"Mean People Fail: Insights from Successful Founders and Investors"

Hatched by Kazuki
Jul 09, 2023
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"Mean People Fail: Insights from Successful Founders and Investors"
In the world of entrepreneurship and startup success, it's fascinating to observe how few of the most accomplished individuals are mean-spirited. While there may be exceptions, the overwhelming trend shows that mean people tend to fail.
One reason for this phenomenon is that being mean makes you stupid. Engaging in fights and conflicts hinders your ability to do your best work. Fights are narrow and specific, whereas success in startups requires a broader and more general approach. Startups don't win by attacking; they win by transcending challenges and finding innovative solutions.
Furthermore, mean founders often struggle to attract the best talent to work for them. Unless they possess exceptional persuasion skills, it is challenging for mean individuals to convince top-tier professionals to join their teams. Building great things requires a spirit of benevolence and a collective effort from talented individuals who are motivated by a shared vision.
Interestingly, the startup founders who achieve the greatest financial success are not primarily driven by money. Instead, they are motivated by a passion for creating and making a positive impact. When we think of successful people throughout history who weren't ruthless, we often find mathematicians, writers, and artists. Their motivation was not solely monetary but rather the desire to spread knowledge, inspire, and innovate.
In Peter Thiel's CS183 class notes essay, he emphasizes the importance of having a small and effective board. Three people is considered the ideal size as it minimizes coordination issues. The more individuals involved, the more challenging it becomes to align everyone's goals and actions.
One common mistake made by venture capitalists (VCs) is focusing solely on the product and neglecting other crucial aspects of a startup. If a VC believes in an idea and backs a company that fails to execute it successfully, it doesn't necessarily mean the idea was flawed. It may still be a good investment if someone competent attempts the same concept later on. VCs who systematically track failures can identify valuable opportunities that others may overlook due to past negative experiences.
Timing plays a significant role in startup success. Entrepreneurs often face the challenge of being too early or too late. Being too early can result in burning through capital and having outdated technology or infrastructure by the time the market is ready. Conversely, being too late means missing out on opportunities and being overshadowed by competitors who arrived at the right time.
To mitigate the risks associated with timing, entrepreneurs should consider taking an indirect approach whenever possible. Trying to compete directly can be challenging, but innovation and finding alternative paths can lead to success. The expansion of the internet from around 50 million users in the '90s to approximately 2.5 billion today illustrates the importance of timing. Entrepreneurs must innovate at the right time, capitalizing on trends and market readiness.
Distribution strategy is another critical factor in startup success. Many entrepreneurs who build exceptional products overlook the importance of a solid distribution plan. Some even believe that a viral marketing strategy is enough, but this can often lead to failure. Having a clear and effective distribution strategy ensures that your product reaches the right audience at the right time.
When it comes to board members, it is crucial to have individuals who can add value and make informed decisions. In times of crisis, the knee-jerk reaction is often to take action. However, bad board members may not see the bigger picture and can worsen the situation. It's important to have board members who can provide guidance and make thoughtful decisions.
In conclusion, the connection between mean-spiritedness and failure in the startup world is evident. Successful founders and investors understand the importance of being kind, driven by a sense of benevolence, and focused on creating a positive impact. Additionally, factors such as timing, distribution strategy, and board dynamics greatly influence startup success. To increase the chances of success, entrepreneurs should consider these insights and take actionable steps:
- 1. Cultivate a spirit of benevolence and prioritize collaboration and teamwork.
- 2. Pay attention to timing and market readiness, ensuring your innovation aligns with the current landscape.
- 3. Develop a solid distribution strategy to effectively reach your target audience and maximize growth potential.
By incorporating these principles and taking thoughtful actions, entrepreneurs can increase their chances of success in the dynamic and competitive world of startups.
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