Founders Only

A weekly newsletter written by John Hancock, serial entrepreneur and most recently Co-Founder of Stonks (Now Sandhill Markets). I’m no longer with Sandhill Markets and this newsletter is pretty much all I’m doing. There’s no hidden agenda, or at least not one that I’ve figured out yet 🙂 

I just want to give fellow founders some things to think about, some frameworks they can apply to their lives/companies today, and access to the latest hot hot SaaS tools that usually have a waitlist.

Let’s talk about this stuff:

1. The “Dynamics over Mechanics” Framework

2. “AI Startups and their investors are going to get crushed”

3. Some things to think about

The new “Dynamics over Mechanics” Framework

At its core, "Dynamics over Mechanics" urges founders and leaders to prioritize team interactions, relationships, and cohesion over the specific processes or methods of problem-solving. While mechanics can be essential, they are amplified to their highest potential when carried out by a well-functioning, harmonious team.

The Genesis of the Concept

My new (mostly stolen) framework is an amalgamation of two established thought models:

“Work the Team, Not the Problem”:

Championed by the legendary Bill Campbell (Described in the book “Trillion Dollar Coach”), this approach emphasizes focusing on team dynamics and interpersonal relationships. Bill believed that a cohesive and trusting team is the foundation for overcoming almost any challenge.

“Who, Not How”:

Popularized by Dr. Benjamin Hardy and Dan Sullivan in the book “Who Not How”, this model shifts one's mindset from "How can I solve this?" to "Who can do this for me?". Instead of being bogged down with every task, leverage the expertise around you.

Why Embrace "Dynamics over Mechanics"?

Collaborative Strength: When team dynamics are prioritized, individual strengths are amplified, leading to solutions that no single person could have reached alone.

Efficiency & Innovation: A harmonious team naturally fosters an environment where groundbreaking ideas emerge.

Sustainability: Investing in team dynamics ensures not just one successful project, but paves the way for continual successes.

I made this crappy table to highlight some contrasting features of “Dynamics first” versus “Mechanics first” thinking. Hopefully, this will help you decide which is right for you and your organization.

Action Steps:

Foster Open Communication: Encourage team members to voice their thoughts, concerns, and ideas. Diverse perspectives often lead to the best solutions.

Invest in Team Building: Beyond mere team outings, genuinely invest in strengthening interpersonal relationships and trust.

Delegate with Trust: Recognize that you don't need to have all the answers. Find the right "Who" within your team and empower them.

As you navigate the complexities of startup life, remember that while mechanics are important, it's the dynamics that truly drive success. After all, the best solutions often emerge not from solitary genius but from collective brilliance.

“AI startups and their investors are going to get crushed”

Sam Lessin (Slow Ventures) recently published his “State of VC in 2023” Newsletter (download the full doc here) and gave a matter-of-fact explanation of why “Mom and Pop” businesses and large enterprises will see the greatest benefit from AI while startups and SMEs will “Get crushed”.

He even drew us this pretty picture:

Summary:

I’ll do my best to summarize his take on why startups will lose the “AI Arms Race” to the big incumbents:

• AI Technology Pace: AI evolves quickly, making it hard for startups to maintain a competitive edge.

• User Switching: Users readily shift to newer, superior AI tools, undermining loyalty.

• Cloud Comparison: The AI trend resembles the cloud boom; users learned from past experiences and won't be confined to one provider.

• Platform Commoditization: Giants like Amazon commoditize services, yet users diversify their tool use, diminishing potential profits for individual companies.

• Data Portability: With data portability laws, competitive advantages can be easily transferred among AI platforms, leveling the playing field.

💭 Some things to think about:

• You might benefit from journaling. My grandparents used to tell me I should keep a journal. I never even tried it until this year and just like they predicted, I regret not starting sooner. I’m a big fan of rosebud which acts like a journaling guide (like guided meditation…but for journaling). I LOVE the weekly summaries that paint a picture of what I’m thinking about and prioritizing. Give it a try!

• You need cheap & easy meals that are high in protein. You don’t always have time to cook and Doordash will bleed you dry. This is your weekly reminder to grab some frozen dumplings or something that are ready in a few minutes without making a mess.

  I’m a huge fan of these Korean beef bulgogi dumplings sold at Costco:

• You might need a better browser. Using Chrome/Safari/Firefox just won’t cut it anymore. Arc is out of Beta (and no longer has a waitlist) so please give it a try if you care about productivity, speed, and organization. It’s free!

• ChatGPT is officially mobile. You can stop using cobbled-together shortcuts and sketchy 3rd party apps. Grab that from the iOS app store and have fun voice chatting! It’s honestly an amazing way to learn new stuff while driving. Ask it about a topic and keep asking as many follow-up questions as you want, all through your car’s Bluetooth.

• You need to participate in a community. This one is pretty simple, really. There is zero chance you’re better off NOT having like-minded people to socialize with. When you’re in the thick of it with your startup, it is easy to de-prioritize things like social interaction and participation in a community. There are hundreds of studies that will tell you NOT to do this. You think more clearly and hold yourself to a higher standard when you’re a member of a community.
  I happen to be a big fan of Hampton, but find the community that’s right for you and dedicate some time to consorting with your new friends :)

Thank you for reading, I love you all 💌 
- John Hancock
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P.S. — If you don’t want this newsletter, I totally understand. No hard feelings. Hit that unsubscribe button in the footer and I won’t even track you down. However, you should know that next Thursday (11/02), readers will get exclusive instant access to a very exciting SaaS tool that is invite-only / waitlisted. Just saying :)