Entrepreneurial myths - busted

I rarely pass on other people’s blog posts but thought I would in this case – from Chicago entrepreneur Jay Goltz. His New York Times blog on the eight fallacies of entrepreneurship struck a chord with me – not least because I’m currently writing and researching a follow-up to What’s Stopping You? called What’s Stopping You – Starting a Business?

One of the conclusions I come to in What’s Stopping You? is that entrepreneurship could be a strong route for a recovering High-FF (someone with high fear of failure) because it removes many of the barriers (real and perceived) to making progress in our lives: other people. While we will have to persuade our customers to buy our goods or services, we will no longer have to navigate a boss that may be blocking our path for all manner of reasons, or colleagues (otherwise known as rivals).

I also suggest that a crucial need for High-FFs is to depersonalise their progress, perhaps making them view themselves as a company – Me Inc or Me Ltd – rather than an emotional being with confidence and self-esteem issues. Crucially, this allows people to view setbacks as just that: setbacks. They are not final and irreversible confirmations of our innate inabilities but wrinkles in a continuing project. They can be navigated (though not if we are convinced they are part of an inevitable journey towards ultimate failure). And starting a company is no more than taking depersonalisation to its rational conclusion – making our progress and the progress of our company one and the same pursuit.

Yet entrepreneurship brings its own myths, and Goltz does a fine job in busting a few. For me, his best-targeted thoughts are regarding control and freedom – two oft-cited objectives for starting a business. Indeed, starting a company is probably the least controlled project you will ever undertake (with the possible exception of parenting). A spark of an idea and bags of enthusiasm may help you make the leap – but it is a leap into the unknown, no matter how long and detailed your business plan. It is impossible to second-guess what is going to happen the moment you let go of the handrail of employment: sales certainties dry up, promised partners disappear, warm leads turn icy cold in just a phone call, costs escalate, projected income melts away.

If people want control they should stay working for a large corporation or public-sector body where yearly targets are made with some degree of knowledge and optimism, and our dealings with others are regulated by the fact it is a recognised name on the door.

As for freedom – forget it! I have often mused that, in reality, I have simply built my own prison. Who’s got the key? The clients, the team, the landlord, the creditors (and the debtors come to that). No matter where I am or what I’m doing my business has me trapped. I’ve spent days on the beach with the phone clutched to my ear, negotiated contracts while on a ski-lift and dealt with staff-disputes while trying to persuade my three-year old to eat his breakfast. No matter how well you delegate, the minute the pottery’s broken, you’re the owner.

This brings me to the third Goltz fallacy I want to emphasise – “do what you do well and delegate the rest”. In fact he was a bit gentle here, saying it was “nice in theory”. In my view its suicide, even in theory. In fact, this isn’t just my view – it comes from Michael Gerber – writer of The E-Myth Revisited, which is an important book for any would-be entrepreneur. The “e-myth” he talks of is the entrepreneurial legend of swashbuckling heroism and daring-do that leads the entrepreneur towards inevitable glory, fame and riches.

And one of the crucial elements of this myth, according to Gerber, is the notion that we go into business as a “technician” – keen to exploit our technical talents for our own account (rather than the big corporation we used to work for). Yet Gerber states there are two other equally-crucial roles that we cannot ignore if our business is to be sustainable: that of the “entrepreneur” with the vision and power to drive the business forward, and that of the “manager”, making the business actually meet its obligations (to all its obligees).

Business start-ups need to be able to cope with all three roles – or find someone (quickly) who can fulfil the needs of the roles the founder dislikes. Yet, while we can delegate the role of the manager – we may find that this leads to crucial balls being dropped in execution that eventually erode our reputation. And while we can delegate the role of the entrepreneur, we may find that person soon wondering why their vision and drive is for your benefit and not theirs.

So the only role we can successfully delegate and remain a viable and growing business is that of the technician – the executioner of the product or service we are employed to do. This is the very role that we love and probably our impetus for starting the business in the first place. Yet it’s the very role we have to give up to make our company succeed.

Welcome to the world of the entrepreneur!