Hello there,
It snowed last weekend in Portland and we took our 1-year-old cross-country skiing. Did she have fun? Not exactly. But do I love re-reading the same kid’s books each day? It’s good to share the things you enjoy with the people you love.
We are in the season of short days and long nights so keep those headlamps handy (I love the itty bitty Petzl E+LITE). Two weeks from now will be the shortest day of the year, which means two weeks later the days begin to lengthen. You’re gonna make it!
I set up some indoor and outdoor lights on timers to make nighttime feel more festive.
i. The Power of a Terrific Tag Line
I recently found the delightful story of Swytch eBike conversion kit. The inventor / founder Oliver Montague discovered electric cycling technology during an engineering internship at Jaguar.
He arrived at work on his bike one day at the same time as the CEO rode up. While Oliver was dripping with sweat, the CEO, in his fine suit, looked perfectly comfortable. The difference was an electric modification to his bike.
Oliver started selling motors and kits on eBay that he purchased from manufacturers in China. His business generated $100,000 in the first year, but he only kept 10% in profits.
Even after Oliver grew his website to include 30 different products he couldn’t make much money. He needed to simplify his product offering to reach a larger scale.
By combining cycling bags with the existing electronics, Oliver devised a handlebar bag with a battery and controller to plug into a front wheel purchased from his store. He completed the design and traveled to China in 2017 to find meet with a manufacturer.
At the factory, he ran into a competitor with ten times more sales than Oliver. This guy had zero technical knowledge and as a result his products had serious quality problems. In response to Oliver’s engineering advice, the guy chided him for being wrong. Oliver realized his own lack of marketing and sales skills held him back from greater success.
Stepping up to the challenge, Oliver put all his energy into a crowdfunding campaign for Swytch – the world’s smallest & lightest eBike kit – certainly a tagline that catches my eye! Four months later his crowdfunding campaign on Indiegogo closed with over $1 million of support.
Today he has sold over 15,000 units! They are working on the latest version of the Swytch kit, which features an easy handlebar mount to swap the battery for recharging.
Why did I like this story so much? Because it shows the limit to engineering skills. Once you invent valuable, unlocking the marketing and sales piece of the equation allows you to reach a broader audience and build a brand.
Listen: Oliver Montague of Swytch Bike | Bike Rumor Podcast (2021)
ii. The Ladders of Wealth Creation
Certain ideas bubble up in my mind over and over. One idea relates to filling in the skill gaps you didn’t know you had, which comes from Nathan Barry, writer, designer, and founder of ConvertKit.
During a cold but sunny run last spring I listened to a conversation where Nathan Barry described making money as a skill, like playing drums or piano.
You build it up over time and each piece of music you play gets progressively harder. The next song challenges you to learn a different skill set.
Nathan uses the analogy of ladders of wealth creation, each requiring a different knowledge. As you increase your skill level you can jump from one ladder to another, even though sometimes that means making less money for a while.
You need different skills to work an hourly job or build a consulting agency or start a software company from scratch.
Nathan presents various business models that free you from trading your time for money. But it can make sense to take a paycheck as you build up your skills.
As I continue to work in a full-time position, I appreciate Nathan’s arguments for how it prepares you to build wealth in the future.
- Getting started or learning a new skill – if you have zero skills in the industry you want to work in you can get paid to learn. Cal Newport talks about this as building “career capital”
- Bringing the next ladder closer – you can use the time while in a salaried position to buy the tools, training, or even save up to afford the time off for that next step!
- Build relationships and find mentors – working with people that inspire and challenge you has tremendous benefits. Keep a salaried job if it connects you with these people, who can help you build a product or service business later down the line.
Read more: The ladders of wealth creation | Nathan Barry
iii. Top Brass Nuggets
- A team at MIT builds modular robots that assemble themselves into larger structures
- A non-profit in Portland replaced payphones with open-source hardware to make free calls
- Jeff Sheldon demonstrates the power of brand loyalty with Gather – raising $240k (so far) on Kickstarter for desktop organizers
- This smart watch blood pressure monitor inflates on your wrist with $443k raised so far BP
- Graham Zimmerman makes the first ascent on a 2800 ft wall in Alaska
- From the Streamy Award winner Tom Scott – this town in France has a functioning treadmill crane
- Breathtaking backcountry peaks, incredible ski footage, and an electrifying soundtrack featuring Cole Richardson
One Thing from Me
In the time of giving, if you feel a little burnt out on physical things, I endorse writing nice notes.
One of my favorite people, Adam Grant – author, psychologist, and top-rated Wharton professor – shares a story of writing heartfelt letters to 50 people to explain their positive on his life. And it not only made them feel good, but Adam felt more cheerful for several months!
If you prefer some consumer goods ideas, my favorite list comes from the writer of the #1 product and business newsletter – Lenny’s Holiday Gift Guide.
And if you’re curious to discover some unnecessary products that still somehow make you wonder “huh, is this what I’ve been missing my entire life?” – check out a few #AmazonFinds videos on TikTok.
Thanks,
Jono
PS – did you know metal has a memory?
PPS – here’s one way to seem interesting this holiday season
