Creating a Culture of Entrepreneurial Success

You are educated. Now what? The most important skill you can add today is the ability to create and manage your career. On the surface this is not the best time to graduate. The cost of education is very high, bringing student debt to record levels. Job stability is in decline. The distribution of wealth is skewed in favour of those at the top. Upward mobility is in jeopardy. The rate of change is increasing. All this means that your future is dependent on self-determination grounded in awareness of the world in which you live. In this environment, you are your own brand and must plan on reinventing yourself throughout your work life. Start engaging in entrepreneurial thinking right at the outset of your career. Whether you start a business, become a solopreneur, work in a large entity or engage in social entrepreneurship, you have to become adaptable and resilient in a world dominated by change. Entrepreneurial thinking is about a mindset not a skillset. Success is about finding a way not knowing the way. In the era of Big Data this is essential. We will never know enough or understand enough of what we know. So abandon prison thinking and get started.

Five ideas to reject:

1. Education guarantees you a future. Sorry you don’t have it made: education never ceases and formal education just gives you more opportunities. There are no guarantees
2. There are no jobs for graduates. There are barriers to entering the work force which are as insurmountable as we allow them to be. Resilience and adaptability start now.
3. Government will solve the employment problem. Would you really choose government as your advocate to solve any problem?
4. There is no future within small business. Life expectancy of all businesses is in decline. Strategic management of your career takes you where you can gain the most now!
5. Millenials don’t make good hires. Maybe you place a higher value on social media contact and demand access during the day but technology is your ally making you more productive than older generations.

Ten Reasons for Confidence:

1. Technology, your ally, has lowered the cost of administration through the integration of many management tasks. A one pound portable laptop allows anyone to incorporate their accounting system, sales marketing network, all communication, research, collections and payments not to mentions a wide variety of personal needs. Add in mobility via a smartphone and you are always accessible and connected. You have the potential to do it all, as a disruptor within a large corporation or government agency or as an independent.
2. Big Data is generating new problems at record rates. Every problem is an opportunity.
3. Social networking, another ally, has increased the reach of individuals allowing market access on a much broader geographic scope. Services can be offered at great distance. Endorsements can be sought and received across the country or even worldwide. Credibility can be built quickly through performance. LinkedIn is a great tool to market your skills and pursue your career strategy.
4. Websites can be both affordable and first class allowing an individual to build a professional image. Employee and entrepreneur alike can build their brand and market themselves.
5. Outsourcing is an established practice by which governments and large corporations are achieving flexibility which rewards specialization right down to the individual level. Businesses may only want you part time so find several of them and keep them happy.
6. Acquisition is a principal way for large entities to find innovation making startups, often founded on youth and enthusiasm a great opportunity if you can join the right team.
7. Succession is a huge issue for hundreds and thousands of viable independent businesses in North America as the baby boom generation hits retirement depending on their business to fund their future. You can find a mentor leading you to acquire your own business through an earn out that funds his or her retirement.
8. Size is simply becoming a liability – there are many small viable market niches that large companies and foreign sourcing will never fill. Adaptability, resilience and flexibility are essential in a world dominated by change.
9. Opportunity is nowhere, opportunity is everywhere. Recognizing opportunity is the cornerstone of success in every aspect of your career.
10. Determination was the key to graduating. It is also the key to managing your career.

Starting your career is the first of many problems ahead. Every problem provides an opportunity. The solution to a successful career lies within your ability to create your own brand.

Fred Dawkins is a serial entrepreneur with over 40 years’ experience and achievements in manufacturing, retail, land development, consulting and import/export. He holds a B Com in commerce and finance and a M.A. in economics from the University of Toronto. His business has allowed him to travel extensively, giving him insight into the emerging global economy and making him a passionate advocate of entrepreneurship in the 21st century.
Everyday Entrepreneur [Dundurn Press] is the first book in Dawkins’ Entrepreneurial Edge series, and is currently available at all booksellers, including Amazon.com, Amazon.ca, Barnes & Noble and Chapters Indigo. His novel, 2020 Hindsight, explores major contradictory trends in society in a compelling contemporary fiction narrative, and is forthcoming as an e-book on Amazon.com.
Website: https://fcdawkins.com/

Indisputable: We live in a global work space – an economy where timing is everything and competition comes from every which direction, blindsiding us, especially where Tech is concerned. There is tremendous pressure to be first out to fill a market niche and tremendous pressure on innovators around the world to become instant entrepreneurs OR to give up the lion’s share of the economic benefit of their innovation to others who can get them to market in a hurry.

If there is a lesson from the Blackberry debacle it’s that being first gives you a head start but the pack quickly turns to finding ways to do it different and better. There is no time to rest on your laurels. Your advantage is short lived- even much less than ten years ago when Blackberry was first riding high.

Are the expectations of the market achievable or are we simply seeing a new reality where companies come and go with a greatly reduced life expectancy. Apple did fail once. How much longer will it stay at the top this time?

When you visit an incubator/accelerator you will often see tired young people committed to a 24/7 work ethic, working in small space shared with other start-ups focused on perfecting their innovation with little understanding of the fundamentals required to operate a business or build a foundation for a company that can last. Did Blackberry ever establish that foundation? After all it was always in a dynamic state of rapid change initially positive but for the past three years negative.

Can humans really continue to cope with the rate of change that technology allows? Are we being forced to abandon stability in favour of short term success? Overall we find ourselves in an integrated global economy, still wrestling with the ongoing effects of the Great Recession, managed by leaders who are challenged at best, incompetent at worst, where the only sure thing is uncertainty.

For all of these reasons becoming an entrepreneur is an important option. The economic world will place increasing value on resilience and adaptability. In the face of instability and uncertainty the most important skill we may develop will be the ability to create our own job. Big will not be better. Small and flexible will become the key to individual success.

Generally anything that makes government facilitate as opposed to over regulate is a positive step. The government of Ontario has just announced initiatives that could reduce red tape for businesses and create cluster developments to help drive regional economic growth and create jobs. Will these reforms ever see the light of day in a minority legislature flirting with an election or are they just pre-election temptations to attract votes away from the conservatives?

Regardless both of these ideas focus on critical areas in the face of a fast paced global economy where all countries are fighting for talent and for markets. Governments at all levels need to become more efficient and more effective. Over regulation serves no purpose other than to increase the cost of government and limit the competitiveness of the private sector, discouraging investment in the province in the process. There is a place for regulation and there are important roles for government but the former needs to be reeled in while the latter needs to be more selective. One preferred area should be to co-operate with the private sector and academia to create ecosystems that foster business opportunities in a variety of areas where we can build comparative advantages. This is now a stated goal for Ontario.

The most startling evidence of cluster development is Silicon Valley where 350,000 Canadians live and work. That’s right 1% of our population and a much higher percentage of our intellectual capital are resident in northern California. The Valley offers the most dominant ecosystem for an industry that exists, nurturing tech startups and venture capital investment at a phenomenal rate. It is not one that can easily be replicated and it’s been underway for over sixty years.

In other words this project requires genuine commitment from all concerned. We can only hope that the Ontario government follows through and that the Feds add a level of support. We are in a new era dominated by change. The culture of government and business alike has to change. Government must move away from a culture of bureaucracy that has become an unbearable burden. Big business must move away from a culture of control to a culture of empowerment as change dictates that the status quo is short lived.

These new initiatives serve as a reality check that we must become more competitive. Government can not be the agent of change that makes this happen but it can facilitate a co-ordinated approach by reducing the costs of doing business and helping to create ecosystems that support the efforts of the private sector. Let’s hope that all parties rally in support of these programs that will create jobs and point us toward a better future.

We are entering an increasing – no pun intended- age where size is dominant. Big Business, Big Government, Big Unions, Big Data and most damning of all “Too Big To Fail”. We have sacrificed the principles of micro economics such as the optimum size of the firm and the law of diminishing returns to build dominant global enterprises- behemoths more closely related to their bureaucratic enemy, government, than they will ever admit. These entities lumber around the world chasing low costs and cheap labour in the name of maximizing profits. If they fail they plead their case in a public forum that they are too significant to let die. They are pyramids paying outrageous rewards to those that scale to the top.

What are the implications for individualism. Job stability no longer exists. Big data is generating information far beyond are ability to comprehend. The rate of change is staggering. 24/7 hyper-connectivity has us all chasing our tails, Are we headed for Big Brother? Globalization is both an opportunity and a threat. Small business is vulnerable to competitors around the world but at a time when things are moving at lightening speed entrepreneurs are flexible and adaptable giving them the opportunity to find a niche and move into it before others. The most important skill to learn in this new era is the ability to create your own job. Without it the threat is the loss of upward mobility for many and perhaps economic independence for most. The divergence of wealth between the rich and the poor and the eroding middle class are forewarnings. Entrepreneurship is critical for the individual.

But it is also critical for these huge entities. Without the impact of disruption based on challenges to the status quo , sometimes referred to as ‘intrapreneurship’, governments and huge businesses will never come close to producing optimum results and solutions. The current conundrum in Washington shows a government that is not only dysfunctional but is mired in a malaise of mediocrity. There are no disruptors coming forward to challenge the party lines and find compromise. Optimum decisions are a pipedream in this environment.

Entrepreneurs make things happen. They are problem solvers. The greater the problem the greater the reward. Regardless we need them at all levels. It is a skill that some are born with but many can learn. We are headed for a tsunami of Big Data that can swamp us. Machines will literally know more than any individual. It’s a scenario that science fiction writers have been portraying for generations. Individual success will be tied to entrepreneurial skills and attitude. Entrepreneurship has never been more important. We live in interesting times.

Originally posted by Emily Barnes, The Creative Destruction Lab The Rotman School of Management, University of Toronto

Businesses large and small can find it tough to spare a few moments to step back and look at the big picture. But immersed in the little details surrounding new product features and releases, you can easily miss a few telltale signs your startup is starting to spiral.

Luckily, Fred Dawkins has done the legwork for you. Partner of the Creative Destruction Lab, serial entrepreneur and founder of The Old Hide House, Dawkins has turned his past experiences into a series of books about entrepreneurship, the first of which is Everyday Entrepreneur. He recently hosted a number of workshops in partnership with the Lab, touching on everything from the misconceptions of entrepreneurship, to the day-to-day trials and tribulations of an entrepreneur, to the increasingly important role of small business in the global economy and all that’s in between.

If you can’t spare the few minutes to check in on that big picture, Dawkins asks that you at least watch for these three signs that your startup is on the out.

YOUR STARTUP BECOMES YOUR LIFE.

Undoubtedly, there’ll be an imbalance. There’s no denying that you’ll have to work long hours – especially in the startup phase and when you run into times of hardship.  Your social life will at times suffer, as will your relationships. But this anguish shouldn’t be a constant.

This may seem erroneous if you’re in the early stage of running a business. Timing is everything, and if you launch too late – especially in tech – it can make or break your success. It’s a bit of a catch-22. But unless you’re an anomaly, if you’re working an innumerous amount of hours, you’re doing something wrong. It’s symptomatic, and signals a discord elsewhere in your business. How strong is your team? Are you delegating?

Despite much popular literature that speaks to the contrary, you truly can maintain work-life balance as an entrepreneur.  Recharging your batteries is critical. Have your hobbies and have your venture. Sometimes the two will overlap. Even then, you must create that separation. When you lose sight of work-life balance, you also risk impairing your business’ vision. It’s important to step away from your company, if only for a few hours.

CASH FLOW – IT NEVER LIES!

If you’re going to be successful, you’ll first need to know and understand your numbers. Metrics aside, look to cash flow. It’s right on your doorstep. Omnipresent, it serves as the perfect warning mechanism. If you’re running low on cash, you’re doing something wrong.

Too often, startups seem to bolt at the first sign of cash flow struggles, looking to investment for relief. Granted, it’s a quick and relatively easy fix (provided you can offer up a good pitch), but too many run into the open arms of deals that offer marginal amounts of cash for large chunks of equity.  It’s easy enough to relinquish control of your business because you have to – to bring in a partner or some easy money. But don’t make rash decisions without properly considering the long-term consequences. Do the math. Beware of commitments that’ll eat up your profits. Brick and mortar businesses tackle high overhead, hardware startups combat production costs, and SAAS businesses at first operate virtually cost-free. Remind yourself of this. In a startup press bubble that’s dominated by one funding announcement after another, it’s all too easy to start asking for money. Don’t forget about sales, the good ol’ fashioned revenue stream.

There’s a lot to be said for natural growth and learning to manage within your means. Bootstrapping isn’t a requirement so much as an opt-in measure of control.

YOU, THE FOUNDER, ARE THE BEST PERSON ON YOUR TEAM.

Things are different when you transition from project to business. Parameters change, and your skillsets need to adapt along with them. But few people have the knowledge or experience necessary to carry an idea through to company, then onto global success. Don’t be afraid to hire people who know more than you do in specific areas.

You’ll be tempted to keep a short leash on success, and find it difficult to relinquish control of even the most minor of tasks. Don’t impede success for the sake of ego. Sometimes you’ll need to let go of responsibility, and sometimes that also means you’ll need to cut off a slice of the equity pie. Your ego will take a hit, and your percentage of future earnings will too, but you’ll mend and the pie may just get bigger.

Recognize your deficiencies. You can’t always keep pace with your company, or grow at the same rate it does – not everyone is that malleable. Hire those whose skillsets can compensate for the holes in your own. You are not your company and at some point your interests may diverge, so have an end game.