Google Blog - No More Startup Myths

Listening to Customers: An Absolute No-Brainer or Just Unnecessary?

 “If you don’t listen to your customers you will fail. But if you only listen to your customers you will also fail.”

 – Amazon slogan

Should we listen to them?

I know. Some of you’d probably be thinking that’s a STUPID question!

After all, not listening to the people that would ultimately decide…

… whether ‘our thing’ worths (or not) their hard-earned cash sounds rather counter-intuitive.

However, here is the thing:

At least when it comes to creating a new product (especially, if it’s your first one) it seems that things are not as straightforward as you would imagine.

“Why?” I hear you ask.

Well, here are 3 reasons to get you started:

1. Consumers are pretty bad predicting their own future behaviour

That’s right.

Most people suck at predicting what they’re going to do tomorrow, let alone what they are going to do months down the road.

So, by putting them in a situation where they need to predict how they will act in a hypothetical future scenario, you risk getting UNRELIABLE input.

2. People don’t know what they want until you show it to them

Does this phrase sound familiar?

Of course – it’s Steve Jobs’ famous quote (in a 1998 interview with Business Week!)

Why did he say that?

Well, I am not psychic (b/c Steve Jobs didn’t really expand his thoughts on this) but…

… the fact of the matter is that Jobs is not alone thinking that way.

Take for example Lior Arussy a supporter of this worldview.

In a post of him on this topic he’s asking:

Was the iPod, IPad or iPhone developed from customer surveys? Did the Wii come about because of customer feedback cards? Were scooters the idea of a bunch of kids needing more exercise? Your answers should be a resounding NO! Customers cannot do your thinking for you; they like what they see, when they see it.

Quite compelling argument you may say so…

So what’s the moral of the story; according to the supporters of this line of thinking?

Here you go – it’s not customers’ job to know what they want!

3. It can act as a stumbling block to getting/staying ahead of the curve

And last but not the least comes the ‘innovation argument’.

Which suggests that…

… by listening to customers, you risk falling into the sameness trap.

Yep, you did read that correctly.

The logic? 

Gregory Ciotti thinks that’s the case because:

When you rely on consumer input, it is inevitable that they will tell you to do what other popular companies are doing.” [And he adds.] How can you get ahead of the curve if your customer feedback mostly consists of today’s popular ideas?

So, with all that said, is it time to admit that listening to customers comes at a hefty cost?

Or maybe that’s not the whole truth?

You guessed it – it is NOT.

As they say, there are two sides to every story and today we will explore both of them!

Listened and failed: 3 companies that have “been there, done that”

Before jumping on the other camp, allow me to first share with you some famous real-life examples of companies that listened to their customers and…

… succeeded big time FAILED miserably…

1.Walmart

The customers’ request: They wanted Walmart’s aisles decluttered, which used to be packed, big time, with products.

You Asked. We Listened: What was Walmart’s response? You guessed right… they listened and cleared out space by reducing the excess inventory that “lived” stacked in the aisles

The end result: The sales plummeted, according to Phil Terry’s estimate, by $1.85 billion. Why? Quite simply, because Walmart’s customers are drawn to the vast selection of cheap products. And by decluttering their aisles, they shoot themselves in the foot since it automatically meant less cheap products from which to choose.

2.American Airlines

The customers’ request: For years their passengers complained about the seats being too narrow, rows that are too close together, and non-existent leg room.

You Asked. We Listened: What was American Airlines response? They listened and redesigned their aircraft to offer more room, extra leg room, and bigger seats.

The end result: A few months down the road, they had to reverse course. Why? Simple! Their travellers valued cheaper tickets more than this kind of luxury (and in case you wonder the tickets prices had to be increased to compensate for the fewer aircraft seats resulted from giving people more space).

3.The New Coke (Coca-Cola)

The customers’ request: In the early 80s, Coca-Cola’s market share had been steadily declining. The company’s execs decided to investigate to find out the main reason for this fall. After spending months doing thousands of in-depth customers surveys, they had their answer: customers seemed to prefer the sweeter taste of Pepsi!

You Asked. We Listened: And yes, Coca-Cola listened, after countless sip tests, they introduced the solution! The New Coke, which was much sweeter and smoother than the original formula, was announced on April 23, 1985, as a replacement to its nearly century-old secret formula.

The end result: You already know what happened. It did NOT go down well! After a couple of years, and massive losses, they ended up discontinuing the New Coke* and reintroducing Coke’s original formula branded as “Coca-Cola Classic.”

* What went wrong? Many suggest that the taste, which was originally attributed as the root cause of that decline, was in fact NOT a deciding factor in consumer purchases. Even more, at a later stage, the execs came to realise that the original Coke had much more symbolic value to customers, who were “emotionally attached” to it.

Thinking of not listening to the customers? STOP!

Yep, you did read that correctly. Not listening to your target market and playing ‘the visionary’ rarely ends up pretty.

How come?

Simple – unless you’re Justin Bieber with a huge tribe of followers willing to buy whatever you throw at them, you have to play by the market rules.

Which are:

  1. Markets that don’t exist don’t care how smart you are
  2. Customers don’t buy products, they buy outcomes
  3. There is not enough space for everyone

Hence, that’s why that by just saying scr*w the market, we risk adding ourselves to the long catalogue of founders that failed due to lack of market need.

So, what’s the alternative?

Blindly following what the customers say to you?

HELL NO!

Instead, let the money do the talking…

Money speaks louder than words

What do I mean by that?

Simple, since the main driver behind pretty much any customer purchasing decision is nothing other than a problem that needs to get solved there is no better way…

… to find out which problems people care about than going out in the real world (aka market) and see where they spend their cash.

Exactly.

Doing surveys is fun…

Performing customer development interviews is important…

Observing customers’ day to day behaviours is great, BUT…

… unless you see people spend REAL money tackling a problem or need, you won’t know whether there is a market for your thing.

So, what I am saying is simple:

Even though I agree it’s NOT customers’ job to design our product, imo, the best way to find out what people want is by…

… analyzing their past and current purchasing behavior because time and time again has proven to be the best indicator of future behavior.

But to answer today’s question:

Is listening to customers an absolute no-brainer or maybe just unnecessary?

I’d probably say absolute no-brainer, but not in the traditional way because listening, must go above and beyond “words!

Today’s key takeaways

– Don’t rely on customers to build the product for you. That’s YOUR job.

– What customers really want and what customers say they want are not always the same thing.

– You’re not Steve Jobs (or for that matter a visionary); get used to it.

– Listen to the customers, but always keep in mind that money speaks louder than words.

***

Ok guys, that’s all from me for today.

If you enjoyed today’s post, check out my Kindle book, The Vertical Startup: A Practical Guide on How Today’s Bootstrapped Entrepreneurs Turn their Late Market Entry Into An Advantage By Going Vertical, that is now available at Amazon…

… and which as the title suggests will walk you through everything you need to know about ‘going vertical’ as a second mover.

I hope to see you soon.

Best,

Andreas

“What people do, what people say, and what people say they do are entirely different things.”

– Margaret Mead

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The Lean Start-Up Model: A Better Way to Start a Business or Just a Flawed Methodology?

“Everybody has a plan until they get punched in the mouth.”

– Mike Tyson

Science Vs. Intuition

As of 2018, the ‘lean startup way’ is one of the most popular methods of building a new business.

I know – it’s been 8 years since Eric Ries introduced us to it but still going strong.

And for many, that’s a good thing!

After all, as they would say, it’s a scientific(ish) process that has been proven to work…

… not necessarily for turning a (business) idea into a success but at least helping people find out – fast – whether it has market acceptance or not.

So what’s so special about it?

According to Steve Blank, also one of the lean startup pioneers, it’s special because:

It favours experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional ‘big design up front’ development.”

Which as you might agree, at least in theory, appears to be a more appropriate formula for startups.

But at this point you might wonder:

If it’s an undisputed theory that does the job (for everyone) why even bring this topic in the first place?

Well, because it simply is not undisputed!

In fact, the last couple of years more and more people came out of the woods and said…

… that thing doesn’t work; time to throw it under the bus!

How come?

The Case Against Lean Startups

Allegedly for a couple of reasons…

Reason #1Code for unplanned

This one comes from Peter Thiel…

Would-be lean entrepreneurs have been trained to believe that: “nothing can be known in advance…[so] you should not know what your business will do; planning is arrogant and inflexible. Instead, you should try things out, iterate, and treat entrepreneurship as agnostic experimentation.

The consequence of that behaviour?

Encouraging new entrepreneurs to jump in a market recklessly.

Quite often without even a basic understanding of

a) the market they are in,

b) the competitive landscape and

c) how they could create something with an edge

Why?

Because of the misconception that since you don’t learn until you launch…

… the only sane thing to do is to release something out there – FAST – and then based on customers’ feedback iterate ‘that thing’ until to get it right.

The reality?

That rarely happens!

Reason #2It gives people an excuse to create sh*tty products

Why do ‘lean haters’ say that?

Because of the MVP disease…

… which is the tendency of ‘lean entrepreneurs’ to release half-finished goods to early adopters/evangelists, because apparently… that’s what you’re supposed to do these days.

Their logic?

MVPs not only can be created fast and at a minimal cost but also, when done right, (through the help of early adopters) can be turned into ‘functional stuff’ pretty quick.

The truth?

According to the ‘lean critics’:

Early adopters (at least of this kind) simply don’t exist!

Yep, expecting some kind strangers to help you to turn your sh*tty half-baked product into something functional and ‘live the startup dream’ is:

DELUSIONAL (and) …

… a startup car-crash waiting to happen.

Criticism #3It makes entrepreneurs quit, before even giving a good fight

Ben Silbermann, Pinterest’s founder, in an older interview said that he recently read Eric Ries’s, The Lean Startup…

… and was grateful he didn’t read it at the time because it might have convinced him to quit at that point.

How come?

Because the lean startup model gives people an easy way out.

According to Sramana Mitra:

The weakest point of the methodology, in my opinion, is the excessive emphasis on quick validation and pivot… But often, especially if you have strong vision and internal conviction about market, a product, a direction in which you want to take your industry, you won’t be able to score a quick validation. You would need to give yourself and the market some runway. The Lean Startup principle that Eric Ries espouses ignores this whole line of thought.”

So, with all that said, what’s my take?

Don’t Blame the Tool, Blame the User

Yep – while I acknowledge that ‘going lean’ doesn’t come without glitches I do believe, on the whole, it does more good than harm.

And I say this because hype-aside (and truth to be told when it comes to lean there is a tremendous amount of BS talk from the so-called “lean practitioners”)… 

… many of the weaknesses associated with going lean don’t necessarily derive from the system itself but rather from the fuc*ed up interpretation of (some) startuppers.

But let me say this again.

Yes lean it comes with glitches and Ben Silbermann, Pinterest’s founder is right to say what he says but still…

… in my opinion, from a cost-benefit analysis, it brings more than takes from the table!

Moral of the story?

Giving ourselves and the market some time to do its thing is a sensible thing to do but we should always keep in mind that there is a fine line between having strong conviction and BSing ourselves.

***

Ok guys, that’s all from me for today.

If you enjoyed today’s post, check out my kindle book, The Aspiring Entrepreneur Entry Strategy: A practical step-by-step guide for finding a validated, winning business idea that stays true to who you are, that is currently available at Amazon.

I hope to see you soon.

Best,

Andreas

“Customers aren’t good at having theoretical discussions about value propositions and customer benefits. What they are good at is reacting to the solution space.”

– Hannah Alvarez

P.S. About to enter a crowded market? And want to turn your late market entry into an advantage? Look no further: The Definite Guide to The Second Mover Advantage!

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To Scratch (Your Itch) or Not to Scratch, That is The Question…

“The easiest, most straightforward way to create a great product or service is to make something you want to use”

— Jason Fried

User Entrepreneurship is Making a Comeback

What Spanx, Airbnb, Dyson, Basecamp and Patagonia have in common?

That’s right – they are all user-founded firms?

Say what?

Yes, they are teams founded by people that scratched their own itch and built a business around.

But outliers aside, is that model any popular?

Well, according to a study released by the Ewing Marion Kauffman Foundation a couple years ago, (at least in the USA) probably more than most people think.

To get specific, as stated by the aforementioned report:

10.7 percent of all startups founded in the United States that survive to age five are founded by users.”

That’s a decent volume someone might say…

Today’s question?

Knowing what we know does this model worth a chance? Or maybe, just maybe, scratching… comes with a sort of baggage?

Just Do It!

Ok let’s first start with the case for scratching it…

Benefit #1You avoid solving imaginary problems

Imaginary problems?

Yes, you did read that correctly… 

Providing an answer to a problem that doesn’t exist is quite commonplace nowadays…

According to CB Insights’ 2014 autopsy report, this number stands at ~42%.

Which makes you think – if the claim that, ‘a problem {well} defined is half solved’ why most startuppers totally skip this phase?

Benefit #2You have a great grasp of the pain & how it affects the end-user

This shouldn’t come as a surprise. 

Living the problem, day in and day out as ‘a patient’, leaves little room for mystery.

Yeah, no more stabbing in the dark or relying on others to tell you how that problem impacts their life.

But what’s wrong with letting others ‘do the briefing’?

That’s correct – what people say and what people feel/do is not the same thing…

Which is exactly why observational research has gained so much traction over the last couple of years compared to methods such as ‘focus groups’ and ‘customer interviews’.

Benefit #3You can field-test the product on yourself

Being user-entrepreneur not only makes you the first customer but also the laboratory rat.

And why does this matter?

Jason Field couldn’t have said it better…

When you build what you need, you can also assess the quality of what you make quickly and directly, instead of by proxy. Mary Kay Wagner, founder of Mary Kay Cosmetics, knew her skin-care products were great because she used them herself. She didn’t need focus groups or studies to know the products were good. She just had to look at her own skin.”

So, with all that said what do you think; time to announce the winner?

Why You Should Never Scratch Your Own Itch

Well, before jumping into early conclusions let’s first see what the other camp has to say…

And as you can see from the sub-heading, they believe it’s terrible advice.

Why?

2 reasons…

Reason #1By being ‘me-focused,’ you risk limiting your target market to just yourself

Limiting your target market to just yourself?

Yes guys, that’s just a fancy way saying that you risk building something which only you would be willing to purchase!

How come?

Well, according to Chris Lema an advocate of this line of thinking…

When you are building a product that meets your own needs, your sample size is you. n=1. That’s it. Guess what? Your situation is your own. It’s no one else’s. You get passionate about things others don’t care about. So if all you’re going by is n=1, then you shouldn’t be shocked when your sales have a similar symmetry (sales = 1).

Reason #2Just because you experience a problem doesn’t make you the right person to solve it

Quite straightforward, don’t you right?

After all, it doesn’t take a nuclear scientist to get that no matter how good an idea is without a decent execution won’t go anywhere…

Yep, I’m afraid hope alone won’t cut it…

Scratch It, But With Caution!

My take?

Scratch it, but with caution!

Why do I say that?

Because while I truly believe that this method can dramatically increase the chances of not coming up with a solution looking for a problem type of product, a major global killer of startups…

… I do believe that jumping straight in without doing some proper research and validating market demand (by checking whether people already spend money solving that problem) won’t end up pretty.

And that’s about it…

So, to wrap up today’s post, here are the key takeaways:

Key Takeaways

– Jumping in an industry that you know little to nothing about is rarely a good idea

– Having a great grasp of the pain, in general, gives you a great head start

– Just because you experience a problem, doesn’t make you the right person to solve it

Ok guys, that’s all from me for today.

If you enjoyed today’s post, check out my Kindle book, The Aspiring Entrepreneur Entry Strategy: A practical step-by-step guide for finding a validated, winning business idea that stays true to who you are, that is currently available at Amazon.

I hope to see you soon.

Best,

Andreas

“The first principle is that you must not fool yourself – and you are the easiest person to fool”

– Richard Feynman

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The Aspiring Entrepreneur’s Dilemma: Build An Audience or a Product First?

“If You Don’t Know What Port You are Sailing to, No Wind is Favorable”

– Seneca

‘Cracking the Marketing Code

I’m sure you’ve noticed it…

Over time, the ‘if you build it, they will come’ dogma is losing ground.

I know, kind of expected…

Especially if you think how badly it has served the wider startup community.

However, while this realisation is a step in the right direction, it still leaves a key question answered:

If this version of hope marketing it’s not anymore in the cards, how do you get from…

… no one knows you exist, to a ‘revenue-spitting’ startup?

And that’s where the audience-first product approach comes into play!

‘Audience First, Product Second’ is On The Rise!

Yes my friends – even though conventionally speaking starting a business has always been about ‘creating a product and then finding people to buy it’…

… over the last couple of years, a new startup model has emerged.

Which is what many startuppers nowadays casually call ‘audience first, product second’.

Which typically goes something like this:

a) Pick a topic

b) Build your platform (i.e. blog, podcast, YouTube channel, FB/LinkedIn group)

c) Start producing high-quality content around that field

d) Build a marketing machine that will attract an audience interested in what you have to say

e) Convert visitors into email subscribers with lead magnets

f) Establish a relationship with your email list and turn them into fans

g) Get to know them very well and find out what they are really struggling with

h) Build a product around one of their problems and sell it to them

Counter-intuitive, right?

It might well be, but according to many, it works like a charm…

How come?

Well, (allegedly) for a couple of reasons…

The Case For Building An Audience First!

Advantage #1: You create a “pre-customer” fan base

The logic?

According to Joe Pulizzi a strong advocate of this model, “That audience knows, likes and trusts you more. And they’ll actually tell you what to sell [to them].” That means when you do start to sell, it’s a faster, easier and more lucrative process… It’s basically a future list of your customers.

Pretty straightforward, right?

Provide value up front. Cash in later.

Advantage #2: You minimize the possibility of building something that nobody wants

That’s right – your audience will act as a market research lab and enable you to take the guesswork out of the equation by helping you define, build, test, iterate, validate, and sell a product that solves one of THEIR problems.

So, not only you have direct access to an audience that likes and trusts you, but these people almost have a vested interest seeing you succeed, since you’re helping them alleviate one of their pain points.

Advantage #3: Since self-selling products don’t exist, it’s better to master marketing now rather than later.

This one is quite simple.

Rather than building a product and launching it “in front of an empty stadium” until you figure out how to drive prospects cheaply to your sales funnel…

… it makes much more sense to invest time up front, build your marketing muscle, and reap the benefits later.

And now let’s open a small parenthesis and see a couple of entrepreneurs that have been there, done that – successfully!

Audience First Success Stories

1. Brian Clark

The Platform: A blog

Topic: Online copywriting

The product: Rainmaker Digital (all in one marketing and sales software solution)

2. Mat Pat

The Platform: A YouTube channel

Topic: Video games

The product: MatPat’s Game Lab (YouTube Red reality web-series in gaming)

3. Brian Moran

The Platform: A Website

Topic: Facebook Marketing

The product: Samcart (e-commerce shopping cart software)

4. Rand Fishkin

The Platform: A Blog

Topic: SEO

The product: SEOMoz Pro (Search Engine optimization software)

So, what do you think? Is it about time to admit that “audience first, product second” is the future of building businesses?

You guessed it – as with every story, there are two sides, and we have to explore both of them before making up our minds!

The Inconvenient Truth about Building An Audience First

That’s right, as they say: “If it sounds too good to be true, it probably isn’t.”

So, what’s the catch with this model?

Put simply, it’s a bit… buggy!

Why?

Here are 4 reasons to get you started:

Reason #1: Building an audience is NOT a walk in the park

But what isn’t, right?

That’s true, however, what many aspiring entrepreneurs overlook is that with 200+ million blogs, 500+ million YouTube channels, and more than 250,000 podcasts out there, ‘your thing’ needs to be REALLY good to survive and start attracting people!

That’s not to say it’s not possible; I am making the point that, as with having a successful business, building an audience is tough and won’t happen overnight.

Reason #2: “It’s easy to get stuck on the content “hamster wheel”

According to Corbett Barr, “When you start blogging or podcasting to build an audience, it’s easy to get stuck on the content hamster wheel for months or years without ever offering something for sale.

How come you might ask?

Quite often because the content producer:

a) didn’t manage to build a big enough audience,

b) ‘his people’ are simply not engaged, or

c) s/he can’t find a problem that is shared by enough members of his audience.

Reason #3: It’s unlikely to end up with a homogeneous audience

That’s a big one!

Unlike what the “experts” say, when blindly building an audience first, you risk creating a non-monetizable “following.”

Yes, you did read that correctly!

Producing random and unfocused content (even if it’s good) won’t cut it 9 out of 10 times.

And the reason why it’s because such content will naturally attract a diverse audience base with different needs, preferences, and problems.

Just think for a moment.

Let’s assume your topic is HR. You spend 6 months blogging (and market your content) consistently and have more than 1000 people subscribed to your email list.

Then you think, “Well, it’s time to build a product for them.”

Can you guess what is going to happen?

Inevitably some of these HR people will have a problem associated with onboarding, others with employee training, others with finding a job, others with staff retention, and who knows what else.

In other words, your audience will be fragmented and regardless of what you build it, chances are, will be relevant to only a fraction of your ‘fan base’.

Reason #4: You risk building an audience of non-buyers

Wonder why?

Jill Stanton couldn’t have put it better when she said, “When you focus on just building an audience based on the free content you’re providing, you start to build an audience of non-buyers.”

And yes converting “freeloaders” to paying customers is easier said than done.

AFPS, The Future of Building Businesses: Fact or Fiction?

So, what’s the verdict?

I am afraid, outliers-aside, probably the latter.

For the very reasons mentioned earlier…

The alternative?

Well, from where I stand, Nathan Barry’s model makes much more sense to me.

Which, in his words, works like this…

You should plan the product—not build it—and start building an audience that is a good fit for that product…. You do just enough product planning up front to identify a target audience and then build both at the same time.”

But that’s of course only one way to skin the cat.

And I say this because the idea that you absolutely have to build an audience before having a product is bonkers…

Yes, that’s an option…not a necessity. 

And with that said, let’s wrap things up with today’s key takeaways…

Today’s Key Takeaways

– Getting customers through the door indeed doesn’t happen by magic

– Converting “freeloaders” to paying customers is easier said than done

– Building an audience-first is an option…not a necessity. 

***

Ok, “guys” that’s all from me for today!

If you enjoyed today’s post, check out my brand new book, The Aspiring Entrepreneur Entry Strategy: A practical Step-by-step guide for finding a validated, winning business idea that stays true to who you are, that is currently available at Amazon.

I hope to see you soon.

Best,

Andreas

“When you find yourself in a hole, stop digging.”

– Will Rogers

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Entrepreneurship and risk-taking go hand in hand: Or maybe NOT?

“If You Don’t Know What Port You are Sailing to, No Wind is Favourable”

– Seneca

Ready to jump off a cliff?

Risk taking is an essential part of turning an idea into a successful business!

Or so the story goes…

In fact, Reid Hoffman, LinkedIn founder, goes as far saying that:

Starting a company is like throwing yourself off the cliff and assembling an airplane on the way down.”

Yep, that risky!

Our mission?

You guessed it – defy all odds, take crazy risks, and bet everything in the pursuit of winning…

Or maybe, just maybe, that’s just another classic business BS (as usual) type of “advice” we need to ditch once and for all?

Without any further ado, let’s start digging!

Is risk-taking inherent in entrepreneurship?

The answer?

Well, according to many, hell YES!

How come?

Quite simply because especially when you’re just starting out everything is full of unknowns and unless…

… you’re comfortable with taking risks and moving on the unknown, chances are, you’ll never have the chance to get on ‘the other side’ (aka reaching product/market-fit).

The moral of the story?

Stop overthinking it, grow a pair, go launch that thing and learn on the go.

But you know what; risk-taking can play another crucial role…

Yep, to act a differentiator!

Whaaat?

You did read that correctly – according to Larry Alton, an advocate of this school of thought:

Most people are unwilling to take risks, the risk-takers of the world naturally stand out in the crowd, and as we all know, entrepreneurs and businesses that stand out are the only ones with a shot at breakout success.”

Supply and demand 101 someone might say…

So with all the said, is it about time to admit that risk-taking is simply part of the deal, stop playing it safe and embrace it?

Wait for it…

NO!

Busting the Myth of Extreme Risk Taking

Myth I hear you ask?

Yep.

Taking all sorts of crazy risks such as:

– Quitting your job with 0 backup plan (and no savings)

– Remortgage your house to get a (business) loan

– Investing your life savings into an unproven business idea

… is not just financially irresponsible but it may well be a key factor why your business will not get off the ground in the first place.

All chips on the table…NOPE

I know, this goes against the ‘maverick entrepreneur that puts all the chips on the table’ notion.

However, the fact of the matter is, that in this day and age this mentality is kind of outdated.

Especially if you take into account all the technological advancements that have taken place over the last couple of years that dramatically lowered the barriers to entry and have made starting a business cheaper than ever before. 

But you know what – people took notice and unlike the past have become accustomed to the idea of…

… starting small (or even on the side) and performing smart micro-experiments, the lean way, to test the waters, rather than betting the house like “the good old days.

That’s not to say that the risk-taking mentality is not really a thing.

Just highlighting, that as a concept, is:

***

My take?

Even though I acknowledge that entrepreneurship obviously involves some degree of risk, I feel that embracing the ‘go big’ risk-taking model (especially if you can’t afford to lose) is definitely NOT a sound strategy and…

… I agree with Paul B. Brown when he says:

Risk takers bet it all on one roll of the dice.  If they fail, they fail spectacularly and in such a way that they DON’T live to fight another day. They literally go out in a blaze of attempted glory. But that is not what the best entrepreneurs do…. They figure out a way to reduce risk with every step they take.

And with that my friends comes the end of this post.

Let’s now wrap things up with today’s key takeaways.

Today’s Key Takeaways

– Adding risk does NOT make you a better entrepreneur

– Crazy risks and calculated risks are not the same thing

– Business risk-taking is less common than most people think 

Ok guys, that’s all from me for today.

If you enjoyed today’s post, check out my kindle book, The Aspiring Entrepreneur Entry Strategy: A practical Step-by-step guide for finding a validated, winning business idea that stays true to who you are, that is currently available at Amazon.

I hope to see you soon.

Best,

Andreas

“Risk takers are NOT successful, as a rule. And the reason for that is simple: They leave too much to chance”

– Leonard C. Green

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