Obsessive? Yes. Well mannered? Not so much.
Enterpreneurs and early stage startup teams are really, really excited about what they do. And they're obsessive. Just ask them a casual question on what they're doing, and they'll launch into a long impassioned epic (a monologue of course) on their great idea, and how it is going to change the world (or, if they're just a wee bit realistic, the world as they know it). In some ways it is good thing. They have to be passionate and obsessive because it is very difficult to start a business without that fire and spirit.
But unfortunately they do tend to forget their manners. While they're quite capable of nattering on about their startup, they miss what they learned back in kindergarten. Sharing. Asking 'How are you doing? What are you up to?". Forgetting these basics don't make for good conversations.
I just got back from a coffee with an old friend who I haven't seen in a few years. He's moved to the other coast and we just got an hour of his time on a vacation stopover. He used to work with me, and is really good, and I wanted to explore the idea of having him join me in some way in my new venture. There was a 'hi', 'how are you', some comment about the flight, and I then spent the rest of the time pitching the concept and all that it could be. It is only after I left I realized that I didn't know anything about what's going on in his life other than he was employed and doing 'well' and whatever may have come from the holiday emails. Wow. And I thought I had the Dear Abby/Miss Manners/Emily Post views of good conversation down.
It's a startup symptom, particulary visible in the early stages. I often get together with others who're in a similar boat, and the only thing that ensures that we all get a chance to talk is that each of us is chomping at the bit to talk about our baby (coming to think about it, the behavior is very similar to that of new parents - with the occasional website or powerpoint showing-off instead of a baby pic). This is also due to the fact that in the early stages we don't have much of a life (at least what we can talk about with zest) outside of the startup - again the similarity to new parenthood.
I do have the good sense to not obsess (at least not much) with those who're not really interested or involved in this space. That covers a decent percentage of friends and family who get the thumbnail and then move on to discussing dinner and gossip. So they haven't dropped me from their circles. There's hope yet.
Channeling the inner entrepreneur who views life as a startup. Musings about people, their spirit, the startup ethos and the entrepreneurial attitude, with an emphasis on education and social ventures. The 'how-to'? Not so much. But definitely the why, the what and the whatever.
It's gotta be new.
I don't know why it is that so many entrepreneurs want to come up with an idea that no one has done before. Is it ego? Or is it because if it's not the new new thing it is no good? If someone has done it already is there no way you can compete? Or is it too much Star Trek exhorting us to go where no man (person) has gone before?
To be honest, I think ego has a big part in it. It is such a kick to think up something new and different. You talk it over with a bunch of people and they're all excited because they've never come across it either, and it's all euphoric until you find someone else not only had a similar idea, but has got there first. But realistically, if you come up with a good idea, chances are there are other people like you who've come to a similar conclusion. There are very few original ideas. Mainly because there are very many smart people around (yeah!).
This can bring one to full stop. If you notice this theme in the past few posts it is because I'm going through this experience right now. For three months, I was doing my research and I talked to a lot of people who would be potential customers. They loved what I was proposing and could think of only one option that was currently available, but it wasn't quite suite to their needs. Yes, it was exciting to see an unfilled need and dream up a solution. But I think having done this made me both pragmatic and resilient. I didn't quite believe that no one had thought of this yet, and if that was truly the case, there must be a good reason for it. And then from a chance conversation with a friend I found another company that's doing something similar, though not exactly the same thing.
In a way, it was a relief to see someone else out there, it's easier to ride in their wake. There are many investors who'd advise you to not be the first, as you'd be the one with the arrows in the back - its not called the bleeding edge for nothing. And as I've mentioned before, competition is a good thing. So, it's now all competitive analysis and more research, and I think it'll turn out all right.
But all said and done, if you do come across something absolutely new and never before done, and you're convinced it is the next big thing, and you can make it happen - that would be an amazing ride and the sweetest thing. Go for it.
I don't know why it is that so many entrepreneurs want to come up with an idea that no one has done before. Is it ego? Or is it because if it's not the new new thing it is no good? If someone has done it already is there no way you can compete? Or is it too much Star Trek exhorting us to go where no man (person) has gone before?
To be honest, I think ego has a big part in it. It is such a kick to think up something new and different. You talk it over with a bunch of people and they're all excited because they've never come across it either, and it's all euphoric until you find someone else not only had a similar idea, but has got there first. But realistically, if you come up with a good idea, chances are there are other people like you who've come to a similar conclusion. There are very few original ideas. Mainly because there are very many smart people around (yeah!).
This can bring one to full stop. If you notice this theme in the past few posts it is because I'm going through this experience right now. For three months, I was doing my research and I talked to a lot of people who would be potential customers. They loved what I was proposing and could think of only one option that was currently available, but it wasn't quite suite to their needs. Yes, it was exciting to see an unfilled need and dream up a solution. But I think having done this made me both pragmatic and resilient. I didn't quite believe that no one had thought of this yet, and if that was truly the case, there must be a good reason for it. And then from a chance conversation with a friend I found another company that's doing something similar, though not exactly the same thing.
In a way, it was a relief to see someone else out there, it's easier to ride in their wake. There are many investors who'd advise you to not be the first, as you'd be the one with the arrows in the back - its not called the bleeding edge for nothing. And as I've mentioned before, competition is a good thing. So, it's now all competitive analysis and more research, and I think it'll turn out all right.
But all said and done, if you do come across something absolutely new and never before done, and you're convinced it is the next big thing, and you can make it happen - that would be an amazing ride and the sweetest thing. Go for it.
Fear Factor
I think every entrepreneur, and especially the first time one, gets very familiar with fear. And if he/she doesn't feel any fear ever, chalk it up to a severe and lamentable shortage of imagination.
The fear can come in different flavors with differing levels of intensity. The fear of not making payroll, or having funding fall through or a customer renege - all these come and go, and possibly become less potent with repetition. On the other hand, the 'getting started' fear is a strange one as it insinuates itself very subtly into the general exhilaration and obsession that permeates the ground-zero stage, and if you haven't committed to your new venture it could paralyze you from ever doing so.
A lot of this fear is due to the 'what if's. And much of it can be diffused by thinking them through.
- What if you don't have what it takes? Hunh? You should be past this if you're seriously exploring your startup idea. Most would-be entrepreneurs can just make like the little blue engine and barrel through this one.
- What if you don't get funding? That's when you look at Plan B, or C or D, bootstrapping, services, whatever, but you need a Plan B.
- What if you can't find the right people? If you look hard enough they'll be there, and again, Plan B may involve growing your team with creative options.
- What about the competition? Hmm. If there's no competition, maybe you should take another look because there may be no market either. Competition just makes you work a little harder and smarter at figuring out how you're going to set yourself apart and win customers. This comes with the territory, embrace it.
- What if the market doesn't need your idea? If you've done enough market research to figure this out, that is awesome. But also assume that you wouldn't have gotten this far just on a whim, your vision had some substantive foundation. Maybe you need to adjust your original concept, explore different market segments - again, use your market research to work a little harder and smarter at figuring out where you should be going. And remember, many entrepreneurs just 'put something out there' with the intent of refining it based on market response - a great approach if you can manage it.
It is very helpful to remind yourself (I can attest to that!) that these fears, while quick to pop up as a reaction to some piece of information (such as a new competitor), mostly deflate with an application of a little reason, a little grit and a huge chunk of enthusiasm. Passion helps! (See previous post on The Balancing Act).
The fear can come in different flavors with differing levels of intensity. The fear of not making payroll, or having funding fall through or a customer renege - all these come and go, and possibly become less potent with repetition. On the other hand, the 'getting started' fear is a strange one as it insinuates itself very subtly into the general exhilaration and obsession that permeates the ground-zero stage, and if you haven't committed to your new venture it could paralyze you from ever doing so.
A lot of this fear is due to the 'what if's. And much of it can be diffused by thinking them through.
- What if you don't have what it takes? Hunh? You should be past this if you're seriously exploring your startup idea. Most would-be entrepreneurs can just make like the little blue engine and barrel through this one.
- What if you don't get funding? That's when you look at Plan B, or C or D, bootstrapping, services, whatever, but you need a Plan B.
- What if you can't find the right people? If you look hard enough they'll be there, and again, Plan B may involve growing your team with creative options.
- What about the competition? Hmm. If there's no competition, maybe you should take another look because there may be no market either. Competition just makes you work a little harder and smarter at figuring out how you're going to set yourself apart and win customers. This comes with the territory, embrace it.
- What if the market doesn't need your idea? If you've done enough market research to figure this out, that is awesome. But also assume that you wouldn't have gotten this far just on a whim, your vision had some substantive foundation. Maybe you need to adjust your original concept, explore different market segments - again, use your market research to work a little harder and smarter at figuring out where you should be going. And remember, many entrepreneurs just 'put something out there' with the intent of refining it based on market response - a great approach if you can manage it.
It is very helpful to remind yourself (I can attest to that!) that these fears, while quick to pop up as a reaction to some piece of information (such as a new competitor), mostly deflate with an application of a little reason, a little grit and a huge chunk of enthusiasm. Passion helps! (See previous post on The Balancing Act).
The difference.
I just met a program manager for a biotech company at a social event. We did the usual intros, and when she heard that I'd been in the corporate world before becoming an entrepreneur, she said she'd always been curious as to how people make the shift. She wanted to know what was the hardest thing to get used to when going from 'corporate' to 'startup'.
For me the hardest thing to get used to was being solely responsible for everything. In my corporate experience, even in the higher ranks, even if you're the guy with the 'buck stops here' sign on your desk, most decisions are made with other very competent, experienced people involved. And you don't have to worry about the little day-to-day stuff like paying phone bills. Even if the company were to shut down, an established corporation does it in an organized way and usually hires people who's job is to do precisely that. On the other hand, an entrepreneur who's just staring out doesn't have the luxury of delegating the tough or icky jobs. If she's lucky she'll have an experienced co-founder or two who'd share some of the pain, but she'd still have to carry most of the load on her own. The entrepreneur is the one who's responsible for all of it - in a small startups, you'd see the CEO involved in the choice of coffee service - it is not unlikely that he'd have to explain why they have Starbucks instead of Peet's even if the admin made the choice for him. In the early stages the founder is the company. It is lonely up on the high wire, lonelier still when you're here without a net.
If I was not the founder, I'd think the hardest thing about a startup is the ambiguity - if you've spent many years at a corporate job, that's the first thing you'd notice. Everything could be in constant flux for quite a while: the offerings, the market, the positioning, even the prospect of getting a paycheck. I've had many ex-corporate types mention it, and while some adjusted, a few figured out that this didn't really float their boat (or if it did, it made them seasick) and bailed. If you don't have a tolerance for ambiguity and rapid change, startups are definitely not the place for you.
The next question was what did I like best about moving to a startup? Was it the freedom? No way. Freedom in a startup is an illusion - see above for a reason why. As an entrepreneur you probably have more constraints to work with, though they will be different than the ones you see in larger corporations. While you may not have 10 planning meetings before you decide to change a line on your website, you'll have stronger limitations regarding money and resources for example. Even freedom in your work schedule is mostly a dream, you are free to start and end your work day whenever as long as you start very early and end very late.
The best thing about a startup is the excitement. The high that comes from knowing everything you do has significance because you're in the process of creating something. And the sheer pleasure of being around a bunch of people who feel the same way. It can happen to some extent in large companies too, especially if you have a small, autonomous team dedicated to some key initiative and driven to succeed with incentives - but though it may feel a little like a startup, it's not quite the same because you can't get away from the fact that you're part of a larger corporation. I recently had dinner with a technologist at a Fortune 50 company who's thinking of going to a startup. When asked why, his answer was simply 'to have my work be significant'. Though he was in a position that was as close to a startup as he could get, he still felt that if his own personal contributions though well rewarded barely made an imprint on the large fabric of the corporation. He wanted to wake up every morning and feel excited about going to work because everything he did had a huge impact on his small startup team. Every member of a startup matters.
The joy of creation. For me that is the single most thrilling experience that comes from entrepreneurship.
I just met a program manager for a biotech company at a social event. We did the usual intros, and when she heard that I'd been in the corporate world before becoming an entrepreneur, she said she'd always been curious as to how people make the shift. She wanted to know what was the hardest thing to get used to when going from 'corporate' to 'startup'.
For me the hardest thing to get used to was being solely responsible for everything. In my corporate experience, even in the higher ranks, even if you're the guy with the 'buck stops here' sign on your desk, most decisions are made with other very competent, experienced people involved. And you don't have to worry about the little day-to-day stuff like paying phone bills. Even if the company were to shut down, an established corporation does it in an organized way and usually hires people who's job is to do precisely that. On the other hand, an entrepreneur who's just staring out doesn't have the luxury of delegating the tough or icky jobs. If she's lucky she'll have an experienced co-founder or two who'd share some of the pain, but she'd still have to carry most of the load on her own. The entrepreneur is the one who's responsible for all of it - in a small startups, you'd see the CEO involved in the choice of coffee service - it is not unlikely that he'd have to explain why they have Starbucks instead of Peet's even if the admin made the choice for him. In the early stages the founder is the company. It is lonely up on the high wire, lonelier still when you're here without a net.
If I was not the founder, I'd think the hardest thing about a startup is the ambiguity - if you've spent many years at a corporate job, that's the first thing you'd notice. Everything could be in constant flux for quite a while: the offerings, the market, the positioning, even the prospect of getting a paycheck. I've had many ex-corporate types mention it, and while some adjusted, a few figured out that this didn't really float their boat (or if it did, it made them seasick) and bailed. If you don't have a tolerance for ambiguity and rapid change, startups are definitely not the place for you.
The next question was what did I like best about moving to a startup? Was it the freedom? No way. Freedom in a startup is an illusion - see above for a reason why. As an entrepreneur you probably have more constraints to work with, though they will be different than the ones you see in larger corporations. While you may not have 10 planning meetings before you decide to change a line on your website, you'll have stronger limitations regarding money and resources for example. Even freedom in your work schedule is mostly a dream, you are free to start and end your work day whenever as long as you start very early and end very late.
The best thing about a startup is the excitement. The high that comes from knowing everything you do has significance because you're in the process of creating something. And the sheer pleasure of being around a bunch of people who feel the same way. It can happen to some extent in large companies too, especially if you have a small, autonomous team dedicated to some key initiative and driven to succeed with incentives - but though it may feel a little like a startup, it's not quite the same because you can't get away from the fact that you're part of a larger corporation. I recently had dinner with a technologist at a Fortune 50 company who's thinking of going to a startup. When asked why, his answer was simply 'to have my work be significant'. Though he was in a position that was as close to a startup as he could get, he still felt that if his own personal contributions though well rewarded barely made an imprint on the large fabric of the corporation. He wanted to wake up every morning and feel excited about going to work because everything he did had a huge impact on his small startup team. Every member of a startup matters.
The joy of creation. For me that is the single most thrilling experience that comes from entrepreneurship.
The balancing act.
Entrepreneurs need passion. It's the fuel in their drive to success. It's the thickening in their skin when others poke holes in their ideas. It's the steel in their spine when they tough it out through yet another reversal. It's also the magic that builds teams, converts customers and makes believers out of investors.
Passion is what makes the entrepreneur think about his venture pretty much all the time (even the dreams are affected). It makes the whole experience exciting and fulfulling - hate to say it, but it can get pretty darn close to being the love of your life, for a while anyway. More than one person has commented on how my eyes light up when I talk about my idea, and its not surprising as I've seen it with others. Enterpreneurs need the passion for without it they can easily lose heart, especially in the early stages when they're just starting out.
The first thing you set out to do as an entrepreneur is to validate your idea. Which, more often than not, can be a withering experience. You start googling, and at first you're thrilled that while there are a few others out there, they're not close to what you're planning. It's all good as you're getting market validation without established competition. And then you realize that your search was a little limited, you were not using the right terms and wow, there are others who're almost exactly where you want to be. You see the 800 lb. gorillas and rhinos and other large, impressive animals of the territorial variety looming out there. At this point, if you don't have passion bolstering you, you're going to back down and start perusing want ads. But, if you're passionate about your dream, you won't give up that easily - you'll be thinking of how you could be better, different, aim for niche markets, whatever.
But passion without pragmatism can trip you up in a major way. Consider the same scenario as above. When faced with potential competion, the pragmatic entrepreneur will try to figure out how he can beat the competition. But if he was driven only by passion he could very well just 'stick to the dream' and not pay attention to the 'make it work' part, because the second may need some adjustments to the vision and for some that's right up there with infidelity.
You have to be alert to the founder's fog for it can dim the real landscape around you. I know when I go to 'get feedback' from a prospective customer, it is instinctive to defend the idea instead of being open to all possible criticism and skepticism. But it is imperative that I listen to all of it as that is how I'd know what the customer really wants (or most emphatically does not want) - and I should listen without trying to influence his thoughts, not at that stage anyway. That is the smart, practical thing to do. And then, instead of letting you fold under the weight of the problems, the passion and commitment to the vision kicks in and starts the creative thinking process. You have to know when to bring passion to the fore and let pragmatism take a break and vice versa, and make sure you hold on to both and don't let either disappear altogether.
Successful entrepreneur - passionate pragmatist.
Passion is what makes the entrepreneur think about his venture pretty much all the time (even the dreams are affected). It makes the whole experience exciting and fulfulling - hate to say it, but it can get pretty darn close to being the love of your life, for a while anyway. More than one person has commented on how my eyes light up when I talk about my idea, and its not surprising as I've seen it with others. Enterpreneurs need the passion for without it they can easily lose heart, especially in the early stages when they're just starting out.
The first thing you set out to do as an entrepreneur is to validate your idea. Which, more often than not, can be a withering experience. You start googling, and at first you're thrilled that while there are a few others out there, they're not close to what you're planning. It's all good as you're getting market validation without established competition. And then you realize that your search was a little limited, you were not using the right terms and wow, there are others who're almost exactly where you want to be. You see the 800 lb. gorillas and rhinos and other large, impressive animals of the territorial variety looming out there. At this point, if you don't have passion bolstering you, you're going to back down and start perusing want ads. But, if you're passionate about your dream, you won't give up that easily - you'll be thinking of how you could be better, different, aim for niche markets, whatever.
But passion without pragmatism can trip you up in a major way. Consider the same scenario as above. When faced with potential competion, the pragmatic entrepreneur will try to figure out how he can beat the competition. But if he was driven only by passion he could very well just 'stick to the dream' and not pay attention to the 'make it work' part, because the second may need some adjustments to the vision and for some that's right up there with infidelity.
You have to be alert to the founder's fog for it can dim the real landscape around you. I know when I go to 'get feedback' from a prospective customer, it is instinctive to defend the idea instead of being open to all possible criticism and skepticism. But it is imperative that I listen to all of it as that is how I'd know what the customer really wants (or most emphatically does not want) - and I should listen without trying to influence his thoughts, not at that stage anyway. That is the smart, practical thing to do. And then, instead of letting you fold under the weight of the problems, the passion and commitment to the vision kicks in and starts the creative thinking process. You have to know when to bring passion to the fore and let pragmatism take a break and vice versa, and make sure you hold on to both and don't let either disappear altogether.
Successful entrepreneur - passionate pragmatist.
What's the motivation?
Being an entrepreneur is not easy. It's a long hard road, so one must really want to take it, unless one is clueless, in which case one is in for a rude awakening. So what makes someone want to be an entrepreneur?
#1. The money. This is very likely. Think of all the millionaires who started their companies and parlayed them into oodles of dough though IPOs and acquisitions. Of course, entrepreneurs are also likely to hear that 8 out of 10 startups will not survive year 3, and even if it is a somewhat bogus statistic, it does make you stop and think. So maybe it's not only the money.
#2. The boss. There are many people who prefer working for the one facing them in the mirror. And if that person is actually competent, it may even be a halfway decent gig. Many of the entrepreneurs I've met started their own businesses because they wanted to be the master of their domain (not Seinfeldian!). They've had unpleasant experiences working for others that they do not care to repeat (surprisingly quite a few of them mention compromising on principles as one of those unpleasant experiences). They like to be in control of their destiny, and because of their intense commitment to success, and willingness to take risks, they are confident they'll do a pretty good job of it too. And many of them do.
#3. The alternative. Or actually, the lack thereof. There are some people who 'fall back' on doing their own thing because they haven't liked anything they've found, or haven't found anything they liked out there. And they could be pretty successful too, although they're unlikely to create the next Google.
#4. The dream. My personal favorite. You have an idea, and you know you'll be kicking yourself if you don't do it and someone else does. Or you have an idea that you think will rock the universe (or the part you care about), and can't wait to prove it. Or you have an idea that you're crazy about, and you're quite willing to work on it with/for someone else (especially if they fund it), but nobody else seems to care enough, and you just can't let it fade away - so you go out and do it yourself. This is where you see the passion of the entrepreneur. And when the going gets tough, as it undoubtedly will, it is the passion that will help the entrepreneur stick with it. As another entrepreneur told me "If you're in it for the money, when things get really bad you'll be ready to chuck it as you know you can make money somewhere else. But if you're passionate about the idea, you'll stay. And make it work. And the money will come." Maybe he knew what he was talking about as he's now worth over a 100 mill.
For a more 'professional' view check out http://www.successmanifesto.com/.
#1. The money. This is very likely. Think of all the millionaires who started their companies and parlayed them into oodles of dough though IPOs and acquisitions. Of course, entrepreneurs are also likely to hear that 8 out of 10 startups will not survive year 3, and even if it is a somewhat bogus statistic, it does make you stop and think. So maybe it's not only the money.
#2. The boss. There are many people who prefer working for the one facing them in the mirror. And if that person is actually competent, it may even be a halfway decent gig. Many of the entrepreneurs I've met started their own businesses because they wanted to be the master of their domain (not Seinfeldian!). They've had unpleasant experiences working for others that they do not care to repeat (surprisingly quite a few of them mention compromising on principles as one of those unpleasant experiences). They like to be in control of their destiny, and because of their intense commitment to success, and willingness to take risks, they are confident they'll do a pretty good job of it too. And many of them do.
#3. The alternative. Or actually, the lack thereof. There are some people who 'fall back' on doing their own thing because they haven't liked anything they've found, or haven't found anything they liked out there. And they could be pretty successful too, although they're unlikely to create the next Google.
#4. The dream. My personal favorite. You have an idea, and you know you'll be kicking yourself if you don't do it and someone else does. Or you have an idea that you think will rock the universe (or the part you care about), and can't wait to prove it. Or you have an idea that you're crazy about, and you're quite willing to work on it with/for someone else (especially if they fund it), but nobody else seems to care enough, and you just can't let it fade away - so you go out and do it yourself. This is where you see the passion of the entrepreneur. And when the going gets tough, as it undoubtedly will, it is the passion that will help the entrepreneur stick with it. As another entrepreneur told me "If you're in it for the money, when things get really bad you'll be ready to chuck it as you know you can make money somewhere else. But if you're passionate about the idea, you'll stay. And make it work. And the money will come." Maybe he knew what he was talking about as he's now worth over a 100 mill.
For a more 'professional' view check out http://www.successmanifesto.com/.
They're not impressed.
It happens. The moment you decide to strike out on your own, you're thrilled, you're soaring and you start talking about it to your near and dear. But be prepared to be underwhelmed by the response.
Take your parents. While they'll cheer your lemonade stand and pet sitting efforts, most would rather see you get a 'real' job after college, instead of starting your own thing. Joining a startup is suspect too, unless you can show them your paystub and prove that you're not working for pizza and equity. If your college years are well behind you, then they'd rather you were thinking of your family, buying a home, your nest egg, heck, even your retirement. The only time your parents are happy with you being an entrepreneur is if you've already got all the money you may ever need (and they do too). Then they can boast about the fact that even though you are wealthy you started a business instead of sitting at the crap tables all day.
What about co-workers? Most think you're crazy to give up your job, and talk about how 'he always wanted to do his own thing', ' she had trouble fitting into the company culture' - as if they were all bad things. But they will throw a going-away party and give you gag gifts of aspirin and job listings, wish you luck and promise to keep in touch. You may even be on their holiday email list. They know to hedge their bets - if you make it, maybe you'd have a job for them. If you don't, they always knew that it was a bad move.
Friends, especially the really good ones who know you well, may be different. They will be happy if you are. Still you'll hear many words of caution, and questions on how you're going to support yourself. And if you're the stable, salaried one in your group, they're not going to be thrilled to have you join the ranks of those with unpredictable income who can be depended on to not pick up the check.
The good news? There are others like you out there. And if you live in certain places, like Silicon Valley, there are many, many people like you out there. Even if they think you may fail (statistics are not in your favor), they'll applaud your joining the club of those who were willing to take the risk. And that's really at the heart of all the reactions. The ones who worry that you want to be an entrepreneur do so because you're taking a risk. And the ones who congratulate you do so because it takes courage to take a risk.
I've been there and heard my family worry about my financial future, saw my co-workers bemused that I gave up my great job, my friends supportive but not really understanding why I was doing this, and only other entrepreneurs were cheering me on (unless they thought I could be competing with them). Sticking to your guns and going ahead with your plans in the face of much skepticism takes bull-headedness and confidence, not to mention a lot of passion and a willingness to make a fool of yourself.
Of course, if you've done it once, even moderately successfully, the perception of risk is reduced, and everyone thinks you're so smart to stick to what you're good at. But if you failed, and you're doing it again - hey what's wrong with you? You're lucky if you live in one of those places awash in startups, where people take a different view - no biggie, failure is just a 'great learning experience'. A true entrepreneur will be at it again. As long as you don't fail again.
It happens. The moment you decide to strike out on your own, you're thrilled, you're soaring and you start talking about it to your near and dear. But be prepared to be underwhelmed by the response.
Take your parents. While they'll cheer your lemonade stand and pet sitting efforts, most would rather see you get a 'real' job after college, instead of starting your own thing. Joining a startup is suspect too, unless you can show them your paystub and prove that you're not working for pizza and equity. If your college years are well behind you, then they'd rather you were thinking of your family, buying a home, your nest egg, heck, even your retirement. The only time your parents are happy with you being an entrepreneur is if you've already got all the money you may ever need (and they do too). Then they can boast about the fact that even though you are wealthy you started a business instead of sitting at the crap tables all day.
What about co-workers? Most think you're crazy to give up your job, and talk about how 'he always wanted to do his own thing', ' she had trouble fitting into the company culture' - as if they were all bad things. But they will throw a going-away party and give you gag gifts of aspirin and job listings, wish you luck and promise to keep in touch. You may even be on their holiday email list. They know to hedge their bets - if you make it, maybe you'd have a job for them. If you don't, they always knew that it was a bad move.
Friends, especially the really good ones who know you well, may be different. They will be happy if you are. Still you'll hear many words of caution, and questions on how you're going to support yourself. And if you're the stable, salaried one in your group, they're not going to be thrilled to have you join the ranks of those with unpredictable income who can be depended on to not pick up the check.
The good news? There are others like you out there. And if you live in certain places, like Silicon Valley, there are many, many people like you out there. Even if they think you may fail (statistics are not in your favor), they'll applaud your joining the club of those who were willing to take the risk. And that's really at the heart of all the reactions. The ones who worry that you want to be an entrepreneur do so because you're taking a risk. And the ones who congratulate you do so because it takes courage to take a risk.
I've been there and heard my family worry about my financial future, saw my co-workers bemused that I gave up my great job, my friends supportive but not really understanding why I was doing this, and only other entrepreneurs were cheering me on (unless they thought I could be competing with them). Sticking to your guns and going ahead with your plans in the face of much skepticism takes bull-headedness and confidence, not to mention a lot of passion and a willingness to make a fool of yourself.
Of course, if you've done it once, even moderately successfully, the perception of risk is reduced, and everyone thinks you're so smart to stick to what you're good at. But if you failed, and you're doing it again - hey what's wrong with you? You're lucky if you live in one of those places awash in startups, where people take a different view - no biggie, failure is just a 'great learning experience'. A true entrepreneur will be at it again. As long as you don't fail again.
Entrepreneur or self employed?
There's a comment on an earlier post asking if a 'massage therapist' is an entrepreneur. Let's see. She recognizes an opportunity ('hot stone massage' in snowy ski resort buried in an avalanche of sports massage experts), organizes resources (gets trained, rents a place,advertises on Craigslist, gets a table - not to mention new age music and aromatherapy candles), operates the resources and delivers what her customers want (or loses them). And wakes up everyday knowing she could wipe-out (maybe ski-towners prefer sports massage after all), but she's willing to assume the risk. Is she self-employed? Yes. Is she an entrepreneur? Why not?
Of course, few would question that she's an entrepreneur if she raised money, opened a spa, hired other massage therapists, offered online reservations and product sales on her website, and talked about going national in three years. Is it because it is a service not a product? I don't think so. At least not any more, when service businesses are hot (outsourcing anyone?). Must be a matter of scale. A single practioner? Self-employed. An entity of two or more? Conventional thinking wouldn't have trouble with the entrepreneur label then.
The basic definition of entrepreneurship often gets forgotten, and I see it here in Silicon Valley where for some folks if it's not tech, it is dreck (but I could also see them assuming the fetal position under their desks if all the massage therapists left en-masse). Thankfully it's not so for everyone, and perceptions are changing. More and more people are recognizing different opportunties for entrepreneurship, mainly because they want to do what feels right to them (what motivates an entrepreneur - another topic) and they're realizing it's just a very, very big tent.
There's a comment on an earlier post asking if a 'massage therapist' is an entrepreneur. Let's see. She recognizes an opportunity ('hot stone massage' in snowy ski resort buried in an avalanche of sports massage experts), organizes resources (gets trained, rents a place,advertises on Craigslist, gets a table - not to mention new age music and aromatherapy candles), operates the resources and delivers what her customers want (or loses them). And wakes up everyday knowing she could wipe-out (maybe ski-towners prefer sports massage after all), but she's willing to assume the risk. Is she self-employed? Yes. Is she an entrepreneur? Why not?
Of course, few would question that she's an entrepreneur if she raised money, opened a spa, hired other massage therapists, offered online reservations and product sales on her website, and talked about going national in three years. Is it because it is a service not a product? I don't think so. At least not any more, when service businesses are hot (outsourcing anyone?). Must be a matter of scale. A single practioner? Self-employed. An entity of two or more? Conventional thinking wouldn't have trouble with the entrepreneur label then.
The basic definition of entrepreneurship often gets forgotten, and I see it here in Silicon Valley where for some folks if it's not tech, it is dreck (but I could also see them assuming the fetal position under their desks if all the massage therapists left en-masse). Thankfully it's not so for everyone, and perceptions are changing. More and more people are recognizing different opportunties for entrepreneurship, mainly because they want to do what feels right to them (what motivates an entrepreneur - another topic) and they're realizing it's just a very, very big tent.
Are you an entrepreneur?
Are you an entrepreneur?
Or maybe the question should be, can anyone be an entrepreneur? (You could argue that anyone could try to be an entrepreneur and fail...but look around, you'll see tons of entrepreneurs who stumbled before they soared. This is a whole different subject.)
Is it nature or nurture? Are you born an entrepreneur? Or do you become one because your family had to fight for survival and you learned valuable lessons helping your papa at the corner store?
There are many 'tests' to see if you have what it takes to be an entrepreneur, for example they check if you -
- Are comfortable doing something you are unfamiliar with
- Have confidence in yourself
- Don’t mind dealing with a high level of uncertainty
- Are self motivated
- Are a leader (there’s a whole lot of literature just on that)
There are many entrepreneurs who didn’t hustle through their childhood, never peddled lemonade at a sidewalk stand, and may have even worked for others for quite a while before something made them start their own business. I know one young person who showed previously no interest in entrepreneurship but suddenly quit her job and started her own company production company – and is doing extremely well. Interestingly, after she’d taken the plunge, all her friends thought she absolutely had the personality for it, though nobody said so earlier.
If you're thinking about starting a business, don't worry, you most probably have what it takes to be an entrepreneur. Few people who don't have the stomach (or the brains, the heart, the courage) for it, will even consider stepping on that yellow brick road. Sure, there the risk that you'll fail, but if you're willing to assume that risk (and plan to squish it to nothingness with all the brilliant ideas you have), in my view, you're an entrepreneur.
Definition of an entrepreneur
As with all classic navel-gazing exercises, I start with the basic question of ‘Who’?
And my favorite: One who recognizes opportunities and organizes resources to take advantage of the opportunity.
There's starting the business. And there's growing the business. And the one who's good at starting the business may not be the one who's good at growing it. Most likely, the one who's really good at 'recognizing opportunities' and believes that to be the most intoxicating part of entrepreneurship will be doodling during discussions on how to improve margins in the established business. How does the entrepreneur keep up the excitement when the business shifts from proving a vision to proving MBA skills?
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