Great results never come easy, right? Losing weight, running a marathon, building a successful business, having a great family life. It takes hard work, perserverance, resiliency, focus, and a rock solid attitude. As I’m working long hours on executing our ‘09 strategy, I always try to keep in mind that it is a marathon that we are running and not a sprint. Building long-term value isn’t easy and it requires hard work. I’d like to share five myths about startups that I’ve learned only after hard blood, sweat, and tears.
Myth #1: Starting a business is hard, Exiting is easy. Nothing could be further from the truth. Starting a business is very easy. Once you’ve started it, getting to profitability and your first $1M/year in revenue is very difficult. I’d consider that you’ve “exited” the business if you’re capable of building a profitable business primarily because you have options - people will want to buy you, you can expand organically, and your options for raising financing is much easier. Expect that the road is tough, give yourself at least 2 years, be realistic and give it 110%.
Myth #2: People care about your business. Sorry, folks - people couldn’t care less about your new business. You need to earn that attention. I’ve learned a tough lesson with this the first time I launched my web business, we may have had 6 visitors on our first day - and those were our employees and families. The next day, everyone forgot about us. People don’t care. There are very few businesses that can launch with a launch party and call it a day. You need to give them a great reason to care. Make sure you go in with a good plan.
Myth #3: Being threatened is a bad thing. This is similar to myth #2. If you don’t have anyone who feels threatened by your business or if you haven’t ever faced a lawsuit - I’m sorry but you don’t have the influence that people care about. I don’t wish it on anyone, but if you haven’t ever faced a lawsuit or been threatened with a lawsuit, you probably don’t matter. You need to keep growing and consider that your company has grown to the next level when you are threatened - you should celebrate when it first happens, it’s like riding a bike for the first time 
Myth #4: Assuming you are the boss. I don’t care if you are a sole proprietor or a CEO that runs a Fortune 50 company, you are not the boss. And, if you assume you are and act accordingly, you will not be successful. Your boss should be your customers, your employees, your investors, your family, and your board. I’m a big believer in servant-leadership, are you enabling your employees to succeed in their position? Are you delighting your customers (your boss)? Since you have the title of leader, are you running the company as the enabler/servant? You will be much happier you did and your results will far surpass the contrary.
Myth #5: Startups are dependent on your passion. I’ve heard this advice so many times and it’s tiring. Be passionate about what you do. It sounds great, but I’d argue it takes much more than your passion to succeed - it takes commitment. Rugged, almost stubborn, commitment! Personally, I’m passionate about music and especially playing the keyboard. At one point, I wanted to do music full-time, but I never had the commitment it took to succeed. I was part of a rock band that kept searching for a label deal that never came. I gave up. It wasn’t for lack of passion, I still play these days, but I’m just not committed. Not only do you need to be committed, you need to hire people who are committed. It takes a committed team to build a successful business. Like I mentioned at the beginning of this post - the startup road is very hard - if you aren’t committed, you’ll never make it.
There’s a reason a lot of folks are just dreamers and not entrepreneurs, it’s just plain hard and risky. I think that’s what makes entrepreneurs special and why the journey is so fun. It’s a truly unique and very rewarding experience (even if not monetarily). Live it up!
What do you think? What myths do you think I’m missing or do you disagree with my thoughts?
Thanks Andy. The post was about myths, but was quite inspiring nonetheless.
Another myth — “planning is everything,” which connects to your comments on passion. The adage of ‘failing to plan is planning to fail’ under-rates the ability to execute.
We worked for a while with a head-hunter company that placed CEO’s in high-salary positions. The candidate was always asked if planning or execution was more important. If the candidate proceeded to launch into a sermon on the importance of planning, they didn’t make the cut - I watched a number of people miss out on six & seven-figure jobs because of that. Good plans are important, but companies are more interested in people who have the strength, resolve, and (yes) passion to produce action, not plans.
Why do all these you’ve said seem like deja vu to me. My first failed startup has no planning completely and relied on guerrilla selling. Bad choice. My second failed startup has a plan, but partnered with someone who can’t put his 12 years of experience as an employee elsewhere into steam-rolling action. Bad choice.
It’s hard to deny Steve’s opinions, because I am a living example. But then again, it’s not a bad idea to scrutinize people I work with more closely.
In many cases a good plan doesn’t need to be anything more than a prioritized list of the most critical things that need to get done. Execution without thoughtful and meaningful planning runs the risk of executing on the wrong things. I would be suspicious of a CEO candidate who did not recognize that planning and execution go hand-in-hand. The plan outlines the goals, assigns priorities, defines the boundaries, and provide clarity. It is the EXECUTION of a well thought out and meaningful plan that is most likley to produce the desired outcome. In my mind they are not mutually exclusive.
Nate - good point. You cannot have great execution without a plan, but when the plan causes paralysis, you must start executing.
I definitely think there is a balance that has to be reached with planning. I agree commitment has to be there.
Even if the plan is to expect changing the plan, that has to be known and embraced.
Steve - great comment. Too many “would-be” entrepreneurs sit on the sidelines until they get the perfect plan. Unfortunately, there is no such thing.
“Being your own boss gives you time to do what you want.”
Could this be any further from reality?
Bob
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Great post, Andy. Not that I would know anything about it, but #5 sounds like a myth about marriage, too. It’s not just passion, but commitment.
Very true!
You’ve given me some useful insights - thanks!
Thanks andy.
Well put. Nicely done.
Very well said Andy - enjoyed the tone and of course you’re absolutely right.
The one addition I would make would be the myth about all the support available to start-ups from government agencies and banks etc.
These people make a big fuss about all the things they can do to help, but actually deliver nothing.
Anybody starting out on their own needs to be prepared to “do it on their own.”
I particularly agree with Steve (above) about execution. Having a strategy is vital, but it will keep changing. Execution is what really counts. Doing stuff, even the wrong stuff, gets us further down the road than constantly reworking our thinking.
Steve
Very inspiring Andy. And it hits close to home as well.
Thanks for the direction!
Great post Andy. I am not sure if I separate passion and commitment as clearly as you do, but I accept the point. And I definitely believe in servant leadership. My 3rd startup was led by a dictator. It was successful, but the leadership style and intensity it brought on all of us would not have lasted. It was a good thing we sold when we did.
Interestingly, I too had a budding music career on the side. Funding, building and exiting startups seems to be more rewarding on many levels though. I still rock out in my basement. Waiting for the mid-life crisis before I launch my comeback.
I hear ya. Maybe we’ll jam out one of these days and re-live the glory days;) Thanks for the comment.
Had to laugh at #3 - that is so true, and we have been living it in spades since the day Avvo launched. Here’s the latest example: http://www.washingtontimes.com/news/2009/feb/17/dc-bar-fights-consumer-web-site/
You guys set the standard, for sure! I love what you guys are doing.
Great post , Right on the money. I like what you said about passion. Trigeia is in the passion business and that makes sense.
Awesome post Andy. I like what you said about #5 about how passion is overrated for success. You are right, having passion won’t guarantee you anything, it is about the time and commitment you put into it.
AJ Kumar
Andy…. you da man! Nice insights. Good to see views from a practitioner vs. just academics…
cheers,
Alvin
Thanks Alvin - you are a real practitioner!
Excellent post. Great insights. Keep up the good work!
I couldn’t agree more. I have seen people start a business who have no degree, no experience, very little knowledge about all the aspects of business, etc. It isn’t hard, and there are A LOT of places that will help you start. Of course it depends greatly on the type of business and your capital requirements, but starting a business isn’t hard.
I have also seen plenty of folks who just can’t let go of the business - “Exiting” takes its toll. They don’t know what they would do if they didn’t own the company. There are tons of small businesses out there where the owner just can’t let go and it ends up being left to the son who runs it into the ground (and if not the son, then the grandson).
Try going shopping for a small business that is running less than say $20 million a year in revenue and you will hear a lot of “its not for sale” from 80+ year old men.
Thanks for sharing this. I agree with all of them.
For #5, in addition to passion, commitment, and execution, I would add a clear vision of where you want to go and why. I think it’s important to keep this vision in mind so you can continue to move forward when times are tough and you ask yourself why you’re doing this.
thanks for the reminder Julia! vision is critical.
I agree.
Honesty towards oneself the first step towards reaching others.
I never thought about the fact that someone coming after you with a lawsuit is a sign of having made it, but I recognized it as soon as it happened to me the first time. I still hate the feeling, but it’s also awesome knowing that others are scared of you
First time I’ve commented, but I’m glad you started the blog, it’s full of refreshing insights!
Misty - thanks for commenting. It’s a tough pill to swallow, but it’s like a road sign pointing that you’re moving in the right direction.
Thanks Andy, #5 was great to hear… passion is definitely one of the most overused and abused words I read about, and it’s not really that helpful to hear when you’re looking for advice. Commitment is a lot more useful (and harder!), and that’s exactly what I needed to hear.
Andy, all good stuff. i’ll add a golf analogy to represent my two start-ups (one that was quite successful and the other . . . well, i have a great ‘lessons learned ‘ log for that one.
‘When setting up for the ideal golf shot, know which direction you want to hit the ball, but be sure to focus on the ball itself when taking your swing.’
Love the 1st one. Starting a business is so easy!!! I started a web marketing consulting business about a month ago for side money while I build my real business. All it took was a day or 2 of cold calls and I had a few clients. So easy and yea it was and is a business. But will I make my 1st million by getting $100 contracts with small businesses…no. It takes a ton to get there but starting it took about 2hrs of research online.
#2 was very tough to get over during my first company start-up. Now, I’m much better at handling it. This myth helps you get over your own ego.
Great post.
I’ve taken a lot of time over the years to change my leadership style, undoing some habits from dysfunctional companies and replacing them with a style more akin to servant leadership. It’s been a concerted effort, with trial and error. But truly anyone can change, even the dictators mentioned above.
Now as a CEO for the first time, working with an amazing team of contributors, I realize that I would not have been able to recruit them, motivate them, or retain them unless I had made this change. Truly talented people can work with whomever they like. So you gotta be that guy.
Good thing I already understood all these points, but it is good to re-iterate them.
Thanks!
Fully agree with you on much of what you’ve said. Particularly entreprenuers needing both Passion AND Commitment - same as whats needed in a relationship - funny that. Would add needing principles too as Stephen R Covey explains in his books.
Also agree with the love your clients/customers more than loving your business - I made a graphic on my website that points that out. I think it’s one of Jay Abrahams mantras. Sorry don’t mean to name drop just thought I’d point people in the direction of some original business thinkers.
Nice one Neil, good luck with everything :o)
Alex
Sorry I meant Andy, ooops!