We’re rocking & rolling, and my gears are still turning.
On My Mind
The J Curve
The J Curve is an economics framework, primarily used by investment vehicles like Private Equity or Venture Capital. The “J” is in reference to the curve showcase the investment into a fund - where you decline in profitability in order to build something sustainable
Photo rights: Carta
At work, I’m smack-dab in the J Curve. We grew a lot in Years 1 & 2 thanks to some great partnerships, a hot market, and pricing adjustments, but Year 3 has brought with it some challenges. We’ve grown our team, invested in new technology & systems, and have simultaneously seen the market soften with the chaos that is AI, tariffs, war, and the K-shaped economy on the top of every business owner’s mind.
These were necessary, future-minded moves to build a better product for our customers and set the business up for success years from now. But understanding the J Curve framework is different from living through it. It is uncomfortable at the bottom of the J Curve!
That Got Me Thinking…
As I realize this isn’t exactly new knowledge, I think where I found particular utility was how the J Curve provides a good visualization for worthwhile delayed gratification:
Fitness is the ultimate tangible example. Exercise is literally breaking your body down over and over again to build it back stronger over the long term.
While I haven’t been there (yet), parenting seems like another example. The energy and difficult decisions you have to make in order to raise a child into a thriving adult seem exhausting, but the reward is that thriving adult you raised with strong familial ties
The J Curve has been a Great Teacher
These kinds of things are hard, and being in the doldrums is uncomfortable. But, as I’ve been experiencing the discomfort, I’ve found each of these cliches to be true:
I learn my best lessons when it’s difficult
The rate of success in my life is directly proportional to the amount of discomfort I can handle for long periods of time
The only way out is through
Visualizing the J Curve has helped me keep momentum (and spirits) high when I know I’m doing the hard (& right) thing, so I remember results are on the other side of the hard work.
What I’m Digging
Groovy paint stencils
My 6-months pregnant wife stenciled stars on the nursery ceiling for double-digit hours last weekend. It was something I could have never done between the required patience and precision. And she made it look easy. Continually in awe of her effortless excellence. So I guess this is less about the stencils.
Zero-based budgeting
I’ve been a huge fan of YNAB for a few years now. I think it’s the best budgeting app out there, though there’s a pretty significant learning curve. If you’re a business owner (or a psycho like myself) that needs to watch and assign every single dollar, this is the best app to validate your cash flow
For those that want something less intense and a higher level view of “buckets”, we’ve been really liking Origin for our personal finances.
Stuck In My Head
Not exactly the soundtrack to my week - I just want you to share in the misery of these catchy tunes getting locked into your brain for the foreseeable future
Thankful for the soundtrack being some genre-diverse bangers
Sure Shot by the Beastie Boys
The Curse of Curves by Cute is What We Aim For
What an angsty, emo, seriously problematic 2000s bop
The Authority Song by Jimmy Eat World
Thanks for reading
Sincerely,
Zander Barth
