Navigating Pivots and Perseverance: Wei's Journey with Clipboard Health - AHN Media Group

Awaken* newsletter

July 18, 2024

SHARE:

Wei Deng is the Co-Founder and CEO of Clipboard Health, a company that connects healthcare facilities with local professionals who can work unfilled shifts. Since Clipboard’s inception in 2016, Clipboard Health has filled millions of shifts for thousands of facilities nationwide, putting millions of dollars in the pockets of healthcare professionals. Throughout her journey, Wei has never lost sight of her ultimate mission of helping people socioeconomically. In this interview with AHN, she discusses her upbringing and the early days of her founder’s journey.

HanYue: Tell us about the early days of Clipboard Health, what type of challenges did you have to overcome? 

Wei: It wasn’t called Clipboard Health when I started. It was initially a way to refinance student loans. I spent time talking to customers, figuring out who wanted to buy the fintech products, and talking to different customers again but I just didn’t feel the pull of the market, but I noticed that nurses wanted help finding a job. However, the hospitals only wanted to help people with experiences. So I pivoted to a clinical fellowship to help train nurses, figuring out what the clinical partners need, and help nurses find jobs. 

After pivoting through 6-7 different ideas – I finally landed on the Clipboard Health model, a marketplace that helps with nurse staffing. In the early days, we were very much focused on launching a product and talking to users.

Edwin: How do you judge when to pivot and when to stop working on an idea?

Wei: I wish there was a magic formula – but there isn’t. Having seen some other friends who have found PMF was helpful. For our products, our customers could live with it or without it. They didn’t have any strong opinions about it. That was a sign to me that it’s not working. For most ideas, I gave it to 3-6 months. What was frustrating is that sometimes you would have some initial glimmer of hope – some people are using it, and you wonder to yourself, is that a real sign?

For a good product, I found out that even if the product isn’t built out, people still want to use it, and people care about it a lot. You can feel the pull of the market. 

HanYue: There is clearly an unrelenting drive to pursue entrepreneurship, what kept you going during the early days? 

Wei: Quitting just never occurred to me. In the beginning, I mostly called the things I worked on projects, and when they didn’t work out,  I just never gave up.

Of course, there were frustrating moments: when I first went fundraising, I got told no 16 times. I was a solo founder, so there was no one to help me. I taught myself coding and sales to get started. I think the big realization is that even if you encounter nos and the product is not working, as long as you keep working and don’t quit, you are getting closer to a yes. 

HanYue: That was really inspiring – as long as you keep working, you are getting closer to a yes. Want to switch gears a little bit, how did you meet your co-founder? What was it like building out the initial team? 

Wei: In the early days, it was just me. My husband joined me after 3 years. By that time we already raised Series A, we were growing and had some traction. He initially joined to help out for 3 months, then stayed on for a few years.

Building out the team, we had a lot of trials and errors. We definitely made some mistakes – I had engineers whom you couldn’t get ahold of even when I was trying to fire them. We had one head of sales who built out our sales team but it turned out he was working for a competitor at the same time and was giving them our customer list, and all the people who worked for him were also working for the competitor. But luckily, some good people stayed and really they are what made us successful. 

HanYue: Tell us about the people who stayed. What made them successful? 

Wei: Oh, I love talking about this because it is what we look for during hiring. They have to care about the problem a lot. It is actually very obvious whether people are just here to collect paychecks, going through the motions, or if they really care about the problem. 

They are really curious. They are always looking for clues. If a customer says no, or churns, they are always digging in and figuring out why, instead of taking it as a given – oh they just didn’t want to use the product.

They also have ownership and initiative. They never just bring a list of problems. The best people I’ve had, they’ve brought me problems I didn’t know we had, and they’ve already thought about how to solve them. 

So initiative, ownership, and curiosity are our people and company values. 

HanYue: That’s wonderful to hear that there is such a close alignment between the people’s values and company values. What was your proudest achievement so far?

Wei: Honestly, I think it’s assembling a great team. We’ve gone through a lot of great pains in hiring, but now we have an awesome team to move together. Nowadays, even if I pull my foot off the gas, they are still serving our customers the best they can, and that is very special. 

The second thing is the customers we’ve been able to help, but that is honestly more of a proxy of how great our team is. 

HanYue: Tell us a bit about your upbringing. How has being Asian influenced your entrepreneurship journey and your general approach to life?

Wei: I grew up with my mom and my dad. We grew up in Kentucky, there were not a lot of Asians in Kentucky. 

My dad had this mentality: you don’t need permission to learn something. I remember trying to go to a national science fair – I was 16 and needed to learn calculus, but calculus was a college-level class and I was thinking, “Oh, maybe I can’t because I had to wait to learn calculus later.” My dad just said, get a textbook and figure it out yourself. That’s something I carried forward in life.

When I started, I didn’t have to have someone who knew how to code, I could just learn coding myself and get started. I never did sales before and didn’t have someone I could rely on for sales, but I could just pick up a phone and start doing cold calls. It’s the sense that nothing is beyond my reach, you don’t need to wait for the perfect moment or something/someone to depend on to get started. 

There weren’t many Asians in the area I was from. We stuck together but we were also super competitive with each other. There were two people in high school I was constantly competing against, and I think in a lot of ways it brought out the best in me. Personally, I am not competitive, but I found having someone neck-to-neck with you really makes me thrive. 

HanYue: Congrats on the unicorn status – it’s an incredible achievement! What suggestion do you have for founders who are still searching for product market fit out there?

The only thing that matters is to understand the customer’s pain points deeper than anything else. Rather than spending time on solutions, spend more time on understanding the problem. Actually, you might find that you are not even starting with the right customers – you might have to pivot a few times to find the right customers.

When you find them – look at their habits. People who are saying they want to lose weight, but if they are not going to the gym or tracking their calories or metrics, then weight loss is just not that big of a deal to them.

When talking to them, you need to look for: Are they spending money on it? Are they spending a lot of money but still can’t solve the problem? That is a potential area you can go to. The chances are that you can find a lot of good solutions –  you can have the greatest AI and greatest product, but if it is not solving a real problem, then no one will end up paying for the solution. 

Edwin: Are there mechanisms and processes you use to tease this information out? 

Wei: We just look at their behaviors. Are they spending money? Is the pain point really painful? 

When it came to staffing, it was obvious, that the customers we talked to were spending all of this money to putting together spreadsheets and tracking attendance. It was clearly a big pain point they wanted to solve. 

My father passed last year, I remember spending so much time looking for a caregiver for him. If someone gave me a set of solutions, even if not super built out – just a list of caregivers or a list of places that could care for him, I would definitely want to talk to that person. 

HanYue: Thanks for sharing a deeply personal moment with us. It really makes sense that as founders we needed to find the most painful problem to solve. Where do you go from here? What’s next for Clipboard Health?

Wei: Personally, I have two kids and I spend a lot of time with them. For the company, we want to continue expanding beyond healthcare professionals. We started with nursing – but we wanted to allow workers of all industries the benefits of flexibility and economic empowerment. 

At Clipboard Health, we also have an internal MBA-like program. If you are a product manager but want to learn, we will teach you cross-functional skills – engineering, sales, and other things.

The hypothesis is that eventually if people leave and want to go and start their own company, I could enable them to have a much broader scope than just their own focus. We have engineers doing sales, customer support, and product and they all love it because they get to implement and continue to broaden their scope. One of our heads of sales was a product manager – they kept asking questions and wanted to learn about sales so they got the chance to lean into their curiosity.

I want to scale this program up as the company scales up to develop people. Because if you invest in people internally, what you get is phenomenal: People who are already invested in your culture, and know your product really well have more methods to help your customers and grow better. 

Edwin: I see some parallels to your journey as well – the early days when you had to teach yourself coding and sales. One thing you talked about is expanding to verticals, how are you finding the new verticals? 

Wei: We have a more systematic approach: we read the Bureau of Labor Statistics, and try to look at professions that need help. Maybe some professions are losing steam, etc. We also have lots of customers in healthcare and there is a a surprising number of professions to fill up there – we need janitors to clean up, cooks to cook for the dining hall, servers and waiters, and trainers for physical therapy patients. There are some natural adjacent areas. Customers are providing those insights to us and where they need help.

Edwin: Are you afraid of losing focus? 

Wei: Focus is overrated, You should try to be good at some core competencies – but it all depends on how you define your core. if we define our core as a flexible labor marketplace, then we have lots of room to build. 

If you look at any ambitious company, they have a ton of products and they might seem totally unorthodox to each other. Amazing doesn’t look focused: they have AWS and it has nothing to do with selling books. Or if you think of people around you, some of them are good at maths, instruments and some type of sports. No one is like: you should only be good at math – people develop expertise in multiple areas. 

There is certainly a concern about chasing shiny new projects. We try to only pursue things that we have pre-thought out and really ask ourselves – do we want to be more ambitious than we currently are, or are we just chasing a shiny new object? 

Wei’s journey with Clipboard Health underscores the importance of persistence, adaptability, and deep customer understanding. Her story is a testament to the power of resilience in entrepreneurship, demonstrating that with unwavering determination and a keen focus on solving real problems, success is within reach. The AHN team thanks Wei for having this conversation with us! 

Related Articles

Image Source: The Guardian / Unison Creative

Stories

TukTuk Box Founders Highlight Southeast Asian Flavors With Snack Kits

Laotian American Christy Innouvong-Thornton and Beatriz Aurelio-Saguin of Filipino and Indonesian descent use food to explore and share their heritage.

“Food is our love language. In the Asian community, sometimes our parents don’t like to express their emotion,” Beatriz told the Guardian, “But they’d give you a big bowl of rice and your favorite dish when you’re sad, and you know you’re loved. For us, food is also an ever-changing storytelling vehicle.”

They wanted to find a way to debunk racist stereotypes about the foods they grew up eating while giving back to Southeast Asian communities.

In 2020, Christy and Beatriz founded TukTuk Box to raise money and awareness for Thai refugees.TukTuk Box is a specialty food retailer and subscription box company focusing exclusively on Southeast Asian products and purveyors, working with people from the diaspora or identifying as BIPOC.

For Christy, starting TukTuk was also a way for her to heal and create a relationship with my biological mom. 

Most of Beatriz’s dad’s siblings were born in Jakarta, while her dad was born in the Philippines, which made him only know a few staple Indonesian dishes. But because of Tuk Tuk Box, he’s been able to learn more about his own background.

They told The Guardian that they’ve curated their products from Asian stores all around California, Thai Town in LA, and Cambodian communities in Orange county. Before the pandemic, they also had a lot of snacks directly imported from Thailand and the Philippines.

Christy and Beatriz are publishing a cookbook soon featuring different stories and recipes from folks in our community that they have collected over the last two years.

Jeremiah

News, Stories

Gleaming Presence of Tremendous Communications Shining an Iridescent Light on AAPI

Jeremiah Abraham, the founder and CEO of Tremendous Communications, had bumps in the road in getting to where he is today. Starting his business right before the pandemic, he doubted the path that he created and considered quitting everything that he was doing. But with mentors along his side and his determination to uplift the AAPI community, his company has contributed to protecting and celebrating the Asian American and Pacific Islander communities when they needed it the most.

Working at renowned companies like Disney and Warner Bros., Jeremiah has spent years hustling at the intersection of technology and entertainment. Using his talent in marketing, he has constantly shed light on the AAPI community by promoting films such as Everything Everywhere All At Once and co-producing the Filipino American musical drama film Yellow Rose. He still finds ways to balance work and life by tearing down the systematically ingrained notion of working from 9 to 5.

In this one hour interview, Jeremiah lays out his story of how he entered this industry, experiencing ignorant approaches to different cultures in a white dominant workplace, and his immense passion for AAPI representation.

Blend of Tech and Entertainment

I got my degree in computer engineering from UC Irvine and that was when I needed to decide what I wanted to do in life. I wanted to make a difference in technology back then, so I got that degree. One of my first jobs was in the aerospace industry. I was working there and I realized that I was just really bad at math. I didn’t think I could realistically pursue this as a long-term career. It was one of those moments where you had to have this introspective, realization, or catharsis about what you thought you were going to be and what you want in life.

Then I found this blend of tech and entertainment, which I was always interested in. I ended up being a front-end developer for Disney, which was a nice blend of the programming skills that I learned from school and the entertainment brands that I’ve always admired. Social media was still fairly new at these companies. This was back in 2007, and I would say that the biggest leap from this tech world to this communications world was when I discovered a Master’s program for Digital Social Media and Online Communities at USC. So I worked at Disney full-time, and at night I tried to get my master’s degree. I knew in my head what I wanted to build for myself and that was this intersection.

An intersection of my interest in engineering and social dynamics is interesting because a lot of people didn’t know why I even majored in computer engineering and minored in sociology. Engineers build societies, but you can’t build it without understanding it first. I ended up pursuing this even more and realized that I had a knack for marketing which I ended up pursuing after receiving my degree at USC.

Uplifting the Filipino Community

After I got my master’s degree, I decided to pursue my thesis project as a full-on business venture, which was an online community and editorial group for Filipino Americans called BakitWhy.com. Uplifting the Filipino community has always been a constant in my life. Since high school, I was part of a Filipino club where we celebrated our culture and volunteered for Filipino community organizations. I knew that whatever I did, whether it was engineering or marketing, was in the service of our people.

So I started this website and it was one of the first, if not the first, Filipino American digital destinations for editorial and news content. We were covering events and a new emerging digital identity among the Filipino American community. I called this the golden age of Filipino YouTubers back in 2007. These were the days of HappySlip, NinjaDrops, ndtitanlady, and more. We were able to rally this community both on the digital side and also offline to develop not just a thriving company and brand, but a lifestyle destination that people could relate to. I wanted to create something wonderful for us.

One of the things that I pride Tremendous on is that we’re not just there to engage the AAPI community as a business, but we primarily want to instill genuine progress and impact. We are immersed in our Asian American community. We don’t clock out after a certain time and say “Sorry we’re done today Asians, it’s five o’clock and we’re not going to do anything anymore.” No, this is our life. This is what fulfills us and I think it helps set our campaigns apart. The way we communicate and interact with our clients also influences the strategy we give to them because we’re not just looking at numbers, we’re looking at people. We are all about uplifting authentic Asian American experiences, diasporas, stories and narratives. For us not to be authentic with that presence in our daily lives would be hypocritical.

One of the things that I pride Tremendous on is that we’re not just there to engage the AAPI community as a business, but we primarily want to instill genuine progress and impact

– Jeremiah Abraham

Marketing in a White Dominant Setting

There was one instance where I was the only person of color in the room at a large entertainment company, still very green and inexperienced. I didn’t feel like I had the authority and the voice to chime in and redirect these senior leaders of this space. And they’re sitting around going like, “Hey, it’s February next month. It’s almost Black History Month. What can we do?” And then someone just started listing off all the movies in their catalog that had some resemblance of Black narrative. And I’m just like, “All right, well, that’s very top-level. But what more can we do? Can we bring in more people who actually represent this community in the room and have a conversation about it?” That situation really helped me realize that we needed to be part of that room of decision-makers. Being there that day sparked a drive in me that I’ll never forget.

One of the things that I had issues with while leading the publicity and marketing for Yellow Rose before we got acquired by Sony Pictures, was that people didn’t understand what Filipinos were, that our stories were relatable to all moviegoers, and that we were equally as valuable in Hollywood. People couldn’t wrap their brains around this and asked “Why is a Filipino family living in Texas? Do they really sing country music like that? Will non-Filipinos even relate to this?” They were seeing the Filipino diaspora within one specific lens instead of embracing the spectrum of the Filipino experience. They didn’t realize that there are mechanisms that historically pushed us to these areas that we’re thriving in, to these places where they may not think that there is a large thriving Filipino community. The lead characters are Filipino American, but the story is universal. If you took the lead characters out and made them Latinx or Black, for example, you would still have the same emotion. You’d still have the same humanity. You’d still have the same story. It just so happened that these people are Filipino. This is one of the things that Jo Koy discusses during his  interviews for Easter Sunday. The movie isn’t about Filipinos, it’s a movie about his family and his mom. That’s one of the biggest things I appreciated about this film. It’s a story for everyone.

The first movie that I ever saw when I moved to the United States was Superman 2 with my dad and that’s always ingrained in my head. I was in such awe of this superhero and I’ve always wondered how impactful it would have been if Superman was Filipino. That would have made such a big difference for me growing up. I love Christopher Reeve as Superman, but imagine if it was a Christopher Santos or a Christopher Dela Cruz in that heroic cape instead! Today I’m so happy that our next generation can enjoy seeing themselves as heroes with films like Shang-Chi and people like Iman Vellani as Kamala Kahn making a difference.

I think it’s incredibly important for us to make these decisions on how we are portrayed and valued for ourselves, with representation across every part of the process –  behind the camera, in front of the camera, in business and below the line. We can bring these little nuances of authenticity to these stories that are so important and help shape the next generation of folks who want to do this work. 

They were seeing the Filipino diaspora within one specific lens instead of embracing the spectrum of the Filipino experience. They didn’t realize that there are mechanisms that historically pushed us to these areas that we’re thriving in, to these places where they may not think that there is a large thriving Filipino community.

– Jeremiah Abraham

A Chronicle of Starting a Business Right Before a Pandemic

Starting a business at the cusp of a global pandemic was a big lesson in resilience. There is a lot of strategy, planning, introspection and decisions that need to be made behind the scenes. I had been planning Tremendous for years. I spent so much time creating the structure of it, the business strategy, forecasting our trajectory and all those things that you need to help lay the foundation of a business… then the pandemic hit and I needed to shift very quickly.

Tremendous incorporated in 2019 and started to plant the seeds of studio partnerships. When we were ready to sign a couple of contracts, all the major movie studios suddenly shut down. I had to take a step back and I realized the mission of Tremendous is not rooted in movies and entertainment, but it exists to uplift the visibility of Asian Americans as a whole. We couldn’t work in entertainment at the time but that didn’t stop us from working within the community. That’s when we helped support Racism is a Virus, and co-founded Unapologetically Asian and CollaborAzian. We used our expertise to help uplift Stop AAPI Hate. We were able to leverage our network and our skills and our desire to make change in this very crucial moment of the Asian American community.

There certainly were many surprises along the way. I pitched this movie that was supposed to come out on January 2021. We were ready! We put this beautiful deck together, we brainstormed, we strategized. And then they told me, “Hey, we’re going to make an announcement today that this movie is going to be pushed to January 2022.” I was like, “What am I going to do for a year?” It’s a lot of those things that I learned as an entrepreneur that it doesn’t necessarily go how you forecast, even though you spend so much time strategizing and pulling numbers. And that’s fine because that will push you to be more dynamic as a business and help you imagine new, creative avenues for yourself. But for me, it was a lesson in resilience, being flexible, and not beating yourself up too much for things that are outside of your control.

I had to take a step back and I realized the mission of Tremendous is not rooted in movies and entertainment, but it exists to uplift the visibility of Asian Americans as a whole.

– Jeremiah Abraham

Confinements that Pull us Back

There were many moments where that lingering voice of doubt made me wonder if this was the right path for me. Should I go back to a safe, stable job with benefits and a retirement plan? What if I end up losing all my money in this venture? Is it okay that I decided not to work today?

Even now, I can make my own schedule. I can wake up at noon if I wanted to and keep working until 2:00 am or just take a random afternoon off. And that’s my choice to make. But because I’ve been so conditioned to think that the limits of my brain power need to be confined between nine to five, having this new freedom came with a sense of guilt.

I have such a hard time realizing that you don’t need to operate within those confines to be productive and successful and fulfilled. I just have to keep reminding myself that it’s okay to permit yourself to watch Netflix for an hour at 2:00 pm for you to refocus and recenter. It’s okay that you’re sleeping in until 11:00 am or 12:00 pm today because you worked until 1:00 am last night. I have to keep reminding myself that nobody is telling you what you need to do except for yourself. That’s the life of an entrepreneur and I’m still learning how to adjust to this new level of control, even today.

Shining Leadership Skills for Better Productivity

Throughout the years, I have applied my learning lessons in leadership – especially with how I lead my team and how I conduct business. Sometimes we have many projects to work on at the same time, sometimes we have less. I’ve always told my team, as long as you get your stuff done and you are communicative and responsive, then I’m good with that.

I really encourage them to explore their interests, experience life and bring those experiences back to the company. This helps bring fresh, new ideas during our brainstorms and campaigns. One of the things that I took away from working as a Marketing Director at Condé Nast is that they encouraged you to go travel. Travel changes you, it opens up your mind. It allows you to experience new things so you can bring that experience back into your editorial piece or your marketing strategy.

I’ve never liked the idea that you need to clock in at 9:00 am every day or else you’re considered a bad employee. Just because I’m sitting there physically doesn’t mean I’m mentally there. I’ve never understood that kind of leadership where it’s more important to appease other people and make them feel better about themselves because of your presence. It’s those antiquated expectations and older ways of doing business that I’m constantly reshaping for Tremendous. As long as we get our projects done, we don’t miss meetings, and our clients are happy… who cares if you sleep in an extra hour that day?

Travel changes you, it opens up your mind. It allows you to experience new things so you can bring that experience back into your editorial piece or your marketing strategy.

– Jeremiah Abraham

People that helped along the way

I never had one specific mentor during my career. Instead, I’ve had some amazing senior executives who have taught me different aspects of my leadership skills. One of them taught me negotiation skills, another taught me how to properly communicate my ideas in a meeting, another pushed me to be more assertive with what I need to succeed in a business setting. I’ve really taken these lessons and made them my own.

One of these executives is Terra Potts, who is the Executive Vice President of Worldwide Marketing at Warner Bros. Pictures. We kind of grew up at WB together back in the day. She taught me how to stand up for your worth in situations where people may not immediately see it. I take that into every negotiation that I am part of. Teal Newland, my Senior Vice President at Condé Nast Entertainment helped me hone my creative eye and incorporate different perspectives in my marketing campaigns. Diane Paragas, who is the director of Yellow Rose, mentored me in the filmmaking process. These are just some of the people who empowered me in my journey and I’m happy to give back to others who are working with me today.

Another friend of mine is Jose Antonio Vargas, who is the Founder of Define American. We had many check-ins during the pandemic and I told him straight up once that I was thinking about quitting because I didn’t know if I was doing the right thing. No studios hired me, no movies went out, the movies that were supposed to be in theaters were going out into streaming services. And it was hard for me to see what was coming down the line and the larger picture of it all. He gave me some tough love and said “Jeremiah, you’re building something that doesn’t currently exist. Obviously you’re going to run into these situations where the solution isn’t immediately there because you have to make it up for yourself.” I never thought about it that way. If the path has not always been taken, obviously you have the flexibility and the responsibility to forge a new one to create something that never existed before. That conversation inspired me to realize that I can’t hold myself to the same standard that I had before because I’m creating new standards for myself now. That helped shift my thinking and my perspective about it and, honestly, helped shape the development of Tremendous. I could have easily quit because of the pandemic, but I would have regretted it the rest of my life.

I would encourage people to pursue multiple avenues of mentorship. It was very valuable to me to learn from many very skilled individuals, not just one. And you never know where your new life lesson is going to come from or which experience you’re going to value for years to come. For me, it was the guidance of many people that helped me get to where I am today.

I can’t hold myself to the same standard that I had before because I’m creating new standards for myself now.

– Jeremiah Abraham

How to reach out

I am @jerabraham on Instagram and Twitter, and Tremendous is @tremendous_comm on all those platforms as well.

Interviewed by Tiff Soga

Image Sources: shopwithkendallyn.com, bfa.com

Uncategorized

Former Wacoal Marketing Executive Kristin DiCunzolo Leads Her Way For Lingerie Brand Lively As Newest CEO

Lingerie companies continue to operate in the same outmoded ways, but times have changed and the industry is ready for advancement and growth.

Despite the fact that the founder and current CEO of Lively, Michelle Cordeiro Grant is stepping down to manage the transition and assist with the company’s PR and brand partnerships.

Lively was founded in 2015 as a lingerie brand focused on comfort and style. New CEO, Kristin DiCunzolo, will be appointed to take charge of concentrating solely on the brand’s global growth.

DiCunzolo has extensive experience with the company’s structure and operations from her time as vice president of marketing and helped lead at parent company Wacoal America Inc., which Lively can leverage more.

Today, consumers desire higher-quality underwear, particularly for women. Lively’s other goal is to attract a younger demographic. The U.S. market for women’s underwear is predicted to reach $14.5 billion in 2026, up from $12.9 billion in 2021, according to market researcher Euromonitor International.

Lively understands it must abandon traditional marketing strategies to grow sales and survive in today’s competitive market. Ms. Cordeiro Grant believes Lively’s new mission is to revitalize the company’s reputation by strengthening its connection with its clients on an individual level, and that DiCunzolo’s skills as a former Marketing Executive will benefit the company.

Ms. DiCunzolo has stated that she hopes to place an emphasis on Lively’s customer interaction. While strategically adjusting to the ever-changing environment, she intends to maintain the Lively community’s centrality in decision-making, maintain the brand’s focus on its team, and preserve the brand’s vision and heart.

Image Source Business Insider

Uncategorized

The Ups And Downs Of A 23-Year-Old Entrepreneur As He Rides The Wave Of Success He Has Built Through Rental Arbitrage

You still have the right to hope for the best and move forward even if you face adversity just as you reach the pinnacle of your accomplishments. This 23-year-old entrepreneur is proof that hard work and determination can pay off.

Derek Cheung is a former college student who got into rental arbitrage. He was an intern when he discovered the company that operates short-term rentals for properties it doesn’t own.

In 2018, he began engaging in rent arbitrage by acquiring his first two apartments. Derek’s first steps weren’t smooth sailing. He did a lot and did extensive research to ensure he was following a solid business plan.

Derek learned the legal paperwork and communication skills involved in real estate and rent arbitrage transactions, especially since many landlords have specific preferences for working with such parties — he even went through around a hundred landlord leads.

He also made sure he knew how to service the property, maintain fixtures, decorate it, and approach landlords in negotiations. Since his first deal was with an agent who represents multiple landlords, his career took off from there.

Derek’s first annual leases were signed in February 2019. One-bedroom flats cost $1,215 per month while studios cost $999. He put down a $500 security deposit on each flat, plus the first month’s rent. Short-term rentals were permitted under the terms of his additional contract.

As a result of working part-time while in school, Derek was able to save $8,000. He also had a $5,000 credit card limit, which was sufficient at the time. He spent $5,000 on secondhand items from Facebook Marketplace. He rented U-Haul to move things and asked two friends to help. After he had set them up, he took photos of the units and posted them on Airbnb.

He kept moving forward with the strategy, and soon he was managing and cleaning six apartment blocks. He had reached a terrifying $10,000 in liability and rent expenses, but he was convinced that he had to risk money in order to make a lot.

Unfortunately, the pandemic hampered travel and bookings. At that time, he owed $20,000  in monthly expenses. He began calling builders, corporate movers, and insurance housing agencies weekly to offer his units, and advertised on Zillow, Corporate Housing by Owner, Furnished Finder, and Craigslist. His top priority was serving customers who had booked 60 days in advance.

When the pandemic subsided, he created a new plan to make up for his losses. Derek lowered his prices just enough to break even or make a small profit. He was also keen on securing long-term visitors and started taking reservations from people in the area who were in between leases, evicted from their homes, or were staying in hotels because their insurance wouldn’t cover them.

Derek had 50 properties by the end of 2021, with 44 of them being fully functional. His revenue increased by about 22% this year.