Mentorship!

Over the course of the past few weeks, I've been serving as a mentor to first-time entrepreneurs. It's been an amazing experience that's teaching me more than I've returned. Mostly, it's helped solidify some of my hypotheses about startups, entrepreneurs and business development but it's also helped humble my thinking. Finally, first-time entrepreneurs are like babies: they soak up information like a sponge, they try to imitate those they look upto closely, they have no concept of right & wrong, they're still developing themselves physically & mentally, and they live without any preconceptions (hence why unsocialized startups fail).


Though it's unsurprising how most people (especially, new entrepreneurs) want to hear only good things about themselves and their startups. However, some mentors allow this mentality to overcome their work and begin to give "feel good" advice rather than deliver painful news. Yet, most people need to acknowledge that the point of a mentor is to tell you what you want to hear the least. They need to expose the truth and the realities of life to the entrepreneurs but be there when they need a shoulder. A mentor's main job is to ensure their entrepreneurs respond to the environment appropriately both emotionally and strategically.


They must push their entrepreneurs past their perceived limits to reach higher faster to become stronger. Their job is less about lecturing but to create a network that their students can rely on. Rather than act as a college professor, act as an extremely knowledge-specific friend. Close friends tell you what others are too afraid to say, but they say it with the intent to help: 

"I push my students to the edge and right before they jump off, I pull them back"

- Dr. Cakir, South Brunswick High School (he taught the most advanced mathematics & physics courses at my high school)

However, they need to let their startups fail but help them understand why they did and how bounce back. I oppose hiding information to let your startups fail, but I'm advocating for disallowing yourself from taking your startup's responsibilities. This final point is tricky, but an apt analogy: think "slow parenting" rather than "helicopter parenting". In the latter case, you try to abstract any harm that can approach your children, which allows your children to grow up quickly; on the other hand, "slow parenting" advocates for your children to grow up at their own pace. You let your children face the world themselves and helping them as they hit road-bumps. "Slow parenting" focuses on creating a bond with your children that's deep and emotionally connected, whereas, "helicopter parents" focuses on material success. In either case, the parents want their children to live fullfilling lives, but the focus is completely different and in the latter case when children finally face adversity they fail miserably because they never had to deal with previous adversity.

Getting over risk-phobia.

There's been a great deal of discussion of how to encourage startups, entrepreneurs, and Americans, in general, to take more risk. Venture capitalists, bloggers, and other venture role-models complain that entrepreneurs have lost their ambitious drive [1]. Additionally, educators see their American students are hopelessly losing out to their international counter-parts [2]. Some people of the current generation have written pieces about the inherent entitlement: "so in that sense, we’re a bit greedy, a bit selfish, a bit entitled, and a bit impatient" [3]. 

There's been an immense amount of effort in figuring out where the difficulty lies:

  • Younger people have few examples of great entrepreneurship. [4]
  • Statistically, you'll be more successful when you're 40...maybe? [5]
  • Some people are just risk-adverse! [6]
  • America is made of wimps! [7].

It turns out "all learning is based on trying something new, making a mistake, adjusting your actions, trying again, repeating until you get the results you desire" [8].  From my experience, I view risk as an external perception surrounding my activities. For me, most of what I do is a logical extension based on experience. Yet, for the uninitiated it seems like I'm stupid and/or fearless in my actions. Finally, I've learned "confidence comes not from always being right but from not fearing to be wrong.” [9]

If you feel that you would like to be able to stomach greater risk then start experimenting more. Start off with small projects that you know how to accomplish. Then start to iterate on the more projects by extending yourself into uncharted terrains e.g. if you're a developer see if you can learn market & sell your project. As you start to gain more insights from your projects start to iterate into areas that scare you. Eventually, you'll start to realize concepts that others have no idea about and that thinking will lead you to find opportunities others would never pursue. Risk is less about courage but more about careful exploitation by mitigating personal fears. 

Sources:

  1. http://techcrunch.com/2009/09/17/memo-to-start-ups-you%E2%80%99re-supposed-to...
  2. http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2009/12/21/...
  3. http://sarahmerion.com/digitalanthropology/gen-y-talks-the-talk-but-they-dont...
  4. http://bostonvcblog.typepad.com/vc/2010/01/a-lost-generation-of-entrepreneurs...
  5. http://www.kauffman.org/uploadedFiles/FactSheet/entrep_and_economy_fast_facts...
  6. http://techcrunch.com/2009/11/29/india-angel-investors/
  7. http://steve-olson.com/when-did-america-become-a-nation-of-frightened-wimps/
  8. http://steve-olson.com/10-things-i-learned-from-my-4-year-old/
  9. http://steve-olson.com/7-things-my-7-year-old-learned-from-mma-mixed-martial-...

More reading:

  1. http://techcrunch.com/2009/12/20/the-difference-between-1-billion-plus-in-exi...
  2. http://techcrunch.com/2009/11/15/how-to-profit-off-the-poor%E2%80%A6-and-keep...

Building rocket-ships.

If you take all the commonalities of success you start to realize that the most-envied "rocket-ship" companies e.g. Microsoft, Facebook, Google, et al. they pushed their markets past the threshold and they competed in a highly competitive landscape with large incumbents. Now, these examples lead people to believe that success lies in the quality of people/vision, size of market, and/or speed of execution.

However, I think that none of these factors correlate to success, yet all of these factors make successful companies.

  • Quality of people - the founders surround themselves with more talented people which renders themselves the least qualified.
  • Quality of vision - companies change their direction a few times before they see any success.
  • Size of market - initially, their markets were underdeveloped and they pushed it over the edge.
  • Speed of execution - some of their competitors were innovating at a similar (sometimes faster) pace, but in "different" areas.

Instead, these companies focused on experimentation thus they constantly improved their product based on market demands and competitors' activities. Mostly, they learned from the industry's mistakes/successes, and reacted accordingly to align their actions with their visions. Also, they recruited rock-star advisors/investors who were extremely passionate about their potential growth. Their advisors created massive hype around them (which led to spectacular IPOs/financings).

Therefore, if you find intensely passionate people in an environment with overwhelming odds of failure but a promise of explosive growth you'll build rocketships. However, there needs to be a substantial amount of risk placed in people with hyperbolic visions in potentially massive markets that "do more faster" [1]. Where do you find that magic? Find people that love what they do in areas that excite you and work like all hell.

Next post: Getting over risk-phobia

Sources:

  1. http://www.techstars.org

Inspiring Quote

"All Fords are exactly alike, but no two men are just alike. Every new life is a new thing under the sun; there has never been anything just like it before, never will be again. A young man ought to get that idea about himself; he should look for the single spark of individuality that makes him different from other folks, and develop that for all he is worth. Society and schools may try to iron it out of him; their tendency is to put it all in the same mold, but I say don't let that spark be lost; it is your only real claim to importance." -- Henry Ford.