7 Capital Sins Of The Entrepreneur? I sincerely believe that entrepreneurs and the creation of new companies with risky, innovative and quality value proposals are the only real alternative to achieve the much-vaunted model change.
However, I get the impression that substantiating the word “entrepreneur” has done a lot of damage. The true entrepreneurs, those who have risen…
The 7 Capital Sins Of The Entrepreneur
The large, small and medium-sized companies never referred to themselves saying: “I am an entrepreneur” … but rather they considered themselves fighters who created companies … in other words, undertaking is a state, not a job (except for a few Entrepreneurs “in series”, whose focus is precisely creation … but they are really few).
In line with this, the great video about what really is undertaken by the creators of some of the best known companies in our country (and eye, these are those who were lucky and did well):
(Long video, but it is highly recommended to see it whole)
So … where does this curious fashion about entrepreneurship or entrepreneurship come from? In my opinion, of two isolated and opposed factors:
The national and regional governments have realized that if they want to build a future in which regions and countries do not compete in price but in value, they should stimulate the creation of new companies ( and, incidentally, increase the collection as a result of a greater number of companies that pay taxes ).
The “wild west” effect … which is not, by far, the search for the last wild spaces. Do you know who really were the ones who lined up during the gold rush? Those that made shovels and instruments to look for gold … not (the majority) of people who looked for it.
THE CAPITAL SINS OF THE ENTREPRENEUR
We all make mistakes, but there are some that are especially serious for an entrepreneur, given that they can significantly affect their chances of success, and therefore it is important to know.
As if it were Dante’s descent into the underworld, we will try to fit them (more or less fortunate) into the 7 deadly sins….
Dedicate months to generate attractive business plans (the famous business plan), imagining who your customers will be, how they will buy, what size the market has.. Instead of going out to the street, talking to them, and asking them. Be careful, I do not say that it is not important to have a good business plan, but it is not the basis. The basis is to find the business model, get customers and bill.
Obsessing looking for the perfect idea, the approach that nobody has come up with … I’m sorry, but this is 10% inspiration and 90% perspiration. There is no perfect idea … and even if it exists, the key is execution and not ideation. You must obsess with trying, prototyping, executing and retesting … and not with planning.
Start without having ambitious, clear and quantified objectives. Although then they will change, and it is not necessary that they be “hit a ball” (which has done a lot of damage to startups in this country), if it is worth taking a moment to make this reflection … everything else is self-deception. This is the best idea of 7 Capital Sins Of The Entrepreneur.
Although it is not the exclusive patrimony of entrepreneurs, it is very common to dedicate effort and time only to the part that we like the most (programming, designing, or as is very common lately, the social media). Do not generate buzz if you do not have anything behind…
Hand in hand with the above, procrastination (or postponement): your mind does not stop suggesting other things you could do first, which you can surely finish in time … etc. and that in practice they are more pleasant (usually they are the ones you like / are good at ) or you have a clear idea how to do them , and the degree of certainty is high.
Take it easy”. In a newly created company, they have to pass “relevant” things EVERY week … if not, it’s that you’re going very slowly.
Not wanting to sell the product until it’s perfect. If you do not sell it, you do not know what its defects are (not only in the product itself, but in the message, the form, the interlocutor, the support …)
Not having “done homework “before undertaking. The complacency and the blind faith in the idea usually lead to failure. A clear example is the CEO who delegates his first sales in others (commercial force … etc). I think it is absolutely essential that the CEO sell , look your eyes to your customers ( or your traces of Google Analytics ) talk to them, listen to their doubts and complaints and understand their problems … firsthand. This is one of the best idea of 7 Capital Sins Of The Entrepreneur.
Fall in love with the idea, and pretend to execute it as is, without listening to the market . 99% of the time, from the original idea to which it is executed there are hardly any similarities, so you have to know how to pivot from the product to the business model .
Complain that there are not enough state aid to set up your business, which is not possible to undertake … surely it would be great to subsidize more things, but I think one of the cancers that have led to this situation are subsidies (per I know they are not bad, but applied indiscriminately they break competitive dynamics and make the unsustainable sustainable). If the state does not trip you up , it’s too much.
Believe that it will be easy to obtain financing, that the money will last and that the expenses will be as expected. Right now it is very difficult to get credit, either from a bank or from a private investor … and do not hesitate, it will end sooner than expected. I always recommend that you double the expenses and divide the income to have a real expectation.
If you manage to convince an investor, or one of the 3Fs (Friends, fools & family), waste the money in buying new furniture (to have offices like Google, they say), in putting ads in the press or on billboards … just after The first round is when you have to live in an ” indigent entrepreneur ” mode (exaggerated, of course), since each euro must stretch to last as long as possible. This is one of the best idea of 7 Capital Sins Of The Entrepreneur.
As Guy Kawasaki says:
Get discouraged, angry and back down when faced with a failure, problem or error. Entrepreneurship is a ladder of small failures to learn from, and you will undoubtedly suffer many of them … so be prepared mentally. The resilience (continued ability to overcome adversity and persevere) should be one of the main qualities of an entrepreneur.
Frustrated easily by the lack of certainty that supposes its activity, point especially relevant for entrepreneurs who come to work for others, typically a much more orderly environment. In a startup , the only constant is that you do not know anything . Therefore, and similarly to the previous point, an entrepreneur must be able to accept that uncertainty is an integral part of their activity , and learn to treat chaos as a fellow worker.
Undoubtedly, the lack of focus and indecision are the most common problem of the entrepreneur. Given the tremendous amount of different tasks required to start a business, it is very easy to get lost among the non-important ones. That is why it is essential to ask each task: is it critical to take the project to the street? This is one of the best idea of 7 Capital Sins Of The Entrepreneur.
Try to copy what worked for others ( I think they call it “benchmarking” now ). It is important to know the competition , both direct and indirect, but only to understand their business, strengths and weaknesses. If you try to compete with their rules and be better than them you are dead .
Do not try to be better, strive to be different.
Fix the business model in the planning phase ( where you really do not have much idea about whether this is the most appropriate for your project ) and execute it stubbornly without waiting for feedback … it is much better to devote the first phase of the project to explore in the market and with real customers, which is the best business model, consistent and sustainable, that takes more advantage of the value proposition of the company. This is one of the best idea 7 Capital Sins Of The Entrepreneur.
Do not share information about the project with other entrepreneurs, clients, suppliers, friends, relatives … with anyone who wants to listen to you. Of all you learn, the important thing is to have an open mind to listen to new approaches, ideas, criticisms … etc. (There is a fine line between being sure of your project, digesting criticism and being suicidal …)
Before a project that shows signs of not working after a long time, convince yourself that the fault lies with the market that has not yet understood it. In some exceptional cases it is like that, and even in this case, if there is no market, there is no money. As important as making the business plan at the beginning is to decide under what set of conditions the project will have to be killed … and not be fooled by the lack of profitability. What is normal and admissible in a moment is a sign that the project must disappear in another.
They try to hoard customers, similar to Gollum. The client must want to be with us because he loves our product, because he feels like the king … not because it is hell to change suppliers ( the famous barriers to entry and barriers to exit )
Consider that, if they like it, you have to like the customer. You have to do an authentic exercise of empathy and feel what the client needs, and that all our experience of use gives you an answer. This is one of the best idea of 7 Capital Sins Of The Entrepreneur.
Lack of humility … and not miss a single “sarao” ( which often supposes 4-5 weekly sessions ), with the aggravation of wanting to give wise advice to other “new” entrepreneurs … I think that it is not only an error, but It is irresponsible . That can be done once you have several successful cases behind you, and you can afford to give advice based on your experience , if it is not a dangerous arrogance ( do not get me wrong, I think the events are good, necessary and play an important role … but it’s not filling the entrepreneur’s time) . The entrepreneur’s time must be filled withtalk to clients and suppliers, fight uncollected bills, negotiate with banks, improve your product … not attending “saraos”
Obsessed with perfection. Except in the “secret sauce” (mojo) of your project, it is perfectly acceptable to take the lowest fruit. And even so in the key value proposition, it is better to get it out soon and to learn than to get it out late … and be dead.
If when you take your product to the market you are not absolutely ashamed, it is that you have taken it too late.
Consider that you do not need help, that you can go alone. Every entrepreneur must have some knowledge (especially at the beginning) of many very separate areas (marketing, finance, technology … etc), but it is virtually impossible for someone to have all those capabilities at the level of depth that will be required later on. Find companions that complement you and with whom you have empathy, a team that row in the same direction is the key to a good execution (which is very different from seeking partners to avoid the fear of loneliness, a very bad idea). This is one of the best idea of 7 Capital Sins Of The Entrepreneur.