Never start just a single startup
How most startups are built is super contradictory to both common sense, logic and what history has told us. It seems like most entrepreneurs prefer playing the lottery rather than doing the right poker bet.
Ok, ok — I know that’s a pretty harsh thing to say, but please let me explain. I will share four facts I am confident you agree with, followed by key take-aways on how startups should be created to optimize the likeliness of success.
In case you don’t remember, EdTech Foundry is a startup factory focused on building technology for higher education. We dedicate specialized teams for the very first stage of a company life cycle.
Well-known fact 1: Focus, focus, focus
Forbes, 99u, inc, random guys, founder institute and pretty much everyone else say the same thing: To be really great at something — you must focus. Focus, focus, focus.
You might think super humans like Michael Jordan, a basketball champ, could be good at pretty much anything he wanted to. In 1994, the 31 year old Jordan decided to quit basketball and go all in on baseball. That should be easy for one of the best athletes in the world, right? Two years later, Jordan was back in basketball as a baseball flop.
The math is pretty straight-forward. The more time you spend on one thing, the better you become at it. The 10.000 hours rule is most likely wrong, but still, the more you focus, the more likely you are to create the next big startup success.
Key take-aways:
Specialize in one industry, work with one project at a time, and be fully aware of your own and team members expertise.
How we do it:
a) We dedicate teams for one project a time or one expertise only.
b) We only build technology for higher education.
Well-known fact 2: Learn from failures
Most of the progress in the world is based on trial and error (no need to link to articles on this subject, just google Edison if you want references.) Failing it’s the best way to learn. Agree?
Good.
Now that we agree, let me ask you a question: What is the probability a first-time founder will succeed?
I find myself baffled by the mindset of one-time founders. Building a new company is one of the most complex things you can do, and it requires training. Yet, people believe they can make it work the first time around? Crazy.
Key take-aways:
Never plan to do just one startup. Plan to do either lots of them or none at all. Maybe you are better off joining a startup or specialize in something niche?
How we do it:
a) Build an edtech startup factory and create lots of similar products.
b) We specialize in the first phase of a startup only. When startups have gotten enough traction, we find CEOs who know how take them to the next level.
Well-known fact 3: Do stuff you care about
The stuff you really care about doesn’t feel like work, and tends to result in a better outcome. Like the stuff you do!
If you want extraordinary results, you should truly care about what you do. Or the other way around, do what you truly care about. A lot of people are driven solely by money, without ambition to create awesomeness and make an impact. This will wear you out in the long run.
I am confident you agree. If not, do some research on the link between happiness and work.
Key take-aways:
Find your passion, understand how you can make an impact, and follow your dream.
How we do it:
a) We hire based on passion. If it doesn’t give you the chills to think about all the lives we can improve with well-created educational technology, we simply don’t want to work with you.
b) We ask people to take a pay-cut and give salary partly in stock options. Not willing to? Well, we’re not the best match.
Well-known fact 4: Don’t ever underestimate personality types
People are different. We have different preferences and we thrive in different environments. Some like to start stuff, others like to structure the pieces or continue adding new pieces. That’s obvious, you might say. Well, yes — it is!
Yet, finding the right personality types to match a job might be the most underrated task in any hiring process.
For startups, it’s even worse. We almost neglect personality types and company stage analysis. The skills needed in an early-stage startup, a growth-company, and a bigger corporation are very different. The kind of people needed changes as a company grow. It might be the same expertise field, but not the same personality type.
Key take-aways:
Create teams based on personality types. Make it a priority! Skills can be acquired and learned, but personality types will most likely remain the same no matter what.
What we do:
a) Look for certain personality types when we hire, not only skills.
b) Match the personality types and stage in the company life cycle. (read more)
EdTech Foundry is a startup factory focusing on building technology for higher education and dedicate specialized teams for the very first stage of the company life cycle.
Hope this article explained why.
