The winds are changing; that much is clear.
Five years ago when I jumped with both feet into entrepreneurship, I couldn’t have imagined what I was getting myself into. With a two year lifeline of saved earnings, I founded my first of three technology businesses with the simple intent of creating a home for my nerdy kinfolk. I never dreamed of changing this community, yet change is here. We still haven’t caught up to Fresno, but we’re hot on their heels.
Bakersfield meeting spaces are now available to host technical and entrepreneurship meetups, educational programs for tech are open up for enrollment, venture capital lending for Bakersfield startups is here, downtown’s “Eastchester” district is developing, and we are now at a point where Bakersfield is overproducing technical talent relative to the demand from local businesses. If it weren’t for the accelerating downturn in the petroleum and agriculture industries, I think this city would be downright booming.
2017 was a challenging year for me. Turnover has been a steady problem for me in running a software consultancy, for a multitude of reasons. Firstly, I have a strong preference for hiring green local talent fresh out of CSUB and BC and giving them those first critical years of work experience, but once they have that experience, they have found much more stability in companies like Amazon and Microsoft. Secondly, Bakersfield is "a great place to be from,” but not too many rank Bakersfield as their top choice in place to live. Efforts are already at play by the KEDC and some of the Chamber/BYP constituency to bring young professionals “Back to Bakersfield,” but ultimately career stability is a large determinant in such a decision, and our economy is facing uncertainty in the coming decades.
Most significant last year was my unfortunate encounter in getting screwed by a fraudulent prospective client early in the year. In a service business with no recurring income stream, time is money. This challenge cost me time, it cost me cashflow, it cost my team morale, and ultimately it cost me the team itself. It was a painful lesson, but clearly one I needed to learn: do not allow those whom you trust to attempt to convey their credibility onto others. The people you choose to do business with must earn their credibility on their own merits. Only then can you know with certainty they are worthy of trust.
I spent many months reflecting on how the situation played out, and ultimately decided that I was taken advantage of in business because I smelled of desperation. This prospect had approached me offering cashflow for the entire year in exchange for exclusivity. Had my company been in a stronger position, I wouldn’t have dared consider the deal (at the expense of my other customers). But they were sharks, and I smelt of tuna. By fall 2017 I decided that if I wanted to continue swimming in shark-infested waters, I’d better damn well look and smell like a shark. And thus, Kevin Mershon the Bakersfield Venture Capitalist was born.
Thus far, my capitalistic adventures have only been conceptual in nature. I’ve met with a handful of teams seeking seed capital or angel investment, neither of which I’m interested in nor positioned for. But over time, the hope is that the local image of me as “the software guy” will fade as “the tech business money guy” blossoms. I have my investors already on the line, and now it’s just a waiting game until the right talent emerges. Until then I am gradually reducing my consulting offerings in anticipation of VC activities keeping me busy.
Over the past few weeks, I have felt complacent about the recent changes in my life. Bored, even. But, I am hoping this feeling will be replaced with excitement as this year unfolds. Find me at MESH if you dare to dream with me.
