This week’s Misfit Entrepreneur is Lubo Smid.  Where to start with Lubo?   He is a tech entrepreneur with a passion for cutting-edge technology and an adventurous lifestyle.  He is the co-Founder & CEO of STRV, software design & engineering team with over 200 people based in Prague and Los Angeles.  The company’s worked with everyone from prominent startups like the Ahtletic to Microsoft. 

Lubo’s been recognized as Forbes 30 Under 30, a Deloitte Tech Fast 50, and the Financial Times 1000.  He’s built STRV to $20 million in revenue and spends his free time incubating new products und erthe STRV labs brand as well doing adventure sports.

I asked him on  not only to discuss what he’s learned on his entrepreneur journey, but to discuss where technology is taking us, especially with AI.

www.LuboSmid.com 
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www.STRV.com

Lubo’s passion for technology started when he was a kid, and both his parents were entrepreneurs.  He would take apart and figure out how every toy he got worked.  This led him to building computers.  He later started exploring the software side of things.  During high school, he grew his knowledge and was going deeper into programming and expanding his capabilities.  All of this prepared him for what he’s help do at STRV. 

How has pushing yourself in extreme sports helped you to be a better entrepreneur?

• There is a type of person who when they are good at something, they want to be good at other things.
• Lubo wants to bring a high bar to all aspects of his life and maintain his competitive spirit to push himself.
• It also pushes you in physically and your fitness.
• Working out and staying shape is a great stress buster and an important part of a daily routine.
• Staying in shape also gives you energy and motivation.

Have you seen a benefit in your mental game and stamina from playing at higher levels?

• Yes and as an entrepreneur you need a lot of mental toughness.
• Whether you are jumping off a cliff or having to make a major decision as a CEO, you must build up your mental toughness to handle the pressure and think clearly.
• It is stress resilience and also learning to release the release the stress in life.

Any other lessons you’ve learned to consistently perform at peak levels?

• It is the internal dedication you must develop in all areas of life.
• It is also taking the time to recover both physically and mentally.
• Writing down your daily goals.
• Also taking the time at the end of the day to review your actions.
• Reflect what you have done at the end of the day and rate it.  What could you do better?  Learn from it and apply it to the next day so you can get incrementally better.
• Fid accountability partners to help you and you them.

You bootstrapped STRV to $20 million, what are some of the principles and critical actions you used to make that happen?

• Building a company is not an easy journey and requires a lot of persistence.
• To build something great, you have to go through a roller-coaster ride. 
• As a CEO, it seems like you’re are constantly somewhere between bankruptcy and having a billion dollar company.
• At the 20 min mark, Lubo talks about losing half his clients overnight and being close to the edge, but working through it to power through.
• You will need to seek out and surround yourself with the right people.  You will go through different people to find the right ones and build a great leadership team.

Best advice on how to lead as an entrepreneur?

• Be present.
• Lead by example.
• Give freedom but set high expectation.
• Stay hands off when thinks are working well.
• When things go bad, be prepared to get in the trenches.
• When you are in the tough times, great things can happen.  They force you to get creative and consider decisions that carry more risk.  These can lead to great opportunities and meaningful changes.
• You can’t aim for perfection…it slows things down.  Nothing will be perfect, but you should pick the battles of where you focus your time in your business.

Where do you think we end up in the next 2-5 years with AI?

• ChatGPT is the fasting growing product of all time.
• AI can help with a lot of things, and we are at the very beginning of that journey.
• The whole approach to work will change as many things we do today can be replaced by AI.  It doesn’t mean there will be no work, but the type of work will change.
• Lubo is obsessed with using Superhuman with email and what it can do to help automate and make things efficient.  Imagine that combined with the power of Chat GPT.

Other trends we should be following?

• Augmented and virtual reality will become even bigger in our lives.
• Virtual displays will become more of everyday life as well. 
• WEB3 and blockchain are also important to keep watch on.
• Blockchain is a powerful technology and bigger and better use cases will be found.
• The whole area of tracking your body and health and using the data to improve is also a passion.

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At the 46 min mark, Lubo shares his advice in building technology and products.

Best Quote:  As a CEO, it seems like you’re are constantly somewhere between bankruptcy and having a billion dollar company.

Lubo's Misfit 3:

1. If you have big goals – make sure you are passionate about your journey and prepared to play the long game.
2. Set up your daily routine to better help you succeed with planning, reflection, and spending your time on the right things.
3. Have fun along the way.  You need to have fun to stay in it for the long haul.

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Scott took a different path.  He grew up with parents that were big in education.  But Scott didn’t get along with education.  He left college in the middle of his sophomore year of college and asked to borrow $20k to start a pizza shop.  Needless to say, it didn’t happen and he ended up in Washington DC working in the news business and the Reagan administration.  But, he was just not an employee and wanted something more.  He left DC and started some businesses in printing, restaurant, home services, and some others. 

He got involved in a restaurant fast casual chain and had a lot of success brining him into the franchising space.  After about 10 years, left to start his consulting business to help people in their journey of entrepreneurship.

You left corporate America to pursue entrepreneurship.  What is your advice to people wanting to go out on their own and make the leap?

• You must be prepared for the risk/reward.
• In anything you do, there is a risk/reward with it.
• You need to plan it out and involved your family in the process.
• You do not want to “buy a job.”  You must understand why you want to open or own a business.

At the 8 min mark, Scott talks about the 2 types of entrepreneurs, the Visionary and Process entrepreneur.
 
Let’s talk about franchising.  Why does franchising make sense and why doesn’t it for people?

• The best analogy is if you loved food and always wanted your own restaurant.  If you bought a franchise, you have to serve the food they tell you to and do it their way.  As an independent, you get to choose what you serve in your restaurant. 
• What are you really good at?  Delegating to people to run the systems of a franchise or are you good at building the systems and have things done in your own way.

Take us through your process and steps to help people understand what they want…

• First, Scott wants to make sure the client has put themselves in a position where they want to learn and educate themselves.
• There is a lot more to franchising than the “golden arches.”
• Step 2 is knowing why you want to leave what you are doing and build the business – because you do have to build.  Understanding your why is the most important pieces.
• Step 3 is understanding the financials and returns on investment to see what is possible and makes sense for you.

How do you help people to best understand their why?

• The first question is “If we were to flash forward 5 years from now and in those 5 years you were a business owner, how would life be different?
• What are the differences/changes you would see?
• People want to get out of the “complacent optimist” position they are in and act, but need help to do so.
• Understanding the endgame and what it looks like is great way to back into the why.

“Franchises aren’t sold, they are awarded,” explain that….

• Just because you can afford it doesn’t mean you will get.
• Franchisors are kind of like pro sports scouts.
• As you are vetting them, they are vetting you for their team and making sure you are the best fit for them. 
• Franchisors care most about if you can follow the process and systems.

Which verticals of franchises are trending the best right now and why?

• People thought that home services would fall apart during the pandemic, but it is the opposite, the vertical is doing very well.
• Businesses that are need, not a want that have recurring revenue do well.  Things like the beauty industry like haircuts, nails, etc.
• The pet industry is doing well, especially for dogs.
• Automobile franchises are doing well. 
• The recession resistant brands that people need are always good.

What is the benefit of using a franchise consultant like you vs. working directly with the franchisor?

• Scott’s job is to educate on what the expectations are in the process and questions you should be asking of the franchisor.
• He helps streamline the process helping to focus on what is important to them and aligning that with the brands that fit.
• He is an advisor to help ensure the best outcome possible.

Can people negotiate with franchises?

• Yes, but it is on certain things.
• If you are buying multiple territories or units, you can negotiate on some items.
• Royalties and fees are not negotiable.

Anything else we should know?

• The royalty structure is how the franchisor earns their income,
• Things like marketing fees should not be money making for the franchisor, so it is something you want to watch.
• Franchising is highly regulated by the govt, which helps to ensure people are treated fairly.

What are some of the most important lessons and principles you’ve learned in your entrepreneur journey?

• It’s pretty easy to fail.  It takes a lot of hard work to be successful.
• You must be self-disciplined.
• People that think they know more than the franchisor or know better, typically fail.
• It is nice having a support system from the parent of a franchise.
• Being an entrepreneur allows you to get into multiple different things.

Anything you’ve learned on how to build support systems as a solopreneur?

• You cannot be afraid to ask for help.
• Do not let ego get in the way.
• Seek out people you can lean on and be honest and open with.
• You have to constantly be learning and growing.

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Best advice for an entrepreneur just starting out?

• For someone who just invested in a franchise, rely on the support levels the franchisor offers.
• Get involved and meet other franchisors and learn from them.
• Ask, ask, ask.  Don’t let questions go.
• Get to know your people and listen to your employees.

Best Quote:  :Franchises aren’t sold, they are awarded..."

Scott's Misfit 3:

Having strong values is very important to be successful in life and business.

Be true to yourself and do not let ego get in the way.

Have fun.  Life is short and goes by fast.  Enjoy it!

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Hello Misfit Nation! Welcome to another edition of "Lessons for Hannah!" Many years ago, I introduced a new format that alongside our regular episodes called “Lessons for Hannah.” Hannah is my daughter and one of the main inspirations for the Misfit Entrepreneur. I wanted to have a place where she could go and learn from her daddy and his Misfit friends throughout her life….even after I am gone. If you haven’t listened to the first episode of "Lessons for Hannah," I urge you to as it gives some more background and tells the amazing story of how Hannah came to be in our lives.

Lessons for Hannah are short, very useful, and sometimes comical lessons, that I want to share with you and give to Hannah to help in your lives. Because I want Hannah to have these for her life, I’m going to speak as though I am talking directly to her. These episodes are a lot of fun and if you think there is a lesson that we should include in these episodes, please don’t hesitate to send it over to us at support@misfitentrepreneur.com. We’d love to share it.

This week’s Lesson for Hannah

Hannah,

This Lessons for Hannah will not be a long one, but it is very important for the times we are in and for your future.  There is something that I have found that holds true time and time again.  Sometimes it takes a little while for it to take hold or sink it, but in the end, it holds true.  And that is, Reality always wins. 

Let me explain.  There are certain things that will hold true and be consistent no matter what.  No matter what people say.  No matter what experts say.  No matter how much they are said not to be true – they will win out.  Reality always wins. 

For example, gravity will always be gravity.  No matter what anyone says, you are not a bird and cannot fly.  If you jump off a building, gravity will win and you will not.  A more controversial topic these days is gender.  There are two genders in the laws of nature, male and female.  It is reality.  People can claim there are 100 different ones, but people are either born male or female in nature and that is reality.  Now, do I support their right given to them by the Constitution to say they are a gender other than male or female? Absolutely.  It doesn’t make it true, but they have the right to say these things and believe them about themselves.

Other examples include the laws of economics – supply and demand.  If something is in short supply and has demand, the price for it will go up.  If something is oversupplied and everyone has it, the demand will be less and it will come down in price.  Many times, the laws of economics get out of balance due to manipulation or short-term anomalies, but in the end, the laws win out.  We saw this during the pandemic with a number of goods and services.  Masks came into high demand and initially got expensive until more supply came on the market and then prices came down.  Now masks are super everywhere and super cheap because there is a ton of supply and not as much demand. 

In the end, reality always wins out.  There are universal laws of nature, nature’s God, economics, physics, and host of other things that cannot be broken.

Many people do not want to face reality because they may not like what they find.  They will have to face things that are true, that they may not want to admit are true about themselves, their life, and/or deal with.  But one of the biggest secrets to success and life is to face reality head on and accept it for what it is.  Respect it.  Learn to understand it and use it to your advantage.  Once you accept that there are some things that are bound by the laws of this world and universe and reality will win out, you will find some amazing things happen for you.  For example, I have been trading markets for over 20 years and I used to think I could beat reality in the markets and the laws of economics would not always hold true.  For example, markets may have a big run higher, and when they do, people will think they can just keep going up and sometimes it seems like they will never stop, but they do, and they fall back down.  Ask anyone who thought Bitcoin would never stop going higher in 2021.  Conversely, when markets fall a decent way, they typically turn around and go higher.  They can only go so far until they have gone too far.  I have made it a habit to work hard to understand this so that I can use it to my advantage, but I  had to learn some heard lessons losing money over the years before it truly understood and now I use the lessons learned to help me make money every month in the markets.  I faced reality and decided to use it to my advantage. 
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Hannah, you will face a lot of different realties in your lifetime, don’t try and deny them or shy away from them.  Instead embrace them and look for how you can use them to build wisdom and help you in your life.  

I love you,

Dad

Best Quote:   There are certain things that will hold true and be consistent no matter what.  No matter what people say.  No matter what experts say.  No matter how much they are said not to be true – they will win out.  Reality always wins.

Misfit 3:

1. Reality always wins out over time.
2. There are universal laws of nature, nature’s God, economics, physics, and host of other things that cannot be broken.
3. One of the biggest secrets to success and life is to face reality head on and accept it for what it is.  Respect it.  Learn to understand it and use it to your advantage.

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This week’s Misfit Entrepreneur is Deepak Ohri. Deepak grew up in a modest, a one-room flat in a lower middle-class area of New Delhi. Most would not have thought that he would grow up to be one of the most successful innovators in the luxury hotel industry founding Lebua Hotels and Resorts, creating Luxury Atelier Maison Happiness and the president of the World Foundation of Happiness.

Along his journey, he has been recognized as the Top 100 Most Powerful People in global hospitality, been sought after for his thought leadership by everyone from Bloomberg to CNBC and Forbes as well as regularly being a featured speaker at Harvard Business School, MIT, and Columbia to name a few.

But through it all, he never forgot his humble roots and recently penned the best-selling book, A Bridge Not too Far, Where Creativity Meets Innovation, which shares his best principles and lessons for success and wisdom he has learned on his journey.

www.DeepakOhri.com

Deepak did not know where he would end up. He grew up in a lower middle class neighborhood and got a glimpse of what the upper class had. He asked his parents what he needed to do to get where those people where. He started dreaming with “his eyes open” and never forgot his roots. He took his challenges as a way to learn and grow.

Luxury to him was a Coca Cola and since the first time he had it, it put him on the path to find the luxuries and enjoy life and be happy.

How did you get into the hospitality space?

• By default. He was not going to go the doctor or engineer route, so entrepreneurship was the way for him. What is happiness?
• It is very individual.
• The most important thing is to know yourself.
• We seem to know everyone in today’s world but ourselves.
• We need to not mistake joy for happiness.

At the 11 min mark, Deepak shares a few important things.

• He does not have FOPO, fear of people’s opinions.
• Instead, he has ROPO, respect of people’s opinions.
• Sharing knowledge is important to life and success.
• Rules are rules, but they are meant to be broken and challenged.
• But you should only break rules if you are following your principles.

What is the true meaning of luxury?

• It is an experience.
• Deepak shares the story of the first time people around him could afford toothpaste as an example.
• Luxury is expressive and an experience.
• So, each person needs to ask themselves what luxury is for them. What experiences truly enrich you.
• Happiness is used correctly, can actually increase the top and bottom line of any business.
• Deepak shares examples from Labua on how they do customer service and use happiness.

At the 17 min mark, Deepak talks about luxury marketing and what it is.

• Employees must be engaged and be able to tell the story.
• How you tell your story is more important than the story itself.
• To tell a great story you must be honest. You must understand who your listener and how you narrate the story to them to get their attention.
• Design and craft your story to resonate with your audience.

At the 21 min mark, Deepak tells the story of how he got one of his restaurants to be a main part of the movie, The Hangover 2.

You wrote “A Bridge Not Too Far.” Why did you name it that?

• There is a famous movie called a “Bridge too Far.”
• But, the bridge is not too far. You dream is not too far and you can cross your bridge.
• For Deepak, crossing the road from the lower middle-class side to the upper class side was crossing a bridge.
• It is also a metaphor for his life.

You state that all of your successes are built on failure, explain that.

• Deepak did not go to good schools and did not have an expertise/profession.
• He learned through uncovering his shortcomings and overcoming them. He did not blame them on anyone.
• He knew he did not know everything and admitted it.
• He then looked at his failures and realized that the difference between a failure and a success is a step or steps you have missed.
• If there is step you missed, you can figure it out and go from there.

What are the key principles that you live by in life and business?

• Look at things from others point of view, especially the customer.
• Use logic. Think logically.
• Treat everyone fairly, no matter who they are.
• Trust your employees and take great care of them.
• Make your employees part of the bigger vision…and your customers.

How do you ensure a business can succeed?

• First, look at the behavior pattern of the area where the business will be based.
• Second, study deeply the customers
• Third, figure out what you can give the customer that is different and creates an incredible experience.

What has surprised you most on your entrepreneur journey?

• People
• Deepak gives several examples of people reaching their potential and surprising.
• What can happen when you give someone a chance and/or get a chance yourself.

Time is more powerful than God? Explain that.

• A time well spent is a time well earned.
• Time keeps going. Even God cannot bring back time once it is lost.
• We have to learn to respect time and know the essence of it.

Best Quote: A time well spent is a time well earned.

Deepak's Misfit 3:

1. Know your roots and where you came from.
2. Just dream. God has gifted you with a mind that cane dream and create. Use it.
3. Never have FOPO, fear of people’s opinions. Have respect of their opinions instead

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