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Research: 5 mistakes Houston entrepreneurs should be making

Here are five mistakes startup founders should be making as early as possible during their entrepreneurial journey. Graphic byMiguel Tovar/University of Houston

We all have heard "you learn from your mistakes," so, why do a lot of startup blogs warn entrepreneurs of the mistakes they shouldn't make when starting a business, but not very many tell them what mistakes they should be making? Some mistakes teach us more than our successes and some of those mistakes are bound to happen anyway, so why not embrace them?

Ben Wiener, a startup founder and managing partner of a Jerusalem-based micro-fund that invests in early-stage startups, provides a list of five mistakes startup founders should be making as early as possible during their entrepreneurial journey in an OnStartups blog post.

Ben Wiener’s Top  Mistakes When Starting a Business 

1. Get Screwed

"It's inevitable. Anyone – your partner, co-founder, employee, investor, or any other character in your unfolding plot – will mess you over. Someone will break your trust, violate a verbal or even written agreement, cut your compensation, or try to steal your equity or destroy your whole company (or all of the above, if you're me). Someone will do something stupid to scuttle your grand plan."

Wiener said to accept the inevitable. Power struggles are real, and the vision you have, someone else on your team may not see it the same way, causing friction. Prepare yourself for this problem and hope it doesn't cause too much damage.

"Upon reflection, you'll likely find that what enabled your misfortune was something you did or didn't do. The screwer-screwee relationship requires at least two people, and there are two sides to every story. Even if you clearly weren't "at fault" – you encountered a terrible, crooked person who did you in – you still need to ask yourself how you allowed yourself to do business with that person," Wiener said.

2. Seek Revenge

"This is an adjunct to the above mistake. Once bitten, your natural impulse may be to bite back. You've lost something – tangible, emotional, some future upside or all of the above – and you want to deny the perpetrator those same things or at least the satisfaction of having caused you that loss."

Wiener recommends trying this at least once. "I predict that not only won't you be successful, but most likely nothing will happen at all, or worse, it will bounce back at you. You'll just feel immature, cheap and dirty and the lingering recollection of that bad feeling probably will be enough to prevent you from playing the revenge card again," he said.

Beyonce said it best, "always stay gracious, best revenge is your paper." Translation: remain cordial, your success will be the best revenge.

3. Tell People Your Venture is in "Stealth Mode"

"It's natural to want to keep your cards close to your vest. Perhaps you're afraid someone will steal your idea, or you lack confidence that you've developed it well enough to convincingly describe it to others. The tech industry has even provided you the gift of a cool-sounding cover: "Stealth Mode," which makes you sound more like a covert spy shrouded in secrecy than an unsure rookie plagued by insecurity. Saying you're in "Stealth Mode" is almost certainly a mistake, for many reasons. First of all, it can easily be interpreted as either pompousness or insecurity, which is bad for your credibility. You're also signaling that you don't trust that person, creating a negative feeling that will likely persist even after you're able to elaborate later on."

You never know who a potential investor or costumer could be, so don't keep everything a secret. Pique people's curiosity. You may even know a potential investor or costumer personally, so "switch to 'Get Out There' mode" as Wiener recommends.

4. Believe that "If You Build It, They Will Come"

"The popularity of the phrase leads some founders to believe, and predict to investors, that they, too, need only to build their amazing new thingy, and the users will come running until the rest looks like a hockey stick. I can assure you that if you just build "it", "they" will almost certainly not come. In startup theory the "coming" of "they" is called "Market Pull" which almost never happens by itself, even among early adopters. Market Pull needs to follow an intense and iterative period of product design, customer development, Product/Market Fit and hands-on "Technology Push" into the target market, which only if successful begets the glorious Market Pull. You'll have to work hard to make the market notice and care, and probably personally engage your early users individually, and that's fine."

5. "Wiener's Favorite Mistake"

"My favorite founder mistake is not appropriately balancing confidence and humility. There's a yin/yang relationship between the two and as you pilot your rocketship forward, you will occasionally find that you've leaned too hard to one side or the other. As a startup founder you need to have a healthy dose of self-confidence. Ok, maybe an unhealthy dose. An overdose. You need to passionately believe that your solution is The Next Big Thing. But overconfidence can be extremely dangerous, for many reasons. It can be misinterpreted by others as arrogance, which can cause damaging interpersonal consequences. If overconfidence morphs into false confidence, it can cloud your vision or your analysis. A great founder must have just as healthy a dose of humility, an understanding of his or her relatively small place in the world. But being too humble can hold you and your venture back."

Wiener said that balancing your self-confidence and humility is something you will have to do every day. You will need to choose which situations require which trait.

What’s The Big Idea? 

When starting your own company, do you want other entrepreneurs to only tell you about their successes? Or, do you want to know their failures as well and what they learned?

"A good entrepreneur wants to talk about their mistakes as well as their successes, and a good investor wants to hear about those mistake and lessons without penalizing the pitch, Wiener said."

If you had a young child or teen in the early 2000s, maybe you heard Hannah Montana sing "Nobody's Perfect." That mantra always has and will remain true. Wiener said to expect mistakes to happen. Embrace them, and then analyze them "as those lessons learned will become important, lasting building blocks in your personal development and the development of your company."

Don't be afraid to make mistakes when starting a business. It would be weird if you didn't, actually. Learn from them and go succeed.

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This article originally appeared on the University of Houston's The Big Idea. Cory Thaxton, the author of this piece, is the communications coordinator for The Division of Research.

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Building Houston

 
 

After working with thousands of interns, Allie Danziger of Ampersand Professionals says she's now got a product to upskill and train new hires for employers. Photo courtesy of Ampersand

After seeing success with her internship training and matchmaking platform, Allie Danziger, founder and CEO of Ampersand Professionals, has expanded the concept to include a new hire training service that allows employers to better optimize the onboarding process and have a well-trained new staff member from day one.

In just over a year, Ampersand has worked with over 7,000 professionals through its original concept of upskilling and matching young professionals to internship programs. A few months ago, Danziger and her team expanded to include career development training for students first entering the workforce with the City of Houston's Hire Houston Youth program. Danziger says it was developing out the platform for this program that proved there was a need for this type of training.

"While we have focused on matching professionals with businesses for paid internships, we recognized a further gap with employers that have their own recruiting/talent acquisition teams, or just their own preferred way of bringing on entry-level talent, and didn’t have a need for our matching platform," Danziger tells InnovationMap. "But, they recognized the benefit of our proven training platform that pre-vets and de-risks their hires, and still wanted access to the training for their own hires."

The new program has evolved from training interns to new hires, so parts of the program that focuses on interviewing or applying for a job have been removed. Instead, the 8.5 hours of training focuses on networking, best practices for working with a manager and team, performance reviews, common software training, and more.

Danziger says usually new hires need the most experienced mentor or manager, but they don't usually get that support — especially when it comes to businesses that don't have their own built-out mentorship or training program.

"Ampersand’s new training product fills that gap — it gives employers of any size any easy solution to provide basic job readiness training to employees, access to our team of dedicated coaches, and a detailed report at the end of their training summarizing how their new hire did in the training and any trends recognized and tips for managing this employee based on what the platform uncovered," she says. "Businesses can also sign up for additional coaching sessions and customize training materials, as an add-on if interested."

The program costs the employer $100 per new employee, and checkout online takes less than a minute. Through both this program and the original internship program, Ampersand is constantly evolving its training content.

"These professionals are going through the same training experience that we have proven out over the last year, and we are constantly adding to based on data we see in the user experience," Danziger says.

Danziger recently joined the Houston Innovators Podcast discuss some of the benchmarks she's met with Ampersand, as well as the importance of investing in Gen Z hires. Listen to that episode below.


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