the arena

whose face is marred by dust and sweat

and blood who strives valiantly who HS

who comes up short again and again

because there's no effort without error

and

shortcoming but who does strives to do

the deeds and who knows great

enthusiasms the great devotions who

spends himself in a worthy

cause who at best knows in the end the

Triumph of high achievement and who at

worst if he fails at least fails while

daring greatly so that his place shall

be neither with those cold and tumid

Souls who know neither Victory nor

defeat as an entrepreneur you face daily

challenges it is not for the faint of

heart each day you must Embrace and you

must think of new ideas just to keep the

business growing and for it to remain

relevant for the next few years you must

get into the arena you have to

constantly pivot and try new things or

you face the risk of decline there's no

guarantee that those risks will be

successful using your gut and your

appetite for risks you keep trying and

you get into the

arena daily you are delivered a blow or

you ride high on a

pedestal however what is important is

how you deal with those blows do you let

those blows your armor or do you

use those blows to strengthen that armor

making you battle ready and more vital

for the next attack how do you build

this emotional and business

resilience here is my

story lesson number one pivot or perish

in 2008 5 years after I had started my

business I ran out of space I was in a

high I was thinking what could go wrong

business was

booming I needed a bigger space so I

contacted an agent and spent many happy

hours scouting for new

locations finally I found the perfect

space and I signed the leas

and I was positioned for growth I was

ready for the next era in my

entrepreneurial

Journey however a few months later we

started hearing about trouble on Wall

Street Layman Brothers banks financial

institutions and companies we had never

ever heard of all started failing

companies were declaring bankruptcy and

people were defaulting on their

mortgages would it hit us in the midwest

more importantly how would it affect my

business

our automotive industry which I just was

5 years

into with anxious days we waited and

then we started to see the trickle down

effect cars were not selling General

Motors and krysler were going into

bankruptcy settled with Legacy costs and

high pension obligations they needed a

bailout the industry was too big to fail

what did it mean for us what did it mean

for my staff how will ever get

paid how do we manage a 75% drop in

sales I didn't know what to do I needed

a board to advise me or someone I could

call on but neighbors and friends were

all losing their jobs and they were

defaulting on their mortgages Banks were

jittery and they wanted out of the

industry our bank just announced that

they wanted to leave the manufacturing

industry what do I do in my mind I said

I left to parted in South Africa and I

could always return home and start

fresh with this fresh mindset it freed

me from the shackles of focusing on loss

it allowed me to think about growth we

immediately started with practical

things that we could do things like

cutting work hours cutting days and

fortunately we were classed as a

critical supplier so we were guaranteed

to be paid by our bankrupt

customer then I started getting to grow

mode and I started thinking what can I

do to Pivot how can I start a new

business oil at that time was $145 a

barrel and the US was going to war to

protect itself in the Middle

East what could I do to take advantage

of this I knew I wouldn't be a Pioneer

but I'll be at the bottom of the growth

curve I'd already knew how to take

advantage of the global system and was

able to buy stuff from Farr countries so

using this knowledge I decided to get

into the LED lighting business this new

technology promised 75 to 80% Energy

savings if only every household would

adopt this we would lose our dependence

on foreign fossil fuel lo and behold I

started a new business amidst this

crisis this ensured that we were yet to

survive another day and we were not

heavily reliant on one

industry after the government bail out

the industry started to slowly come back

and sales were increasing and the new

business that I had started was starting

to make some sales thankfully aided by

some of my MBA classmates whom I had

hired to work for me my armor was batted

and Tor but I survived to see yet

another

day lesson number two always have a plan

B in 2016 after offshoring for many

years the industry decided that it

wanted its suppliers to onshore and

build in America I researched the risk I

measured the upside and decided it makes

sense for us to put a factory in

Michigan I was fortunate enough to find

a factory that needed a little bit of

TLC and I was able to buy it at a

relatively good price I pumped in a

massive amount of money to make this

into a state-of-the-art facility

everyone who visited was mesmerized by

its modernness modernness and clean look

I even thought ahead and went ahead and

bought the neighboring property I was

positioning myself for growth I did all

the right things I had seasoned sales

stuff bought the latest and greatest

Capital Equipment and one had one of the

best Factory

managers however more was needed to

attract new customers everyone who came

in loved the place but no one wanted to

be the first customer we coded and we

coded and our win rate wasn't sufficient

to stop the bleeding I was sinking large

amounts of money into this facility and

at the same time this new lighting

business that I started in 08 was also

starting to

falter we needed to catch up the

lighting demands and changes however

this time fortunately I had a great set

of advisers and they sat me down one day

and they said to me very candidly son

you cannot sit on two toilets at the

same time the message while painful was

clear and loud to me I needed to stop

the bleeding and shut down my dream

plant fortunately when I made the

facility when I bought the facility I

also looked at what I could do in case

this business failed in other words I

had developed a plan B from the

beginning once I made the decision to

shut down the Plant I quickly made the

announcement it takes a lot of work to

sell a large industrial facility however

as Lu with Havard one of our customers

that very night had a fire in their

plant and needed a new site to move into

within a month they would move in and

they would maintain the staff that I had

hired my armor and this time my ego was

dented but not pierced I was starting to

strengthen my

resilience lesson number three empathy

first in January 2020 new of the

pandemic called covid-19 started

trickling in the USA reported its first

case of Novel Corona virus 19 we were

never prepared nor could could we

predict the full impact of this pandemic

in March

2020 the US started to shut down its

economy shuttering businesses and

telling all non-essential workers to

stay at home to Halt the spread of

Corona virus sales ground to a halt new

cars were not not being produced what do

we do this seem like 2008 all over

again the first thing we did was we had

to ensure the safety of our employees

and their families so we got large

stocks of masks and sanitizers and made

these available to our team we then

pivoted our it infrastructure to ensure

their employees could work from home and

once again fortunately we were labeled

as an essential Supply so we had to

continue

shipping this ensured that we still had

revenue and it also meant that some of

our employees needed to work in the

office so we adopted safety protocols we

ensure that mothers could stay at home

and be with their kids during covid-19

school year we also had meals shipped to

our employees homes for those who didn't

have access to food we put Families

First and during the pandemic which

ultimately made us a stronger employer

this time I was better prepared to deal

with this catastrophe we turned lemons

into

lemonade lesson number four always make

bets after stumbling and falling a few

times in 2019 we pivoted again I was not

afraid to take risk this time

recognizing a decline in our industry we

invested in a growing company in South

Korea with good for Fortune this

business over 3 years increased more

than five

times without resilience we could have

given up multiple times and would never

have enjoyed the success that we have

today despite setbacks and failures we

did not give up today drive any Korean

vehicle and chances are you'll find a

product which we

manufacture throughout my career I had

many chances to give up I was

bruised battered defeated deterred

disappointed despondent and

disillusioned I could have packed up and

given up at any time however the

resilience that I had built up over the

years and the lessons that I had learned

from my failures strengthened me for the

storms failure was not in my vocabulary

Reser I was my armor was beaten but

never pierced we as leaders should use

failures to cultivate our

resilience this will ensure that we

survive another day just so that we can

get back into the ring thank you