What aspiring entrepreneurs can learn from the Alberta election

Every New Year is a time for reflection – a time to review the past and a time to predict the future – a time  for assessment and a gateway to change. For many career change is the most important possibility to consider. Job stability is evaporating before our eyes. Inequity in the distribution of wealth in the western world  is returning to historical norms after a century of a growing and healthy middle class. So maybe this really is the time to consider becoming an entrepreneur.

Entrepreneurship has become a hot topic and it should be. Why? Well here are a few reasons to consider. Globalization is great for consumption, not so wonderful for non-competitive labour in developed countries especially North America. Technology has accelerated the rate of change inherent in globalization making change itself the one constant we can expect in our economic future. Rigidity, structure and the status quo are the antithesis of change. We must constantly engage in a process of creative destruction, tearing down the old to renew with new and different products and approaches. The lifespan of the status quo is already much shorter as the rate of change accelerates. Stability in one’s life will depend on resilience and adaptability.

The ability to create and manage your own career will be the most important skill you can learn.

We are well into a New Era of Entrepreneurship. Governments have recognized this and the battle for talent is underway. Universities and Colleges around the world are introducing programs searching for the best ways to define and teach entrepreneurship. Is it economics? Is it business? Is it philosophy? Can it be taught? Must it be experienced? Everyone is searching for the formula to produce disruptors. Why? We need them to help bring about change at every level: To dig into the corners and find all the advantages that exist by opening up the global economy; To dig in the corners and create jobs in the face of comparative disadvantages because they are problem solvers and will invest locally when Big Business will run away; To challenge the status quo to bring about changes in the behemoths we call international corporations and Government. Society needs disruptors so that creates opportunity.

But that’s not the reason to become one. Here are some personal reasons to take a long hard look at entrepreneurship: Independence; Upward mobility; Redefined security; Joie de vivre; Control and Satisfaction. Let’s face it in a 24/7 global world we are all taking risks and working long hours. Technology has us by the scrotum and is already squeezing. Why not take control of your career?

Maybe our business schools have been working from a flawed model, focused on turning out executives rather than entrepreneurs. That is changing. Too Big to Fail is really to Big to Succeed. Big Companies rely increasingly on acquisition and outsourcing for their flexibility. Will that be enough?

So as we approach 2014 there is much to consider. Entrepreneurship does not hold all the answers but it is moving into the forefront. Entrepreneurs are problem solvers at a time when we are generating new problems faster than ever before. Entrepreneurs act as a catalyst to stimulate the economy creating jobs out of chaos at a time when leadership is wallowing in a political quagmire.

A New Year and a New Era – Definitely much to consider – Happy 2014 to all

Most of what the average person reads about entrepreneurship sustains the mystique. We revere the outstanding successes achieved by extreme entrepreneurs from Edison to Jobs. Reading about these giants colors our perception of entrepreneurship. We admire their achievements but consider them beyond reach. Their stories sustain misleading myths about entrepreneurship that combine to keep capable people from embracing an entrepreneurial career. Here are some of the distortions that deceive us:
– Entrepreneurs are born and cannot be made
– Entrepreneurs are gamblers who take reckless risks to achieve high rewards
– Entrepreneurs work 24/7 and have little or no personal life
– Entrepreneurs need to fail in order to succeed
These established stereotypes derive from two specific types of entrepreneurs. First are the misfits or rebels who either cannot or will not conform; the gamblers to whom few of us can relate. Second and even more prominent are the tech entrepreneurs immersed in the world of venture capital where risk is high, failure is frequent and the rewards for success are dramatic. However Silicon Valley is not the center of the universe and these are not the definitive entrepreneurs; they are but two types of many, both removed from the traditional economy and the rock solid problem solvers that collectively form the engine that drives the economy. Those are the achievers that make things happen especially creating jobs while big business is chasing lower costs around the globe.
Let’s set the record straight
Entrepreneurship can be taught. It should be taught and it is being taught
Becoming an entrepreneur is all about the mindset not the skillset. Entrepreneurs find the way to make things happen they don’t always know the way. This is a teachable philosophy, entirely appropriate in a world dominated by change which generates knowledge and new problems at a phenomenal rate. Finally after fifty years of a flawed model focused on turning out executives for large corporations, colleges and universities have turned their attention to promoting and encouraging entrepreneurship
Entrepreneurship is not about the risk you take but the results that you achieve
It’s a startling paradox. Too many good opportunities die prematurely because so many potential entrepreneurs are risk averse. At the same time businesses are failing because of absurd risks fostered by the idea that being an entrepreneur is nothing more than a gamble. Entrepreneurs succeed through determination not by taking unwarranted risk. Managing your risk as you embrace it is critical. Not all ideas are opportunities and every opportunity is not viable.
Entrepreneurs need to find balance and will make mistakes and have regrets if they don’t
Having a work ethic is critical. During your startup phase and later when you encounter bumps in the road you will work long hours with great satisfaction. But as things progress and you don’t find balance you are missing something – failing to build your team, keeping too much control or limiting your own development. Both you and your business will suffer. Never forget: you are your most valuable human resource. Balance is a subjective decision but dividing your time does not preclude you from succeeding as an entrepreneur.
Entrepreneurs do manage their risk and avoid failure – if they fail they learn and move on
Describing failure as an essential part of success is pure rationalization. Admittedly many entrepreneurs are motivated by the fear of failure more than the rewards of success. Avoiding failure is a powerful source of determination. We do learn from failing because we take the time to analyze it. Success is elating and it masks our faults. Entrepreneurial infallibility is another myth that leads to bad decisions and setbacks that result from forgetting the basics.
What is an entrepreneur?
Most of us will never reach achievements like Steve Jobs or Mark Zuckerberg. That does not demean what we do achieve. Society needs to recognize a broad definition of entrepreneurship at every level and value entrepreneurship of every type because in a world dominated by globalization and technology the one thing that we can count on is change across every element of our economy. Resilience and adaptability are important entrepreneurial qualities that allow us to embrace the ongoing pressure for change. In the simplest terms entrepreneurs are problem solvers who consistently make things happen. They are agents of change in an era of change. They are disruptors at a time when the status quo is a moving target. Do you want to be part of the solution or part of the problem? We can all become more entrepreneurial in our beliefs, break out of prison thinking and think outside the box. The alternative is personal stagnation and uncertainty evolving from lack of job stability, declining upward mobility and the shift in income distribution toward the rich. The most important skill you can develop is the ability to create and manage your own career,
Do understand: we can’t all be innovators but for every innovation there will be thousands of entrepreneurs finding applications for it that solve everyday problems producing jobs and independence in the mainstream economy. Being first is over rated. Doing things better and different often brings greater opportunity. Remember that coffee shops existed in London in 1650 but Starbucks found a new appeal and a great market niche for this old product that resonates in today’s economy.
Believe in your own ability. You can establish the mindset of an entrepreneur. You can eliminate the word ‘can’t’ from your vocabulary. You can approach problems by skipping right over the question “if” it can be solved and skip directly to the question “how” it will be solved. You can find opportunity and you can analyze to make sure that opportunity is viable. All of this can be done within the context of the traditional economy and you don’t have to be a tech genius to do it. Technology is not a threat but offers a great tool for you to use. We are entering a new era of entrepreneurship which means it really should be an option for almost anyone.

With the Vancouver Olympics on the horizon the Canadian Olympic Committee supported by the Government recognized a need to change the status quo – a need to disrupt the traditional methods and find a way to achieve the winning performances expected from the host country. The situation demanded an entrepreneurial approach based on opportunity and determination. The opportunity was hosting the games – the determination to win existed with the athletes but the momentum to surpass previous achievement came from the Own the Podium program that created an ecosystem promoting pride, confidence and results. It worked – in Vancouver the Canadian team set a record for the most gold medals won at a winter Olympics and collected more total medals than they had ever won in a single Olympics. The key was creating a culture that nurtured success and established that success as a new normal, an expectation. In the simplest terms a philosophy or mindset focused on making things happen- the essence of being entrepreneurial.

On an individual basis this program is a great example of breaking free of prison thinking and letting your determination take you through to success. But Own the Podium is far more significant than that. It is a great example of the collective creating the support system that produces individual success to the benefit of the entire country. We must do the same in the business world. Did you know that over 350,000 Canadians live and work in Silicon Valley? Why? Because the Valley offers the most highly developed tech ecosystem the world has ever seen. Do you also know that there is a worldwide competition for talent going on? Governments around the world are building programs to attract entrepreneurs to their countries. Canada has already introduced a fast track system to provide visas and a path to citizenship for entrepreneurs/innovators who can attract venture capital investment from Canadians. However if we can just keep our best and most brilliant home we can do well in this talent war and improve our prospects and results. We need to Own the Podium in tech development and in entrepreneurship.

We have a good start with programs like MaRS , Communitech and The Creative Destruction Lab at the Rotman School but we need the collective will and the support of government to build an ecosystem that is second to none and that brings out the very best from the natural ability that exists here. If one per cent of our total population representing a much higher percentage of our intellectual capital are living in California than we have the tools here but we are both losing them and underutilizing them. More or less like our Olympic performance prior to Vancouver. If we can do it in sport we can do it in business.

One of the premises in the introduction of my new book Everyday Entrepreneur is that I wrote it to encourage entrepreneurs of every stripe across the spectrum. Since the high tech entrepreneurs have been getting the lion’s share of the attention and encouragement from the public and investors alike, they were far from my target market. Tech innovation was the creator of venture capital, setting a precedent for high rates of return that can’t be sustained in other areas. Virtually all other types of entrepreneurs have to struggle for funding because they simply don’t meet the criteria for venture capital. Those that have attracted VC funds often flounder to the detriment of the entrepreneur because the VC gets an agreed upon return which can sap a moderately successful business.

The Creative Destructive Lab at the Rotman School of Management at the University of Toronto (my alma mater) is focused on extreme success with a strong emphasis on taking tech developments from gestation to dynamic success on the international stage. On the surface this seems to be exactly the area that I previously suggested didn’t need my help or encouragement as people are lined up to help in almost every area to develop these type of businesses. So why did I choose to support these high achievers by becoming a partner of the CD Lab? Well here are my reasons:

1. I strongly support that we need to keep our brightest and best talent here in Canada – we are in the midst of a world wide competition to attract talent – success starts with keeping our own
2. Success at this level sets a terrific example for anyone in this country that wants to become an entrepreneur and start a business at any level
3. Both of these factors are critical for us to build a culture of entrepreneurial success to maintain a strong economy and bring in the new talent that every country is striving to attract.
4. If in the process I can influence some of the brilliant MBAs we are graduating to circumvent the conventional and lucrative path to becoming a business executive in favour of applying their abilities to becoming entrepreneurs who solve problems, make things happen, create jobs and provide the drive that leads to success, then my time and effort will have been well spent.
5. The very talented people who apply to the Lab are brilliant in their innovation but still need nurturing on the personal issues involved in becoming an entrepreneur, the fundamental business issues they will encounter and the overall philosophy inherent in being an entrepreneur.

My book will out at the end of November. In the meantime I am enjoying my involvement with the Lab targeting success in a global economy which I firmly believe will centre upon a New Age of Entrepreneurship.

Much as we would like to, we never really love our parents as much as we do our children. Your business is exactly like a child. In the early or startup years it will depend completely upon you, looking to you for all the answers. You will always supply them with confidence, belying the uncertainty that you may feel as a first time owner just as you do as a first time parent. The child will look to you 24/7 in sickness and in health and as the parent you will always be there regardless of the problem, dropping everything else in the process. Your business and its components from customers to your team will do the same and like the parent you will be ready and willing to oblige. You cannot easily walkout on your children. Oh some due but for the majority it’s a non-starter. Same thing with your business. You are your business but try to remember your business is not you.

The middle years are the best when you have become comfortable within your developing family and confident in the decisions that must be made. Neither your child or your business will question you during this peak period. Things do get into a groove on both fronts but then comes the maturing years, the transition from total dependence  to independence. Tough for the parent to admit it’s time to let go and let the child mature  developing all of it’s capabilities, finding new methods and learning new things that the parent doesn’t know or understand.  So difficult to do but you the parent do it willingly in the best interest of your child. And so you must with your business. At some point you will become the limitation in your business. The day will come when it has outgrown you. It will not mature and reach it’s potential unless you let go. Easier said than done but be ready.

Like your first born that first business must move on to a new future. But then remember you can do it again. Maybe you already are. The second child is easier. There are tried and true practices that you know and understand. You can take that second child from gestation through birth to adolescence from startup to a thriving healthy entity. You can do this as many times as you can handle. And so you can with business. That’s what makes you a parent and that’s what makes you an entrepreneur. There are many mentors that can steward your child and your business into full maturity who cannot deal with the early years. You are the one who launches them from nothing and starts them along the path to maturity.

So recognize the need for that end game- when it is time to move on and begin again. It’s what you do best. The child will ask for you opinion. The business may ask you to consult. You will learn to enjoy both, but you will find your happiness doing it all over again.

Most of what the average person reads about entrepreneurship sustains the mystique. We revere the outstanding successes achieved by extreme entrepreneurs — everyone from Edison to Jobs. Yet, reading about these giants colors our perception of entrepreneurship. We admire their achievements but consider them beyond reach. Their stories often sustain misleading myths about entrepreneurship that keep capable people from embracing an entrepreneurial career. People begin to believe that to travel down the entrepreneurial path, a person must be born with a particular mindset, take reckless risks to achieve high rewards, work all day, everyday and must fail to succeed. Don’t let these misconceptions scare you off.

Entrepreneurship can be taught, it should be taught and it is being taught.

After 50 years of a flawed model focused on churning out executives for large corporations, colleges and universities have turned their attention to promoting and encouraging entrepreneurship. These schools are focusing on teaching the entrepreneurial lifestyle; one focused on both the mindset and the skillset required to become an entrepreneur.

Entrepreneurship is not about the risk you take, but the results that you achieve

It’s a startling paradox. Too many good opportunities die prematurely because so many potential entrepreneurs are risk averse. At the same time businesses are failing because of absurd risks fostered by the idea that being an entrepreneur is nothing more than a gamble. Entrepreneurs succeed through determination not by taking unwarranted risk. Managing risk as you embrace it is critical. Not all ideas are opportunities and every opportunity is not viable. Managed risk is inherent in the lean startup focused on getting valuable feedback from potential end users before jumping into full scale operation.

Entrepreneurs need to find work/life balance and will have regrets if they don’t.

Having a strong work ethic and being willing to put in extended days when required is critical. During your startup phase and later when you encounter bumps in the road you will work long hours with great satisfaction. But as things progress you need to find balance by building your team, easing control and empowering your staff. You must recharge your batteries. Never forget: You are your most valuable human resource. Without balance your performance will suffer, your business will be restrained and your personal life will be sacrificed unnecessarily.

Failure is not essential. Entrepreneurs manage their risk and avoid failure.

Describing failure as an essential part of success is rationalization but many entrepreneurs are motivated by the fear of failure more than the rewards of success. Failure only happens when we either quit or are forced to give up. Mistakes are part of the learning curve. We do learn from them because we take the time to analyze them. Success is elating and it masks our faults. Continually improve by understanding what you do right and correcting what you do wrong in good times and in bad. If you do experience failure you can and will bounce back, many have.

Being an entrepreneur is within your reach.

You can become a problem solver who is determined to find a way to make things happen? Understand: we can’t all be innovators but for every innovation there will be thousands of entrepreneurs finding applications that solve everyday problems producing jobs and independence. Being first is over rated. Doing things better and different often brings greater opportunity

Believe in your own ability.

You can establish the mindset of an entrepreneur by eliminating the word ‘can’t’ from your vocabulary. You can approach problems by skipping right over the question “if” it can be solved and skip directly to the question “how” it will be solved. You can find opportunity and you can analyze to make sure that opportunity is viable. All of this can be done within the context of the traditional economy and you don’t have to be a tech genius to do it. Technology is not a threat but offers a great tool for you to use. We are entering a new era of entrepreneurship, which means it is an option for almost anyone. If you can’t carry the full weight of your own business bring entrepreneurial thinking to managing your career and performing your role as an employee. You won’t regret it.