Philosophy for Entrepreneurs: Finding Your Way
The following is adapted from The Entrepreneur’s Weekly Nietzsche by Dave Jilk and Brad Feld.
“This — is now MY way, — where is yours?” Thus did I answer those who asked me “the way.” For THE way — it does not exist!
In other words: People often ask me how to do something. I tell them how I do it, but then I ask them how they’re going to do it. Because there is no one way to do something.
Nietzsche’s philosophy emphasizes that there are many ways to look at things and different ways to live. His approach is called “perspectivism,” and we apply it to entrepreneurship by suggesting that there are many ways to build a business and to be an entrepreneur. In this book, we intentionally offer conflicting advice, and we mention the idea of “mentor whiplash” as observed in the Techstars program. In the end, regardless of the advice you receive, you have to make the final decision on the path you and your company take.
Have you ever wondered how experienced businesspeople know what the right answer is in a given situation? They often seem quite certain about the correct path, and they may recommend that you take that same path. They have business experience that guides their beliefs, but have they done controlled, unbiased studies with a representative sample? Have they fully examined the range of conditions under which their view is valid? Almost certainly not. In a few cases, there may be academic research showing that certain approaches work better or worse. Even then, it can be difficult to nail down the precise actions one should take or the range of circumstances in which they are applicable.
Much of the time, businesspeople base their experience and wisdom on anecdotes and ungrounded core beliefs rather than hard empirical evidence. The field of machine learning shows that inference is more effective with more data, so when someone has seen many examples, an intuitive view potentially has some validity, and statistics come into play.
For example, if an executive has built large, successful sales teams at multiple organizations, her instincts on hiring salespeople probably have some merit. In contrast, someone who has built one large, successful business might be able to help you think about your own strategy, and might believe that they know the right strategy for you, but can’t possibly know with certainty that it is correct. Investors who have seen many strategies may have better insights into the specifics of potential strategies. However, never forget that experience is about the past, the world is always changing, and the rate of change is accelerating.
The practice of entrepreneurship is more professional and standardized than a few decades ago. Growth of standardized financing sources, including not only venture capital but also angel networks and accelerators, makes it seem like there is one right way to do things. They all use similar term sheets and comparable board structures. They tend to focus on comparable technology categories. This partially arises from the desire of investors to make their own lives easier, as well as to improve the chances of business success as they define success. The quintessential contrarian entrepreneur of today is one who bootstraps and builds a business without outside financing or accelerator programs.
Even if there is one right way to run your business (and probably there is not), no one actually knows for sure what it is. Agendas and idiosyncratic experiences will color any advice you receive. Thus you must find your own way.
There is a fine line between doing things your own way and making rookie mistakes. First-time entrepreneurs often insist that the way the world works in some respect is wrong and endeavor to do it differently in their own business. Frequently the result is not that the world is changed or improved, but rather that the entrepreneur learns the hard way why the world is how it is. Sometimes the best advice from experienced people consists of simply telling you how everyone does something. This in itself has great value.
Any area in which you attempt to innovate will require considerable effort. If your business not only offers a new product, but also uses an entirely new organizational structure, a novel distribution approach, and a unique financing strategy, good luck to you. Chances are high that while you fight the inevitable resistance in one area, you lose the battle in others. If you want to conquer Europe, don’t try to do it on two fronts at once.
There is a tradeoff. There is no single right way to build and run your business. You must find your own way. But this does not mean that you can do it “any old way” and expect it to work. If you innovate in too many areas at once, you will be crushed by the obstacles you find in every direction. Nietzsche might appreciate this sort of adversity; but remember, he was little known and sold few books during his active writing career.
For more advice on entrepreneurship, The Entrepreneur’s Weekly Nietzsche is available on Amazon.
Dave Jilk is a former serial entrepreneur and startup CEO in information technology. He now writes on entrepreneurship and artificial intelligence, and he dabbles in poetry and philosophy.
Brad Feld is an early-stage investor and entrepreneur who is a partner in the venture capital firm Foundry Group and a Co-founder of Techstars. He’s written a number of books on entrepreneurship and venture capital, including Venture Deals, Startup Communities, The Startup Community Way, Startup Life, and Startup Opportunities.
Dave and Brad met in college and have been friends and business associates for thirty-seven years. This book is their latest collaboration.
