The Skinny On

The Skinny on the Life of an Entrepreneur (Post #5)

We are reviewing the ten most important factors that will determine your success (or not) as an entrepreneur.

#7.  OK with Loneliness

Some people need lots of people around them.  Others do better when they are alone.

One definition of extrovert is a person who gains energy when around others and loses energy when alone.  The definition of introvert is of course the opposite - a person who gains energy when alone and loses energy when surrounded by many others.

Whether you are an extrovert or introvert*, as an entrepreneur, you are going to have to get comfortable with the fact that - at least in the beginning of your new venture - you are going to be spending a good deal of time alone.  For some people, this situation creates overwhelming loneliness and they do not function at their best.

When you start a new venture, you are the CEO, CFO, COO, CTO and CIO of your company all wrapped into one.  Oh yes, and General Counsel.  In the beginning you have to do it all and you may not be able to afford outside help.  This can be lonely, scary, and frustrating. 

In a big organization, there are people who can help with technical issues, legal questions, ordering supplies, making budgets, etc.  In a start-up, there is often no one but you.

As you become successful, you will be able to hire or pay for others to provide assistance.  But, there is almost definitely going to be a time when you are on your own … OK with that?

*For an excellent book on extroverts and introverts, see QUIET:  The Power of Introverts in a World that Can't Stop Talking, Susan Cain (Crown, 2012)

The Skinny on the Life of an Entrepreneur (Post #4)

We are reviewing the ten most important factors that will determine your success (or not) as an entrepreneur.

#6.  Comfort with Chaos

Many people need structure in their lives.  They need their job to be somewhat linear … A to B and then B to C, and so on.

The life of an entrepreneur is anything but linear.  In fact it is often just one step above total chaos.

One of the great thinkers of our time is a man named Nassim Taleb who has written three books that touch on the subject of chaos:  Fooled by Randomness, The Black Swan, and Antifragile.

It would, of course, be ridiculous to try to summarize his overriding theme in one blog post but, anyway here goes:

Some things are totally unpredictable.  We should never discount the unpredictable.  We should be careful to check our thinking that A causes B.  Some things thrive on chaos.

 An entrepreneur must learn to live with chaos.  But, more than that, the entrepreneur should accept that disruption, chaos, and even stress strengthen the entrepreneurial process.  In fact, what is the goal of an entrepreneur but disruption in an effort to change or improve on what already exists?  In other words, an entrepreneur needs to embrace chaos.

Here is a quote from the Prologue of Taleb's great work on what he calls the "antifragile" (think of this property as the opposite of something "fragile" that breaks with stress, like a piece of glassware):

"Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk and uncertainty.  Let us call (these things) the antifragile.  This property (of antifragile-ness) is behind everything that has changed with time:  evolution, culture, ideas, … ".

            Antifragile:  Things that Gain from Disorder, Nassim Taleb (Random House, 2014)

The Skinny on the Life of an Entrepreneur (Post #3)

We are discussing the ten most important factors in your success (or not) as an entrepreneur.

Here are #4 and #5.

4. Confidence - I could write ten posts on the stories of hugely successful entrepreneurs who were told over and over that their idea was "dumb", "never going to work", or "a waste of time." It is in the nature of being an entrepreneur that change is part of the process. The entrepreneur is trying to do something new and different (hopefully better).  And, quoting from a great book, The Creative Habit:

"Creativity is an act of defiance.  You're challenging the status quo.  You're questioning accepted truths and principles … Every act of creation if also an act of destruction or abandonment.  Something has to be cast aside to make way for the new."

So, once you plant your "entrepreneurial flag", be prepared for the possibility that you will hear "oh, that's been tried before" or "not a chance in a million that will work" and so on.

An entrepreneur needs to be deaf to the naysayers and have confidence that his or her idea has merit and can work.  Without confidence, you have no shot.

5. Ability to conquer a fear of failure - failure is part of the entrepreneurial process. If you are overly afraid of failure, you are most likely going to be too cautious in how you pursue success. You may think you are taking appropriate risks but if failure is always in the back of your mind, you are most likely playing it too safe.  Risk (of failure) is an unavoidable part of the game. 

Putting failure out of your mind is not always easy.  While some people are instinctive risk takers, most of us struggle with the prospect of a negative outcome.  But, that's OK.  Good entrepreneurs understand that failure is a possibility but refuse to be controlled by the possibility.  They hear the noise, but just don't listen to it.   

The Skinny on the Life of an Entrepreneur (Post #2)

OK, so now you have had some time to think about the type of activity you would like to pursue as an entrepreneurial venture. Great, now I want to tell you what I believe will be the 10 factors behind your success (or not). I am going to discuss 3 points in this post, then 7 points in my next two posts.

1. Enjoyment - we have already crossed this threshold.  As I have indicated, the activity you select must be something you enjoy doing.  The pursuit of your entrepreneurial aspiration must be fun.  Not every minute of the day, of course.  With any entrepreneurial venture, there will most likely be components of what needs to be done, that are not that enjoyable to you.  But, overall, the activity should be one you look forward to.

2. Intensity - there is no half way with an entrepreneurial venture.  You are either "all in" or don't bother.  Note:  This does not mean you are full-time.  All I want is a ten-hour per week minimum commitment.  BUT, while you are engaged in your entrepreneurial activity, no distractions or diversions.  Give it your all, or don't bother.  Success is hard enough as a rule but impossible with anything less than 100% effort.

By the way, I am a bit of an entrepreneurial groupie.  I read everything I can about successful entrepreneurs and speak to as many as will speak to me.  If you want to read about intensity, here are two autobiographies and a biography that you can learn from:  Shoe Dog, Phil Knight (founder of Nike), Grinding it Out, Roy Kroc (founder of McDonalds), Elon Musk, Ashlee Vance (founder of Tesla and Space X).

3. Persistence - I have started 20 companies and been around hundreds of entrepreneurs.  The one overriding factor that separates the success from the failure is persistence, refusal to give up on a dream.  This does not mean that you do not change direction (pivot) when you see a roadblock or an opportunity.  Part of persistence is "bull-headedness"; but another part is an ability to deal with reality.  Sometimes the line is not that clear.  But stubbornness without vision is not an attribute.

The Skinny on the Life of an Entrepreneur (Post #1)

This is the first post of what will be a series of many about starting your life as an entrepreneur.

Starting your life as an entrepreneur?  You already have a life, and a job, and obligations, and perhaps some debts.  What in the world am I talking about?

Well, first things first.  Here is my proposition:

Every single person (over age 15) should have some part of their life devoted to an entrepreneurial activity.

What is an entrepreneurial activity?

An entrepreneurial activity is about which you have a high level of interest and the pursuit of which involves risk and reward.  Generally, the risk and reward are two sides of the same coin.  You risk money, time, and reputation in the hope that you achieve much more money, greater flexibility with your time (freedom to do what you want), and a heightened reputation (prestige, respect, influence).

I am not talking here about quitting your "day job" and starting your own business.  Rather I am advocating that everyone craft into their life (perhaps at night, early AM, and/or weekends) some activity that is (a) fun (high level of interest), and (b) potentially life-changing (risk-reward). 

The possibilities are infinite:  write a screenplay, design jewelry, start an online retail business … invent UBER (drat … someone already did that). 

Every week I am going to elaborate on this theme.  For now I just need you to start thinking … what activity would be fun and potentially life changing for you?  Do you have ten hours a week that you could devote to it (if not at least ten, probably not worth trying)?  Are you prepared to lose some money, some free time, and maybe fail in a way that others will see?  If so, great … we'll get started soon.

Success is a Jigsaw Puzzle

There are some people who are overnight successes. These people usually possess one of the following:

• Incredible, over-the-top talent (rare)

• A big head start (the heir of an established star)

• A lot of luck (some people do win the lottery)

For the rest of us (the other 99.99%), the path to ultimate success is not so easily traversed. No one holds the door open for you. You have to scratch and claw to achieve your goals.

Often the process from here to there is like doing a jigsaw puzzle. There is no single precipitating event that triggers success. It's not like you're Ordinary Joe one day and Superstar the next.

Rather the process is most often the gradual accumulation of:

• Skill/talent

• Contacts

• Experience

• Information

• Opportunities

Like a jigsaw puzzle, most success stories are pieced together over time. You sets a goal and start off on a journey. Along the way, you make mistakes and learn. You stumble and fall. You build on your strengths and work on your weaknesses. You meet people who can help you. You get better at finding and capitalizing on opportunities. Then one day, you exclaim, “Holy Cow, I’ve made it!”

And as with a jigsaw puzzle, many people become frustrated and give up. People tire of the process, of sitting still or of being inside when the sun is shining. People decide to stop working at the puzzle.

Those who stay the course are give themselves a shot at their aspirations, and creating a beautiful picture for their life.

What keeps you motivated?

---

I am grateful by the early response to our new book, Street Smarts: Beyond the Diploma. We have already sold several hundred books and received great reviews. There are only two places to buy right now: (1) Amazon, or (2) our website: www.thestreetsmartsbook.com/book. I hope you will give it a try.

What I Have Learned From My Most Successful Friends

I am fortunate to be close with some amazingly successful individuals. And I am always looking for that common thread: What makes them special? What makes them successful?

If I had to pick one word: 'energy.'

This doesn't mean they work long hours necessarily (although most do). Rather it signifies their intensity for what they do.

They believe what they do is important. That if they succeed, it will make a difference. And not just for themselves.

Every single highly successful person I know has made a commitment to the significance of how they spend their day. No one is simply going through the motions.

In this regard, they are lucky.

Discovering that significance, that passion that just feels right is not always easy. But it is definitely worth the effort.

Here's the good news. To paraphrase a U.S. Supreme Court Justice: 'You'll know it when you see it.'

There is a point where a person's talents, interests and values coincide. This is where it all comes together and a person's potential for greatness resides.

And when you arrive, you will definitely feel it.

Success or bust. How do you keep your fire burning day-in and day-out? How do you keep your passion alive?

Precise (and Correct) Word Choice

Over the years, I have asked people for their list of the most misused words and phrases in the English language.

I'll share four of the most common transgressions (according to my unofficial sampling poll). But before I do, please understand that a mispronounced or misused word or phrase actually says something (uncomplimentary) about you.

It's just like wearing an outfit with contrasting colors - you send the wrong message.

"Irregardless" – There is no such word. The correct word is "irrespective."

"Enervate" – It sounds like energize, but really means 'to weaken.'

"Proscribe" – Often confused with 'prescribe,' the definition is actually 'to condemn.'

"Lie" vs. "lay" – People lie down when they are tired, while chickens lay eggs.

Pet peeves. What misused word or phrase ruffles your feathers the most?

Fear and Motivation

Whenever I get the chance to interview super-successful people, I always dig for the root of their success. What drove them to the peak of their profession?

In many cases, believe it or not, fear was a big factor: fear of loss, fear of underperformance, fear of obscurity, and even fear of dying.

We all live with fear. To some degree, achievement is an answer.

If someone makes it big, they can eliminate some of their greatest fears.

They have the resources to fight off most threats. They are well-known enough (by now) to counter the fear of obscurity. They have something substantial to leave to future generations and thereby fight off the fear of death (also known as the fear of not making a difference).

Fear can be destructive. But it can also successfully motivate you to great heights.

What are you afraid of? Does fear motivate you? How do you harness fear to achieve your goals?

Liquidity

Many entrepreneurs begin with a sound business model. They build a good, strong foundation and even start to make money. And then, they fail.

The reason is liquidity: the need for cash or cash equivalents to pay ongoing debts and expenses.

All startup entrepreneurs must think about their liquidity. No matter your timeline to reach break-even, it will probably take twice as long. As a result, I advise you take the amount of cash you think you'll need to break even, then double it.

I have seen several good businesses fall by the wayside for lack of cash. Still others where the entrepreneur started to run out, then made decisions under financial duress (almost always a bad idea).

That's why I subscribe to the Roman poet Ovid, who wrote more than 2,000 years ago:

"How little you know about the age you live in if you think that honey is sweeter than cash in hand."