"America's Secret Weapon is Entrepreneurs" (Entrepreneurs Organization, EO Accelerator, ATI, and CTAN Co-Host Evening With Jack McDonald)

Four of Austin's top organizations that support the entrepreneurial community (Entrepreneurs Organization, EO Accelerator, ATI, and CTAN) co-hosted an event to bring their members together on Tuesday night. Not even the "Blizzard of 2010" could stop entrepreneurs from showing up to network and listen to local business leader Jack McDonald (it had snowed three inches that day -- A lot by Austin standards, ...... and when it snows in Austin, everything else shuts down) .

I have written about my friend Jack McDonald in the past. Last year he had formed and exploratory committee to look at running for Congress. In the end, he did not run this time around. The chances of his winning as a Democrat in the Republican district (against a well funded incumbent) did not add up.

As a real businessman, he made the informed decision to not make the run (a real politician would have run anyway, wastefully spending $3 million of donor money. A good entrepreneur does not waste cash - A politician will wast money any day of the week).

Jack's talk centered on "How To Grow Your Business In A Tough Economy", something he knows a lot about, having lead a successful public technology company (Perficient, Inc. - PRFT) over the past ten years.

Austin (and Texas) have been fortunate in this recession. We have several companies that are adding jobs (example: entrepreneur Brett Hurt's Bazaarvoice has grown from zero to 400 jobs over the past four years), and the city's young workforce is among the best educated in the world. The diverse and open culture coupled with other positives in the region means we have what it takes to grow. Both individual businesses and Central Texas are poised for expansion in 2010 and beyond.

But Austin cannot be complacent. There is a lot of other cities who are positioning themselves for growth in tech, bio-tech, energy and the other industries. We are not immune to the challenges of the recession or the future and we must continue to take actions to make the region successful. The Austin business community must reinvent to stay ahead of the curve.

McDonald challenged the audience of entrepreneurs not to sit on the sidelines, but to instead be involved in the process. The Austin Chamber of Commerce and other organizations are working on the plans for the future through policy, business recruitment and retention, and other business ecosystem investments. However, the tech entrepreneurial companies are often not at the table, because many of these companies are customer focused (and their customers are around the world, not in Austin). He reminded the crowd that their success is directly tied to the city's future.

He had three pieces of advice on how to survive and grow in any economy:

1. Do not chase "easy revenue". Know who you are and who you want your clients to be. He witnessed may of Perficient's competitors disappear because they chased the Dot-Com economy in the late 1990s.

2. Avoid ego driven expenditures. By keeping fixed costs low, a company can survive the tough times. Too many small businesses obsess over Class A office space (Class B office space is just fine for a growth company!) and other expenses in order to "look bigger". This can be a fast track to going out of business.

3. Be realistic. After the tech crash in 2001 too many entrepreneurs and investors stuck their head in the sand, when they should have moved fast to make changes to get lean.

The end of his talk touched on national politics. The global economy has a lot of competition, and it is not going away. Our federal government must make policy adjustments to keep the country on the right track. The tax code on small businesses is neither effective or fair. Big corporate welfare is not driving job creation. GE, who is not adding jobs pays around 12% in taxes while growth oriented companies pay close to 40%. (Huh? That is nuts. Are you listening in Washington DC?).

America's secret weapon is entrepreneurs. Washington must recognize this and make decisions that encourages capital formation and supports those who start and grow companies. We have one of the highest corporate tax rates in the world, and this puts America at a disadvantage.

It is a shame that Jack will not be going to Congress. We need more people in Washington DC and in state governments who are entrepreneurs. Our elected officials are often good people who went from law school to politics without ever having met a payroll, created a job, or developed a product or service. They have no clue about business, but are the ones making the decisions that effect not just Wall Street, but Main Street.

Overall it was a great event, and I would like to thank the four hosting organizations and sponsor, Frost Bank, for making it happen.

I am enjoying my involvement in EO Accelerator, as the organization continues to expose me to great people and educational programs that help me in my own journey as an entrepreneur.

Have A Great Day.

thom

Austin Businessman Jack McDonald Not Running For Congress (This Time)

Over the last year I have written on this blog (here and here) and on Twitter about my friend, Jack McDonald, who was running for the United States House of Representatives. I was even on the “host committee” of a fundraiser. I was excited to see an experienced CEO, decision maker, entrepreneur and self-made success story making a bid to represent the people in Washington DC. Although I am not a Democrat (I am not a Republican any more either), I was thrilled to support Jack McDonald for Congress.

Shortly before the holidays Jack announced that he would not be filing the paperwork to make the run for public office at this time. Bummer.

This is a bummer not just for those who live in the district he would have represented, but also for all Americans. We need to do something different in Washington DC, as the same-old-same-old career politicians are not delivering the goods.

Texas’ Congressional District 10 is a ridiculously gerrymandered squiggle on the map that stretches from Austin to Houston. It is a Republican leaning district with (I have heard) an electorate of 55% R and 45% D voters. For Jack to have won this race would have meant that the moderates from both sides of the aisle would have needed to overwhelmingly voted for his democratic candidacy.

The race would have cost millions of dollars (of both fund-raised and personal money), and he would have most likely lost the race regardless of the cash he spent. A smart business man does not waste millions of dollars. The incumbent congressman, Mike McCaul, has a well funded campaign, good name recognition, and is a Republican (in a “red” district). With the current tide across the country being one of dis-enchantment with the far-left agenda of the White House and Congress, even a moderate democrat could never have seen the love from the moderates.

Jack’s press release announcing his decision to not make the run stated:

“This was a difficult decision for me and one I did not make lightly. I approached the decision in the same way I have approached my business decisions over the years-in an informed, realistic and fiscally-responsible way.”

I think it is a shame that both political parties have allowed the fringes to take control of their agendas. It seems that neither the Republicans nor the Democrats have a home for those of us who are firmly planted in the middle of the hard issues that face our country. The really bad news is that MOST people I talk to are in the middle (to varying degrees). They are Americans first, Republicans and Democrats second. It is NOT this way it is in the seat of our government. Partisan and divisive stances rule the roost. Last year Americans went to the polls to vote for change, but we only got a change in which party is running the show... otherwise it is “business as usual” in Washington DC.

Candidates like Jack McDonald who have led their lives and built successful careers in the private sector are whom we need to be electing to national level offices. Experience outside of public service is a good thing, in my opinion! But the system is set up, and the districts are designed, to favor more of the same. Jack is a guy who has made a difference in the real world and was trying to bring that experience to government. He made the smart decision to keep his powder dry and live to fight another day.

Have A Great Day.

thom

Meet Jack McDonald - Candiate for Congress

The Austin High Tech Community is hosting a happy hour "Meet and Greet" for entrepreneur turned political candidate, Jack McDonald, on Thursday, October 15th at Molotov.

Jack McDonald is former CEO and current the Chairman of the Board of Perficient (PRFT). He has spent more than a decade as a leader in the Austin Business Community, and is now going forward with a run for the US House of Representatives.

I have known Jack for several years, and he is the "real deal". A good man who cares deeply about his family, his community and his country. Jack is exactly the type of person we all long to have represent us in Congress.

I am proud to support my friend in his bid for Congress. I don't see his candidacy as about politics (he is a Democrat), but about sending an experienced business leader (who understands first-hand what it takes to grow a company, employ hundreds of people, and make the tough decisions) to Washington DC to tackle the tough issues.

I encourage those of you who read this blog and live in Austin to stop by the happy hour on October 15, 2009. Meet Jack, learn about his candidacy, and mingle with many of Austin's technology professionals.

Click here to RSVP. Cost is $10.

Have A Great Day.

thom

Hey Congress - You Don't Know JACK! Jack McDonald for Congress

Hey Congress - You Don't Know JACK! But you will.

Jack McDonald, who is exploring a 2010 run for the Texas 10th Congressional District, just launched his website: www.jackforcongress.com.

Jack McDonald is the "real deal". This is the time that we should NOT allow the labels of "democrat" or "republican" fall into a race. The 10th Congressional District is what the GOP thinks of as a "safe" seat, as it was carved (yes carved, look at the crazy shape of the district on a map) out in the redistricting that took place several years ago. But everyone I know claims to look at the person, not the party.... and this will be a race watched nationally to see if the winds of change have really arrived.

(The district goes from Round Rock, scooping out part of Westlake/Davenport, and then runs along HWY 290 to Katy. What? A tiny slice of Austin and a huge Houston suburb strung together. Um, Austin and Houston are not close together - nor do they share the same issues, but when you draw it this way you encompass a lot of republican voters).

Jack is a visionary business leader who has worked hard to build a company and promote the success of the community.

To hang onto "red" vs. "blue" in this case would be a shame. McDonald would make a difference in Washington DC.... and not just be the same old thing (I am tired of career politicians). Who out there isn't sick of the status quo in our government?

He is the type of person whom we all dream about electing to Congress.....but are almost never given the chance, as we keep getting incumbents or nothing. How is that working for us? Both parties need people to vote like sheep, or they would lose their power!

There is an excitement amongst the people who know Jack McDonald regardless of party ties (I know him, and am NOT a democrat)... as he is a self made man with education, experience, character, compassion, and charisma.

Check out his website and give him some money for his campaign. It is easy to forget that it is not the big money donors that matter, but the average citizen who makes the difference. $10, $25, $50, or $100 is an important donation to anyone running for office. Do not fall prey to the misnomer that you don't matter in politics. It is only you who matter.

Have A Great Day.

thom

2009 Community Leadership Award - Jack McDonald

Last night: Perficient CEO Jack McDonald (future US Congressman from Texas 10th Congressional District!) was awarded the Entrepreneurs Foundation's 2009 Community Leadership Award at the EF's annual Texas Independence Day Celebration at the Four Seasons Hotel.

Jack is more than a CEO, he is a community leader who has assisted several non-profit organizations: He has served as vice chair of the Greater Austin Chamber of Commerce, chairman of the AusTech Alliance, as chair of PeopleFund, chairman of the Central Texas Regional Center for Innovation and Commercialization, on the board of KIPP, People's Community Clinic & the Hill Country Conservancy and as past advisory board chair for American Youth Works and as a co-chair of EF's Austin Invitational Poker Tournament.

He is a good guy, and the type of person that we should all aspire to have serving us in Congress. When he makes his campaign announcement official, I plan to be a big supporter of the cause!

I had a great time at the party last night.

Congratulations, Jack.

Jack McDonald for Congress!

I had an interesting breakfast with local entrepreneur Jack McDonald. Jack is considering running for the United States House of Representatives for the 10th District in Texas in 2010.

I have known Jack personally for some time. He is the "real deal", and exactly the type of person who we need to run for public office.

Washington D.C. is full of career politicians who have no idea how people are actually impacted by their decisions. However entrepreneurs who grow companies work in the trenches side by side with their employees. They know how taxes, education, healthcare costs and other things impact real families.

Jack McDonald was born into a large working class family and is the first person in his family to ever attend college. The "real world" struggles of being a self-made success are not something he read about in a book, but instead they are his roots.

His passion for seeing that others can achieve what he has achieved is clear when you hear him talk about the importance of keeping the American Dream alive; A dream that needs to be real for people of all nationalities that make up our melting-pot society.

As an entrepreneur Jack has led a team that transformed a company (Perficient, Inc.) from a startup to an award-winning industry leader with $230 million in annual revenues and 1,200 professionals in 17 major North American markets and global locations in Eastern Europe, India and China.

He is also an attorney... but hey.... nobody is perfect :)

Meanwhile he has put his time and money into doing the right thing for Austin, a city he and his wife have lived in for ten years and where both of his daughters were born. Many busy executives hide behind being "too busy" to give back to the community, but Jack has volunteered for several important civic and charitable causes and has won many accolades, including being the recipient of a 2005 Ernst & Young Entrepreneur of the Year Award.

I will admit that I have never sat across the table from a friend who said "I am considering running for Congress" before today. I will be honest; it is a cool conversation to have with someone. But it is especially cool when you walk away from the breakfast inspired that there is HOPE for the future. We live in some interesting times, and it is exactly in times like this that we have to seek out the right leaders.


Over time I have become disgusted with politics and politicians. I used to be a Republican, but I am not a Democrat. Thus I have no political home. However, I do see myself as an active supporter of the future campaign of "Jack McDonald for Congress"!!! (FYI, Jack is a Democrat...but I no longer believe in political labels. It is the person, their views and their character that matter!).

I hope he runs and wins. We need people serving us in elected office who are smart, experienced, compassionate, well educated, interesting (and interested in what others have to say!), classy, dedicated, hopeful, and real.

If you live in the 10th District (or anywhere for that matter), I suggest you start paying attention to Jack McDonald. If this is the first time you have ever heard his name... I doubt it will be the last.

Have A Great Day.

thom

Jack McDonald, CEO of Perficient, Speaks at ACG Luncheon

If you attend enough networking events you quickly learn the difference between an executive who is a great presenter, and an executive who gets asked to give a presentation.

Most of the lunch and dinner speakers who populate the stages at corporate networking events, seminars and other gatherings are just average at the podium (many are horrible!). While they are "okay", most do not leave you with any interesting points to ponder.... they do not inspire the audience. It is the rare exception that you go to a networking event and walk away saying "WOW, that was a fantastic presentation".

Those are the exact words I heard from folks as I exited today's Association for Corporate Growth (ACG) - Central Texas Chapter - monthly meeting in Austin, Texas.

Jack McDonald, CEO of Perficient, Inc. (PRFT) was the speaker who both entertained and informed the audience of over 80 local business executives. His speaking style was casual, relaxed and conversational as he roamed away from the microphone and walked about the tables as he spoke at the Shoreline Grill.

He not only shared the stories and strategies of his own company, but did what most lunchtime business speakers forget - he coupled his examples with real life take-aways that other businesses can adopt in their own journey toward success. It was the applicable nuggets of knowledge that he gave which made his presentation shine.

He began his talk by pointing out that the news lately has been plagued by talk of recession and depression, but instead took his words in a different direction: He talked about growing a company in these turbulent times.

Perficient is one of Austin's best stories of a home grown success. The company, which launched in the late 1990s, had it's IPO in the heart of the boom-boom days has survived and has prospered under McDonald's leadership. Their strategy for defining their marketplace and discovering where they can compete and win has allowed them to beat their competition about 80% of the time.

Diversification of product offerings will make a company stronger over the long hall. In a tough economy, it would not be wise to have too many eggs in any one basket. Perficient has made sure that they are not too reliant on any one company or industry - and this has allowed them to continue to grow in an industry where 9 out of 10 of their competitors have gone out of business during the past 8 years.

The company now has 18 domestic offices in the United States as well as several overseas locations. They are creating good jobs at home and abroad. McDonald was clear that expanding internationally is not a zero-sum game in regards to jobs, and pointed out that by opening up and expanding internationally they have created MORE jobs in the USA.

"Continue to challenge your assumptions" was also a key point. Because something worked for your company yesterday is not reason enough when the market realities are shifting. Keeping fixed costs low, having flexible labor options and avoiding expensive "ego-driven" real estate are the best recommended strategies for a company that wants to be able to react to the fast changes that always around the next corner.

McDonald reminded the crowd that while we are facing a recession, it is not the end of the world. His company will still attain growth. The message was clear that other companies should also embrace the future and uncover ways to continue to grow, in spite the sour outlook for the economy over the next few quarters.

His conversation ended with discussion about the future of Austin. While many leaders of entrepreneurial companies do not venture beyond the walls of their company, McDonald serves as Austin Chamber of Commerce’s 2008 Vice Chair of Technology and Chair of the AusTech Alliance. Strengthening the tech industry in Austin is part of the Chamber’s Opportunity Austin five-year plan which has surpassed its goals to add 72,000 new jobs and $3.5 billion in payroll to the region’s economy.

Austin is an internationally recognized center for entrepreneurship and technology development with one of the country's best and most educated workforces. It is a diverse and tolerant community that is poised to continue to grow into the future.

While it is the individual entrepreneurs that make things happen, we owe a debt to the infrastructure that has been created over the past three decades that has allowed Austin to thrive. McDonald appealed to the audience to support the Chamber's new Opportunity Austin 2.0 push that is now underway with greater goals for expanding the local economy and growing over 117,000 jobs between now and the 2013.

Getting entrepreneurs involved to build the community now is how we can insure the future.

I have known Jack McDonald for a long time, and consider him a friend, but had never seen him speak before. Probably one of the best CEO speakers I have ever seen. But more than his verbiage, it was the reality of his advice that connected to the audience.

When business leaders take an interest in helping grow the community, it inspires others to do the same thing. Then it is a perpetual motion machine that cannot be stopped. I feel good about the future of Austin and the technology industries that populate our landscape, as even with some economic hiccups in the near future, we have the talent to keep growth in our sights. Both for companies like Perficient (and others) and the Central Texas region will prosper because of the leadership in place.

Have A Great Day.

thom