Being a startup is definitely a badge of honour these days. It always has been, but it seems to have taken on some whole new meaning. I think part of the reason is that starting a startup is now a more accessible dream than ever. You know the deal: cheap development costs, smarter money, more supportive communities.
There is a tipping point however. A point of no return where your romanticization of what a startup is goes form constructive to destructive.
So I am here to say that I have been staying up late, leaving the porch light on.
First, I have some ideas about what being a startup is not about
The first thing to remember is that everything you have been told about what startups should or shouldn’t do is all bullshit. Every industry, geography, product, and approach is unique and those are the primary determining factors in how you do business. Depending on the resources and opportunities available to you, you may have to do things completely differently than a startup located somewhere else. The people telling you that it is done “this way” or that way obviously haven’t done it before.
And then there is the fact that most of the people you are listening to are more successful at getting attention than they are at actually running a business. They are hyper networkers and quite influential, but they are not role models. Being a startup is not about being a personality. It helps, but it isn’t the endgame.
Don’t forget that partying != networking. It’s ok to go out and have a good time, but please do not tell yourself that it is business, no matter who you are rubbing shoulders with. That goes for conferences and the idea that being involved in “the community” is important to your business. Being in the community is important to you, but being in front of your customers is what is important to your startup. Learn to balance this.
So, what is being a startup about? I can give you some ideas.
Creating. More than anything, a startup has to be about creating something new. This is the primary part of the definition that separates Startups from Service Providers. Founders and early employees need to be willing to get their hands dirty in the clay in order to shape something unique.
Seeing. There is no science to being a startup, so your best bet is to get your paintbrush and play the artist. Anyone who takes a scientific approach to creating a startup may get lucky, but they won’t be able to handle the certain uncertainties of startup life. Being a startup is about designing a future for your product, company, culture and market that you will be able to realize, but the mechanics of which you are able to create as you go.
Discipline. This is an easy one to forget. Every flaw you have will be magnified under the lens of money, people and uncertainty. Stay focused.
Ignorance. There is always a reason why what you are doing won’t work. You need to learn to ignore the opinions and objections that don’t matter. Your job is to prove them wrong. Some advice just isn’t worth taking.
Don’t forget that partying != networking.
I think a lot of startups forget this mantra. Being present in the community is more than just having a few drinks. One of the main attractors to participation is recruiting or talent finding. There are a lot of early employees and entrepreneurial minded folks kicking around at events. It's a good way to connect with people you might be interested in hiring.
It's often a good way to find journalists (I know I've seen @thehartley and others scoping out stories). And it's a good way to bump into potential investors casually. But it's casual. It's about being able to strike up a conversation or get feedback in a safe, social setting. Similar to what my friend, @ricksegal, called “No Harm, No Foul” meetings.
And occasionally, you can find your friends and turn this into a social situation. But this is a very different activity than participation to help you, or your company grow.
Be aware that networking does not equal doing business.
Don’t forget that partying != networking.
I think a lot of startups forget this mantra. Being present in the community is more than just having a few drinks. One of the main attractors to participation is recruiting or talent finding. There are a lot of early employees and entrepreneurial minded folks kicking around at events. It's a good way to connect with people you might be interested in hiring.
It's often a good way to find journalists (I know I've seen @thehartley and others scoping out stories). And it's a good way to bump into potential investors casually. But it's casual. It's about being able to strike up a conversation or get feedback in a safe, social setting. Similar to what my friend, @ricksegal, called “No Harm, No Foul” meetings.
And occasionally, you can find your friends and turn this into a social situation. But this is a very different activity than participation to help you, or your company grow.
Be aware that networking does not equal doing business.
Nice post Jevon and it's about time someone said partying != networking and networking != selling.
I think the Startup vs. Service Provider is a false dichotomy. It takes creativity to do both and I actually think running a services business (37 Signals?) is the perfect training for 1st time entrepreneurs. Otherwise how will they learn all the lessons you're talking about? Not reading blog posts… :)
Nice post Jevon and it's about time someone said partying != networking and networking != selling.
I think the Startup vs. Service Provider is a false dichotomy. It takes creativity to do both and I actually think running a services business (37 Signals?) is the perfect training for 1st time entrepreneurs. Otherwise how will they learn all the lessons you're talking about? Not reading blog posts… :)
There's nothing wrong with being a service provider. As previously stated in Hockey sticks and consultants consulting is a linear business. It's a perfect training ground, heck, it can be an insanely profitable business. But it's about understanding that context when framing your business in the marketplace. You can build a great consulting buisness.
PS I think that Flow Ventures does a great job balancing services, investment, and community value.
There's nothing wrong with being a service provider. As previously stated in Hockey sticks and consultants consulting is a linear business. It's a perfect training ground, heck, it can be an insanely profitable business. But it's about understanding that context when framing your business in the marketplace. You can build a great consulting buisness.
PS I think that Flow Ventures does a great job balancing services, investment, and community value.
Hi Raymond,
Your service business point is refreshing. Scaling a service business teaches you a lot of hard to learn lessons in managing people and cash.
-Alan
Hi Raymond,
Your service business point is refreshing. Scaling a service business teaches you a lot of hard to learn lessons in managing people and cash.
-Alan
Jevon nice post. I've been giving partners a similar speech. Reinforcing to see it here.
-Alan
Jevon nice post. I've been giving partners a similar speech. Reinforcing to see it here.
-Alan
Don’t forget that partying != networking.
I think a lot of startups forget this mantra. Being present in the community is more than just having a few drinks. One of the main attractors to participation is recruiting or talent finding. There are a lot of early employees and entrepreneurial minded folks kicking around at events. It’s a good way to connect with people you might be interested in hiring.
It’s often a good way to find journalists (I know I’ve seen @thehartley and others scoping out stories). And it’s a good way to bump into potential investors casually. But it’s casual. It’s about being able to strike up a conversation or get feedback in a safe, social setting. Similar to what my friend, @ricksegal, called “No Harm, No Foul” meetings.
And occasionally, you can find your friends and turn this into a social situation. But this is a very different activity than participation to help you, or your company grow.
Be aware that networking does not equal doing business.
Nice post Jevon and it’s about time someone said partying != networking and networking != selling.
I think the Startup vs. Service Provider is a false dichotomy. It takes creativity to do both and I actually think running a services business (37 Signals?) is the perfect training for 1st time entrepreneurs. Otherwise how will they learn all the lessons you’re talking about? Not reading blog posts… :)
If you truly have a vision for where your solution needs to be, then don't let 'advisers' bend that vision. Launch it early, talk to customers and they will help guide you to tweaking that vision.
Also don't forget that the life of a start-up entrepreneur isn't glamorous. Unless you call having no revenue for a long time as you build out the solution and look for the first customers, working 18 hour days (building out and searching for customers), and of course looking for funding to keep it running.
If you truly have a vision for where your solution needs to be, then don't let 'advisers' bend that vision. Launch it early, talk to customers and they will help guide you to tweaking that vision.
Also don't forget that the life of a start-up entrepreneur isn't glamorous. Unless you call having no revenue for a long time as you build out the solution and look for the first customers, working 18 hour days (building out and searching for customers), and of course looking for funding to keep it running.
There’s nothing wrong with being a service provider. As previously stated in Hockey sticks and consultants consulting is a linear business. It’s a perfect training ground, heck, it can be an insanely profitable business. But it’s about understanding that context when framing your business in the marketplace. You can build a great consulting buisness.
PS I think that Flow Ventures does a great job balancing services, investment, and community value.
Hi Raymond,
Your service business point is refreshing. Scaling a service business teaches you a lot of hard to learn lessons in managing people and cash.
-Alan
Jevon nice post. I’ve been giving partners a similar speech. Reinforcing to see it here.
-Alan
Solid post, Jevon! I had a lot of fun reading :)
Solid post, Jevon! I had a lot of fun reading :)
If you truly have a vision for where your solution needs to be, then don’t let ‘advisers’ bend that vision. Launch it early, talk to customers and they will help guide you to tweaking that vision.
Also don’t forget that the life of a start-up entrepreneur isn’t glamorous. Unless you call having no revenue for a long time as you build out the solution and look for the first customers, working 18 hour days (building out and searching for customers), and of course looking for funding to keep it running.
Solid post, Jevon! I had a lot of fun reading :)
Jevon, good post.
Its interesting to note that many entrepreneurs I met, who had success, who eventually exited from their business at the time they thought was right, tell me today that they aren’t interested in investing in the space that made their success because at the end it was too much hard work and they were lucky to have exited!
“if they had known what they were getting into, if they had known how much work, sweat, commitment and blood was required, they wouldn’t of done it in the first place”.
I think that not ignorance, but naivety is a part of the entrepreneurial DNA. Not knowing it was impossible! That’s why they succeeded, they didn’t know it wasn’t possible! Of course this doesn’t apply to every situation, and even though many successful entrepreneurs have degrees, PhDs and all, a big ratio of successful young entrepreneurs are dropouts.
Its key to know what you don’t know, thus not being ignorant, yet its even more important to believe in yourself, and make it happen simply because there isn’t any other alternative. That energy, that passion, that commitment makes great entrepreneurs and great start-ups.
Jevon, good post.
Its interesting to note that many entrepreneurs I met, who had success, who eventually exited from their business at the time they thought was right, tell me today that they aren’t interested in investing in the space that made their success because at the end it was too much hard work and they were lucky to have exited!
“if they had known what they were getting into, if they had known how much work, sweat, commitment and blood was required, they wouldn’t of done it in the first place”.
I think that not ignorance, but naivety is a part of the entrepreneurial DNA. Not knowing it was impossible! That’s why they succeeded, they didn’t know it wasn’t possible! Of course this doesn’t apply to every situation, and even though many successful entrepreneurs have degrees, PhDs and all, a big ratio of successful young entrepreneurs are dropouts.
Its key to know what you don’t know, thus not being ignorant, yet its even more important to believe in yourself, and make it happen simply because there isn’t any other alternative. That energy, that passion, that commitment makes great entrepreneurs and great start-ups.
Jevon, good post.
Its interesting to note that many entrepreneurs I met, who had success, who eventually exited from their business at the time they thought was right, tell me today that they aren’t interested in investing in the space that made their success because at the end it was too much hard work and they were lucky to have exited!
“if they had known what they were getting into, if they had known how much work, sweat, commitment and blood was required, they wouldn’t of done it in the first place”.
I think that not ignorance, but naivety is a part of the entrepreneurial DNA. Not knowing it was impossible! That’s why they succeeded, they didn’t know it wasn’t possible! Of course this doesn’t apply to every situation, and even though many successful entrepreneurs have degrees, PhDs and all, a big ratio of successful young entrepreneurs are dropouts.
Its key to know what you don’t know, thus not being ignorant, yet its even more important to believe in yourself, and make it happen simply because there isn’t any other alternative. That energy, that passion, that commitment makes great entrepreneurs and great start-ups.
I “get” the opportunity in being a service provider (I am a partner at http://www.dachisgroup.com ), and I agree it takes a lot of creativity and guts to do both, but they are very different beasts in many ways.
Specifically, web design shop != startup. The end games are totally different. David really nailed it before: http://www.startupnorth.ca/2009/09/14/hockey-st…
I “get” the opportunity in being a service provider (I am a partner at http://www.dachisgroup.com ), and I agree it takes a lot of creativity and guts to do both, but they are very different beasts in many ways.
Specifically, web design shop != startup. The end games are totally different. David really nailed it before: http://www.startupnorth.ca/2009/09/14/hockey-st…
Wow Roy, two killer points: “don't let 'advisers' bend that vision” — and ” life of a start-up entrepreneur isn't glamorous”
Both are follow up posts from me! ;)
Wow Roy, two killer points: “don't let 'advisers' bend that vision” — and ” life of a start-up entrepreneur isn't glamorous”
Both are follow up posts from me! ;)
I “get” the opportunity in being a service provider (I am a partner at http://www.dachisgroup.com ), and I agree it takes a lot of creativity and guts to do both, but they are very different beasts in many ways.
Specifically, web design shop != startup. The end games are totally different. David really nailed it before: http://www.startupnorth.ca/2009/09/14/hockey-sticks-and-consultants/
Wow Roy, two killer points: “don’t let ‘advisers’ bend that vision” — and ” life of a start-up entrepreneur isn’t glamorous”
Both are follow up posts from me! ;)
Loved this post Jevon – loved it.
@Chrisarsenault – bang on, naivety is key. I'll add it's a test of your sheer will will and your determination. The world is stacked against you and you're likely not getting paid getting paid a hellevua lot – so something has to keep you going. Keep your feet moving with passion and persistence throughout the early days may be the one thing that sets you apart, or helps you realize a success others think is never coming.
That said, it is the “what it's not” and “the who not to listen to” aspects of this I like the best. Sometimes people offering advice are right, so very often then are wrong. You need to be honest with yourself – you can't be deluded – but you aren't successful because you do the things all the pretty people you tell you to. You are successful when you realize your own approach and vision – it's succeeding there that will set you apart.
Loved this post Jevon – loved it.
@Chrisarsenault – bang on, naivety is key. I'll add it's a test of your sheer will will and your determination. The world is stacked against you and you're likely not getting paid getting paid a hellevua lot – so something has to keep you going. Keep your feet moving with passion and persistence throughout the early days may be the one thing that sets you apart, or helps you realize a success others think is never coming.
That said, it is the “what it's not” and “the who not to listen to” aspects of this I like the best. Sometimes people offering advice are right, so very often then are wrong. You need to be honest with yourself – you can't be deluded – but you aren't successful because you do the things all the pretty people you tell you to. You are successful when you realize your own approach and vision – it's succeeding there that will set you apart.
Loved this post Jevon – loved it.
@Chrisarsenault – bang on, naivety is key. I’ll add it’s a test of your sheer will will and your determination. The world is stacked against you and you’re likely not getting paid getting paid a hellevua lot – so something has to keep you going. Keep your feet moving with passion and persistence throughout the early days may be the one thing that sets you apart, or helps you realize a success others think is never coming.
That said, it is the “what it’s not” and “the who not to listen to” aspects of this I like the best. Sometimes people offering advice are right, so very often then are wrong. You need to be honest with yourself – you can’t be deluded – but you aren’t successful because you do the things all the pretty people you tell you to. You are successful when you realize your own approach and vision – it’s succeeding there that will set you apart.
>Don’t forget that partying != networking.<
Hmm, interesting point. I wonder, how important are networking events to a startup's success then? How many events are the maximum per month?
>Don’t forget that partying != networking.<
Hmm, interesting point. I wonder, how important are networking events to a startup's success then? How many events are the maximum per month?
>Don’t forget that partying != networking.<
Hmm, interesting point. I wonder, how important are networking events to a startup's success then? How many events are the maximum per month?
@erictam,
You can go to every networking event, every month, but the point is to be networking with the right people. Hanging out with people who are not potential employees, potential customers, or potential investors does not necessarily translate into effective networking for your business. The idea is to not confuse a purely social activity with one that is a business development activity.
Part of this is to understand context.
I heard about a Toronto entrepreneur that did all of his business development at a golf course. He paid the initiation fee. He played 36 holes a week as part of foursomes where he did not know the other members. Did he like golf? Sure. Was there a difference in intent between playing golf with your buddies twice a week, and playing with new people trying to establish relationships? 100%. Am I suggesting you should start playing golf? NO!
You need to understand who are your customers? Where are your customers? How can you most effectively reach those key decision makers?
And don't be fooled, having drinks with friends in the community doesn't equate to good business development for your startup.
@erictam,
You can go to every networking event, every month, but the point is to be networking with the right people. Hanging out with people who are not potential employees, potential customers, or potential investors does not necessarily translate into effective networking for your business. The idea is to not confuse a purely social activity with one that is a business development activity.
Part of this is to understand context.
I heard about a Toronto entrepreneur that did all of his business development at a golf course. He paid the initiation fee. He played 36 holes a week as part of foursomes where he did not know the other members. Did he like golf? Sure. Was there a difference in intent between playing golf with your buddies twice a week, and playing with new people trying to establish relationships? 100%. Am I suggesting you should start playing golf? NO!
You need to understand who are your customers? Where are your customers? How can you most effectively reach those key decision makers?
And don't be fooled, having drinks with friends in the community doesn't equate to good business development for your startup.
@erictam,
You can go to every networking event, every month, but the point is to be networking with the right people. Hanging out with people who are not potential employees, potential customers, or potential investors does not necessarily translate into effective networking for your business. The idea is to not confuse a purely social activity with one that is a business development activity.
Part of this is to understand context.
I heard about a Toronto entrepreneur that did all of his business development at a golf course. He paid the initiation fee. He played 36 holes a week as part of foursomes where he did not know the other members. Did he like golf? Sure. Was there a difference in intent between playing golf with your buddies twice a week, and playing with new people trying to establish relationships? 100%. Am I suggesting you should start playing golf? NO!
You need to understand who are your customers? Where are your customers? How can you most effectively reach those key decision makers?
And don’t be fooled, having drinks with friends in the community doesn’t equate to good business development for your startup.
I have a little test I ask startups. I simply ask them “What's this all really about for you?” If they can't answer that immediately, I walk away.
I have a little test I ask startups. I simply ask them “What's this all really about for you?” If they can't answer that immediately, I walk away.
I have a little test I ask startups. I simply ask them “What’s this all really about for you?” If they can’t answer that immediately, I walk away.