I'm currently enrolled in my second year of the School of Hard Knocks. What's this "School" I speak of? Well, it's pretty much like any university - expensive, time consuming, you pull all-nighters, meet new people. I think I even put on the freshman 15. Biggest difference is at this School, there are no case studies. Everything is real. Everyday is a test. And you either pass or you fail. I was hoping to graduate this year with a degree in Entrepreneurship, except I failed A LOT, and I think I'm getting held back a year.
Anyway, here are some classes I failed, and I'm sharing them with you in the hopes that you don't do the same:
Lesson #1:
Last summer, I was amped up about Silver Step. I had a great concept, that I had proven out to a limited degree and I was ready to take it online and start building. I didn't know how to do it myself, and since I was (am) still working full-time I figured outsourcing to a firm was the way to go. Right? Wrong!
Wrong for my situation. I'm not knocking my web dev firm or web dev firms in general. They did a great job in designing and building me a site, but for a start up looking to test proofs of concept, you can ill afford to waste months of building time with no testing in between. You need a way to take your visions/ concepts, mock them up quick and dirty and deliver them to the only group that matters - your users/ customers (see Lesson #2). This is how you can create a viable strategy and give real credence to your assumptions.
Grade = F
Lesson Learned: Get a technical co-founder or team member, go to Code Academy, or at the very least learn the basics of programming so that you understand how to manage a web based product. I'm a firm believer that this should begin to be core curriculum in academia. Future business leaders without these skills or at least a base knowledge are going to fall behind (another topic for another day).
Lesson #2:
It seems so intuitive, but it's easy to get lost on this point. I cannot stress this enough, but the only opinion that matters on your website/ product is that of the people using it, or your customers.
When I started my venture, people questioned if MBA students would be interested in personal financial education. We tested our assumption by hosting 4 in class sessions at Kellogg. Approximately 500 students registered to those sessions combined. Proof? Kind of. Except we wanted to translate to this to a web based offering. Seeing the response of the seminars I felt strongly about pushing forward with the educational content portion of our website.
While that was being built, however, I spent a significant amount of time conceptualizing and discussing new concepts and ideas that would build off of that foundation. I talked to a lot of people and surveyed students to get feedback. I even began selling that as part of our offering. The problem was, however, I hadn't even tested the first feature of our site fully. I got lost on what my website could be, instead of focusing on what it was and how my users would engage it as is today.
Grade = F+ (I got a "+" for attempting proof of concept prior to building the initial phase of the site - still got an F because it's pass/ fail. Damn you no partial credit!)
Lesson Learned: You can come up with amazing ideas and concepts, but at the end of the day, if a lot of other people (or your target market) aren't willing to use it, it doesn't really matter. Focus on one step at a time. Mock up something basic, test it, see what works/ what doesn't, iterate and test it again. A lot of mentors and books (The Lean Startup, etc) will talk about the importance of this. You can either read about it and listen to these people, or you can learn the hard way. I'd spend $20 on a book, rather than $20,000 building features that may not work. Up to you.
Lesson #3:
Don't try and raise money too early. This one was very hard for me. I'm working full-time, raising 2 kids, and trying to start a company on the side. After a year of hustling, bootstrapping, juggling, and not sleeping, my gas tank was LOW. Burn out is an understatement. I wanted nothing more than to raise a small amount of money, leave my job and give 150% of my effort to Silver Step. I wanted it so bad, I lost site of reality.
I thought that in modestly proving out my concept and putting together a sound business plan and strategic direction I could raise a small amount of money. Perhaps in some cases it can be, but as a first time entrepreneur it hasn't been the case. In general, friends and family funding wasn't an option for me. I hustled to get in front of a lot of unbelievable people who all felt a strong conviction for my idea. They loved the proof from my in class sessions. The concept and the thought behind it made a lot of sense to them. They saw the potential. One problem, "Can I see your website?" Sorry. Not yet. You see I'm failing in School here and now I'm a little bit behind.
Grade = F
Lesson Learned: As an entrepreneur, you need to look at your company through the eyes of an investor. Investing is about risk management. Some people will invest in you (personally), or even your concept to some degree. Most, however, want something tangible - or even better, something that your customers are using (and liking)! Therefore, the sooner you can learn Lessons 1 & 2, the less you'll have to worry about Lesson 3.
Lesson #4
Be tenacious. The wind is inevitably going to be in your face. You can either stop, or you can run harder. If you run harder, you will have a better chance at finishing and being stronger for it. Obstacles can be overcome, and if you focus on them too much, you'll site of your goal.
Entrepreneurship is not easy. Sometimes I feel like a smitten teenager. One day everything's clicking and I'm in love. The next day I don't get a call back, and I'm emotionally crushed. Nothing is guaranteed. People lead on that things are going to work out. You feel elated, relieved, you can't believe it's finally happened. Then you don't hear back for weeks, and when you reconnect they feel a little different. Not sure how to explain the feeling, but the closest metaphor is like a shot below the belt (trying to be "PG" rated here, but you get it).
Every time I get knocked down, however, I remember what my father has told me throughout life - "If it was easy, everyone would do it." No words had ever rung more true. You have to be bold, put yourself out there, and get knocked on your ass. You also have to get up and be willing to do it again, knowing you might get knocked down again (hopefully its not for the same thing)! People are going to tell you "no" and play with your emotions. It's business. It's inevitable. Best NOT to take it personally, learn from the "no," and move on. Eyes on the prize.
Grade = PASS
Even though I've failed a lot, I refuse to give up. Although, I've had a lot of setbacks and things have not gone as planned, these are all failures that can be overcome. In fact, because I've gotten so many "F's," I feel like I'm a lot smarter for it. If you let failure stop you from achieving, you will never be successful. Because guess what? Failure is inevitable (hopefully not in the ways I've failed, but it will happen in countless different ways). Therefore, persistence is the most important lesson to learn. Without that, you can't learn from failure and OVERCOME it.
So where am I at now? Well, I've put a little more gas in the tank, re-enrolled in School, and looking to pass Lessons 1 & 2 before moving onto Lesson #3. I know there are a lot more lessons to learn, but I'm going to stay focused, keep hustling, and keep learning. I'm hoping the next post will be to tell you about my new CTO (haven't made official yet), and/or our website launching. Stay tuned, and stay in school!
