I recently had the pleasure to interview David Nilssen – who is without a doubt, a very impressive Young Entrepreneur!
David Nilssen is co-founder and CEO of Guidant Financial Group, Inc. Guidant helps aspiring entrepreneurs to invest their retirement funds into a business or franchise without taking a taxable distribution or incurring penalties. A strong believer in broad diversification and hands-on investing, Nilssen is regularly invited to speak at top venues throughout the country as a leading expert in alternative small business financing. Along with his 100+ employees, Nilssen has helped nearly 6,000 individuals use their retirement funds to invest in alternative assets.
Under his leadership, Guidant was named the 6th fastest growing company in WA, and is currently known as the largest provider in the franchise financing industry. Its success has earned the company top national and regional recognition, including: U.S. Chamber of Commerce Blue Ribbon Small Business (2007 & 2008); Bellevue Chamber of Commerce Eastside Small Business of the Year (2007); Washington CEO Magazine Best Companies to Work For (2007 & 2008); and U.S. Chamber of Commerce NW Small Business of the Year (2007). In 2008, his firm was included on the Inc. 500 list (#384).
In 2007, the Small Business Administration (SBA) named Nilssen the national Young Entrepreneur of the Year award, and the Puget Sound Business Journal named him one of the top 40 entrepreneurs under 40 years of age. In 2008, Ernst and Young named him a finalist for their coveted Entrepreneur of the Year award.
An avid investor himself, Nilssen has purchased millions of dollars in real estate and helped to initiate many businesses within the service industry, including a real estate agency/property management firm and real estate development company. Nilssen, and his company, have been highlighted in media sources such as CNBC, Fortune Magazine, The Los Angeles Times and The Wall Street Journal.
1. What is the start-up story behind your business venture?
I was developing real estate in Bremerton, Wash., in 2002. The market was prime! That year, a friend introduced me to a real estate broker from Bellevue, Wash., who had built a business around helping investors find both speculative and income producing properties. Soon after meeting, we decided to work together on a major real estate project – one that required more capital than we had. When we asked our attorney for her advice on raising additional funds, she suggested we look at self-directed IRAs as a potential source of investment capital. Although it was still a fairly new concept to her, she explained that one could actually invest their retirement assets in real estate without taking a taxable distribution or incurring penalties. I specifically remember looking across the table at my business partner and thinking “What?!” If that was true, I could see it being huge for my real estate development business.
That meeting with our attorney launched a frustrating research and development project. It was frustrating because there were only a handful of companies that provided “real estate IRAs” and they all had different interpretations of the laws, their fees were expensive, and their processes were slow and complicated. After some heavy duty research and paperwork, we finally got a handle on the process and helped one person invest their IRA funds in one of our projects. We were amazed – and so were they, when they got a fantastic return in less than 12 months! Word got out, and the phone started to ring…. This business was started by an accident of fate, but we ran with it. We hired the right team and built a customer-centric organization around investing with self-directed IRAs. Six years later, we made the Inc. 500 list!
2. What is your definition of success, and has your company achieved it?
Have we achieved success? Sure – a level of it. Our clients have been very successful because we’ve given them access to alternative investments and to a level of personal financial control many never knew was possible. To me, their success is also ours. I have an insatiable appetite for both personal and professional development, and I’ve been privileged to watch Guidant play a role in this development in clients and employees. Despite inevitable ups and downs, my belief in our mission and the viability of our products remains as high as ever. While we have definitely achieved a high level of success, I believe we will enjoy even more success in the future.
3. To what do you attribute your company’s recent achievements?
I believe our achievements are due to the fact that we hired a great team, focused on our customers as unique individuals with unique needs, and we continue to invest in scalable technology. Each year we realize productivity gains because we continue to improve our customer experience without having to scale overhead.
4. What 4 pieces of advice would you give to aspiring entrepreneurs?
A. “Don’t take yourself so goddamn seriously.”
Although it can apply to all aspects of life, when it comes to business, this quote by Ben Zander is one of my very favorites. I often find that too many new entrepreneurs are afraid to be wrong, or they’re not open to outside feedback or employee perspectives. You don’t have to do it all, you don’t have to pretend you’re invincible, and it’s okay to be wrong!
B. Invest in technology so your business can scale!
It seems expensive at first, but if it’s done right, it will pay significant dividends as your business grows.
C. Hire potential first, experience second.
Some of the greatest hiring investments we ever made were in people who had infectious energy, tremendous ambition and a passion for teamwork and excellence.
D. Have fun.
I have to include this! You spend more time at the office than you do with your family. So believe in what you do, love those you work with and enjoy the time you’re there. If you don’t, then it becomes just a job — one with 100 times the stress!
5. Describe/outline your typical day?
5:30 a.m. Wake up and have breakfast
6:15 – 7:30 a.m. Work out at the gym
8:00 a.m. Head to work after grabbing a Starbucks and a newspaper
8:00 – 9:00 a.m. Work on projects for the Seattle Entrepreneur Organization (I’m a Board member)
9:00 – 11:30 a.m. Attend various meetings, participate in conference calls and respond to email
11:30 – 1:00 p.m. Lunch (Generally a meeting)
1:00 – 2:00 p.m. Catch up on email (It’s never-ending!)
2:00 – 3:00 p.m. Have one-on-one’s with staff
3:00 – 4:00 p.m. Research and write for blogs or articles
4:00 – 5:00 p.m. Re-cap with senior executives
5:00 – 6:00 p.m. Plan for tomorrow’s meetings
6:00 – 8:00 p.m. Dinner
8:00 – 10:00 p.m. Catch up on TIVO or read a book
10:00 p.m. Head to bed and think about where the next phase of growth will come from, how we stay ahead of our competition, what training to give staff… Eventually I get back up about 11:30 p.m. and start responding to email again. An iPhone is dangerous for insomniacs!
6. Where did your organization’s funding/capital come from, and how did you go about getting it?
We started Guidant with less than $10,000 and a couple of laptops. The company was cash-flow positive from the get-go. Recently, a few of our executives asked to invest in the company. We felt like this was a great example of a team truly believing in the company’s potential, so there are a couple of convertible notes outstanding.
7. What stops you from throwing in the towel and giving up during those frustrating days of running your business?
You get frustrated because you are not seeing the results you want and that you know are possible. If you sincerely care about the business, then you generally don’t want to throw in the towel. There is a greater responsibility that an entrepreneur feels. If you are a great entrepreneur, you recognize it’s not all about you. It’s about your staff, your clients, your partners – and then you. If you are a servant leader, giving up is never an option.
8. Do you believe there is some sort of pattern or formula to becoming a successful entrepreneur?
* Be manically focused on your vision
* Hire great people
* Love what you do
* Do the right thing no matter what
9. Who has influenced you most and been your greatest inspiration?
There have been so many!
My grandfather was an amazing man. As an Oakland, Calif. police officer he saw the worst side of people and yet he always seemed to see the good in others. He was a dedicated husband, an amazing father, a charitable person and a good friend.
When I need a personal pick-me-up, I turn to Anthony Robbins. His message is phenomenal – it’s not what happens to you but how you respond to it. It’s your choice. You have the ability to determine your “state,” and I try to remember that every day.
Ben Elowitz at Wetpaint.com has been a tremendous mentor to me. Ben started FatBrain.com, an online bookstore that eventually sold to Barnes & Noble. Then he co-founded BlueNile.com, which he sold via an IPO. Ben has taught me that only I get to determine how much I can accomplish.
10. What book has inspired you the most?
I read Rich Dad, Poor Dad by Robert Kiyosaki when I was 20. I quit my job three months later and have never had (as my grandfather would say) a “real job” since. Although it is definitely not my favorite business book, it does provide a simple explanation as to why owning a business is the greatest investment on the planet.
A great book I’ve recently read is The Breakthrough Imperative. It’s a phenomenal book about how great managers get tremendous results. It was written by Mark Gottfredson and Steve Schaubert who are both directors for Bain and Co.
11. How do you go about marketing your business? What has been your most successful form of marketing?
Our marketing budget is heavily weighted toward channel marketing. Our business helps people buy alternative assets inside their retirement plan. The two most common investments made by our clients are real estate and small businesses. Because of that, we spend a tremendous amount of time building relationships with professionals who are involved in those types of transactions. (i.e., real estate agents, business brokers, etc.). Search engine marketing is also a major part of our promotional efforts. Lastly, we have a comprehensive content strategy that has allowed our web site to increase its value for natural searches.
12. In one word, characterize your life as an entrepreneur.
Unpredictable.
13. Excluding yours, what company or business do you admire the most?
Earlier I mentioned Ben Elowitz and his company WetPaint.com. I am enamored with Wetpaint because of its ability to allow anyone – especially those without technical skill, to create and contribute to web sites written for – and by, those who share a passion or interest. To do this, Wetpaint combines the best aspects of blogs, wikis, forums and social networks so anyone can click and type on the Web. They have created well over a billion websites in just two years off their platform.
14. How do you achieve balance in your life?
Ha! That’s funny.
15. Where do you see yourself and your business in 5 years? 10 years?
Guidant Financial Group will continue to be a thought leader in small business and self-directed IRAs. Five years from now, Guidant will have many sister companies, all of which are focused on helping individuals and entrepreneurs take a more active role in their investments.
As for me – I will continue to be a board member for Guidant, but I do not see myself as the “Chief” much longer. Over the next few quarters, I will look to take on an evangelical role for the company which will allow me to do what I do best (and love to do!).
Guidant wasn’t my first business, and it certainly will not be my last. There are many more to come!
16. If we could introduce you to anyone, who would it be and why? (You never know who we know!)
That’s easy: Magic Johnson. I was a HUGE Lakers fan growing up, and Magic was/is my all-time favorite basketball player. He’s had phenomenal success, faced tremendous adversity and is a very successful businessman.
A very close second would be Anthony Robbins – mainly for the same reasons, but he also inspires and motivates me.
—————–
Adam Toren