ReadWriteWeb has a continuing series on startups and entrepreneurs which makes for good reading, especially if you're interested in tech startups. A while ago they had a post on 10 things to be clear about before you start a company - and I thought of it today as I was thinking about a startup idea (just for fun). All 10 points are worth considering, but I'm not convinced that everything is as clear cut as it is made out to be. In particular, I have a somewhat different take on #3, does your venture involve something you understand really well?
On the face of it, it makes sense. You can't do what you don't know. Mrs. Fields had wowed friends and family with her cookies before starting her company. Thomas Fogarty is a cardiac surgeon and knew exactly what he was about when he created the balloon catheter and then went on to launch numerous medical device companies. And he also built a successful winery, a far cry from medical devices (though red wine is supposed to be good for your heart). My friend Gillian Verga was inspired by her own weight-loss experience to start an online community in WeightCircles. So does the entrepreneur always have to be the subject matter expert? Or just know enough to know when to bring in the experts? And what is 'enough'?
I am personally partial to the idea of an entrepreneur being one who sees an opportunity and pulls together the resources to grab it. The entrepreneur does not have to be, and is often not, the one who knows it all about the specific area - too often an expert does not see the proverbial forest for the proverbial trees - but obviously s/he has to know enough to figure out what's a real opportunity, the challenges, the market etc. You the entrepreneur need to know enough to figure out if there's a business there. And of course you need access to the people who are masters of that domain so you can get the smarts you need when you need them.
That said, I also believe that any half-way decent entrepreneur would be at least familiar with what their venture is all about. You have to know the problem you want to solve, either having experienced it yourself or being close up to some one who has. In fact, I don't think it is even feasible to develop an entrepreneurial opportunity unless you're familiar with - not necessarily immersed in - a space. The sequence is pretty much: see the opportunity in something close to you, dig in and get comfortable that there's really a venture there, get access to the market, take the leap.
And finally, unavoidably, you need passion. If you are not passionate about the space you are in, expertise alone won't keep you in the game. You'd be inclined to give up the first time you believe you're running out of money and use your expertise to polish up your resume instead. And passion can be used to direct your entrepreneurial itch too. If you're really interested in an area (global warming, education, health care) but don't know too much about it, you can spend some time getting familiar with it - taking classes, volunteering, networking, mining the web. And then, you'll either find your own 'eureka' idea or hitch yourself to someone else's. Bottom line, that has to be the holy grail: making an impact in something you really care about.
2 comments:
Hi Usha, I think you have a good point, although of course starting a company is tough, so the more you know in your area, the better. You are also more likely to be able to find resources to pull in if you have experience in the industry. Although I had enough knowledge to build Weightcircles, there were times I wish I had more connections in the weight loss space.
The other point I think is relevant is that the area where you have expertise may be tangential to the company's industry. I believe my expertise was really in connecting people together - applying a support model through social networking, which in this case was a new aspect to weight loss support. Bringing two different areas of expertise together is often the way new ideas are born.
Hi Usha, I think you have a good point, although of course starting a company is tough, so the more you know in your area, the better. You are also more likely to be able to find resources to pull in if you have experience in the industry. Although I had enough knowledge to build Weightcircles, there were times I wish I had more connections in the weight loss space.
The other point I think is relevant is that the area where you have expertise may be tangential to the company's industry. I believe my expertise was really in connecting people together - applying a support model through social networking, which in this case was a new aspect to weight loss support. Bringing two different areas of expertise together is often the way new ideas are born.
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