Idea or Skilled Focused Entrepreneurs

The majority of entrepreneurs start their businesses based on what they feel is a unique idea they can turn into a profitable business.? Their idea may involve finding a way to solve a customer’s problem, or it may involve finding a market for a new product or technology they have developed.? ??Either approach can be successful, presuming the entrepreneur can validate market demand by answering the question:

“We are solving a problem that prospects agree needs to be solved now and are willing to pay us for it.”

There is another equally valid category of entrepreneurs that do not seem to get the same attention but probably have a better chance of achieving success – as they define it.? Those entrepreneurs have a unique skill valued by others who are willing to pay for access to it.? The special skill can involve a talent such as an artist or can be based on their training and experience.? The individuals in the latter category are referred to as Subject Matter Experts or SMEs.?

I define Artists as someone who creates something in some media.

I define Subject Matter Experts as someone with insightful knowledge in a specific area.

From a business perspective, both definitions can be extended with the comment “that is valued by others.”

Some examples of talent or skills-based entrepreneurs are:

The advantage that artists and SMEs have over their “idea” entrepreneur counterparts is that they can usually commercialize their “product”? -- their talent or expertise -- much faster than those attempting to implement their idea.

Subject Matter Experts become experts based on their education, training, and, most importantly, their real-world experience.? So, in general, they are more “seasoned” than those involved in the arts.? We have all seen young artists, many of whom are in their teens, that exhibit extraordinary talent.? That talent can, of course, be refined and honed over the years.? Unlike SMEs, artists can begin their business pursuits based on their rare talent instead of their curated knowhow.

Artists and, to a somewhat more limited extent, SMEs can incrementally enter the business easier that Idea-based entrepreneurs.? The artist/SME journey can move from one phase to the next:

Pass Time -> Hobby -> Part-Time -> Lifestyle Company -> Exit Focused (Merger or IPO) Company

They can stop anywhere along the path based on their long-term goals.

The path for idea-based entrepreneurs typically does not have the Past Time and Hobby phases.? Instead, they start working alone and follow a rather complex journey encountering many pitfalls and detours along the way to receiving revenue.

However, Artists and SMEs have a significant disadvantage in scaling their business since it is based on their individual involvement. ?With artists, they have to create one thing at a time, and SMEs have to work with one client at a time.

To scale their businesses, artists have to find a way to replicate what they have created, and SMEs have to find a way to generalize and document their expertise.? However, replicating and documenting is not enough.? Each entrepreneur needs to find a way of addressing a host of business-related issues that, most likely, involve skills and training that they do not possess.? As an example, which is common to artist, SME, and “idea” entrepreneurs, all must have the ability to:

Create -> Produce -> Market -> Sell -> Fulfill -> Support their customers.

Further, they need to provide the “back office” activities, including finance, legal and H/R.? It is very rare indeed, to find an individual that is talented and motivated to perform all of the tasks required.? One of the keys to success for every entrepreneur is embracing the notion that they cannot do it alone.? They need to rely on others to help them address all of the elements required for the business.

A common trap that many entrepreneurs fall into is to hire their “clone” when confronted with all of the required tasks.? Their “logic” is: “I am so busy with all of these tasks; I need to hire someone to help me.”? All of us naturally seek help or companionship from others who mirror ourselves.? Successful entrepreneurs do the opposite – they partner with their opposite.? Those “opposites” can bring the required skills to the table to provide a complete solution by addressing all of the “other” things that the entrepreneur cannot or does not want to address.? The “opposites” could be co-founders, employees, contractors, or other companies.? Usually, it is a combination of different talented people or organizations.? The key is to work with the right experts at the right time on the right issues at hand.? Unfortunately, knowing the “right” people and the “right” things to do is only clear in hindsight.? To help avoid this trap, it is necessary to find and rely on a mentor.

A mentor is someone with the experience and willingness to help you, the entrepreneur, with the almost countless decisions and situations you face daily.? Their goal is simple:? To help you be successful, not to just make you feel good.? They will help:

·?????? Identify what you do not know.

·?????? Identify what you should do and when you should do it.

·?????? Identify what you should not do.

·?????? Stay on track and remain focused.

·?????? Prioritize your activities.

·?????? Find the necessary resources.

·?????? Be accountable.

·?????? Determine if or when you should pivot.

The above list details what a mentor can do for you but who makes a great mentor?? The following are some attributes to look for:

The last item on the list is the most important.? Your relationship must be based on trust and respect.? With their relevant experience and, probably, “skinned knees” from stumbling over many of the same issues that you face, their advice and counsel will be very helpful.? Many entrepreneurs fall into the trap of selecting a mentor with unwittingly biased experience.? Two extremes are illustrative of this trap.? At one extreme is the retired CFO or CEO of a major corporation with no startup experience.? It is doubtful that they have ever had to worry about making payroll.? At the other extreme is an entrepreneur that has had one successful exit.? Serial entrepreneurs, especially entrepreneurs who have stumbled along the way, will be far more aware and sensitive to issues you are likely to encounter.

Eliyahu Goldratt. ?A famous business consultant once said” “An expert is not someone who gives you an answer, an expert is someone who asks you the right question.” This notion equally applies to mentors.? By probing and asking, instead of telling, they can help an entrepreneur reach their own conclusions.? However, a mentor can only be effective if the entrepreneur is willing to listen objectively, keeping their passion, emotions, preconceived ideas in check.

This article may seem overwhelming or discouraging.? Its purpose is to make entrepreneurs aware of the broad issues they will face.? As a first step, the articles listed below are intended to help you get started –

How do you find a mentor?? Ask.? Someone you know will introduce you to one.? It is that simple!

?By: Tom Berger