May Visionary Ventures: Increase your odds with an open mind
By Gary Trauner
Those of you who’ve been reading Visionary Ventures since its inception might recognize that one of the themes that has run through these columns — both explicitly and implicitly — is that entrepreneurship is ... challenging, to say the least.
As an experienced entrepreneur myself, I tell anyone who is interested that my three inviolate rules of thumb for entrepreneurship are as follows:
1. It will take longer than you think.
2. It will cost more than you think.
3. It will require (way) more effort than you think.
For those willing to take on the challenge of starting and growing an organization/ venture, the rewards can be immense, measured internally by the satisfaction of attaining a desired goal, and externally by the likelihood of financial success along with contributing to the vibrancy of one’s community and society.
With that in mind, today’s column will look at one perhaps undervalued and under-noticed aspect of entrepreneurship that increases the chance of success for all entrepreneurs setting out on their journey: diversity of input.
You would have to be living in a cave to not be aware of the discussion happening in our society around “DEI”, otherwise known as Diversity, Equity and Inclusion. Those conversations are critically important to have because, hopefully, they result in concrete policies that provide every person with appropriate opportunity. That’s a somewhat fraught discussion for another column on another day.
For a budding entrepreneur, diversity of thought and perspective — and an openness to those inputs from others — is critical, if not foundational, to achieving success.
So let’s take a quick look at the general evolution of an entrepreneurial venture.
First, it starts as an idea in the mind of one or more people to solve a problem that, in their view, isn’t being addressed. In many instances the next step is to run the idea by friends, peers and others the founders respect to determine if the idea is valid. Next, if the idea is a “go,” a good entrepreneur will take the time to put together a business plan.
This plan may vary widely in its scope and detail, but can include looking at all or some of the following: the feasibility of the concept, market potential, market size, existing competition, financial viability, ability to put together an expert team, how to market the concept to potential customers, and other aspects of the proposed venture. If there are no insurmountable roadblocks in the above-mentioned steps, the founders will likely move forward into the execution and operational phase of transforming an idea into an operating venture.
Back to my premise. Why the need for openness to diversity of thought and perspective?
Well, most entrepreneurs are extremely passionate about their concept and venture. It is, after all, their “baby” and an initiative that tends to consume their lives while they are engaged in working to make it succeed. However, that passion and all-consuming desire to succeed can lead to stubbornness and blind spots; to a “my way or the highway” mind-set (“after all, it was my idea”); to a tendency to ignore market dynamics, empirical evidence, and data that might suggest a different approach is needed, or a modification in the direction of some aspect of the venture. I would argue this is one of the most common fatal flaws that can doom a new venture. In mentoring entrepreneurs, I always recommend writing a business plan, even though I also tell them that six months or so down the road, in all likelihood, they can take their plan and throw 75% of it out the window (I often get pushback because some believe it’s a waste of time and that they should be moving forward instead). Why do I recommend this? Because taking the time to set down all aspects of a concept, and consulting others with expertise and experience while doing so, is, in my view, one of the best ways to determine the strengths and weaknesses of the proposed venture. Because being open to testing assumptions and projections will always result in a greater chance of success.
At Silicon Couloir one of the key traits we look at in individuals who apply to take part in our programs is coachability. Simply put, this means we look for people who are open and willing to entertain different points of view. While rare, we have turned down applicants who we don’t believe are willing to genuinely accept honest feedback and input. Because we know from experience that mindset is a serious red flag.
So how can entrepreneurs ensure receiving diversity of thought? As previously mentioned, they can, and should, write a business plan while actively soliciting outside input. They can, and should, put together an advisory board or board of directors with specific industry expertise and outside perspectives. They can work with professional coaches with expertise in aspects of their venture or general experience and success in the private sector. They can, and should, hire competent team members who are willing to provide honest and open feedback (no sycophants need apply).
Starting a new venture is challenging in the best of circumstances. Being open to diversity of thought and experience is one of the best ways to increase the odds of rewarding and successful endeavor in the long run.