Why Branding is a threat to the middle class

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.

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.

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.

The most important skill you can learn today is the ability to create and manage your own career. We live in a world where globalization and technology combine to guarantee that the one constant we face is rapid change. There is no room for prison thinking as the status quo must constantly be challenged to ensure that we stay competitive. The most important characteristics for individuals, organizations and countries alike are resilience and adaptability. These are the key characteristics of entrepreneurs.
Unfortunately the prevailing stereotypes of entrepreneurs discourage many people from embracing the idea. Most of our perceptions about entrepreneurship stem from two specific types:
First are the misfits; those who either can’t fit in or don’t choose to embrace the norm. These are the rebels characterized as risk takers or gamblers. They convey the image of success achieved through reckless risk, initial failures and inherent natural instincts that allow them to succeed in areas that most won’t try.
The second high profile type is the tech entrepreneur immersed in the world of venture capital, an area typified by high risk, a high rate of failure and exceptional rewards for success. This is sphere that gives us most of the buzz words attributed to entrepreneurship such as accelerators, incubators and burn rate. The latter tells you when you will run out of funds so identifies the point at which you need and hope to have an investor. It’s a little like bungee jumping, hoping that someone will come along and tie your rope securely before you hit the ground but you leap anyway.
Together these two stereotypes re-enforce the perception that above all else entrepreneurs are risk takers whose success is tempered by failure. As a result of such typecasting many good projects never see the light of day while others fail by taking risks that can’t be justified.
These are but two forms of a wide range of entrepreneurial types but unfortunately they get most of the attention. Regardless they are far removed from the everyday entrepreneurs who provide the engine that drives the economy and the stimulus that creates jobs locally when big business is preoccupied chasing profits around the globe. In the broader circle the critical terms are practical; words like bootstrapping and the lean startup. Words grounded in reality and pragmatism. Hope is not the prevailing sentiment. Being proactive is critical. These mainstream entrepreneurs certainly take risks. The risk and reward dichotomy are joined at the hip. No doubt the greater the risk the greater the reward and the higher the chance of failure. Most successful entrepreneurs know how to manage their risk. Failure is far from a prerequisite. Learn from it if you must but avoid it if you can through anticipation, resilience and adaptability. Entrepreneurs are not defined by the risk that they take but rather by the results that they achieve. They are problem solvers who make things happen.
So what does it take to become an everyday entrepreneur? Is this a skill that can be learned or does it just come naturally? Do you have to work 24/7 and sacrifice your personal life to be successful? Is it all about the mystique or is there a formula to follow? Since this is a lifestyle about embracing change and becoming adaptable a formula is hardly appropriate. The key starting point is the philosophy. Becoming an entrepreneur is far more about the mindset than the skillset. Entrepreneurship is entirely about finding a way not knowing the way. In a modern world where new data is being generated at an alarming rate how much of what we know do we actually understand? Entrepreneurs never become preoccupied with whether they can accomplish something but spend their time and effort looking for solutions. The question ‘if’ doesn’t come up. Instead they ignore it moving immediately to ‘how’. They don’t have all the answers but they are dogged in their determination to solve the issue at hand. This is certainly a belief and an approach that can be taught and quite effectively. Entrepreneurship can be taught, it should be taught and it is starting to be taught. Colleges and Universities across the country are rushing to find the best ways to spread the word.
Does this mentality mean a 24/7 workaholic lifestyle? That’s a very personal choice but a bad one if you choose it. You may well work long hours during your startup phase when you are the generalist wearing every possible hat and passing through a learning curve that will prepare you for the next phase. You will also work those same long hours when you hit a bump in the road, a major threat and/or opportunity that needs your full attention. However, if you continue to do this as your regular routine, once you complete the startup stage, you are making mistakes that will limit both your life and your business. Either you are not building your team properly or you have become a control freak unable to delegate. In either case you and your business will suffer. In the end you will have regrets. Finding balance, admittedly a subjective decision is critical. Remember the most important human resource in your company is you. So find ways to take vacation; pay yourself fairly, attend courses and travel. Don’t let your business outgrow you.
In addition to determination the other essential ingredient for everyday entrepreneurs is opportunity. All ideas are not opportunities and every opportunity is not viable. Having ideas makes you a dreamer; converting them into reality makes you into an entrepreneur. This does not mean you have to be an innovator. For every innovation there are thousands of entrepreneurs who find applications in the process solving a wide range of problems in the business world. Experience helps you identify opportunity. Empathy can help because it makes you sensitive to problems that exist for others. Most opportunities do start with problems; the bigger the problem the higher the reward for solving it. That’s another aspect of the entrepreneurial mindset – every problem is an opportunity. You do have to be vigilant. All opportunities are not created equally but you have to make the best of what is available. Waiting for just the right one is like waiting for the winning lottery ticket. Often people just don’t see the possibilities but they are always some there if you are looking.
There are many other elements of being an everyday entrepreneur but determination and opportunity constitute the foundation. Most important don’t undervalue what you do. We need to value entrepreneurship at all levels, not just the superheroes like Steve Jobs. If running a business is not for you, work on that entrepreneurial mindset. Job stability is fleeting so manage the business of your career by making good decisions and taking jobs that build your personal brand. Every business today is placing new value on disruptors. These are people who challenge the status quo. Be entrepreneurial in your thinking, you won’t be sorry

The appeal and benefits of pursuing a global economy lie in the theory of comparative advantage whereby global completion will ensure that goods and resources will be allocated in the most efficient way, ensuring the most cost effective production of goods and services to the benefit of all. Yet the more we open ourselves up to globalization the greater becomes the discrepancy in wealth distribution which contradicts the theory. Oh to be sure there is a growing middle class in the highly populated eastern countries like India and China but in effect we are just averaging out the wealth of the poor – improving in the eastern world and declining in the west while those at the top accumulate huge fortunes. Upward mobility  on any kind of scale may be in jeopardy.

Life should be getting better for all of us. Instead large corporations are controlling the marketing of most products largely through effective branding  which allows them to keep the lion’s share of the benefits of low cost production in the form of huge profits rather than either paying a fair price or passing along the benefits to the end user. At the same time the demand for labour is shrinking in relative terms through technology and mechanization undermining wage structures around the world. These large corporations have abandoned their identity as national firms in favour of becoming global entities. They are routed in a culture of control and increasingly rely on acquisitions and outsourcing to give them the innovation and flexibility needed in a fast paced world economy immersed in rapid change. As long as they can control the market they retain control of the profits.

So how do we break this system and allow the mass sharing of the efficiencies being gained? The hope lies in entrepreneurs digging in the corners, finding comparative advantages and getting low cost products to market. The problem is that there are barriers to get products to market and if you manage to break through your company soon joins the club bringing in huge profits.  Rather than breaking the system, those that succeed are embracing it. Greed is a powerful motivation in the face of dynamic achievement. So as it stands now entrepreneurial success lies in pursuing startups and selling out or by leapfrogging through this stage and becoming one of the Bigs. Neither of these trends will break the current trend on wealth distribution which is moving back towards the historical norm.

On a macro level entrepreneurs are the main hope to break the culture of control but there are no guarantees that will happen. On an individual level, pursuing a career as an entrepreneur may be the only ticket to upward mobility. That is why the most important skill anyone can master today is the ability to create and manage their own career. We must all adopt the mindset of the entrepreneur.