If you listen to a guy like Alex Hormozi talk, he will tell you how much he admires and aspires to be like Warren Buffet or Charlie Munger. Although those two guys are great, they don’t do it for me…this is mainly because Buffet & Munger are boring investors, not pure bred entrepreneurs.
Entrepreneurs are creators, and creators like to start and build new things.
Buffett and Munger are incredible at spotting great businesses, but they avoid start-ups and venture investing because they don't understand them and are risk-averse. However, if you are an entrepreneur, you are perfectly comfortable with risk; in fact, it is a prerequisite. This is why, as entrepreneurs, we should be careful in applying Berkshire Hathaway's principles to starting up.
Alternatively, we should be listening to the Warren buffet of start-ups, Bill T Gross.
Gross established IdeaLab, a venture incubator, in 1996. He started over 150 companies in various sectors, such as renewable energy, software, and internet services, and raised nearly $ 1 billion.
Remarkably, of the 150 companies launched via IdeaLab, 60% of them succeeded. As a result of his accelerated, firsthand experience, Bill Gross has identified 12 invaluable insights about success that we can apply to our companies.
12 Rules For Startup Success from Bill Gross
- Passion Over Greed: Let passion drive your venture, not the lure of wealth.
- Frugality: Treat every dollar as your last and make it stretch.
- Hiring Excellence: Only keep A-players. Be swift in letting go of underperformers.
- Honest Communication: Always be realistic and focused. Avoid exaggeration.
- Decisive Action: A swift, good-enough decision is better than a delayed opportunity to launch a perfect one.
- Adaptability: Be open to admitting mistakes and changing course.
- Acknowledgment: Give credit generously. Celebrate team achievements.
- Wise Company: Surround yourself with those who know more than you.
- Equity Sharing: Incentivize your team by offering stakes in the company.
- Complementary Skills: Embrace diverse skills. The answer lies in 'who', not 'how'.
- Rapid Iteration: Embrace fast, low-cost testing and continuous improvement.
- Culture of Innovation: Encourage experimentation and learning from failures.
Takeaway for Entrepreneurs
Bill Gross’s journey reiterates that entrepreneurship is as much about smart strategies as it is about the grit to persevere and innovate. The lessons outlined above are not just theories but practical, actionable insights that can guide you in navigating the complex yet exciting world of startups.
Remember, the path of entrepreneurship is as challenging as it is rewarding. Embrace these lessons from Bill Gross as you chart your unique journey.
Watch Bill's Ted Talk: The single biggest reason why start-ups succeed
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