Entrepreneurial Wisdom

Here are some pearls of wisdom on entrepreneurship drawn from various sources on the O'Reilly Radar. Anyone who is a current or aspiring entrepreneur should pay particular attention to them. While these may seem very obvious, the import of those statements does not become completely apparent unless one has been through the grind.

Our favorites:

"No means maybe, Yes means maybe":

Some of our most enthusiastic supporters (customers, advisors etc.) today, gave us the cold-shoulder early on. We kept pushing to see what could be done better. An entrepreneur's job is never to take no for an answer. Conversely, a "yes" only means anything until the next customer check, and one should never, ever take anything for granted.

"The best way to get investment is not to need it":

Many startups make the mistake of chasing investors early on hoping to dazzle VCs and angels with the sheer brilliance of their idea and team. Bad news - the odds of that happening are miniscule. As most entrepreneurs would know, focusing on closing sales and getting revenue is the best VC pitch a startup can make. The slide-decks, financials, business-models, team strengths etc. become side-shows, once a startup demonstrates a clear market-need and revenue.

The joke goes:

Q: what is the difference between God and a VC?
A: God doesn't think he is a VC!

As a joke that is funny, but is not intended to be a put-down on VCs. Please remember most VCs are pitched by a huge number of companies, and have to sift through a lot of "noise" to find the best bets. Some entrepreneurs get bitter and disillusioned at being spurned by VCs abruptly.

We think startups best serve themselves by spending all their energy on closing sales and keeping customers happy, and let the investors come to them. Not needing investment is the best pitch an entrepreneur can ever make! That is a pearl of wisdom every entrepreneur should hang onto.