Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You 213 Comments

Written by Topics: Mental Performance

The sky is falling!

Ever since the media’s Chicken Little response to the tremors in the financial markets, I’ve felt like shouting from the rooftops “now you know how it feels to be an entrepreneur!”

I just lost 9% overnight?! Fill a bathtub and get the toaster. I’ve had enough.
Wait… I actually gained 13% while in the bathroom? I’m f**king Superman!

This is a guest post on capitalizing on — vs. countering — the “entrepreneur’s disease” (manic depression) through 4 cyclical stages. This is done by pairing appropriate activities to specific — though not necessarily positive — emotional states…

The author is Cameron Herold, former COO of 1-800-GOT-JUNK, whose professional resume includes:

-Helping build revenues from $2 Million to $105 Million in 6 years (no debt or outside shareholders)
-Building a PR team that landed more than 5,000 stories in those same 6 years
-Hiring 220 people in 4 months
-Leading the sale, branding, and integration of 450+ franchise locations.
-Teaching his psychological theories at the Entrepreneurial Masters Program at MIT.

I first saw this presentation at an Entepreneurs’ Organization (EO) event in Omaha prior to my successful Warren Buffett quest at the annual Berkshire Hathaway shareholders meeting.

I encourage you all to read this, especially with the fear mongering that is just getting started.


Skip CNN and just watch 4:08 – 5:00 over and over.

Cameron:

Marc Andreessen, co-founder of Netscape, once wrote:

“First and foremost, a start-up puts you on an emotional rollercoaster unlike anything you have ever experienced. You flip rapidly from day-to-day – one where you are euphorically convinced you are going to own the world, to a day in which doom seems only weeks away and you feel completely ruined, and back again. Over and over and over. And I’m talking about what happens to stable entrepreneurs. There is so much uncertainty and so much risk around practically everything you are doing. The level of stress that you’re under generally will magnify things incredible highs and unbelievable lows at whiplash speed and huge magnitude. Sound like fun?”

Many ultra-successful entrepreneurs are even clinically diagnosed as manic-depressive or bi-polar. Francis Ford Coppola has it. So does Ted Turner.

This article is about the emotional intricacies of being an entrepreneur – about what you’re going to feel during the journey.

The concept that we’re going to examine is called the Transition Curve. It resembles a rollercoaster.

Regardless of whether or not you believe you will ride an emotional rollercoaster running a business, you will. You have two fundamental choices: you can hold on and scream, or you can wave your hands in the air and have some fun.

I’m going to walk you through these different analogies, but let’s first look at the various stages of this process, which repeat.


* Stage 1: The first stage of the concept is called “Uninformed Optimism”. At this stage on a rollercoaster, just getting to the top of the rollercoaster, you experience feelings of an adrenalin rush, characterized by excitement and nervous energy.

* Stage 2: The second stage is called “Informed Pessimism”. As you ride over the top of the curve you now have a bit more information. Feelings of fear, nervousness, and frustration begin to set in. Perhaps you even want to get off of it.

* Stage 3 – The third stage is called “Crisis of Meaning”. You’re past scared. You feel despair. It’s as if you’re standing on the edge of a cliff ready to jump, and you begin to think “Today the rollercoaster’s going off the bottom of the track for the very first time.” You feel helpless and you’re both terrified and frozen.

* At this point, you face a critical juncture. You can come off the bottom of the curve and crash and burn, which is when your business goes bankrupt, you lose your marriage, you start drinking, or you end up in a doctor’s office because of stress. Or you can come around the corner because you’re getting support at “Crisis of Meaning” and you can enter an upward swing call “Informed Optimism”.

* Stage 4 – Informed Optimism. You’re calm. You’re informed. You might even say you are cautiously optimistic.

Capitalizing on All Emotional Phases — Activity Pairing


Here is the critical point – at each stage of the curve, you can do things to leverage the feelings and energy — positive or negative — that you have at that moment. Fighting against these phases is like working against a natural force.

Stage 1 – Uninformed Optimism

As an example – at Stage 1 – Uninformed Optimism – it’s both a great place and a dangerous place to be for your business, depending on what you are working on or in at that time.

When you’re starting your business, you have seed financing, some friend and family money, or you’ve just started the business with $50 in your pocket. You can start a business without a lot of money directly because you’re benefiting from uninformed optimism. You can take risks when you’re feeling like this. Because you’re so full of excitement you don’t really know what’s coming yet. So you’re uninformed and your fully optimistic – or you wouldn’t have started.

When you’re at Uniformed Optimism you should be doing things like:

* Talking to the media. Imagine if a newspaper calls you when you’re at that stage of uninformed optimism. How’s your media interview going to go? It’s going to go amazing because you have unbridled excitement and big thinking.

* Talking to potential investors. That’s why everyone was investing through the 90s with the dotcom bubble. The entrepreneurs were so full of uninformed optimism and enthusiasm.

* Doing speeches in public – the audience will love you.
* Recruiting new employees – they’ll all want to work for you.
* Networking for new clients – who wouldn’t want to buy from you?

When you’re at Uniformed Optimism there are also some things you should avoid doing:

* Spending money is a bad thing to be doing at this point. Because when you are really excited and full of optimism you think nothing will go wrong. The last thing you want to be doing is spending all this money because the reality is – at some point, you’ll cross the curve and discover harsher realities.

* You don’t want to be doing business planning
* You don’t want to be working on your budget
* You don’t want to be making buying decisions
* You don’t want to be making hiring decisions
* You don’t want to be doing your accounting, or your bookkeeping.
* Anything that requires you to be making financial decisions or planning logical shouldn’t be done when you’re at the manic energy or uninformed optimism stage.

Remember that when you’re at that uninformed optimism stage, anything that’s outward facing — talking about your company, selling the story, raising money — is well-matched. Simultaneously, at that stage, you don’t want to make buying decisions, or hiring decisions, or planning decisions, or budgeting decisions.

###

Stage 2 – Informed Pessimism

At Stage 2 – Informed Pessimism – you have more information now. You’re not as excited as you once were. Coffee is helpful to get you started. You are worrying at times. You aren’t depressed or scared – but you’re somewhere in between scared and excited. You’re just a little bit pessimistic now. The great aspect of this stage is that it prevents you from making careless mistakes due to overly optimistic thinking.

When you’re at Informed Pessimism you should be doing things like:

* Planning the next phase of your growth
* Intermediate-term strategic planning
* Budgeting, as you’ll be more realistic
* Purchasing things like advertising – you’ll be careful with where you spend your money and will not over-purchase advertising based on exuberant pie-in-the-sky sales forecasts.

When you’re at Informed Pessimism, there are also a few things you should absolutely avoid doing.

Do not:

* make hiring decisions.
* talk to the media or do speaking events.
* work in roles where being excited would help you get a better result – wait until things turn around emotionally for you.

Stage 3 – Crisis of Meaning

This is a scary stage and can feel like you’re standing on the edge of a building needing to jump. It will feel like all the odds are stacked against you and that everything is going wrong. It will be hard to get out of bed in the morning. Sleeping at night will be close to impossible due to worries and fear. You’ll feel like you’re paralyzed and can do little more than clean your filing cabinet drawers successfully.

When you’re at Crisis of Meaning you should be doing things like:

* Cleaning your filing cabinet drawers – seriously. Doing a few little things can often perk people up.

* Reaching out to your support groups like friends, family, your church, groups like the Entrepreneurs Organization etc. to ask them for help, advice or to just lend an ear.

* Trying to set your TOP 5 daily and only work on the most important items each day.
* Taking breaks and going for walks, getting exercise, getting outdoors.
* Writing lists – lists about what you are strong at, lists about what you love – make lists that, when you read them, will help rebuild your confidence.

* Realizing that many others have been in this exact same place and usually turn the corner, just like you will.
* Remembering “The Little Engine That Could” – I think I can, I think I can – it can take time, but things will rebound.

When you’re at Crisis of Meaning there are also some things you should absolutely avoid doing:

* Don’t talk to others who are depressed.
* Don’t talk to others who are “half empty” types

* Don’t take any “all-in” Vegas poker type risks where you put everything on the line hoping for a big win.

* Don’t try to “rally the troops.” Your employees, the media ,etc. will all smell fear. And your fear will lead to making things worse

* Don’t turn to the bottle. Vices during stages of depression will lead to you spiraling out of control.

* Don’t think that you can “handle it” all on your own. You can’t. And when people “need” others, your true friends really will be there to support you.

* Don’t try to learn more. Reading books and magazines about how to be successful or how to grow your company will only make you feel worse about your current situation. They’ll just make you feel even more bogged down. Reading stuff like this is great when you round the corner though.

Stage 4 – Crash & Burn

I don’t really waste any time explaining this stage or what to do here – because if you slide off the curve, here it really is over – the company is done and/or so are you in the role leading it. Usually this is bankruptcy or forced sale, etc..

Stage 5 – Informed Optimism (or Hopeful Realization)

This last stage is much like when the little engine that could turned the corner – and realized “he did”. You’ll start feeling excited and energized again. You’ll start rebuilding your confidence. And you’ll start to feel momentum working in your favor again. You’ll also have a lot more insights and experiential learning to draw from. You’ll realize you have more competence and confidence than before and everything will start to go your way again.

When you’re at Informed Optimism you should be doing things like:

· Hiring
· Strategic Planning
· Reorganization of your team – putting the right people in the right seats
· Cutting the wrong people
· Generally getting everything in order to really start growing again.

When you’re at Informed Optimism there are also things you should avoid doing:

· Don’t lose focus.
· Don’t let your confidence slip.
· Don’t get cocky or you’ll fall backwards off the curve.

Conclusion

This cycle repeats itself. Enjoy the ride instead of fighting it.

Guest author Cameron Herold’s training modules are used by CEOs and companies in more than 15 countries.

Posted on October 3rd, 2008

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213 Comments

  • Jose Castro-Frenzel — October 3rd, 2008, 4:33 pm

    Awesome Points!! But, what can one do to find a balance between these various stages?

    Best

    Jose

    Reply

    • ET — February 10th, 2013, 1:05 am

      I think you can’t actually find balance during these stages…. that’s the point in knowing what to expect because that’s what the entrepreneurial journey requires. One phrase that helps me take the edge off a little is this: If you are going through hell… keep going…

      Reply

  • Rob — October 3rd, 2008, 4:46 pm

    Totally awesome read. I feel that this curve applies equally to any type of emotional/intellectual growth; not just entrepreneurial endeavors.

    (Errata: In Step 5, you wrote “Uniformed Optimism”, possibly in error.)

    Reply

  • Money for Veterans — October 3rd, 2008, 5:00 pm

    Nice points in there. I especially like these, mentioned during the ‘Crisis of Meaning’ section:

    * Don’t talk to others who are depressed.
    * Don’t talk to others who are “half empty” types

    Surrounding yourself with positive role models would definitely be important during this stage of the cycle.

    Reply

  • Adam Rice — October 3rd, 2008, 5:23 pm

    Mmmm, this post is like a drink of water in the desert. When you’re zipping downwards and you can’t see the bottom and the ride just keeps getting faster, and faster. But there’s a choice. I can hit the bottom and fail, or turn the downward momentum back into upward momentum.

    Tim. Dude. Thanks. I REALLY NEEDED THIS POST.

    I also like the dos and don’ts at each stage and the reminder that I’m not insane…just on a roller coaster! ;)

    Reply

  • Robert — October 3rd, 2008, 6:19 pm

    Very timely post, thanks Tim!

    Reply

  • Dana Gundlach — October 3rd, 2008, 6:23 pm

    Ah yes, the highs and lows of business. Tim you are right, the financial issues we are facing is just like running a business. And as you can see in the media and the people on the streets, not everyone should be business owners. It takes a certain type of person that loves to thrive on stress. It is funny, because you physically have to experience the Transition Curve to really get it. That first time is a B*tch…

    Good Luck,

    Dana

    Reply

  • Amber — October 3rd, 2008, 6:46 pm

    Synchronicity! This was the perfect read at the perfect time for me. Thanks to Cameron and Tim for bringing this to my attention.

    Reply

  • Bill Ayers — October 3rd, 2008, 7:06 pm

    Being a business owner and entrepreneur of 15yrs I definitely relate to this cycle. Another great source around this topic is Seth Godin’s “The Dip”. He looks at the cycle and shows how to choose which times to bail out or keep digging. It has added a lot of insight into deciding which endeavors I start. And when to get out.

    The main concept is to realize that this cycle relates to everything and to get out of the downswing takes effort and commitment. So decide before you get in if the pay off is worth the effort, time, resources etc.

    Plus, it’s a short book you can read in an afternoon.

    Reply

  • Anders S. Vaerge — October 3rd, 2008, 7:14 pm

    Great post about building consciousness in entrepreuring – and a thing to add: Time.

    There is no fixed time, which you can say it takes to run through a cycle of this curve and its emotions. Sometimes you run though it in hours, sometimes it’s days, other times weeks or months – and maybe even years, but I haven’t tried the latter, though. Also, you don’t necessarily stay in the different stages for the same amount of time. Some stages are quickies, other take longer. The bottom-line is, don’t try to fight or skip it, don’t ignore it; respect where you are, by being conscious of which stage you are in, and act according to the great advice given above.

    Enjoy the ride.

    Reply

  • Jose Castro-Frenzel — October 3rd, 2008, 7:24 pm

    Nice ideas Bill. But sometimes you can’t always calculate how well things will go. There is an ever existing mystery to any endeavor you choose to take. Obstacles arrive differently for each and everybody, but how you respond will dictate the payoff. Just look at the commitment Sly Stallone made to acting before the big payoff arrived.
    Cool blog you have btw….

    Jose

    Reply

  • Parth — October 3rd, 2008, 7:30 pm

    Kinda reminds of a post I read on Testosterone Nation. I guess the psychology is the same for business as it is for fitness.

    Reply

    • Jakob — April 28th, 2013, 9:15 am

      I really think there are some parallels. Can you plese paraphrase your thoughts on this a bit more detailed?

      In fitness we build muscles what means you build up fat too. Or we burn fat what means we lose muscles too. So all is cyclic. The key to success here is to build more muscles than fat and too lose less muscles than fat in the phase when it is time for it.

      Reply

  • Carl Sherriff — October 3rd, 2008, 8:05 pm

    Thanks Tim, just what I needed today.
    A sense of humor can help as well. If you can muster one up!

    Carl.

    Reply

  • Doc Kane — October 3rd, 2008, 8:11 pm

    Wow. Wow. Wow.

    What an incredible, articulate way of defining what life is like for a lot of us entrepreneurs. One of the most intriguing aspects of Cameron’s observations – to me at least – is in looking back. Having gone through some of these stages already and seeing him detail it with such exactness is incredible. It’s so dead on, it’s almost scary, really.

    What would really be great though, is if our loved ones could read this post as well, to understand exactly what we’re going through at different points through the journey. So often, people believe that running a company is all peaches and cream, To the contrary it’s far from that, as Tim’s book attests, as does Cameron’s article and the testimonies of millions of entrepreneurs across the globe.

    Thanks for the affirmation, Tim and Cameron. It’s good to know that the struggles and successes of entrepreneurship go hand-in-hand, and are shared by many!

    Reply

  • John Bruscato — October 3rd, 2008, 10:44 pm

    Nice post!!

    I believe that everything is on a “roller coaster” similar to the one described above only slightly more complex.

    Instead of just an up – then a down – then an up again, I think was actually happens in many cases is there is an up then a super bad down (similar to the great depression) then a dramatic up, followed by many seemingly insignificant ups and downs, then a reset and repeat. The only different variable is how spaced out the waves are in time; and the waves can be spaced shorter in some places than in others depending on the endeavor. The bailout package that just passed the house would be a factor that would lengthen the time of a down cycle and possibly shorten the time of any up cycle. It would not be a factor that should significantly change the depth of either. In other words for the next 2 years the DOW might fall 20% and then in 2 months it might gain 20%. This major gain would be a reset and the DOW from there might fall another 20% and then cycle up again. Beyond the next 6 months to a year I cannot say with certainty what will happen, but I do believe we are headed south for the winter (minus any upswing after the election).

    I believe this model can be applied to all things. If you have the cognitive ability to do so, it can very well be applied to investing. Right now, I think the economy could be headed toward a reset. I really think that the next 6 months to a year will be interesting. Too bad politics have to get in the way of the economy. The political system of the economy is one of the most inefficient markets that exists, aside from dealing with females (no offense, but I think you all know that you are fickle creatures). Unlike the stock market, you cannot analyze who is in good standing with whom, or which company the powers that be favor with any significant degree of accuracy.

    The mass media provides us with all these pundits preaching that speculation is bad for the economy. I say the world is beautiful if you can figure out what may happen and you place your money where your ideas are–even if they happen to be wrong. The opposite is the equivalent of saying your are going to do something and not do it.

    These are interesting times, and there is more ahead. I wouldn’t recommend going all in just yet. You might observe the fluctuations of short sided securities for the short term.

    I think I need to get a blog.

    John

    Reply

  • Nathan — October 3rd, 2008, 10:48 pm

    Excellent Post! I’ve been through all of those phases and for the first time I bypassed the crash and burn and onto the informed optimism stage. This article really hits the nail on the head and does a great job at describing the process.

    Reply

  • Kasia — October 3rd, 2008, 11:16 pm

    Thanks so much for this post. Here I was thinking the manic-depressive feelings were something I should be worried about, when in reality I can use them to my advantage. Like several before me said, this was definitely what I needed to hear right now.

    Reply

  • PizzaForADream — October 4th, 2008, 12:42 am

    Man, can I relate to this!! It’s taken me years to get over the highs and lows and to achieve emotional stability despite what’s going on around me. The secret for me is to have a crystal clear “why” (dream) or motivation behind what I’m doing. The bigger the “why”, the harder it is to let the lows get you down!

    Reply

  • Dave Fowler — October 4th, 2008, 12:50 am

    Thanks Cameron.

    I’m finding that reaching Stage 3 – crisis of meaning – in both my career and my life at the same time is like finding a giant turd in the bathwater. I can continue for a while longer but it’s quite unpleasant and a little disturbing.

    I’m currently cleaning out my filing cabinet (and the bathwater).

    A useful article. Thank you.

    Reply

  • Mukund Mohan — October 4th, 2008, 1:25 am

    Great observations and a good post. Serial entrepreneurs will tell you this is the same curve for every of their ventures. It does NOT get any different with time. Only the second / third time around, you are more mature to know that you ought to take things in perspective.

    Reply

  • Amit Keshan — October 4th, 2008, 2:10 am

    I cannot believe reading this. Seems like my personal story is published. You made my day Tim. Cameron Rocks..

    Cheers!
    Amit

    Reply

  • Matthew — October 4th, 2008, 2:44 am

    I’m very glad you posted this. I’m nine months into a new, and first, business venture, and it couldn’t be more timely. Great to have a validation of how I’ve been feeling!

    Thanks very much. This should be required reading for everybody starting a new business.

    Reply

  • The Emotional rollercoaster ride - Tim Ferriss - Millionaire Entrepreneur Forum — October 4th, 2008, 2:45 am

    [...] your emotions or are the emotions controlling you? That is an important question to answer. Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You – The Blog of Aut… __________________ "Start something and keep innovating" – [...]

  • Entrepreneurial manic depression | Matthew Kimberley — October 4th, 2008, 4:06 am

    [...] Herold, of Backpocket COO, has published a fantastic guest post on Tim Ferriss’ excellent Four Hour Work Week [...]

  • AP — October 4th, 2008, 5:12 am

    What’s the definition of insanity? Doing the same things over and over again and expecting different results!- Albert Einstein

    I think we take ourselves too serious and I agree with Money for Veterans, except you should surround yourselves with positive thinking people at every stage of the entrepreneurial life cycle.

    Bill: interesting how you mention “The Dip.” I had trouble reading/listening to The Dip at first. The idea of quitting in my mind was always synonymous with failure, but then I realized that the old 80/20 rule is at play in every area of our lives. We simply can not do everything all at once without help and without careful trimming of what distracts us.

    We should be so fortunate to understand why we are driven to make mistakes. . .

    Reply

  • Richard Farrar — October 4th, 2008, 5:40 am

    All looks very straightforward in cold print, but the harsh realities are a bit harder to deal with when you’re in the thick of it and not everybody is cut out for the long ride. Excellent article though.

    Reply

  • Aleix — October 4th, 2008, 6:28 am

    This is a great post. I can totally relate to it! Thumbs up!!

    Reply

  • Allen — October 4th, 2008, 7:59 am

    Most things in life follow a similar curve. This was night picking up girls

    1. Uninformed optimism – Me and one other guy are driving 4 girls back to their hotel from a night of celebrating a 21st birthday
    2. Informed pessimism – We now have too many girls and no easy way to split them
    3. Crisis of Meaning – The most sober girl hates my friend and begins tearing down the party
    4. Crash and burn – going home because it’s approaching 6:00 AM and I’ve got a full day’s work ahead of me

    BTW – Everyone whom I’ve let borrow my copy of the dip has quit their job within a month to find a better one

    Reply

  • Zakir Hemraj — October 4th, 2008, 8:09 am

    Cameron is so passionate when it comes to this kind of stuff. He has personally helped our company (I Love Rewards) get through some of our lowest points.

    If you haven’t seen Cameron speak live, I definitely recommend it!

    Reply

  • Jorge — October 4th, 2008, 9:02 am

    Muchas Gracias!! Pensas volver a Argentina?

    Reply

  • Musings from the Peanut Gallery » Economic News worry you? Now you understand Entrepreneurs — October 4th, 2008, 9:58 am

    [...] Ferris, at his Four Hour Work Week blog, discusses the roller-coaster curve of the entrepreneur, and starts off comparing it to the current economic [...]

  • SheSue — October 4th, 2008, 11:06 am

    This article explains exactly what I’m going through trying to my blogsite up and making money. I think I’m wavering between stage 2 and 3. Hopefully I will make it to stage 4. Thanks for all the great advice. I’ve already put some of the suggestions in to play and they’ve helped me stay away from stage 4.

    Reply

  • Helder — October 4th, 2008, 11:39 am

    Excellent post, it’s so true, i’ve been there, i know all that including the crash and burn part, the advice is excellent really, i’ll add another one, never give up if it has burned, rebuild a new one, being an entrepreneur is worth even if sometimes things get nasty, because the rewards are a lot more and better

    Reply

  • Dave — October 4th, 2008, 2:09 pm

    Inspiring thoughts. Thank you, Tim. It was your book that gave me the cojones to start my own business and now that I am at the “crisis of meaning” phase, I really needed this article you just wrote to give me a positive input. Really, thank you.
    If you ever pass by Freiburg, Germany be sure to email me. I’ll be delighted to show you the real students’ life.

    Un saludo de colega,

    Dave

    Reply

  • John — October 4th, 2008, 5:41 pm

    I am heading to Buenos Aires in February for a little R&R and I would like help in finding apartments to rent by the week near Puerto Madero. Any help would be appreciated.

    Thanks

    John

    Reply

  • Young Che — October 4th, 2008, 8:09 pm

    This post describes my life. I think I just realized that I am an entrepreneur. I was feeling sick about my current business but didn’t know how to change things around. I hit the wall. Knowing when to quit is important also. I’m optimistic about my next venture while my current one has me about to crash and burn.

    Reply

  • Jet Set Life — October 4th, 2008, 8:26 pm

    Hey Tim,
    It’s so clear that the role emotions play in business and particularly in investments can make or break your entrepreneurial success. Proper state management as you go through these cycles is critical. I get asked constantly by my readers about muse development- but- I think this is ‘muse 101′ right here.
    Best,
    Rob

    Reply

  • Revisiting the Entrepreneurial Rollercoaster at Design and Development — October 4th, 2008, 11:16 pm

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  • Game Development? — October 5th, 2008, 12:11 am

    [...] animations) is even more addicting than playing games! Oh just you wait, you’ll reach the Informed pessimism stage too some day. __________________ "We’re here for a good time, we’re not here for a long [...]

  • Mozart's Left Toe — October 5th, 2008, 12:49 am

    It is no question that in America we like graphs and pie charts and categorizing emotions.

    But… no true innovator would follow another entrepreneur’s list of dos and don’ts. This post is for the sheep.

    Thank you for informing us on your own processes, Tim. But remember, what works for you is not what works for everyone.

    -Mozar’ts Left Toe

    Reply

  • Are Successful Entrepreneurs Often Bi-Polar? — October 5th, 2008, 1:37 am

    [...] know there does seem to be something to this.  Read the article and let me know what you think!  http://www.fourhourworkweek.com/blog/2008/10/03/harnessing-entrepreneurial-manic-depression-making-t… Share this [...]

  • John Clark — October 5th, 2008, 7:05 am

    I find reading and running everyday helps me cope with this so I don’t come across as a bi-polar nut. Nice post.

    Reply

  • Using various entrepreneurial stages to your benefit — October 5th, 2008, 7:08 am

    [...] their one-man (or one-woman) enterprise and they have to go through various dark and bright phases. This illuminating post lists four stages in an entrepreneur’s [...]

  • Ismail — October 5th, 2008, 7:15 am

    I know that other comments have touched on this already, but I’d like to add that I also think this pairs wonderfully with Seth Godin’s book The Dip. This post compresses the already short text and does it gracefully. Great job, Mr. Herold.

    Reply

  • Jyothirmayee — October 5th, 2008, 8:01 am

    Brilliant observation and the way you have presented is impressive. I bet every first time entrepreneur almost always goes through all of these phases. Can feel it. Thanks for this post!

    A request if you/others can address in some other post may be:
    ————————————————————————————
    The advice on capitalizing Crisis of Meaning stage is helpful. But may be it is time to call it quits for the better. How does one arrive at this decision.

    I would like to quote Seth Godin “[Strategic] Quitting is not same as failing”

    It the hardest time with poor morale, lost confidence, stress & burn – mentally, physically and financially. You probably have even stopped believing yourself, in your business and doubt your rationality. And this super critical decision.

    Here in India at least we have serious lack of people(advisors) who can help you make that judgement call – Quit or Stick.

    Any structured way to arrive at this quit/stick decision at such stressful times?

    Reply

  • The Startup Rollercoaster | Andrew Hyde - Humble Yet Bold — October 5th, 2008, 8:52 am

    [...] a great post from Tim Ferris on the “Transition Curve” of being at a [...]

  • Pete — October 5th, 2008, 9:55 am

    Tim,

    Is it possible to hit stage 4 and Crash and Burn, but then you find the right “mechanic” to help you get the rollercoaster back on track to continue to Stage 5? Maybe not the exact same rollercoaster, maybe some changes needed to be made before you can put it back on the tracks?

    The reason I ask is because like the rest of the people that commented, I’m at the end of stage 3, and to be honest, I think it might be my best bet to walk from this “rollercoaster” and make some major changes before I put it back on the tracks. I’ve been selling direct to consumer and handling everything from manufacturing to sales to distributing to customers’ homes all over the country. I have been thinking that it might be best to sell my same products through retail stores, which would add in two middle men…a distributor and a chain of retailers. I will be cutting out a great deal of profit, BUT I feel that I can increase volume dramatically, while decreasing my own workload and increasing efficiency. It would be the same concept and same product, but a completely different sales strategy…then I put the new rollercoaster with a new set of cars on the same track and add some grease. What do you think???

    -Pete

    Reply

  • TJIC — October 5th, 2008, 11:04 am

    The perfect post at the perfect time – I’ve been sliding from stage 2 to stage 3 recently, and just turned the corner – just barely – like A DAY AGO.

    Reading this was the perfect thing at the perfect time.

    Thanks so much!

    Reply

  • Cameron Herold — October 5th, 2008, 12:41 pm

    WOW – some AWESOME comments here from everyone.

    I’m going to take a stab at answering a few today (and I’ll get to more this week) just heading out with my kids for a hike in the redwood forests here in Vancouver (a great way to stay balanced and avoid Crisis Of Meaning :)

    Theme 1: How do we know when to get off the curve ? i.e. persist or try something else.

    That’s really the crux of Crisis Of Meaning. It sucks to get there – and we all will. Sometimes it really is best to “get off the curve” and onto a new one. Other times it’s best to re-focus, get help from mentors, friends, family, coaches etc. to help us “see the forest for the trees”. Trying to go through Crisis Of Meaning in complete isolation is practically assuring yourself of Crashing & Burning (failure).

    I’ve always turned to others for support & guidance when I get near Crisis Of Meaning.

    If you’re considering getting off the curve – turn to others to support you first – OFTEN others will help you figure it out and you can calmly round the corner to Informed Optimism.

    Note: When you’re at Informed Optimism – be careful – keep getting the emotional support you needed to get there – you don’t want to slide backwards off the curve. It usually takes a good couple months to re-build your confidence after coming out of Crisis of Meaning.

    Hope that helps.

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Cameron Herold — October 5th, 2008, 12:44 pm

    Theme 2: “Wow, this article describes my life exactly”.

    Almost EVERY entrepreneur I’ve shown this model to over the past 20 years has said the same thing – “I’ve been at every stage a number of times”.

    Once we all know the feels of the stages we’re at – we can help each other through them.

    Enjoy the ride – we’re ALL riding it together. :)

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Aaron Shepard — October 5th, 2008, 1:03 pm

    Perhaps he didn’t mean it this way, but as it reads, this is a great article on how to start a business in the Silicon Valley style — in other words, how NOT to start a business. Start with the hype and work out your business plan only when you’ve collected everyone’s money and you’re facing disaster.

    Believe it or not, it’s possible to start a business with prudence, research, experience, and a gradual build-up, with testing at every stage. Read Paul Hawken, not Cameron Herold.

    Reply

  • Cary Snowden — October 5th, 2008, 1:05 pm

    Tim, thank you for this well-timed insight. Learning these phases in the last five minutes has given me a whole new perspective on the roller coaster I have been on for the last 8 years, and is helping me focus on my own current Crisis of Meaning. Keep it coming!

    Reply

  • The Transition Curve for Non-Profits :: Non-Profit Chas :: Non-Profit Marketing, Fundraising, Management, and Technology — October 5th, 2008, 1:17 pm

    [...] Transition Curve is the emotional roller coaster that entrepreneurs feel as they build their [...]

  • » Splash! Stunf — October 5th, 2008, 2:05 pm

    [...] for all the sign ups so far! It is pushing us to the top of the Uninformed Optimism phase (for the entrepreneurs amongst us: check out Tim’s blog, it’s an interesting [...]

  • Daniel McClintock — October 5th, 2008, 2:19 pm

    Very well written – it’s amazing, as an entrepreneur myself, looking at each of those stages and thinking “Wow, I’ve been there!” Even after you get your business off the ground, it continues (if you’re an active business owner). Thanks for the insight and encouragement!

    Reply

  • Cameron Herold — October 5th, 2008, 5:54 pm

    @Aaron – re: Silicon Valley start up model.

    Hey Aaron – awesome comment – and I completely agree – starting a company with caution and a gradual buildup is totally the way to go.

    This isn’t at all meant to be a model on how to start a biz – rather it’s just a model showing how entrepreneurs anywhere, in any business model tend to feel at various stages of running companies (no matter what kind of companies they are).

    My entrepreneurial experiences are in: House Painting, Autobody Collision Repair, Barter, Junk Removal and Entrepreneurial Coaching/Mentoring. I’ve actually only been in the high tech space once – and that was when a company I was president of was acquired by an internet company.

    So ya – if anyone is wanting lessons on “how” to start a company – that is not what this model is for at all. This is to help us understand why we’re feeling like we do.

    Hope it helps.

    Cameron Herold
    Founder, BackPocketCOO

    Reply

  • Cameron Herold — October 5th, 2008, 6:30 pm

    @ Jose Castro-Frenzel

    Great question about “how does one find balance between the stages”

    From what I’ve seen we never so much get “balance” as we do get calmer through all of the stages from the self-awareness gained by knowing “why” we’re feeling like we do at each stage.

    Once we start recognizing the stages we are at while we are in them – it just gets easier to move through the transitions. The ups and downs are always there – i.e. the curve continues on and on.

    I don’t even want to control my own entrepreneurial highs and lows – I just keep leveraging them no matter what stage I’m at. Knowing what stage I’m at though has really allowed me to stay calm throughout the transitions.

    Hope that helps.

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Jose Castro-Frenzel — October 5th, 2008, 6:34 pm

    Cameron, this question is for you. How would you address a transition from industry into another? More clearly, if you currently own a business but are wanting to transition into something else, but don’t know exactly what it is what you want to do. What should one do in this position. This situation is a very frustrating situation that makes you think you will be stuck running a business you have no interest in and drives you crazy!!!
    The difficulty that I have seen in this is that one gets comfortable with a good source of income from your business but would ideally like to own/run a business that can fit your ideal lifestyle better- in this case “mobility.”

    I understand you are busy but if you get a chance to answer this it would be greatly appreciated.

    Cheers,

    Jose Castro-Frenzel

    Reply

  • Cameron Herold — October 5th, 2008, 6:50 pm

    @ Doc Kane re: “sharing this with our loved ones”

    Hey Doc,

    You really raised an AWESOME point here.

    I presented this topic to a group of entrepreneurs in Omaha on the Berkshire Hathaway shareholders weekend. Most of the entrepreneurs had their spouses with them. Many of the spouses came up to me after the presentation and said that knowing this may have saved their marriage :)

    They said they’d always wanted to know what was going on in their spouses mind – and never knew how to help let alone why they were acting or feeling the way they were.

    Sharing this content with our spouses, kids and families for sure helps them. And in words of Jerry Maguire it helps them to help us too http://snipurl.com/43ts3 [video_google_ca]

    It’s also smart to share this content with our employees – they are silently freaking out watching us ride the roller coaster too.

    Great point – thanks for sharing it.

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Jose Castro-Frenzel — October 5th, 2008, 10:59 pm

    I agree with you Money for Veterans, the impact of hanging out with negative people or unmotivated people can really have a costly effect on you during any stages in the business, especially when adversity is confronting you. All in all I think we should all recognize that everything is seasonal. The good is sometimes just right around the corner.

    Thanks again Cameron,

    Jose

    Reply

  • Jose Castro-Frenzel — October 5th, 2008, 11:02 pm

    “I don’t even want to control my own entrepreneurial highs and lows – I just keep leveraging them no matter what stage I’m at. Knowing what stage I’m at though has really allowed me to stay calm throughout the transitions. ”

    Thanks for the advice, this makes a lot sense. It is like being lost in forrest but at least having a compass.

    Siempre,

    Jose

    Reply

  • Like I said no excuses+ « Mike On The Road To Being A Writer — October 5th, 2008, 11:42 pm

    [...] Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You – The Blog of Aut…. Marc Andreessen, co-founder of Netscape, once [...]

  • miltownkid — October 6th, 2008, 1:43 am

    Making YouTube videos should be on the list as something you REALLY want to do, or really DON’T want to do in the “Uninformed Optimism” stage. :)

    Reply

  • Laura Posey — October 6th, 2008, 3:02 am

    Cameron, thanks for putting this phenomenon in such a nice package. In my work with entrepreneurs, I see this cycle over and over again.
    As a sales and marketing coach/trainer/consultant, I often have clients come to us when they are in Stage 3, otherwise known as extreme pain. The best thing I’ve found to do for them is talk them off the ledge, boost their confidence and turn them loose. They come back later in Stage 4 when they are ready AND able to actually put some plans in place and execute.
    Now I’ve got a great model to show them where they are and why they shouldn’t hire me when they come knocking the first time.

    Reply

  • (Entrepreneurial) Manic-Depression « miltownkid.com — October 6th, 2008, 5:04 am

    [...] Jump to Comments I just got done reading a really cool post on Tim Ferriss’ blog titled ["Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You "]. Along with the post was this picture: Transition [...]

  • Michael Pokocky — October 6th, 2008, 6:03 am

    Hi Tim. I wrote a post for writers referencing your post. I believe you nailed it spot on. Been there and done it. Let’s talk ’cause I got 67 journals of stuff just to prove your point.
    Also in one post you managed to de-stigmatize Bipolar.
    Be proud of that one my friend.
    Kindest,
    Michael

    Reply

  • mr-crash — October 6th, 2008, 6:03 am

    It is posts like this that remind me *why* I enjoyed your book.
    Sometimes I feel like you tread a little across that line that makes stuff just seem a little too commercial and I suppose I feel a little disenchanted.

    But this, this is glorious and hits me perfectly at the right moment.
    Thank you.

    Reply

  • Lyal Avery — October 6th, 2008, 7:46 am

    This is an excellent post. I think it’s important for entrepreneurs to keep their cool in rough times. After all, fortunes are made during economic downturns.

    Reply

  • Joshua Blank — October 6th, 2008, 9:04 am

    Tim,

    Again, Brilliant. I have lived this cycle several times over as I’ve grown and changed my business model. The current credit crisis had me near a burnout, until I re-aligned myself and changed my methodology and tactics once again. I’ve been buying more copies of the book and giving them as gifts, but I still feel like I should write you a check as my business consultant. You’re always spot on.

    Thanks,
    Josh

    Reply

  • Cheryl Janis — October 6th, 2008, 9:22 am

    I love the way you get to the point and infuse humor into an otherwise very serious topic. It was very helpful. One important thing left out of the curve was how our connection with our higher selves will keep us moving forward. Self-care is a powerful tool and when used properly will propel us into the next stage. I’ve had several businesses throughout my 40 years on this planet and with each new venture, my physical enthusiasm waivers sooner. Yeah, I know I’m getting older and as I do, balance becomes essential. Rest for me now is kind of like food and water. I’ll die without it. You rock Timothy Ferriss.

    Reply

  • Cameron Herold — October 6th, 2008, 10:57 am

    @Jose – re: Transitioning to another industry

    Hey Jose – great question about transitioning to another industry in your Oct 5th, 6:34pm question.

    I’ll take a stab at it for you – I don’t believe in multi-tasking. It doesn’t work. You end up doing a couple things poorly or with less focus. I LOVE mono-maniacs with a mission :)

    My belief is that if you’re leaving one biz to get into another – you need a FULL break and some time in between to refresh, think clearly, write a painted picture etc. before starting the next company. One way to have that full break (especially if your current company is profitable) is to put someone else completely in charge of running your current company so you can reap the benefits of cash flow and wait to find a suitable buyer – while you take a break – and then launch your next venture.

    I’d caution you though – having multiple girlfriends at the same time never works out well for anyone – same with companies. At least – that’s my experience :)

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Simon — October 6th, 2008, 1:53 pm

    What perfect timing. This is exactly the post I need to read right now.

    Reply

  • Tim Ferris and The Entrepreneur’s Rollercoaster | Bold Enterprises presents Working Matters — October 6th, 2008, 5:21 pm

    [...] For my fellow entrepreneurs who also swing between self-worship and self-accusation, I came across this helpful diagram over on Tim Ferris’ blog. [...]

  • Nathan K — October 6th, 2008, 6:08 pm

    TIM – very good!!! You are the man.

    So tell us more about HOW NOT TO HIT STAGES 2, 3, and 4. Is that wishful thinking?? I know we’re bound to hit hard times, but what if….

    Reply

  • 35+ freelance, entrepreneurship and starting your own business tips | Will Sullivan's website. Journerdism — October 6th, 2008, 9:55 pm

    [...] Harnessing entrepreneurial manic depression– Making the roller coaster work for you [...]

  • Tanya — October 6th, 2008, 11:30 pm

    There is nothing quite like pushing yourself to the very brink of your personal limitations to help temper arrogance and egotism. I personally really value the trip I have taken along this curve. Prior to really throwing all of my financial, emotional and physical effort into my business, I was doing great work for other people with little to no personal risk.

    In my mindlessness and without understanding the emotional safety net that playing with other people’s money gave me, I presumed I had all the answers and gave all of the kudos to my team and – secretly – to my amazing leadership skills.

    Growing a self-funded business from zero sales in a market with high elasticity of demand brought me face to face with every personal and professional shortcoming I’d been avoiding for the entirety of my working life. It was also an amazing reality check – the world is big and the winds of change blow through even the most “solid” companies, relationships and societies.

    Letting go of my own need to see myself as the center of a very small universe and embracing the ride rather than shutting my eyes has allowed me to encounter reality in a way that I never did before. I feel like, as a result I relate to everything and everyone around me more authentically and with more compassion. That’s not to say I have it figured out, but I certainly feel that riding the roller coaster has helped in in more ways than its hurt me. Here’s a quote I love that \i think sums it up nicely:

    “What we choose to fight is so tiny!
    What fights us is so great!
    If only we would let ourselves be dominated
    as things do by some immense storm,
    we would become strong too, and not need names.

    When we win it’s with small things,
    and the triumph itself makes us small.
    What is extraordinary and eternal
    does not want to be bent by us.”

    - Rilke

    Reply

  • Welcome to Planet Pink n' Green » Blog Archive » 5 ways to love yourself during economic challenges — October 7th, 2008, 12:45 am

    [...] building a start-up and then running with the ball, so to speak.  Read Tim Ferris’s article, Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You.’ It’ll make you laugh, and that’s a good [...]

  • Jay — October 7th, 2008, 3:14 am

    It really helps when at stage 3 to actually hear that others have been there and you are not simply going out of your head alone. I am going through this lonely time of despair and really needed to hear this. Its the chicken soup for us at stage 3!

    I have been thinking is it all worth it? Should I quit and go work for someone else again (you have to admit it is an easier option, but I always return to entrepreneur thinking and end up back here again – done it many times :)

    This post helps you realise it is time to let go of the need to control at stage 3 and ride it out – I will use your very helpful tips and try accepting what I am going through – Thank You!

    Reply

  • Adrilia Pedersen Training - Think the sky is falling? Be grateful. — October 7th, 2008, 6:34 am

    [...] Ferris’ recent blog entry  got my interest.  His statement ”The Sky is Falling” captures our current economic [...]

  • Cameron Herold — October 7th, 2008, 10:10 am

    @Nathan K

    Hey Nathan – Great question.

    In my experience – we can’t fit the law of gravity :) Even with this simple model. What goes up must come down.

    That being said – some entrepreneurs have lower highs, and higher lows – i.e. their curve is a bit flatter than others. And you may not feel the emotions at any of the stages as severely as most.

    All entrepreneurs that I’ve ever met or shown this to however – have all ridden the roller coaster a few times – it’s a never ending ride – so we all can choose to enjoy the ride regardless of the emotions we’ll feel while doing so.

    Hope that helps.

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Casey — October 7th, 2008, 10:59 am

    Cameron:

    Great post! Your credentials are impressive. Can you tell us a little more about this achievement?

    “Building a PR team that landed more than 5,000 stories in those same 6 years”

    I have a pretty solid in-house blog and PR team, but I’d like to know if any of the entrepreneurs on this site have had success with an outside agency.

    Thanks!

    Casey

    Reply

  • Cameron Herold — October 7th, 2008, 4:24 pm

    @Casey

    Hey Casey,

    I’ve been landing PR consistently for companies I’ve owned or helped lead since 1986.

    From Oct 2000 thru May 2007 I was with 1-800-GOT-JUNK? and was the Chief Operating Officer there. One of the many business areas I built and led was PR.

    We built a simple little system that’s pretty much exactly what I’ve always done 1) Know your target, 2) Know your angle and 3) Pick up the phone. Seems pretty simplistic – but through a lot of hard work we landed a TON of media. In all we landed in excess of 5,000 stories in the 6.5 years I was there including Dr. Phil, Oprah, Fortune, FSB, Wall Street Journal, New York Times, Globe & Mail etc. etc.

    We never used outside PR Agencies (they traditionally just don’t pitch as proactively as we liked to).

    Hope that helps.

    Cameron Herold
    Founder, BackPocket COO

    Reply

  • Kurt O. — October 7th, 2008, 8:50 pm

    Cameron,

    Thank you! Thank you! Thank you!

    The first time the light bulb came on and I understood how I am wired was when I meet John Gartner discussing his book “The Hypomanic Edge.” In it he mainly focused on what you call Uninformed Optimism, a condition where hypomanics “leap on every wacky idea that occurs to them, utterly convinced it will change the world.” I often find myself here, and it is often the most convicting and exciting part of life.

    While Uninformed Optimism is perhaps the most fun, most energizing…it is the other stages that you write about that have meant the most for me today…you said it is ok to be outside the energized state of Uninformed Optimism. It is ok to accept the other stages, expect them, enjoy them and work through them.

    Thank you for the common sense actions to take to work through each stage. I have been in each of these stages, felt it, knew it in my gut, but didn’t really know where I was and didn’t know why I couldn’t “catch” the energy of Uninformed Optimism.

    Thanks for making the dim light grow brighter.

    Kurt

    Reply

  • Chris — October 8th, 2008, 7:45 am

    Thanks so much for this post. When I started almost 3 yrs ago I didn’t know about these swings and whenever Stage 3 came I suffered from severe anxiety attacks.
    It is only within the past year that I’ve been able to recognize my patterns and work them to my advantage.
    Stage 3 felt like the time to dig in and work harder but for me the only thing I wanted to do was escape. I beat myself up for being lazy, non-productive, and a procrastinator.
    Now I understand that a long lunch with a friend or sneaking out for an afternoon movie is exactly what I need to get myself over the hump.
    I also learned that for me Stage 1 is the best time to market and implement the systems that keep it all from going to hell when Stage 3 hits.
    This article makes me incredibly happy to find that I’m not alone and not so different from other entrepeneurs.

    Reply

  • Doc Kane — October 8th, 2008, 8:58 am

    @Cameron

    It was entirely my pleasure, thanks again! Cheers, Doc

    Reply

  • Electra — October 9th, 2008, 12:01 am

    Absolutely Brilliant!!!!!

    I cannot WAIT to show this to my husband! He actually calls my entrepreneurial mood swings “the rollercoaster” and now I can just smile, scream and hold on for the ride instead of freak out!

    I often described this experience like trying to hold onto a tiger by the tail…a wonderful, scary adventure…an out of control- but exhilirating rush of emotions. Endorphins, euphoria, despair, positivity, negativity, uncertainty, triumph…and the rollercoaster alone knows when and where the next dip or curve lurks!

    Thanks for reminding us Cameron and Tim, that this is a normal phenomenon, and that we are ALL experiencing these drastic ups and downs. I think this is required reading for all entrepreneurs AND their spouses!!!

    Thanks so much. I love this 4hww cyber-family! ha ha
    Tim, you are the Mac-Daddy. Cameron, you are the BOMB. I truly appreciate all the meaningful information you pass along! I am enriched when I put your info into practice.
    THANKS FOR BEING YOU!

    Ciao,
    Electra

    Reply

  • Alexandru Gugurel Blog » Blog Archive » Recomand: Entrepreneurial Manic-Depression — October 9th, 2008, 12:43 am

    [...] Un articol care ar trebui citit de to?i cei interesa?i de antreprenoriat. Sunt aproape convins c? trecem cu to?ii prin momente critice, dar cel mai important e s? ?tii s? le gestionezi corect. [...]

  • Leighton Ventures - Web Design & Development, SEO, Online Marketing, Startup Business, Raising Capital » Blog Archive » Startup Company Ebbs and Flows — October 9th, 2008, 9:33 am

    [...] I encourage entrepreneurs, investors, and other risk takers to read Tim Ferriss’ guest blog post on Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You. [...]

  • Sergio Rodriguez — October 9th, 2008, 10:01 am

    This post was just what the doctor ordered. I really needed to read this today. Like for most, things have been pretty challenging for me lately. To the point where the I’m taking anti-anxiety meds along with sleedping pills to get me through the night. Too bad my doctor hasn’t read this, otherwise he would have just told me that everything I’m feeling is completely normal. but now I know. Thanks Tim for this awesome post, you’re the best.

    Reply

  • Sergio Rodriguez — October 9th, 2008, 10:03 am

    This post was just what the doctor ordered. I really needed to read this today. Like for most, things have been pretty challenging for me lately. To the point where I’m taking anti-anxiety meds along with sleeping pills to get me through the night. Too bad my doctor hasn’t read this, otherwise he would have just told me that everything I’m feeling is completely normal. But now I know. Thanks Tim for this awesome post, you’re the best.

    Reply

  • Harmony — October 9th, 2008, 1:21 pm

    Terrific intelligent description of the choice we make to create our own destiny, despite the circumstances, or to allow people who have no vested interest in our personal outcomes to determine our future for us through infludence and fear. THANKS

    Reply

  • The Market Needs Sigmund Freud | Sentient Money — October 9th, 2008, 2:45 pm

    [...] economy.  I was reminded of this by a recent article on the 4-Hour Workweek, by Tim Ferris, titled Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You.  Read the article, as it provides an interesting look into the entrepreneurial ride and some [...]

  • Chad @ Sentient Money — October 9th, 2008, 3:00 pm

    Really interesting post. It’s so appropriate for what we are going through right now.

    Reply

  • Christa — October 9th, 2008, 5:12 pm

    Rock on with your bad self for writing this post! I can RELATE!

    Early this year I wrote a blog called “Entrepreneur: Egomaniac, Raging Bitch or Just Outright Crazy?”

    After reading this article I can safely answer the above question and say: ALL OF THE ABOVE!

    I started an investment business 8 years ago. Business slowed a lot in the last year and I am bored beyond words. We had the typical ups and downs and recently, it’s been a big downer. *yawn*

    In the last few months I started another venture – a non-investment based motivational thing with laughs and community outreach. I have so much enthusiasm and optimism right now I feel like I might explode like Veruca Salt almost did on Willy Wonka and the Chocolate Factory.

    I think I’ll heed the great advice in this article and hold off on major marketing purchases until I get my head out of fairytale land. Kinda sad though, I like the fairies!

    Reply

  • Thoughts and perspective from a female entreprenuer | Giggle On! — October 9th, 2008, 5:14 pm

    [...] For those of you that may think I’m an egomaniac, raging bitch or just outright crazy to own and manage my own business, let me share with you some of my thoughts and perspective about being an entrepreneur.  Entrepreneurs are a very special breed of people. [...]

  • Steve L — October 10th, 2008, 6:35 am

    G’day Cameron,

    Your curve has possibly saved my marriage, as I can finally visually explain to my wife the reason for my manic-depressive tendencies!

    My query to you regards rocking back and forth in the valley of doom between points # 3 and #5, not falling off but not climbing out.

    How does one escape?

    Kindest thanks.

    Reply

  • chris grayson — October 10th, 2008, 9:53 am

    This article really hits home because I just lost a business. Thank God, I’m still optimistic, and since I lost everything, it’s now informed optimism.

    Great article Tim. If you’re ever in Chicago and you want to train jiu-jitsu, I’d love to roll with you at gracie barra chicago.

    Reply

  • Bill Ayers — October 10th, 2008, 12:38 pm

    Steve L,

    Here is a resource that might help with your question of how to “escape” the valley between #3 and #5.

    “The Dip” by Seth Godin. You can read it in an afternoon. It talks about this cycle and how to prepare, win or know when to quit.

    Hope this helps.

    Have Fun – Be Free

    Reply

  • Scott Allison — October 11th, 2008, 6:56 am

    Oh yes the ups and downs of being a business owner, the elation and the self doubt, I can transition from one phase to the next in a matter of hours! The first step is acknowledgement, everyone else who has a business is going through the same thing. Step two is activity pairing, and having read about it, it makes perfect sense, I had wondered why sometimes reading a book about business can be uplifting and other times offputting -it’s not the book but the context that I as the reader find myself in. Thanks Cameron.

    Reply

  • Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You « My life.. and other ramblings — October 11th, 2008, 12:12 pm

    [...] October 11, 2008 · No Comments Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You [...]

  • Miasha — October 11th, 2008, 2:21 pm

    Thanks. Wish I learned this in high school. This is a good life lesson. I’ll have to post it on my nose:)

    Reply

  • Ramona — October 11th, 2008, 3:24 pm

    I’m always looking for ways to be/stay inspired and I love the 4 Hour Work Week. Quit my job after reading the book. I’m thankful for reading this article. It makes soo much sense especially in these times. I really needed it. Thank you!!!

    Reply

  • Andy Beeching — October 13th, 2008, 4:03 am

    Reminds me of the Gartner Hype Cycle, but flatter…

    http://en.wikipedia.org/wiki/Hype_cycle

    Perhaps the stages in your graph can map to it as products are released/permeate everyday life.

    Reply

  • Ben Steed — October 13th, 2008, 8:38 am

    Great Post — This is a very helpful breakdown of an otherwise wild ride.

    I would suggest that one other task to add under “Stage 1 – Uninformed Optimism” would be brainstorming. This is a great time to think outside of the box and come up with ideas that would be shot down at any other point in the roller coaster.

    Reply

  • Sean West — October 13th, 2008, 11:01 am

    Dear Mr. Ferriss,
    I’m glad to see someone else recognizing the link between manic depression and entrepreneurial ability, especially someone I look up to as much as you. I come from a severely manic depressive (or more properly “hypomanic”) family where some family members have shut down completely and others are multimillionaire entrepreneurs. I have gone from severe depression to being financially independent at age 21 (with a four hour work week and a virtual architecture similar to yours) and cannot overemphasize how grateful I am for your work.
    To anyone else reading this post who sees themselves or their families in a similar situation to what I have described, I’d like to recommend some books.

    “The Hypomanic Edge” by Dr. John Gartner
    A Princeton psychologist who explores the link between manic depression (or more high functioning “Hypomania”) and the creative zeal that has made america great. He profiles people like Andrew Carnegie, Christopher Columbus, David Selznick (producer of the “Gone with the Wind” movie), and Craig Ventner (The man behind decoding the Human Genome).

    “The Hero with a Thousand Faces” by Dr. Joseph Cambell
    Not specifically about manic depression, this book is about psychological patterns to bring yourself to maturity, and is a very useful pattern for turning low functioning manic depressives with potential into high functioning hypomanic entrepreneurs, artists and adventurers. You will see patterns here in the lives of many high performing hypomanics and definitely in the people profiled in Gartner’s book.

    Sincerely,
    Sean West

    Reply

  • Ben Lambert — October 14th, 2008, 12:26 am

    Great advice, I totally relate!

    Founder,
    Siteswish – The website design tool

    Reply

  • Matt Barron — October 16th, 2008, 8:28 am

    Hi Cameron,

    Thanks for a great article!

    Vern H. speaks very highly of 1800 Got Junk

    As a young small franchisor in the education sector, I have almost pulled the trigger on a PR firm twice.

    I will give this a shot first:

    1) Know your target, 2) Know your angle and 3) Pick up the phone.

    Thanks Again,

    Matt Barron
    Director of Development
    The Whole Child Learning Company

    Reply

  • Fergus Doyle — October 16th, 2008, 10:02 am

    Having transitioned from a successful hi-tech service based company which I could never sell to devoting all of my time and effort to product development in six months has redefined the boundaries of what I felt I could cope with, so I feel the “do something that scares you every day” rule should be followed mercilessly. Constantly pushing yourself in this way is simply habit forming and you’ll be a hands in the air roller coaster rider before you know it.

    Reply

  • 07autoaero — October 16th, 2008, 10:58 am

    This a great piece of the puzzle that I am trying to put together…

    I have always felt diferent than the norm in a good way… I finally gave in to my entreprenurial tendencies five years ago after an unexpected job transition and have been riding the curve ever since… actually I rode it at every company that I worked at as well as they were all startups…

    My wife regularly thinks I have lost touch with reality and I have questioned myself harshly during the different stages….

    Luckily my decisions have moved my net worth from $50K to over $1M in the last 5 yrs so I think I am on the right path…

    I still doubt myself occationally but after reading this I see that it is all a natural part of the process…

    I highly recommend reading The Davinci Method for anyone that is struck by this post or even Tim’s book… It could also be titled ” you are ADD and didn’t know it …. use your hyperfocus to your advantage…” They have a test on their site to see if you are a Davinci type.

    I finally understand myself after many years after reading the book and using the music that moves you from state to state…

    thx all…

    Reply

  • Guerilla Billionaire™ — October 17th, 2008, 4:41 pm

    LOLz! Great article. I have been through the manic highs and lows so many times since the 1980s. The good news is that they level out over time.

    Reply

  • entre-propel » Blog Archive » Reaction to Four Hour Workweek Blog Article on Entrepreneurial Manic Depression — October 19th, 2008, 10:56 am

    [...] is an excellent article posted on the Four Hour Workweek Blog discussing the manic depressive tendencies of entrepreneurs. It is really a great read and touches [...]

  • My Diigo Bookmarks 10/20/2008 | AccMan — October 19th, 2008, 9:29 pm

    [...] Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You – The Blog of Aut… [...]

  • James from Babyspot.com — October 20th, 2008, 6:47 pm

    WOW! Love the article!
    Thanks!!
    James

    Reply

  • Laura — October 27th, 2008, 4:34 pm

    Spot on! Thank god, I thought it was just me, but obviously I am not alone. Thank you for this.

    Reply

  • Dave Roitner — October 28th, 2008, 8:18 am

    Outstanding post! I’ll agree, this applies to a lot more than just being an entrepreneur.

    Thanks for this.
    Dave

    Reply

  • Jeff Hall — October 28th, 2008, 9:29 am

    Thanks so much for this post.
    As an entrepreneur who has been on the journey for 20 years, I’ve experienced each of these phases many times over. It is refreshing to see this so well illustrated and to know others go through similar experiences. This post is a great reminder that we all have much more in common than we realize.

    Reply

  • Sharpen Your Saws! 20 Simple Ways To Prepare for a Turnaround! - Scott Clark — October 31st, 2008, 6:59 am

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  • Are You in a Business Crisis? — Nourish The Dream — October 31st, 2008, 7:34 am

    [...] For today, however, I wanted to post a quick note because I wanted to share some really great practical advice from the blog of author Tim Ferriss. He has a guest post that serves as a great response to all of the fear in the atmosphere. His guest, Cameron Herold, has some tips on “activity pairing.” In other words, here’s what to do in different cycles of your business. [...]

  • daniel — November 2nd, 2008, 2:37 am

    Great Read! Always wish the first phase pass off faster!

    Reply

  • Enduring The Road To Success: The First Valley : “Motivate Thyself” — November 10th, 2008, 12:02 am

    [...] Herold wrote a brilliant guest post on Tim Ferriss’s blog that tackled this particular subject.  He broke the experience down [...]

  • bukido — November 10th, 2008, 10:35 pm

    Two cents worth:

    Terry Bradshaw, Winston Churchill, Ted Turner, Abraham Lincoln, Jim Cramer, Sidney Sheldon, George Patton, Dolly Parton, Donny Osborn, Ozzy Osborn, Marie Osborn…me.

    http://www.geocities.com/coverbridge2k/artsci/famous_people_depression.html

    Most people take a moment to watch the business man/woman accept the award for the endowment they have provided to build the new wing on the hospital, or the new college in their honor at their alma mater. Few see the sleepless nights, the heartache, or can come close to the emotional pain endured as these people push forward.

    The challenge for the entrepreneur, just like that of a person living with M/D is to trust one’s judgement. A diagnosis changes the framework from which he/she sees both the past, and the future.

    As it is with a new business venture, never knowing what’s around the next corner, yet knowing that regardless of the challenge, strength will rise up to meet it, is a necessary skill that comes only with experience.

    Some here have noted that this message was timely. For those who fight the fight with this condition, remain strong. You are twice as smart, have double the energy, and 10 times the magnetism…when you’re on your A-game. Be gentle with yourself, watch the self-talk, and, find support here, or near you.

    I coined a motto: When all else fails, train, and now live by the Body-for-Life exercise and nutrition guidlines…never happier or more balanced. Give it a look. That and martial arts and meditation have been life-savers. Diet has a profound affect on the brain..

    Had to pipe in here…first post on the site.

    Think good thoughts,
    Christopher

    Reply

  • Baker — November 11th, 2008, 12:34 am

    I always thought about this, but never really seen or heard about it explained. Thank you for sharing this information.

    Gratitude,
    +Baker

    Reply

  • First You Play, Then You Work (Part II) | Dan Massicotte — December 4th, 2008, 4:38 pm

    [...] and then working. I just read Cameron Herold’s post about the Entrepreneurship Cycle over at The Four Hour Work Week. This is quite an amazing article that certainly made me feel a lot better [...]

  • The Need for Taking a Break | Dan Massicotte — December 5th, 2008, 4:16 pm

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  • David Mammano — January 5th, 2009, 11:05 pm

    Great insights Cameron! I was almost at stage 4 but reached out to people that I respect and now am back in stage 5… Good to know we are not alone…

    Reply

  • Rosie — January 7th, 2009, 3:40 pm

    So helpful, everything I was thinking and went through he wrote about. It gave me such a nice boost of confidence knowing I am not the only one going through this! and the tools to get through it better.

    Reply

  • Maria Pascucci — January 12th, 2009, 8:43 am

    Awesome article! I’ve found myself at all these stages, in both my personal and entrepreneurial life. What keeps me from crashing and burning is making a conscious effort to surround myself with positive people. When I’m having negative thoughts about my business or my life, I have two choices: I can either rant to other people in my life who don’t “get” my business and they can commiserate with me, or I can reach out to my mentors who can give me a dose of optimism coupled with practical advice.

    Here are four characteristics that distinguish positive people:

    1. Honesty. There are those people who will tell budding entrepreneurs what they want to hear. Then there are truly positive people who are brave enough to be honest with you, while still being supportive and having a positive attitude.

    2. Impractically practical. Positive people will listen to a your wacky improbable dream to, say, direct and distribute his own documentary films. They’ll respond with, “Why not?” They have a can-do attitude about even the seemingly most difficult things. But a truly helpful positive person will encourage you to look at the practical steps you must take in order to realize the most grandiose dream. Even if s/he doesn’t know what those steps are, s/he will encourage you to surround yourself with people who do.

    3. Generous. Positive people are entitled to a bad day once in a while. They are even allowed to occasionally curse their decision to get out of bed in the morning. But if a you have some exciting news to share, positive people can put their complaints aside long enough to share in your happiness for a while. They do this because they care about others. But they also realize that another person’s positive energy may actually rub off on them, bringing sunshine to their otherwise gray day.

    4. Internally driven. Positive people recognize that “positivity” is a personal choice. They realize that when they choose to see the gems life has to offer instead of the grime, they will be happier, healthier and more satisfied entrepreneurs and human beings. Positive people choose to be resilient and then learn how to craft the tools that will allow them to live the life they desire.

    Reply

  • The Prescription for Self-Doubt: Watch This Video — January 12th, 2009, 11:57 pm

    [...] To this breed, I assure you all: in our species, it’s normal. [...]

  • david tensen » Blog Archive » On 2009 - What story will you write? — January 13th, 2009, 2:36 am

    [...] Are you an entreprenuer? This great article pin-points some great aspects of the roller-coaster many enterprenuers tend to find themselves on. Tim Ferriss writes:http://www.fourhourworkweek.com/blog/2008/10/03/harnessing-entrepreneurial-manic-depression-making-t… [...]

  • JW — January 13th, 2009, 8:39 am

    I woke up this morning to the news that a two year old deal is likely falling apart due to forces beyond my control. It felt like life was kicking me in the n**ts. Thanks for another timely article. Hopefully I can pick myself up and work toward “informed optimism”.

    Reply

  • Test Blog » Blog Archive » The Prescription for Self-Doubt: Watch This Video — January 13th, 2009, 3:06 pm

    [...] To this breed, I assure you all: in our species, it’s normal. [...]

  • Matt Thomas — January 14th, 2009, 12:18 pm

    Great post! The transition curve very accurately describes the different emotional phases entrepreneurs go through. These different stages all represent how entrepreneurs go through this ebb and flow of bursts of mania when we get new ideas (but haven’t researched them yet), to “depressive” points when we begin to experience the true environment we face when starting a venture.

    Reply

  • Nick — January 28th, 2009, 2:49 am

    I thought this was a great post when someone sent it to me last year and I keep coming back to it as the rollercoaster continues. It is a big help to know that others have been through this ….

    Reply

  • Adguru — February 3rd, 2009, 8:23 am

    This post came along at just the right time, we are now on the upswing back up in the informed optimism. It’s been a VERY tough ride but we feel we are going to weather this storm and be a much more capable and stronger company going forward.

    Reply

  • theCount — February 6th, 2009, 6:36 am

    hmmm, what happens if you read excellent articles like this if you are at the “crisis of meaning” stage when you shouldn´t be reading stuff like this? Seriously though I feel that I keep swinging back and forward between the crisis of meaning and informed optimism phases I miss the power and drive of uninformed optimism…

    Reply

  • Richard — February 8th, 2009, 4:12 pm

    I am at the stage of informed pessimism. It feels terrible. The mere fact that this is a cycle kinda gives me a small reassurance that life does go on. I wish you could give me some ideas of things to do during this stage. It would help instead of dont’s. (i just wait out the period?). I admire the article and thanks.

    Reply

  • Sarah M — February 20th, 2009, 12:14 am

    I was trying to explain this to someone the other day – you have articulated it much better than I did. Thanks!!

    Reply

  • SOS Media Web Design — March 6th, 2009, 4:29 pm

    Great to watch that old cartoon again. Thanks for breaking it all down.

    Reply

  • Inside Dragons’ Den & Rachel Elnaugh startup lessons « Nickpoint — March 24th, 2009, 8:10 am

    [...] need the ability to overcome constant knock backs – It can be an emotional roller coaster of a ride. You have to pick yourself up and keep running. Good things can come from bad situations. My [...]

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  • Riley Deacon — April 6th, 2009, 4:36 pm

    I disagree that the time for media interviews is during the stage of uninformed optimism. When you’re uninformed, any well-informed, critical question can turn a great media hit into a rout. Wait until you’ve reached the point of informed optimism, if possible (though I’m aware that most businesses need media during the launch, which usually corresponds with the point of uninformed optimism).

    Reply

  • Stoicism 101: A Practical Guide for Entrepreneurs — April 13th, 2009, 3:14 am

    [...] *** Related Post: Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You [...]

  • Gabrielle — April 13th, 2009, 8:14 am

    Brilliant! Thanks for making the madness make sense and for normalizing these incredible highs and lows with useful action do’s and don’ts. Looking forward to reading more of your work!

    Reply

  • TheZov — April 13th, 2009, 9:20 pm

    Hi Tim, I really like your stuff, but MAN YOUR BLOG COLOR SETTINGS ARE BLOODY IMPOSSIBLE TO READ!!!

    Reply

  • Justin Zimmerman — April 14th, 2009, 11:45 am

    This post put a smile on my face.

    Possibly an acrid smile…

    Going through the coaster motions
    myself there’s a strange comfort in
    seeing the “tracks” laid out in this
    post.

    Can you make this post a PDF
    dwnload.

    thank you.

    Justin Z

    Reply

  • Is time necessary to market a new niche? - Thirty Day Challenge Forums — April 15th, 2009, 6:28 pm

    [...] / nichers enjoy… then it’s not really a set back… You should definitely read this post: Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You And the other thing you should try your 2nd time around is to think of a ‘growing’ niche (which i [...]

  • Enduring The Road To Success: The First Valley | Motivate Thyself — May 3rd, 2009, 2:27 pm

    [...] Herold wrote a brilliant guest post on Tim Ferriss’s blog that tackled this particular subject.  He broke the experience down [...]

  • David — May 27th, 2009, 11:58 am

    Hi Tim,

    Two things:

    1. I also have problems reading the text on some posts. In Chrome the text shows up as gray on a black background. In Firefox it shows up as black on a white background.

    2. I’m starting a company with a friend right now and this post has been a great road map of what is to come. We are transitioning from Stage1 to Stage 2 right now. I’ll put a reminder on my calendar for July: “Nightmares start now.” =) Keep up the good content!

    Reply

  • Knowing when to quit flogging a dead Startup « Nickpoint — June 18th, 2009, 2:59 am

    [...] known for their determination and tenacity. They have to be thick skinned to survive the startup emotional roller coaster. However there is no point in flogging a dead horse (startup). Once a new venture is started it can [...]

  • Sjors Provoost — July 19th, 2009, 5:34 am

    Thanks for the tips Cameron.

    I already discovered some time ago that buying stuff when you’re exited is a bad idea. In general, big decision making in a non-stable emotional state is not a good idea. Dan Reilly discusses that too in his book Predictably Irrational [0] .

    Andy Beeching already mentioned the similarity to the hype cycle. I think there’s a lot of patterns in “nature” like this: up, a little bit down, very down, crash / up again.

    Culture Shock [1] is a great example, and I think it’s related:
    * Honeymoon Phase : similar to phase 1
    * Negotiation Phase : 2 and 3 (where it leads to depression)
    * Adjustment Phase : phase 5

    Phase 4 (crash and burn) would have the culture shock equivalent of just leaving the country. As with quitting a business, that’s not necessarily a bad choice.

    In terms of timing: from what Ive heard, culture shock tends to vary greatly in length too; from months to years.

    Other striking similarity: in phase 2/3 people in culture shock tend to become obsessed with cleaning.

    [0] http://bit.ly/gTc3V
    [1] http://en.wikipedia.org/wiki/Culture_shock

    Reply

  • Tony Marciante — September 12th, 2009, 11:34 pm

    A great post, accurate in all ways in my opinion..

    Being a lifetime entrepreneur and restaurateur for a long time, it is so true..

    Seeing that bleak place at the bottom needs to kick you in the head, and kick you into action, remembering your ‘best of times” can help to remind you that life is not over, it’s only money, and that you DID have the good busy times, that tend to be result of positive actions that can be repeated.

    Also, always be analyzing your business and adjusting, keeping your business in the sweet spot can make life much easier.

    Good luck everyone!!

    Reply

  • Holly — September 20th, 2009, 8:21 pm

    Good article. Suggestion – can you add a retweet feature to your site for sharing?

    Reply

  • Octobox — September 26th, 2009, 11:35 am

    Tim — GREAT THREAD

    I posted some of the following on the “Entrepreneur …Myth” thread and meant to put it here.

    I think a lot of folks are missing the point here and tell me what you think of my re-cap.

    1) Un-informed Optimism
    —2) Crash-Burn Escape Velocity
    3) Informed Optimism

    Burn-Out Escape Velocity has two roots: 1) Humility (an “ability” or “skill,” in terms of speed, at recognizing truth and submitting to it) and 2) Forward Moving Will-Power.

    Will and Humility (given the above definition) can we ever move-forward and submitt to self-realized genius.

    Thanks for Shining the Light Brother,

    Octobox

    Reply

  • Michelle Ayres — October 26th, 2009, 5:53 am

    I’ve been an entrepreneur since the tender age of 20 & been through the highs and lows of the transition curve countless times.

    I’ve celebrated extreme success by drinking so much that I woke up the next morning with raspberry jam on my toes. And vice versa, I’ve been so down that my diet consisted of French Vanilla ice cream and Lucky Charms for 14 days straight. (Believe it or not, I am quite fit!)

    My point: With experience and time, the curve gets less extreme and your emotions more level. You’ll begin to notice where you are on the curve and instinctively know how to manage yourself.

    So, celebrate your successes and then stay in your pj’s in the bad times, but know that the stages of the curve happen all through your life over and over.

    ENJOY THE RIDE!

    Reply

  • Casey — November 13th, 2009, 2:13 am

    Sounds just like the roller coaster of life, haha.

    My friend & I are in Phase I right now and I am so happy I came across this right now. As always, thanks Tim and thanks Cameron.

    Reply

  • Cameron Herold — February 5th, 2010, 12:25 am

    Wow – great reading all the comments here again – just came back on to see the thread. Glad it’s made such an impact.

    Let’s all have fun riding it again in 2010 too.

    Cameron

    Reply

  • Cameron Herold — February 9th, 2010, 8:49 pm

    Hey @casey – keep focused and you’ll ride it out – this roller coaster is one we never get off of though – so enjoy the ride….

    Reply

  • Cameron Herold — February 9th, 2010, 8:50 pm

    @Michelle Ayres you’re bang one – the ride totally does get flatter over time as we gain the emotional intelligence to handle it all. Great point.

    Reply

  • Cameron Herold — February 9th, 2010, 8:51 pm

    @holly thanks for the idea of RT’ing – and sharing with others – the more that learn this the better.

    Reply

  • Cameron Herold — February 9th, 2010, 8:53 pm

    @Adguru hope your year since this post has had you riding the ups and downs a few more times – and getting used to it also…..

    Reply

  • The Entrepreneurial Roller-coaster « Andy's Goode Life Blog — February 10th, 2010, 3:22 am

    [...] to read more?  Cameron wrote up a detailed report over at Tim Ferriss’ place entitled “Harnessing Entrepreneurial Manic-Depression: Making the Rollercoaster Work for You“.  Here is a small excerpt, however I encourage you to go and read the full description of [...]

  • syntaxfree — February 19th, 2010, 11:11 am

    Paraphrasing Mattel, “manic depression is hard!”

    But seriously, most of us with actual brain cooties will not be ticked by the misuses of the idea of “manic depression”, but the hyphenation in “bi-polar” is the 2% that wil cheese 80% of them off.

    It’s called “bipolar disorder” because someone thought “manic depression” was too harsh, but it’s hardly about two poles.

    *time to move the complaint bracelet*

    Reply

  • Bobby Casey — February 22nd, 2010, 5:26 am

    Great article Cameron. You are definintely on your A game here. I would like to add that when you are at the bottom of your roller coaster, this is the time to take personal time to do things outside of business. Go skiing, ride motorcycles, climb a mountain, take a trip visiting friends, or anything else that can alter your mood in a positive way. By shifting your focus away, it can bring in positive emotions and get you back in the right frame of mind.

    Reply

  • The Prescription for self doubt — April 29th, 2010, 5:07 am

    [...] To this breed, I assure you all: in our species, it’s normal. [...]

  • Make No Small Plans » Blog Archive » Thoughts on the Change Cycle — May 11th, 2010, 8:16 pm

    [...] also did a guest post on Tim Ferriss’s blog in which he discusses how to Harness Entrepreneurial Manic-Depression and make it’s somewhat predictable cycle work for [...]

  • CFly — July 16th, 2010, 3:41 pm

    Firstly, I’ll say kudos to both TIm and Cameron for following this post up for two years. That is serious dedication. Not too many people give a shit for two years.

    I think the stages illustrated are very good guidelines for new entrepreneurs. As you go through more and more “opportunities” and businesses, it starts to flatten out and that rollercoaster gets leveled out with patience, knowledge, and experience. There is one element that is not illustrated in the picture though, and that is the input of family/ spouse in your ear.

    If I could BOLD this statement, I would:

    If you do not have the support of your spouse/ partner/ family, multiply the illustration x2. You spend your time trying to convince not only investors, but your own family that what you are doing is worthwhile and will work.

    God / Mohammed / Ghandi help you if it doesn’t.

    Entrepreneurs have two jobs; first convince the wife that it’s a good idea, and if that goes well enough, you know you can get investors. Put the wife on that rollercoaster for the 5th, 6th, 7th, time, and if you can do it the 8th, you’ve both got the vetting process down pat and you’ll probably succeed.

    Regards and best of luck,

    CFly

    Reply

  • Florence Haridan — July 26th, 2010, 2:41 pm

    I work in the design and creative community. I am a business coach who deals with this cycle day to day with clients and their teams. I ran across this post while creating a new blog post for my site. I will be linking to this as I just love the diagram…I use your book with many of my clients…keep up the good work… F

    Reply

  • Bill — September 6th, 2010, 1:04 pm

    This is a good post but it is an abbreviated version of Joseph Campbell’s Heroe’s Journey… Something to check out if you haven’t seen already..

    http://www.mcli.dist.maricopa.edu/smc/journey/ref/summary.html

    Reply

  • Ervin — September 8th, 2010, 3:10 am

    Thank you very much for this post. It helped me this roller coaster of emotions.

    Ervin

    Reply

  • Wesley Moss — September 16th, 2010, 7:01 pm

    If there was a way I can “clip to brain” instead of evernote that would be stellar. As always thanks for the great on target and relevant post.

    Reply

  • Joe Johnson — October 24th, 2010, 12:03 pm

    Excellent post. I recently crashed ‘n’ burned and this article really helped motivate me, as well as, regain my confidence. Thank you.

    Now, back to it, eh? ;-)

    P.S.
    I really like how you’ve phrased your “Comment Rules.” May I use it on my sites as well?

    Reply

  • Rahil — October 25th, 2010, 11:05 pm

    WOW!!
    ive never read anything on ths topic before. this is me!! i do this in so many areas of my life. ill be coming back to this post many times during each stage :)

    currently at informed optimism

    Reply

  • Mark — November 29th, 2010, 8:49 am

    I think this post just might have saved my life. Thanks.

    Reply

    • Tim Ferriss — November 30th, 2010, 2:01 am

      Thank you for your comment, Mark. Just remember: we all face the demons. It’s easy to feel alone, but there are thousands of people — in the exact same instant — feeling the same doubts and overwhelm. Looking at is as part of a ride that inevitably turns upward is a healthy mental model that has helped me a lot. Hopefully it does the same for you.

      All the best,

      Tim

      Reply

  • Kendra Kroll — December 3rd, 2010, 7:52 pm

    great read. GLAD I’m not alone on this one…really. that discussion = 100% truth spoken. thanks.

    Reply

  • Beth — December 23rd, 2010, 5:13 am

    Hang on, so you shouldn’t make hiring decisions at any of the first three stages?

    Reply

  • Drew M. Snyder — December 28th, 2010, 1:35 pm

    Thank you so much for posting this. I’m sure I had read this awhile ago, but perhaps I’d forgotten. Reading it again just now really made my day!

    Thanks again, cheers, and congratulations on the new book!

    -Drew

    Reply

  • Christophe [Petite Fabrique] — January 17th, 2011, 5:01 am

    Sometimes it’s better to give up while in the crisis of meaning instead of go back to informed optimism if the benefits are good but not great.

    Reply

  • Antonio Mecca — January 30th, 2011, 4:26 pm

    Very actionable post. Thanks for sharing!

    Reply

  • Cecilia — February 21st, 2011, 1:00 pm

    Very insightful post. Just as I feel so worthless and hopeless, I am just only in the Crisis of Meaning, not yet (but very close) to the crash and burn stage.. Thanks for posting this article.

    Reply

  • Francesca De Grandis — February 22nd, 2011, 2:23 pm

    Thank u! Both self-employed and social-entrepeneur for a zillion years – - so that includes my past lives (a joke!) – - so the article is very helpful 2 me. And I luv that it gives specific practical suggestions!

    Reply

  • Ryan Critchett — April 10th, 2011, 7:00 pm

    2 years and 6 months later, this article is still as valuable as the day you sat down and wrote it.

    This is so true of any kind of objective you’re approaching. It’s true of creativity. It seems to me like a natural human function called learning, and fear.

    Certainly this is the reason why psychologists have clearly identified a relationship between manic depression and creativity… how many creative people are bi-polar. That’s kind of the reason I came to read this. I definitely experience this entire cycle. It’s fun to know the process, and embrace it the entire time!

    Word. Thanks for posting this my reality scrutinizing, life negotiating friend.

    Reply

  • Veronica — April 17th, 2011, 8:20 pm

    Oh… how this article speaks to me as I go through the first roller coaster trip. I wanted to start a business ever since I was an 8 year old selling brownies and lemonade in front of my house. Now, almost exactly 20 years later I feel like I’m ready, that I’ve gathered all the information I need to go from the beginning to … I guess… the up and downs of the roller coaster. Thanks for writing this and giving me hope when things were getting dark and scary!

    Reply

  • treasure hunters roadshow — May 13th, 2011, 8:03 am

    When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with the same comment. Is there any way you can remove me from that service? Thank you!

    Reply

  • Matt Dragon — May 20th, 2011, 6:59 pm

    Thank you TIm,
    Great read and I can certainly relate.

    Reply

  • Deb Bhattacharya — July 2nd, 2011, 11:25 pm

    Very helpful, specially the tasks you have listed what to do and not to do when going thro bad times. Its really encouraging to hear that I am not the only one to pass thro bad times. Really helpful.

    Reply

  • Amir Anzur — September 10th, 2011, 6:39 am

    Cameron/Tim,

    awesome post. If I had read this a few years ago, I would have saved myself a few hundred thousand dollars learning things the long way around with “experience”.

    I was even told to see shrinks – I eventually realized that the people that thought I was crazy were all living a different life to what I wanted (retiring at 60, living an “okay” life etc…), so I simply scaled back on telling them what I really was thinking and thus saved myself from taking meds for ADD or Bipolar. I also started to read and hang out with more entrepreneurs so thus felt more “normal”.

    I have a strategy that I pre-warn employees/partners etc about my tendency to get over-excited about ideas/concepts – so to scale back the vision a little and extend the timeline a few years and we will get there (I used to think it would happen within a week).

    I found that talking to “non-dreamers”/pessimists/”normal thinking” people drove me crazy. So I stopped discussing my “big ideas” with most family members, normal employee friends and people who are generally not likely to be believers or take any action towards the vision.

    If you start by spending a lot of time in “youology: studying what you want/what you are like and general mastery of self” or as Steven Covey calls it “with the end in mind”, the roller coaster becomes smoother.

    The way I figure it if Nelson Mandella can spend 27 years in prison to eventually get what he wants, whats a few years of highs and lows to achieve the bigger dream. The “crash and burn” is just an option if you want to take it, it is never a crash unless you want it to be (in hindsight it is easier to say this).

    Thanks for posting – rare to find such insights from true entrepreneurs!

    Amir

    Reply

  • quan tri web — November 28th, 2011, 6:40 am

    Very helpful, specially the tasks you have listed what to do and not to do when going thro bad times. Its really encouraging to hear that I am not the only one to pass thro bad times. Really helpful.

    Reply

  • Eric F. — May 3rd, 2012, 2:34 pm

    Thank you TIm,
    Great read! I sent you an email! Would you be available to answer a couple questions? Great Site BTW!

    Reply

  • Asim — May 28th, 2012, 6:36 am

    Wish i had read this 3 months ago – spot on, very few people talk about the emotional struggle when doing a startup.

    Reply

  • Aleyciuss — July 19th, 2012, 7:22 am

    Great article! Just enough information and delivered perfectly! Bravo.

    Reply

  • Rob — September 10th, 2012, 11:17 am

    My god, the accuracy of this article is astounding.

    It’s been a few months since I’ve launched my company, and the mental roller coaster has already started in ridiculous ways. It’s both disheartening and exciting to know that I haven’t even scratched the surface of what will come.

    …but at least my bipolar mood swings with respect to business isn’t solely genetic. I guess I can stop being mad at my parents for a bit.

    Reply

    • Cameron Herold — September 28th, 2012, 10:23 am

      Hey Rob – Glad you liked it –

      Drop me an email Cameron at BackPocketCOO dot com and I’ll email you the chapter of my new book Double Double which dives even deeper into the emotional roller coaster now.

      Enjoy the ride…

      Cameron

      Reply

  • Kors — March 11th, 2013, 12:54 am

    This is a fantastic post. I’ve been through all the stages 100x of times and I am still not used to Crisis of Meaning… it’s actually the stage that’s usually taking the longest. I love your cycle drawing.. I’ll print it to remember that good things are around the corner:) Thanks!

    Reply

  • Jakob — April 28th, 2013, 9:19 am

    Hey Tim, can you please explain why you recommend not to read books (to learn more) when in phase 3?

    I asked myself the question:
    “How to solve an inner conflict what seems to exist in phase 3 without external input?”
    The answer I came up on this was: “The results of output, is input for you too. It let’s you know: I still have the power to make things better myself”

    Would you say reading in phase 3 leads to work procastrination?

    Reply

    • Jakob — April 28th, 2013, 9:20 am

      Sorry, my question has to be directed to Brian!

      Reply

      • Jakob — April 28th, 2013, 9:22 am

        No, to Tim. He’s the post’s author :) …

        Reply

        • Cameron Herold — May 2nd, 2013, 5:28 pm

          Actually – I was the author ;)

          My comments about not reading biz books – are tied to that stage of crisis of meaning – people need a break when they are at that stage. Biz books tend to add more to our plates, and often create stress when we feel like we aren’t doing enough.

          At this stage – CEOs really need a break – complete disconnect. Read books for fun, and lie out in the sun while you’re doing it ;)

  • Deirdre Thelen — May 10th, 2013, 8:30 pm

    Sometimes we all need a good scare. Love the post.

    Reply

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