PDF Summary:Hangry, by Mike Evans

In Hangry, Mike Evans recounts the entrepreneurial journey that transformed his desire for more convenient food delivery into the successful online platform Grubhub. From a lone developer coding his way past technical challenges, to winning over skeptical restaurant owners, to scaling Grubhub into a rapidly growing national brand, Evans details the obstacles, adaptations, and strategies that helped build his venture.

Evans also reflects on the personal cost of relentless focus on company growth, compromising his health and relationships. After stepping away from Grubhub, he embarks on a soul-searching cycling trip across America, seeking a renewed sense of purpose beyond financial success. Evans' experiences offer insights into the rollercoaster of startup life and the importance of balancing professional drive with personal authenticity.

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• Create a personal feedback system by asking five trusted colleagues or friends to evaluate your work performance every three months. Use a simple online survey tool to collect their anonymous feedback on areas such as communication, problem-solving, and teamwork. This mimics employee evaluations and helps you understand your strengths and areas for improvement.
• Develop a 'values match' checklist for evaluating decisions at work. Write down your top personal values and compare them with your company's stated values. Before making any work-related decision, use the checklist to ensure that the outcome aligns with both sets of values. This can help you act consistently and ethically, reinforcing an inclusive company culture.
• Volunteer to audit and update your team's standard operating procedures (SOPs) with an eye for inclusivity. Look for language or processes that might inadvertently favor a homogeneous group and suggest alternatives. For instance, if the SOPs use jargon that might be unfamiliar to people from different industries or educational backgrounds, propose a glossary or training session to level the playing field.

Securing Funding and Navigating Mergers and Acquisitions

As GrubHub expands into new cities, Evans realizes the need for external funding to accelerate growth. He cautiously navigates investor relationships, learning the intricacies of negotiation and balancing financial need with the desire to maintain control. He faces the complexities of a large acquisition, experiencing the highs and lows of deal-making, internal conflict, and regulatory roadblocks.

Evaluating Investor Offers and Negotiating Favorable Terms

Evans learns to navigate the intricate world of venture funding, evaluating offers and negotiating terms to secure financing while trying to minimize investor control. He prioritizes the quality and expertise of investors over securing the most favorable financial terms, a strategy that proves beneficial in the long run. He recognizes the need for seasoned board members who can guide growth and provide strategic insight, overcoming his initial reluctance to relinquish control.

He encounters both principled and opportunistic deal-makers in his quest for funding, learning valuable lessons about the motivations and expectations of different investor types. He discovers that venture capital investors are not a monolithic entity, each firm having its own unique investment philosophy and approach to managing portfolio companies.

Practical Tips

• Create a venture funding journal to track and reflect on your learning process. Start by documenting your initial understanding of venture funding, then update the journal with insights as you research different funding offers and negotiation strategies. This will help you see your progress and identify areas where you need more clarity or depth in your understanding.
• Develop a networking strategy focused on expertise discovery. Attend industry events, webinars, and workshops not just to meet potential investors but to identify experts in your field. Engage in conversations to gauge their understanding of your industry and interest in your business. This approach allows you to organically build a pool of potential investors who are already aligned with your vision and can contribute valuable insights.
• Start a peer advisory group with professionals from various industries to simulate a boardroom experience. By gathering a diverse group of individuals and regularly discussing strategic growth challenges, you can develop the critical thinking and strategic insight associated with seasoned board members. This can be done through virtual meetings or local meetups, focusing on real-world scenarios and developing solutions collaboratively.
• Implement a "No-Intervention Day" once a month where you consciously avoid intervening in tasks you've assigned to others. This will challenge you to trust in the capabilities of those around you and can lead to a greater sense of team empowerment. For instance, if you're leading a project, let your team members handle all aspects for that day without your input, and observe how they manage and what you can learn from their approach.
• Develop a personal negotiation strategy by reflecting on past deals you've made, whether they're as simple as deciding on a movie with friends or as complex as a work project. Identify what worked and what didn't in each scenario, and use this insight to create a flexible approach that combines principled and opportunistic elements. For example, you might decide to start negotiations with a principled stance but have an opportunistic backup plan if the situation calls for it.
• Develop a mock investment scenario game to play with friends or colleagues. This game should involve different roles, each representing a type of investor with specific motivations and expectations. By role-playing these scenarios, you can gain insights into how different investor types might react to various business decisions and pitches, helping you to tailor your approach in real situations.
• You can develop a personalized investment philosophy by reflecting on your values and financial goals. Start by writing down what matters most to you in life and how you want your finances to support these values. For example, if environmental sustainability is important to you, consider looking into green tech startups or eco-friendly initiatives when thinking about investments.

Overcoming Regulatory and Legal Hurdles During Mergers

Following a large acquisition, Evans experiences the complexities of navigating a corporate integration. He tackles legal challenges, regulatory hurdles, and the intricacies of combining two established organizations with diverse cultures and work styles. He takes on the difficult role of leading the integration, recognizing the need for decisive action to overcome obstacles and minimize internal conflict. This experience highlights the importance of strategic planning, communication, and building buy-in from both teams to ensure a successful integration.

He witnesses the political maneuvering and bureaucratic hurdles of antitrust reviews firsthand, realizing the authorities' influence can stall or derail a seemingly straightforward corporate transaction. He learns to navigate these complex legal landscapes, depending on seasoned lawyers and advisors for guidance while maintaining his own ethical boundaries.

Context

• Ensuring that both companies comply with all applicable laws and regulations is a complex task that requires careful planning and execution.

Other Perspectives

• The notion of complexity might not always be negative, as it can prompt a thorough evaluation of existing practices and lead to improved processes that benefit the new entity in the long term.
• While decisive action can be beneficial, it is also important to ensure that such actions are based on thorough analysis and due diligence to avoid unintended consequences.
• The emphasis on building buy-in from both teams might overlook the importance of involving customers and other stakeholders whose support can be critical for the success of the merger.
• The characterization of antitrust reviews as political maneuvering may overlook the legitimate legal and economic analyses that underpin these processes.
• While regulatory scrutiny may seem to complicate transactions, it can also streamline them by providing clear guidelines and expectations for corporate conduct.
• Legal landscapes are often reactive, not proactive; therefore, they may not fully prepare a company for the dynamic challenges that arise during mergers.
• Relying heavily on lawyers and advisors may result in significant costs, which could be a concern for smaller companies or those with limited budgets.
• Overemphasis on personal ethical boundaries might lead to a rigid approach that could hinder the flexibility required to navigate complex legal challenges effectively.

Guiding the Business Through Going Public

As the company prospers, pressure builds to capitalize on its market dominance by moving forward with an IPO. Evans navigates the intricate and often opaque process of preparing Grubhub for public scrutiny, balancing shareholder demands with maintaining his long-term vision and ethical commitments. He experiences the disconnect between private and public stockholders, recognizing how their differing priorities can shape company decisions.

Preparing For Public Scrutiny and Shareholder Demands

Evans undergoes a crash course in the complexities of IPO preparation, encountering a new breed of investors driven by immediate profits and financial disclosures each quarter. He encounters financial professionals who are intensely focused on maximizing shareholder value, often at the cost of compromising long-term vision and ethical principles. He finds these interactions jarring, struggling to reconcile his desire for social impact with the increasingly shareholder-centric demands of public investors.

He learns to present the company’s story effectively to potential investors, mastering the technical language of financial forecasting while emphasizing the company’s achievements and outlining a future growth strategy. He experiences the intense pressure of meeting Wall Street’s expectations, realizing the need for constant communication and showcasing the achievements and ability to deliver consistent results.

Context

• Awareness of current market trends and industry dynamics is essential to position the company competitively and highlight its unique value proposition to investors.

Other Perspectives

• Financial disclosures each quarter are a regulatory requirement designed to maintain transparency and protect all stakeholders, including minority shareholders.
• Ethical principles can be integral to a company's brand and operations, potentially leading to greater shareholder value through enhanced reputation and customer loyalty.
• Shareholders themselves may increasingly demand that companies consider social impact, as public awareness of environmental, social, and governance (ESG) issues grows.
• Focusing too much on financial jargon may alienate some investors, particularly those who are more interested in the company's broader mission or social impact.
• It can create unrealistic expectations among investors if the growth strategy is not grounded in realistic projections and market conditions.
• Some private companies choose to stay private longer or indefinitely to avoid the pressures of Wall Street and maintain control over their company's direction and values.
• Frequent communication can inadvertently signal instability or lack of confidence in the company's direction if not managed carefully.

Balancing Immediate Financial Pressures With Long-Term Vision

Evans wrestles with balancing competing forces during the company's IPO: the company's original mission to assist dining establishments, the desires of long-term employees for a successful public offering, and the insatiable demands of new investors for increased revenue and higher profit margins. He hesitantly consents to a merger with a competitor, recognizing the financial benefits for employees and shareholders while grieving the loss of control and the inevitable compromises it entails.

He witnesses firsthand the destructive power of greed, as his and his team’s focus shifts from building something meaningful to relentlessly pursuing profit. Despite achieving significant personal wealth and establishing the company's continued financial success, he finds himself disillusioned and increasingly disconnected from the organization he built.

Practical Tips

• You can evaluate the emotional impact of business decisions by keeping a decision diary. Write down significant business decisions you make, noting your emotional state and the pros and cons you considered. Over time, this will help you understand the emotional trajectory of your choices and prepare you for future situations where emotions and business intersect.
• Start a monthly "impact audit" where you assess the non-financial outcomes of your work or personal projects. Look at metrics like personal satisfaction, skills gained, relationships built, or contributions to the community. You might keep a journal where you note these impacts and reflect on them, which can help you see the value in your efforts beyond the monetary gain.
• Volunteer your time within a department of your company that you don't usually interact with, or shadow an employee for a day. This hands-on approach can give you insight into the nuances of your company's operations and can help foster a sense of empathy and connection with your staff.

Personal Reflections and the Writer's Own Entrepreneurial Experience

This section delves into Evans' introspective journey as he steps back from Grubhub, reflecting on the personal cost of building a successful startup. He examines the impact of relentless work on his health, relationships, and sense of self. He embarks on a cross-country cycling trip, seeking a fresh perspective and a more profound understanding of himself and the country he lives in.

Impact of Success on Personal Life and Relationships

As Grubhub expands, Evans experiences the complex consequences of success. The long working hours, constant pressure, and intense focus take a toll on both his marriage and his personal well-being. He prioritizes his business's achievements over his personal life, making sacrifices he later comes to regret. He navigates the changing dynamic of his relationship with his wife, facing challenges due to her career aspirations and yearning for a more equitable partnership.

Reflecting on Sacrifices to Expand the Company

Evans openly shares the sacrifices he made to build his company, acknowledging the strain his single-mindedness put on his marriage and his personal life. He grapples with feelings of guilt and frustration stemming from his inability to dedicate sufficient time and energy to his wife's needs and personal aspirations. He recognizes the importance of finding balance between professional ambition and personal fulfillment, a lesson learned through experience that shapes his future endeavors.

Context

• Sacrifices in entrepreneurship can include missing important family events or milestones due to work commitments.
• The strain on personal relationships is a frequent issue for those deeply invested in their careers, often requiring conscious effort to address and improve.
• Achieving balance is also important for mental health, as excessive focus on work can lead to burnout, stress, and decreased life satisfaction.
• Successful entrepreneurs often develop a long-term vision that includes both professional goals and personal well-being, ensuring sustainable success and happiness.

Recognizing the Toll of Focus and Extended Hours

Evans details the physical and mental consequences of working relentlessly and focusing intensely for an extended period. He struggles to find stillness and suffers from insomnia and anxiety. He realizes the importance of prioritizing his health and well-being, adopting regular physical activity and exploring avenues to cultivate mindfulness and reduce stress. He acknowledges the need for breaks and moments of disconnect from the pressures of leadership, a realization that shapes his decision to leave Grubhub.

Practical Tips

• Integrate micro-exercise into your daily routine to counteract the physical toll of intense work. Set a timer for every hour of focused work to remind you to do a quick set of exercises, such as desk push-ups, chair squats, or stretching. This not only helps in reducing the physical strain of sitting for long periods but also refreshes your mind for better concentration.
• Create a "worry time" earlier in the day to address anxieties that might keep you up at night. Set aside 15 minutes in the afternoon to write down concerns and potential solutions, so they don't flood your mind at bedtime.
• Partner with a friend or family member to become "Accountability Allies." Schedule regular check-ins to discuss your health goals, challenges, and successes. Having someone to share your journey with can provide encouragement, make you more accountable, and offer support when you're struggling to prioritize your well-being.
• Turn your daily chores into a fitness routine by incorporating bodyweight exercises like squats, lunges, or calf raises while doing tasks like washing dishes or brushing your teeth. This not only helps you stay active throughout the day but also turns mundane activities into opportunities for improving your well-being.
• Use technology to your advantage by utilizing apps that send random notifications with mindfulness challenges. These could include prompts to notice the color of the sky or to focus on the sensation of your feet on the ground. This strategy leverages the habitual nature of checking our phones to introduce mindfulness practice in an unobtrusive way.
• Partner with a 'break buddy' and commit to sending each other reminders to take breaks throughout the day. This could be through a simple text message or a shared online calendar with scheduled break times. Having someone else involved adds a layer of accountability and can make the practice of taking breaks more consistent and enjoyable.
• Track your energy and satisfaction levels daily to identify patterns that indicate burnout. Use a simple notebook or digital notepad to rate your energy and job satisfaction on a scale from 1 to 10 at the end of each workday. Over time, you'll see trends that can help you decide if you need a break or a more significant change like leaving your job.

Author’s Evolving Goals and Desire for Social Impact

Having achieved significant financial success, Evans reassesses his motivations and seeks a more fulfilling path. His initial desire to clear his student debt evolves into an ambition to create a business that benefits independently-owned eateries. As Grubhub expands and he experiences the pressure from investors, his priority shifts to finding ways to create positive social impact through his work and his newfound wealth.

Rethinking the Business's Purpose and Mission

Evans' initial vision for Grubhub centered on providing convenience for customers and helping independent restaurants compete against larger chains. However, as the company grows and attracts investor attention, the focus shifts to making financial returns the highest priority. He increasingly finds himself at odds with leadership as his colleagues embrace strategies that benefit shareholders at the cost of compromising ethical principles and prioritizing short-term profit over long-term sustainability.

Context

• By supporting independent restaurants, Grubhub aimed to contribute to local economies, helping small business owners thrive and maintain diversity in the culinary landscape of communities.
• When financial returns become the primary focus, other stakeholders, such as employees, customers, and smaller business partners, might be negatively affected if their needs are deprioritized.
• Ignoring long-term sustainability can lead to risks such as resource depletion, regulatory challenges, and reputational damage, which can ultimately affect a company's viability.

Exploring New Avenues for Making an Impact

Having achieved financial freedom, Evans shifts his focus to exploring avenues to make a positive impact in the world using both his personal wealth and his entrepreneurial experience. He explores philanthropy, impact investing, and building businesses focused on combining social good with financial success. This evolution reflects his growing awareness of the limitations of his previous pursuits and a desire to utilize his skills and resources for a more meaningful purpose.

Practical Tips

• Automate your savings by setting up a direct deposit from your paycheck into a separate savings account. Determine a percentage of your income that you can comfortably save each month and make the process automatic. This strategy helps you build savings consistently without having to think about it each month. For instance, if you decide to save 10% of your monthly income, set up an automatic transfer for that amount to go into your savings account on payday.
• Implement a "One-for-One" habit, where for every benefit you receive, you give something back to society. If you buy a new book, donate one you've already read to a library or school. This habit ensures that your personal gains are always matched with contributions to the greater good, fostering a culture of sharing and reciprocity.
• Create a 'Pay It Forward' investment chain by providing seed funding to a promising entrepreneur with the agreement that they will invest a portion of their future profits into another new venture. This creates a sustainable cycle of investment and support within the entrepreneurial community, amplifying the impact of your initial contribution.
• Volunteer your skills to a social enterprise or nonprofit organization. Identify your strengths, whether it's marketing, finance, writing, or another skill, and offer pro bono services to organizations that are working towards social good. This not only provides valuable support to these organizations but also gives you firsthand experience in the sector, helping you understand the challenges and opportunities of combining social impact with financial sustainability.
• Engage in role reversal exercises: Pair up with a friend or family member and discuss a limitation you've faced. Then, switch roles where your partner acts as you and you act as an observer or advisor. This exercise can provide fresh perspectives on your limitations and potential solutions that you might not have considered from your own viewpoint.
• Start a micro-project that addresses a small, specific problem in your community using your resources. This allows you to see the direct impact of your efforts and can be as simple as using your garden to grow vegetables for a local food bank. The key is to choose a project that is manageable and aligns with your interests and abilities.

The Author’s Personal Journey of Growth and Self-Discovery

Evans embarks on a solo cross-country bike ride to decompress after leaving Grubhub. He uses the journey as a chance to contemplate his life, experiences, and aspirations for the future. He documents his observations of the nation and its diverse communities, recognizing the stark differences between vibrant towns and those struggling to survive amid economic hardship and changing demographics. Through conversations with strangers and solitary introspection, he learns about himself, his core beliefs, and that he must balance ambition with personal authenticity.

Gaining Perspective Through the Cross-Country Cycling Trip

Evans’ cycling journey acts as a catalyst for self-discovery. He utilizes the arduous journey to confront his personal shortcomings, including his tendency to be impatient and quick to anger. He begins to value the resilience and generosity of diverse American communities. This experience highlights the importance of venturing outside comfort zones, seeking new perspectives, and connecting with one's surroundings to gain a deeper understanding of oneself.

Context

• Engaging with local communities along the journey can offer new insights into human kindness and the importance of social connections.
• Being immersed in natural landscapes can have a calming effect, reducing stress and promoting a more balanced emotional state, which aids in addressing personal shortcomings.
• Successfully navigating new experiences can boost self-confidence and encourage further exploration and risk-taking.
• Stepping outside familiar environments disrupts habitual thinking patterns, allowing for new perspectives and innovative problem-solving approaches.

Embracing Patience, Stillness, and Listening

During the physical demands and solitude of his bicycle ride, Evans discovers the importance of patience and stillness—traits often lacking in his fast-paced entrepreneurial life. He learns to reduce his speed, appreciate the moment, and listen attentively to the stories of those he encounters. He utilizes his newfound time and freedom to engage in deeper conversations, understanding the anxieties and hopes of those living in communities far removed from the hyper-competitive world of entrepreneurship and VC. He recognizes the value of these interactions, acknowledging their role in his own personal growth.

Context

• The act of cycling can be a form of mindfulness practice, where focusing on the present moment and the rhythm of movement helps develop a sense of stillness and patience.
• Being present and attentive can improve personal relationships by fostering better communication and empathy.
• Exposure to various storytelling styles enriches Evans's own ability to communicate effectively and compellingly.
• Engaging in meaningful conversations helps in building genuine connections and relationships, which can be personally enriching and provide a sense of belonging.
• There may be a stronger emphasis on traditional values, community support, and relationships, contrasting with the individualistic and success-driven culture of entrepreneurship.
• Learning from the challenges and triumphs of others can inspire resilience, encouraging Evans to apply similar perseverance and adaptability in his own life.