10 Ways to Hack Your Luck - Lessons from 150+ startups

Today, I’m sharing some wisdom about success from 5,000+ ideas, 150+ startups, 50 IPOs/M&A exits, and, perhaps most notably, 60 failures.

But before I do, a small ask for some help -- I'm looking for a few new clients.

On the consulting front, I work with an extensive North American network of former McKinsey, BCG, and Bain (MBB) consultants who have been out in the real world making things happen.

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Now, back to the subject at hand.

Bill Gross , the visionary founder behind Idealab , shared this wisdom at a recent conference. Over the last 50 years, Bill has navigated the rollercoaster of innovation and has some great insights to share.

IMHO, Bill is a brilliant Luck Hacker whose superpower is generating ideas.

He was one of the earliest supporters and investors in the project I led, even though it was ahead of its time, breaking rule #3: Find Great Timing.

Bill’s ten lessons, which come from both his successes and failures, provide valuable insights into becoming a successful entrepreneur and innovator. They serve as a reminder that achieving success isn’t solely about having a brilliant idea; it also involves having the courage, resilience, and adaptability to turn that idea into a reality.

(Please note that the insights belong to Bill; The mistakes, errors, and omissions in telling the tale belong to me.)

Here are 10 critical lessons for success that Bill shared:

#1 Challenge The Status Quo

At the heart of every transformative innovation lies an inherent boldness—a daring departure from the familiar and the conventional. Bill’s experience at Idealab reveals that the boldest ideas have made the most significant impact on the world. This observation underscores a fundamental truth in transformative innovation: the power and necessity of boldness.

Contrarian Truths

Innovation is about challenging the prevailing norms and venturing into the uncharted territories of ‘contrarian truths.’

The term itself implies a deviation from the mainstream consensus, presenting a perspective or solution that starkly contrasts with established beliefs. However, the true challenge—and indeed, the true mark of innovation—lies not in merely opposing the status quo but in uncovering contrarian positions that hold undeniable truth—these rare gems of insight capable of reshaping the world for the better.

The Schopenhauer Paradigm

Arthur Schopenhauer’s observation that “all truth passes through three stages” serves as a warning for innovators who challenge the status quo.

Initially, bold ideas are often met with ridicule and dismissed by the masses as flights of fancy. As these ideas gain momentum, they encounter resistance, facing opposition from entrenched interests and incumbents wary of disruption. Yet, successful perseverance through this skepticism and opposition ultimately leads to the third and final stage—acceptance. When an idea transitions from being derided to being deemed self-evident, it signifies a profound shift in perception and understanding, marking the idea’s impact on the world.

This transformative journey from ridicule to acceptance is not merely a journey; it is a testament to the idea’s inherent value and capacity to enact positive change.

Breakthroughs

Bert Routan’s insight that “the day before something is a breakthrough, it’s a crazy idea” encapsulates the precarious nature of innovation. On the brink of a breakthrough, ideas are often perceived as stupid, crazy, or both. This perception is the firestorm that true innovators must pass. And in my personal experience, this firestorm of all the reasons why you’re wrong is intensely challenging, requiring both resilience and stamina.

A Shift in Perspective Helps

One trick I learned is to stop seeing the feedback as negative and start seeing the feedback as coming from people who care about you enough to tell you what they think. In that feedback, you are likely to hear about things you have never considered – use that to your advantage by adjusting and anticipating the risks others see but you do not.

#2 Use Naysayers As Rocket Fuel

The second lesson is transforming doubt and skepticism into fuel for your ambition, turning the tide of naysaying into a motivating force.

Coco Gauff’s poignant victory speech at the US Open is a powerful testament to this principle. She shared her gratitude towards those who doubted her, recognizing their skepticism as a catalyst for her determination.

The Catalyst of Disbelief

Skepticism, often perceived as a deterrent, can be a profound source of motivation.

Coco Gauff’s ability to transform doubt into an accelerant for her fire is inspiring; it encapsulates a fundamental truth in innovation and entrepreneurship.

Each time you embark on a new venture or introduce a groundbreaking idea, you inevitably face a chorus of doubters. Their skepticism, rather than extinguishing your drive, can serve as a powerful motivator, urging you to prove the feasibility and value of your visions.

Embracing Conviction in the Face of Doubt

The journey through skepticism towards innovation is not for the faint-hearted. It demands an unshakeable conviction in one’s vision and the resilience to use criticism as a stepping stone rather than a stumbling block.

The most groundbreaking companies and ideas often emerge from periods of doubt and uncertainty, propelled by their creators’ unwavering belief in their potential to effect change.

In embracing the skepticism of naysayers as a form of rocket fuel, you acknowledge the paradoxical role that doubt plays in the innovation process. It is a reminder that within every challenge lies an opportunity for growth, and within every voice of doubt, a potential catalyst for transformation.

#3 Find Great Timing

The third lesson is the critical importance of timing.

Timing is not just a factor; it often serves as the linchpin in the success or failure of an idea. Timing is about aligning your innovation with the precise moment when the market and society are ready to embrace it, when the conditions are ripe for adoption, and when the world is prepared to welcome a new paradigm.

The S-Curve of Adoption

Understanding the s-curve of adoption is fundamental to assessing timing. This curve illustrates the adoption lifecycle for new technologies or ideas, from the initial period of slow growth when a new concept is introduced through a period of rapid acceptance to a plateau as the market saturates.

Striking at the right point on this curve is crucial.

Launch too early, and the world might not be ready; too late, and you may miss the wave entirely.

#4 Iterate Like Crazy – Action Produces Information

The fourth cornerstone of success is iteration.

The mantra “iterate like crazy” is more than a strategy; it’s a fundamental principle that drives the evolution of ideas from inception to realization.

Iteration is how ideas are refined, reshaped, and perfected. It’s a journey of continuous learning, where action is the catalyst for discovery and improvement.

Action as a Catalyst for Information

In the dynamic world of startups and innovation, action is the most valuable source of information.

While planning and strategizing are essential components of any venture, they can often lead to paralysis by analysis if not coupled with decisive action. It’s through the act of doing, of implementing ideas and bringing them to life, that you uncover their true potential and the areas that require refinement. Each iteration, each cycle of action and feedback, is an opportunity to learn, adapt, and enhance the original concept.

The Iterative Cycle: Beyond the First Idea

The initial idea, while important, is merely the starting point of a much more complex journey.

The real magic happens in the following iterative cycles, where the idea is subjected to real-world application, scrutiny, and adaptation. This process of iteration is where the actual value of an idea is unlocked as it undergoes transformation and refinement based on actual use and feedback.

Leveraging Feedback

Feedback is the fuel of iteration.

It’s through feedback from customers, users, and stakeholders that ideas are tested against reality. This direct input is instrumental in identifying what works, what doesn’t, and what could be improved. By embracing feedback and integrating it into the iterative process, you ensure that your innovations are technically sound and meet the needs and desires of those they aim to serve.

This iterative approach, driven by action and refined by feedback, is a powerful catalyst for impactful innovation.

It encourages a culture of experimentation, where failure is not feared but embraced as a valuable source of learning. It’s a process that acknowledges the fluid nature of ideas, allowing them to evolve and adapt in response to new information and changing circumstances.

The commitment to “iterate like crazy” acknowledges that the path to success is not linear but cyclical, marked by continuous learning, adaptation, and growth. This relentless pursuit of improvement sets apart successful ventures, transforming good ideas into significant innovations that stand the test of time and change.

#5 Create A Remarkable Offering

The fifth lesson emphasizes the critical importance of crafting a remarkable offering.

In a world saturated with products and services, standing out is not just an option; it’s a necessity for survival and success. A remarkable offering transcends the ordinary, delivering value and experience that captivates and retains the audience’s attention.

The Essence of Remarkability

A remarkable offering leaves an indelible impression on its audience. It goes beyond the basic expectations to deliver something unexpected that turns first-time users into lifelong advocates. This remarkability can stem from various facets of the offering, including innovative features, exceptional quality, unparalleled user experience, or even a unique brand story. The key is to differentiate your offering in a way that resonates deeply with your target audience, making it a choice and a preference.

Beyond Product Excellence

While the inherent quality and innovation of the product form the foundation of remarkability, it’s imperative to think holistically about the entire offering. This includes considering how the product is priced, packaged, distributed, and communicated. Each element shapes the consumer’s perception and experience of the product.

For instance, pricing strategies should reflect not just the value of the product but also the value perception you wish to create in the market. Similarly, distribution channels should be chosen for their reach and alignment with the brand’s image and the target audience’s preferences. Communication and marketing strategies should articulate the unique value proposition of the offering, telling a compelling story that connects with the audience on an emotional level.

Advertising as a Reflection of Remarkability

The adage “Advertising is a tax on being unremarkable” underscores the idea that the need for extensive marketing is often a symptom of an offering’s lack of differentiation. When a product or service is truly remarkable, it generates its momentum through word-of-mouth, social proof, and organic discovery. This doesn’t negate the need for marketing, but it shifts the focus from merely trying to capture attention to amplifying the inherent remarkability of the offering.

In essence, marketing should not be seen as a tool to compensate for a product’s shortcomings but as a means to highlight and celebrate its unique strengths. It’s about telling the story of your product in a way that informs, inspires, and engages your audience.

The Imperative to Stand Out

In today’s competitive landscape, where consumers are bombarded with choices, standing out is more crucial than ever. Creating a remarkable offering requires a deep understanding of your audience, a commitment to innovation and quality, and a holistic approach to every aspect of the product experience. It’s about creating something that meets the needs and exceeds expectations, turning casual users into passionate advocates.

#6 Be Success Sensitive

The sixth pivotal lesson from Idealab’s treasure trove of experiences emphasizes the critical importance of fostering a success-sensitive environment.

This principle revolves around the idea that for a venture to flourish, there must be a profound sense of shared purpose and collective achievement among all stakeholders involved.

It’s about moving beyond individual aspirations to embrace a unified vision of success.

The Power of Alignment

Alignment is the bedrock of success-sensitive cultures. When everyone from the ground floor to the executive suite, from the newest employee to the seasoned investor, is aligned in their goals and efforts, the potential for success multiplies exponentially. This alignment ensures that every team member is not just a participant but an integral contributor to the venture’s journey, deeply invested in its outcomes.

Equity as a Tool for Unity

One of the most effective strategies to achieve this alignment is the equitable distribution of stakes in the company. Sharing equity isn’t just about providing financial incentives; it’s a powerful statement of trust and inclusion. It signifies that every team member’s contribution is valued and their success is intrinsically tied to the company’s success. This shared stake in the outcome fosters a sense of ownership and responsibility, driving individuals to go above and beyond in their roles.

Beyond Financial Incentives

While sharing equity is a tangible means of cultivating alignment, being success-sensitive extends beyond financial mechanisms. It involves creating an environment where open communication, mutual respect, and collective goal-setting are the norms. It’s about ensuring that every team member feels heard, valued, and understood, from acknowledging individual contributions to addressing concerns and challenges as a unified entity.

The Impact of Collective Effort

The emphasis on broad sharing and collective effort is not just a philosophical stance but a strategic one.

When individuals feel genuinely connected to the company’s vision and outcomes, their engagement and commitment soar; this heightened investment leads to more significant innovation, productivity, and resilience, critical ingredients for navigating the complexities and uncertainties of the business world.

Being success-sensitive means recognizing that any successful venture’s heart lies in its people. By cultivating a culture where success is a shared journey, you enhance the potential for achievement and create a more fulfilling, inclusive, and dynamic work environment.

#7 Build A Complementary Team

The seventh essential insight underscores the significance of constructing a team with diverse, complementary skills. The true power of a team is unleashed when it comprises a spectrum of personalities, each contributing unique strengths and perspectives.

The Spectrum of Team Dynamics

Understanding and appreciating the diversity of skills within a team is pivotal.

Bill categorizes these into four primary types: Entrepreneurial (E), Producer (P), Administrator (A), and Integrator (I). Each of these roles brings a distinct set of capabilities and approaches to problem-solving:

Entrepreneurial (E): Entrepreneurs are visionaries who dream big and push boundaries. They are the source of innovative ideas and the driving force behind the venture’s direction.

Producer (P): Producers are the doers. They transform ideas into reality, ensuring that projects are completed efficiently and effectively. Their focus is on execution and delivery.

Administrator (A): Administrators provide the structure and organization necessary for sustainable growth. They are the ones who ensure that the i’s are dotted and the t’s are crossed, bringing order to the creative chaos.

Integrator (I): Integrators are the glue that holds the team together. They navigate interpersonal dynamics, resolve conflicts, and ensure that the various parts of the team are working in harmony.

The Harmony of Differences

The interplay between these diverse roles can be complex, as each brings a different viewpoint and approach. For instance, where an Entrepreneur might see endless opportunities, an Administrator might see potential risks and operational challenges. Similarly, a Producer focused on delivering a project might clash with an Integrator striving to maintain team harmony. Recognizing and valuing these differences is crucial for creating a balanced and effective team.

The Value of Complementary Skills

Building a team with complementary skills means ensuring each member’s strengths address another’s weaknesses, creating a well-rounded and versatile unit.

This diversity requires a mutual respect and trust culture, where each team member feels valued for their unique contributions. It’s about creating a synergistic environment where the sum exceeds its parts.

Constructing a complementary team is an art form that requires insight, intentionality, and a deep understanding of human dynamics.

It’s a strategic endeavor beyond mere skill matching to foster an ecosystem of collaboration, innovation, and mutual success.

#8 Be A Personal Growth Learning Machine

The eighth lesson underscores the essence of becoming a relentless advocate for personal growth.

This principle goes beyond mere skill acquisition; it’s about cultivating a mindset perpetually geared towards self-improvement and learning. It’s about recognizing that the path to personal and professional excellence is an ongoing journey, not a destination.

Adopting the mindset of a “personal growth learning machine” involves a commitment to constant learning and adaptability. It’s about viewing every experience, whether a success or a setback, as an opportunity to glean insights and evolve. This approach transforms how you perceive challenges, turning obstacles into stepping stones for growth.

Bridging the Gap to Aspirations

The journey towards the person you aspire to become can often seem daunting, marked by a chasm between your current state and your ideal self. The key to navigating this journey is to break it down into manageable, incremental steps. By setting small, achievable goals, you can consistently progress toward your larger aspirations, gradually closing the gap between where you are and where you wish to be.

Learning from Role Models

One effective strategy for personal growth is to identify and learn from individuals you admire. These role models can provide valuable blueprints for success, offering insights into the behaviors, strategies, and mindsets that have propelled them to their current standing. You can accelerate your growth trajectory by emulating these traits while tailoring them to our unique contexts and personalities.

The Power of Small Wins

The incremental approach to personal growth emphasizes the power of small, consistent improvements. It’s about celebrating each step forward, no matter how small, and recognizing that these cumulative advancements lead to significant transformations over time. This philosophy encourages resilience, patience, and a long-term perspective on growth and development.

Entrepreneurship is a Catalyst for Growth

Entrepreneurship is a domain where personal growth is both essential and inevitable. The entrepreneurial journey, with its inherent challenges, uncertainties, and opportunities for innovation, demands a high degree of personal evolution. Entrepreneurs must continuously adapt, learn, and grow in response to the dynamic landscapes they navigate, making personal growth an integral component of entrepreneurial success.

In essence, becoming a personal growth learning machine is about embracing the journey of continuous evolution, viewing every day as an opportunity to learn, improve, and inch closer to our fullest potential.

It’s about cultivating a mindset that welcomes change, values learning, and relentlessly pursues self-improvement, laying the foundation for personal fulfillment and professional excellence.

#9 Assess Your Commitment

The ninth lesson emphasizes the pivotal role of deep-seated commitment in pursuing success.

Genuine commitment transcends mere interest or enthusiasm; it is the bedrock upon which enduring achievements are built. This lesson underscores the necessity of being committed to an endeavor and being profoundly dedicated to seeing it through, regardless of the challenges that may arise.

The Litmus Test of Commitment

In an exercise with students at Cal Tech, the concept of commitment was brought to the forefront by asking them to not only ideate but also critically evaluate their willingness to dedicate time and effort to their chosen ideas. This exercise wasn’t just about gauging their enthusiasm but about understanding the depth of their commitment. The inquiry into how long they were willing to invest in their idea – a week, a month, a year, or a lifetime – served as a litmus test for their dedication.

Commitment as a Catalyst for Persistence

The level of commitment to an idea or project is often the deciding factor in its potential for success. A high degree of commitment fosters resilience, enabling individuals to persevere through setbacks, criticisms, and failures. This unwavering dedication fuels the relentless pursuit of goals, turning obstacles into opportunities for growth and learning.

Choosing the Path of Commitment

The process of evaluating commitment encourages introspection about what truly matters to you. It’s about identifying the endeavors that resonate deeper and align with your values, passions, and long-term vision. This alignment between personal values and professional endeavors ensures that the journey, despite its challenges, is meaningful and fulfilling.

Beyond the Idea: The Role of Commitment in Innovation

In the realm of innovation, where uncertainty is the only certainty, commitment is essential.

It’s what keeps you going when everything seems to be going wrong – and it always does, thanks to Murphy and his law.

#10 Be Persistent

The tenth and final lesson places a spotlight on the indispensable virtue of persistence.

The path to creating something truly remarkable is fraught with emotional highs and lows, embodying what can be described as a journey through a metaphorical “dark swamp of despair.” This phase, characterized by mounting challenges and dwindling hope, is where the resolve to persist is crucial.

Navigating the Emotional Landscape

The initial euphoria of a groundbreaking idea will give way to the harsh realities of life.

Obstacles emerge, plans falter, and the once-clear vision becomes mired in doubt. It is within this “swamp,” that many falter, tempted to abandon their pursuits.

It is here that persistence becomes invaluable. The ability to persevere and continue in the face of seemingly insurmountable challenges separates fleeting endeavors from enduring legacies.

Even the Best Must Pass Through the Swamp

The journeys of all great innovators, like Walt Disney and Steve Jobs, are punctuated by periods of profound despair. Yet, their unwavering persistence propelled them beyond these troughs of disillusionment, leading them to redefine their industries. Their experiences underscore a universal truth in innovation: the road to success is invariably paved with trials and tribulations.

Learning from Failure: The “At-Bat” Philosophy

Reed Hoffman’s narrative, shared at a Lean Startup conference, offers a compelling perspective on persistence. His journey with LinkedIn, preceded by two unsuccessful ventures in social networking, illustrates the value of viewing each attempt as an “at-bat” in baseball. Failure is not a signal to abandon the game but an opportunity to refine one’s approach, learn from the experience, and step up to the plate again with renewed insight and determination.

This philosophy of treating each endeavor as a learning opportunity rather than a definitive outcome fosters a culture of resilience. It encourages innovators to view setbacks not as ends but as waypoints in their journey, each offering invaluable lessons that contribute to their growth and eventual success.

The Dawn Of A Golden Era For Innovation

In today’s interconnected world, the potential for impact is boundless.

The digital age has democratized access to information, resources, and audiences, making it an unprecedented time for innovation. Our collective capacity to effect change is no longer confined by geographical boundaries but is limited only by our imagination and, crucially, our persistence.

In essence, persistence in the face of adversity is not just a lesson; it’s a fundamental principle for anyone venturing into the uncertain yet exhilarating realm of innovation.

It’s a call to embrace the challenges, to learn from every setback, and to persist unwaveringly towards your goals. In doing so, you have the opportunity to realize your visions and contribute to a better, more innovative world.

Footnotes:

Post: Original post at https://www.alexnesbitt.com/articles/the-path-to-success-10-lessons-from-150-startups/

Source video: https://www.youtube.com/watch?v=BB9kSBbFmJA

Until next time, be strategic; Be someone who happens to the world.

Best,

Alex

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