Editor’s Note: This article won an award in the Magazine Personal Service category in the 2014 Annual Awards Contest of the Deadline Club, the New York City chapter of the Society of Professional Journalists.
By all counts and measures, Bradley Smith is an unequivocal business success. He’s CEO of Rescue One Financial, an Irvine, California-based financial services company that had sales of nearly $32 million last year. Smith’s company has grown some 1,400 percent in the last three years, landing it at No. 310 on this year’s Inc. 500. So you might never guess that just five years ago, Smith was on the brink of financial ruin–and mental collapse.
Back in 2008, Smith was working long hours counseling nervous clients about getting out of debt. But his calm demeanor masked a secret: He shared their fears. Like them, Smith was sinking deeper and deeper into debt. He had driven himself far into the red starting–of all things–a debt-settlement company. “I was hearing how depressed and strung out my clients were, but in the back of my mind I was thinking to myself, I’ve got twice as much debt as you do,” Smith recalls.
He had cashed in his 401(k) and maxed out a $60,000 line of credit. He had sold the Rolex he bought with his first-ever paycheck during an earlier career as a stockbroker. And he had humbled himself before his father–the man who raised him on maxims such as “money doesn’t grow on trees” and “never do business with family”–by asking for $10,000, which he received at 5 percent interest after signing a promissory note.
Smith projected optimism to his co-founders and 10 employees, but his nerves were shot. “My wife and I would share a bottle of $5 wine for dinner and just kind of look at each other,” Smith says. “We knew we were close to the edge.” Then the pressure got worse: The couple learned they were expecting their first child. “There were sleepless nights, staring at the ceiling,” Smith recalls. “I’d wake up at 4 in the morning with my mind racing, thinking about this and that, not being able to shut it off, wondering, When is this thing going to turn?” After eight months of constant anxiety, Smith’s company finally began making money.
Successful entrepreneurs achieve hero status in our culture. We idolize the Mark Zuckerbergs and the Elon Musks. And we celebrate the blazingly fast growth of the Inc. 500 companies. But many of those entrepreneurs, like Smith, harbor secret demons: Before they made it big, they struggled through moments of near-debilitating anxiety and despair–times when it seemed everything might crumble.
Until recently, admitting such sentiments was taboo. Rather than showing vulnerability, business leaders have practiced what social psychiatrists call impression management–also known as “fake it till you make it.” Toby Thomas, CEO of EnSite Solutions (No. 188 on the Inc. 500), explains the phenomenon with his favorite analogy: a man riding a lion. “People look at him and think, This guy’s really got it together! He’s brave!” says Thomas. “And the man riding the lion is thinking, How the hell did I get on a lion, and how do I keep from getting eaten?”
Not everyone who walks through darkness makes it out. In January, well-known founder Jody Sherman, 47, of the e-commerce site Ecomom took his own life. His death shook the start-up community. It also reignited a discussion about entrepreneurship and mental health that began two years earlier after the suicide of Ilya Zhitomirskiy, the 22-year-old co-founder of Diaspora, a social networking site.
Lately, more entrepreneurs have begun speaking out about their internal struggles in an attempt to combat the stigma on depression and anxiety that makes it hard for sufferers to seek help. In a deeply personal post called “When Death Feels Like a Good Option,” Ben Huh, the CEO of the Cheezburger Network humor websites, wrote about his suicidal thoughts following a failed start-up in 2001. Sean Percival, a former MySpace vice president and co-founder of the children’s clothing start-up Wittlebee, penned a piece called “When It’s Not All Good, Ask for Help” on his website. “I was to the edge and back a few times this past year with my business and own depression,” he wrote. “If you’re about to lose it, please contact me.” (Percival now urges distressed entrepreneurs to seek professional help: Call the National Suicide Prevention Lifeline at 1-800-273-8255.)
Brad Feld, a managing director of the Foundry Group, started blogging in October about his latest episode of depression. The problem wasn’t new–the prominent venture capitalist had struggled with mood disorders throughout his adult life–and he didn’t expect much of a response. But then came the emails. Hundreds of them. Many were from entrepreneurs who had also wrestled with anxiety and despair. (For more of Feld’s thoughts on depression, see his column, “Surviving the Dark Nights of the Soul,” in Inc.’s July/August issue.)”If you saw the list of names, it would surprise you a great deal,” says Feld. “They are very successful people, very visible, very charismatic–yet they’ve struggled with this silently. There’s a sense that they can’t talk about it, that it’s a weakness or a shame or something. They feel like they’re hiding, which makes the whole thing worse.”
If you run a business, that probably all sounds familiar. It’s a stressful job that can create emotional turbulence. For starters, there’s the high risk of failure. Three out of four venture-backed start-ups fail, according to research by Shikhar Ghosh, a Harvard Business School lecturer. Ghosh also found that more than 95 percent of start-ups fall short of their initial projections.
Entrepreneurs often juggle many roles and face countless setbacks–lost customers, disputes with partners, increased competition, staffing problems–all while struggling to make payroll. “There are traumatic events all the way along the line,” says psychiatrist and former entrepreneur Michael A. Freeman, who is researching mental health and entrepreneurship.
Complicating matters, new entrepreneurs often make themselves less resilient by neglecting their health. They eat too much or too little. They don’t get enough sleep. They fail to exercise. “You can get into a start-up mode, where you push yourself and abuse your body,” Freeman says. “That can trigger mood vulnerability.”
So it should come as little surprise that entrepreneurs experience more anxiety than employees. In the latest Gallup-Healthways Well-Being Index, 34 percent of entrepreneurs–4 percentage points more than other workers–reported they were worried. And 45 percent of entrepreneurs said they were stressed, 3 percentage points more than other workers.
But it may be more than a stressful job that pushes some founders over the edge. According to researchers, many entrepreneurs share innate character traits that make them more vulnerable to mood swings. “People who are on the energetic, motivated, and creative side are both more likely to be entrepreneurial and more likely to have strong emotional states,” says Freeman. Those states may include depression, despair, hopelessness, worthlessness, loss of motivation, and suicidal thinking.
Call it the downside of being up. The same passionate dispositions that drive founders heedlessly toward success can sometimes consume them. Business owners are “vulnerable to the dark side of obsession,” suggest researchers from the Swinburne University of Technology in Melbourne, Australia. They conducted interviews with founders for a study about entrepreneurial passion. The researchers found that many subjects displayed signs of clinical obsession, including strong feelings of distress and anxiety, which have “the potential to lead to impaired functioning,” they wrote in a paper published in the Entrepreneurship Research Journal in April.
Reinforcing that message is John Gartner, a practicing psychologist who teaches at Johns Hopkins University Medical School. In his book The Hypomanic Edge: The Link Between (a Little) Craziness and (a Lot of) Success in America, Gartner argues that an often-overlooked temperament–hypomania–may be responsible for some entrepreneurs’ strengths as well as their flaws.
A milder version of mania, hypomania often occurs in the relatives of manic-depressives and affects an estimated 5 percent to 10 percent of Americans. “If you’re manic, you think you’re Jesus,” says Gartner. “If you’re hypomanic, you think you’re God’s gift to technology investing. We’re talking about different levels of grandiosity but the same symptoms.”
Gartner theorizes that there are so many hypomanics–and so many entrepreneurs–in the U.S. because our country’s national character rose on waves of immigration. “We’re a self-selected population,” he says. “Immigrants have unusual ambition, energy, drive, and risk tolerance, which lets them take a chance on moving for a better opportunity. These are biologically based temperament traits. If you seed an entire continent with them, you’re going to get a nation of entrepreneurs.”
Though driven and innovative, hypomanics are at much higher risk for depression than the general population, notes Gartner. Failure can spark these depressive episodes, of course, but so can anything that slows a hypomanic’s momentum. “They’re like border collies–they have to run,” says Gartner. “If you keep them inside, they chew up the furniture. They go crazy; they just pace around. That’s what hypomanics do. They need to be busy, active, overworking.”
No matter what your psychological makeup, big setbacks in your business can knock you flat. Even experienced entrepreneurs have had the rug pulled out from under them. Mark Woeppel launched Pinnacle Strategies, a management consulting firm, in 1992. In 2009, his phone stopped ringing.
Caught in the global financial crisis, his customers were suddenly more concerned with survival than with boosting their output. Sales plummeted 75 percent. Woeppel laid off his half-dozen employees. Before long, he had exhausted his assets: cars, jewelry, anything that could go. His supply of confidence was dwindling, too. “As CEO, you have this self-image–you’re the master of the universe,” he says. “Then all of a sudden, you are not.”
Woeppel stopped leaving his house. Anxious and low on self-esteem, he started eating too much–and put on 50 pounds. Sometimes he sought temporary relief in an old addiction: playing the guitar. Locked in a room, he practiced solos by Stevie Ray Vaughan and Chet Atkins. “It was something I could do just for the love of doing it,” he recalls. “Then there was nothing but me, the guitar, and the peace.”
Through it all, he kept working to develop new services. He just hoped his company would hang on long enough to sell them. In 2010, customers started to return. Pinnacle scored its biggest-ever contract, with an aerospace manufacturer, on the basis of a white paper Woeppel had written during the downturn. Last year, Pinnacle’s revenue hit $7 million. Sales are up more than 5,000 percent since 2009, earning the company a spot at No. 57 on this year’s Inc. 500.
Woeppel says he’s more resilient now, tempered by tough times. “I used to be like, ‘My work is me,’ ” he says. “Then you fail. And you find out that your kids still love you. Your wife still loves you. Your dog still loves you.”
But for many entrepreneurs, the battle wounds never fully heal. That was the case for John Pope, CEO of WellDog, a Laramie, Wyoming-based energy technology firm. On Dec. 11, 2002, Pope had exactly $8.42 in the bank. He was 90 days late on his car payment. He was 75 days behind on the mortgage. The IRS had filed a lien against him. His home phone, cell phone, and cable TV had all been turned off. In less than a week, the natural-gas company was scheduled to suspend service to the house he shared with his wife and daughters. Then there would be no heat. His company was expecting a wire transfer from the oil company Shell, a strategic investor, after months of negotiations had ended with a signed 380-page contract. So Pope waited.
The wire arrived the next day. Pope–along with his company–was saved. Afterward, he made a list of all the ways in which he had financially overreached. “I’m going to remember this,” he recalls thinking. “It’s the farthest I’m willing to go.”
Since then, WellDog has taken off: In the past three years, sales grew more than 3,700 percent, to $8 million, making the company No. 89 on the Inc. 500. But emotional residue from the years of tumult still lingers. “There’s always that feeling of being overextended, of never being able to relax,” says Pope. “You end up with a serious confidence problem. You feel like every time you build up security, something happens to take it away.”
Pope sometimes catches himself emotionally overreacting to small things. It’s a behavior pattern that reminds him of posttraumatic stress disorder. “Something happens, and you freak out about it,” he says. “But the scale of the problem is a lot less than the scale of your emotional reaction. That just comes with the scar tissue of going through these things.”
Though launching a company will always be a wild ride, full of ups and downs, there are things entrepreneurs can do to help keep their lives from spiraling out of control, say experts. Most important, make time for your loved ones, suggests Freeman. “Don’t let your business squeeze out your connections with human beings,” he says. When it comes to fighting off depression, relationships with friends and family can be powerful weapons. And don’t be afraid to ask for help–see a mental health professional if you are experiencing symptoms of significant anxiety, posttraumatic stress disorder, or depression.
Freeman also advises that entrepreneurs limit their financial exposure. When it comes to assessing risk, entrepreneurs’ blind spots are often big enough to drive a Mack truck through, he says. The consequences can rock not only your bank account but also your stress levels. So set a limit for how much of your own money you’re prepared to invest. And don’t let friends and family kick in more than they can afford to lose.
Cardiovascular exercise, a healthful diet, and adequate sleep all help, too. So does cultivating an identity apart from your company. “Build a life centered on the belief that self-worth is not the same as net worth,” says Freeman. “Other dimensions of your life should be part of your identity.” Whether you’re raising a family, sitting on the board of a local charity, building model rockets in the backyard, or going swing dancing on weekends, it’s important to feel successful in areas unrelated to work.
The ability to reframe failure and loss can also help leaders maintain good mental health. “Instead of telling yourself, ‘I failed, the business failed, I’m a loser,’ ” says Freeman, “look at the data from a different perspective: Nothing ventured, nothing gained. Life is a constant process of trial and error. Don’t exaggerate the experience.”
Last, be open about your feelings–don’t mask your emotions, even at the office, suggests Brad Feld. When you are willing to be emotionally honest, he says, you can connect more deeply with the people around you. “When you deny yourself and you deny what you’re about, people can see through that,” says Feld. “Willingness to be vulnerable is very powerful for a leader.”
72% OF GLOBAL 5G SMARTPHONE REVENUE COMES FROM CHINA
Counterpoint Research reported that in the second quarter of 2020, 5G smartphone shipments increased, accounting for 10% of global smartphone shipments.
REVENUE AND ASP OF 5G SMARTPHONE
In the second quarter of this year, 5G smartphone revenue accounted for 20% of global smartphone revenue. Among them, China is the largest contributor to 5G smartphone sales. It is reported that 72% of global 5G smartphone revenue comes from China. Most of them comes from 5G smartphones released by Huawei. In addition, the average selling price of the Chinese smartphone market also increased by 12% year-on-year.
According to the report, the Asia-Pacific region, China, Europe, the Middle East and Africa, North America and other regions contributed 10% of the overall growth rate in the average sales price in the second quarter of 2020. However, Latin America is the only country where average sales prices have fallen 5% year-on-year. Although the new coronavirus has had an impact on the entire market, the high-end segment has not fallen sharply. Compared with the overall market decline, it only faces a year-on-year decline of 8%.
The report also shows that in the second quarter of 2020, the average selling price (ASP) of the global smartphone market increased by 10% year-on-year. With the exception of Latin America, average selling prices increased in all regions. This is because many 5G phones sold well in the second quarter. The increasing demand for education, work, games, and entertainment is also a factor in users’ preference for high-end smartphones.
Overall, due to the economic impact and the closure of offline retail stores, the market’s demand for low-priced devices has decreased. Coupled with the resilience of the high-end market and the growth of 5G smartphone sales (especially in China), this quarter’s increase in the average selling price of smartphones.
THE BOTTOM LINE
At the same time, smartphone shipments fell 23% year-on-year, reaching a record high. Although most OEM’s smartphone shipments declined in the second quarter of 2020, Apple’s shipments increased by 3% year-on-year, while iPhone revenue increased by 2% year-on-year. But we should also point out that Apple still has no 5G iPhone. The first models will come to the market only this year. Once this happens, and 5G appears on lower models, it will be quite interesting to see how the proportion changes.
Former Blizzard CEO Mike Morhaime announces new game company
Two years after stepping down as CEO at Blizzard, the game company he co-founded in 1991, Mike Morhaime is back with his next venture. It’s called Dreamhaven, and it’s a combination of a publisher and developer, with “a common goal to empower creators, help bring their ideas to life, and create original gaming experiences that foster meaningful connections between players.”
As part of the announcement, Dreamhaven also revealed its first two internal studios: Moonshot Games and Secret Door. Moonshot is headed by a trio of Blizzard veterans, including former Hearthstone lead Jason Chayes, StarCraft II director Dustin Browder, and Hearthstone creative director Ben Thompson. “Though it’s very early days, when we think about Moonshot, we imagine a studio that celebrates curiosity and courage,” Chayes said in a statement. “We aspire to be bold in our approach, and we think the best way to do that is to create a culture centered around trust.”
Secret Door, meanwhile, is similarly led by a team of former Blizzard developers, including Chris Sigaty (executive producer on Hearthstone), Alan Dabiri (technical director on Warcraft III and StarCraft II), and Eric Dodds (designer on World of Warcraft and Starcraft). No projects have been announced for either studio.
Morhaime stepped down as CEO of Blizzard in 2018, though he stayed on in a consultancy role until last year. In an interview with The Washington Post, he said that one of the goals of the new company was to build an environment focused on creators — something that was likely a challenge under Activision, which became Blizzard’s parent company in 2008.
“We’ve learned a ton about what goes into creating an environment that allows creators to do their best work, and we were very successful doing that for many years at Blizzard,” Morhaime told the Post. “We reached a crossroads where we reassessed what we want to do with the rest of our lives.”
Apple Loop: Shock iPhone 12 Details, Massive iOS 14 Problems, Macbook Pro Delay
Taking a look back at another week of news and headlines from Cupertino, this week’s Apple Loop includes surprising iPhone 12 benchmarks, big problems with iOS 14, two new iPads, Apple ignores MacOS, the “good/better/best” of the Apple Watch, the controversy around Apple One, and the Macs’ never changing system System Preferences.
Apple Loop is here to remind you of a few of the very many discussions that have happened around Apple over the last seven days (and you can read my weekly digest of Android news here on Forbes).
Just How Fast Is Your Next iPhone?
We might not have seen the iPhone 12 family as part of Apple’s virtual September launch event this week, but we have seen the benchmarks pop up on the AnTuTu website. That gives us a raw comparison of the numbers from last year’s iPhone to this year’s. Philip Michaels reports some pretty shocking numbers:
“Leaked benchmarks from Antutu, purportedly showing off an iPhone 12 Pro Max’s performance, may help fill in some of the blanks. MySmartPrice spotted the leaked numbers, which claim to show off a device with 6GB of RAM and 128GB of storage running iOS 14.1.
“According to the leaks, the iPhone 12 Pro Max tallied a score of 572,333 on Antutu’s test, which is a 9% gain over the iPhone 11 Pro Max’s 524,436 result on the same test. MySmartPrice says the iPhone 12 Pro Max’s reported tally would be the highest score ever posted by an iPhone, which you’d hope given that it’s a new model.
The Big Problem With iOS 14
Apple may not have announced a release date for the iPhone, but it did announce the release date of iOS 14. And that has caused problems. Normally Apple will provide a week’s worth of ‘heads up’ time to Developers so they can ensure their apps are ready for the jump up to the next major version of iOS. Not this year… developers had less than a days notice, and they are not happy. Matt Binder reports:
““Gone are the hopes of being on the store by the time users install the new iOS 14 and are looking for new apps. Gone is the chance to get some last-minute fixes into your existing apps to make sure they don’t stop working outright by the time users get to upgrade their OS,” explained Steve [Troughton-Smith from High Caffeine Content.”
““There are some developers who have spent all summer working on something new, using the latest technologies, hoping to be there on day one and participate in the excitement (and press coverage) of the new iOS,” he continued. “For many of them, they’ll be incredibly upset to have it end like this instead of a triumphant launch, and it can dramatically decrease the amount of coverage or sales they receive.””
Take Two Tablets And Call Your iPhone In The Morning
Taking the flagship spot away from the ‘missing presumed having a good time’ iPhone 12 was Apple’s new iPad Air. Beating the smartphone as the first device with Apple’s new A14 ARM-based processor. Samuel Axon and Jim Salter report for Ars Technica:
“The iPad Air gets the new A14 Bionic CPU, built on 5nm process technology. It’s a six-core CPU with two high-performance cores and four lower-power, more efficient cores for simpler background tasks. The A14 Bionic offers a 30 percent GPU performance boost compared to previous generations, and Apple says it puts up double the graphics performance of typical laptops.”
As well as the increased power, 2020’s iPad Air has a new design; USB-C has been added, the bezels have been trimmed away, the home button has been removed, and TouchID has been integrated into the power button. It;s not the only new iPad, as the entry-level iPad moves up rom the A10 to the A12 Bionic processor. Benjamin Mayo reports:
“The jump from A10 to A12 means Apple’s cheapest iPad will feature the Neural Engine for the first time. Apple says the A12 chip offers more than twice the performance of the top selling Windows laptop, 6x faster than the top-selling Android tablet and 6x faster than the best-selling Chromebook.
“The 8th-generation iPad keeps the same price as the 7th-gen: that’s $329 for general sale and $299 for education.”
Will Mac Owners Be Satisfied With Safari After macOS Delay?
If you were waiting for MmcOS Big Sur to drop for your Mac or MacBook, then you are out of luck. Apple’s event saw updates to iOS, iPadOS, tvOS, and watchOS… but macOS has been delayed. The ‘Big Sur’ release is still in the future, but a small crumb (perhaps from a cookie) has been handed to Mac fans in the form of Safari 14, presumably to offer cross-OS support with other devices. Juli Clover reports:
“Safari 14 brings improved performance, customizable start pages, a Privacy Report to see which cross-site trackers are being blocked, and a new tab bar design that provides tab previews so you can see what you have open at a glance. Today’s update also removes Adobe Flash.”
The Apple Watch Strikes Three
Two new Apple Watch models were launched, and as the Apple Watch Series 3 remains, there is now a low-, a mid-, and a high-level smartwatch in the classic triplet that Apple was once famous for. Todd Haselton looks over the Series 6 Apple Watch for CNBC, including the headline ‘wellness’ features:
“The Series 6 also has Apple’s most advanced sensors. You can run the ECG app for an electrocardiogram, for example, a feature that’s not on the Apple Watch SE or Series 3. It’s also the only model with the new blood-oxygen app. I tried that and it told me my blood oxygen was 96%, which seems good.
“…Apple is careful to explain that this isn’t a medical device. You can use it if you’re curious about your blood oxygen when you’re hiking at high altitudes, but Apple isn’t making any promises about detecting low oxygen should you fall ill with coronavirus.”
Meanwhile, Apple has brought the ‘SE’ brand to the Apple Watch, again with the promise of a cheaper ‘mid-range’ slice of hardware that still delivers the core Apple experience. Chris Velazco has spent some time with the wearable to try and work out where it fits into the portfolio:
“For one, the SE uses the same S5 system-in-package (or SIP) that we got in last year’s Series 5, which in turn contains the same dual-core processor as the Series 4. Meanwhile, Apple has confirmed that the SE has the same compass and always-on altimeter as the Series 6, along with a very similar screen.
“From what I can tell, it’s the same bigger display we got in the Series 5, just without the always-on functionality enabled. And while the Series 4 was the first Apple Watch to come with heart-sensing ECG support, you simply don’t get that here. Ditto for the Series 6’s new blood oxygen measurement features.”
Bouquets and Brickbats For Apple One
Also announced alongside Apple’s hardware, and perhaps an indication of where Apple wishes to focus on the future, were new options for the various subscription services offered by Cupertino. Apple One takes the popular options and bundles them together while offering a discount. Brian Heater reports:
“It’s not quite mix and match yet, but there are three pricing tiers. Individual offers Apple Music, TV+, Arcade and iCloud for $15 a month. The Family version will get you those four services for $20 a month. For the hardcore, there’s the $30 a month Premier tier, which bundles iCloud, Music, TV+, Arcade, News+ and [the new service] Fitness+.“
“For those who have been putting off a given Apple subscription, such a bundle could certainly sweeten the pot — and make it even harder for users to escape the pull of the Apple software ecosystem.”
More at TechCrunch. Given Apple’s market position, using one service to pptentiallybolster another through a bundle has drawn the eye of the competition. Spotify – which has already filed an anti-trust complaint with the European Commission against Apple – drew attention to the issue shortly ager the end of the event.
“Once again, Apple is using its dominant position and unfair practices to disadvantage competitors and deprive consumers by favoring its own services. We call on competition authorities to act urgently to restrict Apple’s anti-competitive behavior, which if left unchecked, will cause irreparable harm to the developer community and threaten our collective freedoms to listen, learn, create, and connect.”
The look of the MacOS user interface has evolved since OSX was announced in 2000. One area has stayed relatively contestant, but the small changes highlight the thinking behind the OS over the years.
“The interface started glassy and skeuomorphic, mimicking the materials used on Macs. Over the decades, it went through significant revisions. One thing that seems to have remained relatively unchanged over the years is the System Preferences screen.
“But, at a closer glance, we’ll see that this mundane part of the operating system has changed quite a bit and hides some fun easter eggs and surprises.”
Apple Loop brings you seven days worth of highlights every weekend here on Forbes. Don’t forget to follow me so you don’t miss any coverage in the future. Last week’s Apple Loop can be read here, or this week’s edition of Loop’s sister column, Android Circuit, is also available on Forbes.
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