John spent much of his young life moving from city to city as his father taught at different universities across the United States. He received a bachelor’s degree in environmental studies from UC Santa Barbara, studying a field for which he held much interest. During the real-world process of trying to get a job, however, John quickly discovered that “tech was a little more the reality.” He had taken several science and computer courses in high school, and had done some programming on his own.
By necessity, John changed his focus from improving ecosystems to managing information systems; from forest fires to firewalls; from protoplasts to protocols. He applied for jobs involving computer science wherever he could, preferring small businesses rather than big corporations: “You wear a lot of hats; I like the wide variety of skills you need to acquire and learn. Your effort counts more because you are one of fewer people, so there is an opportunity for anyone to raise a hand and say, ‘You know what, I’ve got an idea.’ In such circumstances, that idea can make a difference. Big companies are not as agile and fun, and I wouldn’t feel my individual effort count quite as much. I’ve always been an individual-contributor kind of guy.”
After being a part of several businesses that did fairly well, and others that failed, John once again looked ahead to needs of the future. He saw the world becoming increasingly interconnected through the Internet. The more that happened, John reasoned, the more they would care about their security. Pretty soon it wouldn’t just be the Pentagon that had secrets at stake; everyone would want to protect their information systems from unwanted intruders. Given his strong work ethic and uncompromising stance on integrity, he successfully utilized contacts through his previous business associations to connect with potential clients. He explains, “I worked really hard and had credibility as a straight shooter and a guy who was trying to get things done.”
John initially did projects at companies for free in order to get feedback and to build a strong client base. Upon establishing his reputation, he began to charge for his services. This became a difficult period filled with 70- to 80-hour workweeks; he well realized that he could be making more money for less time by working for someone else. He eventually discovered that “the work pays off. You have this dream and it comes to be. We didn’t do a venture-capital thing here. I wanted to do this grassroots.” Just like the plant life he had studied in college, John’s company started off small and fragile before it flourished. He began in 2001 by doing all the sales and grunt work from his house. Redspin soon became successful enough that he was able to hire friends on a part-time basis, then several full-time engineers. Four years later, the company supported a full-fledged sales team and infrastructure.
Redspin employees have 100% ownership of their business. From 2001-07 the company’s revenue has doubled every year. Ask John to compare himself to other successful business entrepreneurs, and he humbly deflects the question, describing his approach as “bootstrapping”— having some assets and liabilities that are not there if you get venture capital for your start-up. “You have no funds upfront, so you’ve got to sell it. You are only as good as your last sell, so everything is sales driven. You really are forced to evolve what you are doing according to what customers will buy. There’s not a lot of dreaming going on; you’re living in the real world.” He contrasts this idea with businesses that raise venture capital and have the MO, “Build it and they will come.” He explains the problem with this approach—there is much less flexibility in how you operate. If you are wrong on what customers want, then you will run out of money, get diluted, and eventually go under.
Up-and-coming entrepreneurs would do well to emulate his philosophy, as simple as it is profound. “At Redspin, we feel that if you do good work, have integrity and build a good brand, you’re going to go nowhere but up.”
When asked about what he is most proud of in his life and company, John responds reflexively, in the tone of an unapologetically doting parent: “Our team.” This son of a UC Berkeley professor explains, “There is probably not a single person here dumber than me. I’ve let my ego out of the way, and am happy to have people around me who are a lot smarter than I am and know a lot more.”
Wise words from a man with strong bootstraps.
Written by: Joshua Rigsby
