Marketplace, from American Public Radio (heard on our own WHYY), ran the piece A gene for entrepreneurship? today.  At the heart of the issue of course is the question of nature versus nurture.  They interview one particular family of somewhat claimed entrepreneurial success discussing the parent’s endeavors and that of two of their three children.  They also go on to discuss the issue with Scott Shane, business professor at Case Western Reserve, specifically around his new book “Born Entrepreneurs, Born Leaders: How Your Genes Affect Your Worklife.” Shane goes so far as to say that “About a third to 40 percent of the tendency to be an entrepreneur is innate.”

This was right on time following a piece by Fred Wilson (of our 2nd favorite startup city), Nature vs Nurture and Entrepreneurship.  Wilson was having a discussion with Professor Raffi Amit who runs the Wharton Entrepreneurial Programs.  On the one side Fred asserted that “you can’t teach people to be entrepreneurs but you can teach entrepreneurs business.”  Professor Amit however disagreed stating that his research indicates “there are no unique and defining characteristics of entrepreneurs.”  In other words, you could teach entrepreneurial skills.

Read the rest of this entry »

Excellent post by @cdixon reminding us that pitching yourself and your team is more important than pitching your idea. Ideas are all over the place but the credibility of a team with a track record is significantly more valuable to a potential investor. Further, when building that core team, make sure that they have the “it” factor with demonstrated ROI.

So, up and to the right?  Your revenue forecast looks like the classic hockey stick projection.  But really, can you deliver?  We all know that those with the cash and you personally want a quick return, but the catch is in whether the results can be delivered.

Perhaps you believe these forecasts; that your business plan is indeed going to achieve greatness quickly.  Your idea is so great that it could only achieve greatness.  If this is the case, stop for a moment and look inward.

The question regarding the attainability of your revenue goals are as much financial as they have to do with your team.  So, before you go out soliciting funds, make sure you have the right team in place.  Sure your team may be your buddies – personal or professional – but are they the right team, are you motivating them properly and are they properly incentivized?

It’s no secret, most start-ups live and die on the founding team’s connections.  Ask yourself, ‘Do I really have deep and strong enough connections to make this thing happen?’  Don’t kid yourself here.  You’re betting your money, your name and best of all (hopefully) someone else’s money on your connections.

In the end, your team – you’re A-team is what will define your business.  Nothing more, nothing less.  All the financial forecasts, road shows and spin won’t change that fact.  Make sure the forecasts you assembly are attainable, consistent with your team and of course, go up and to the right.

On my personal blog Max Sobol : Brainwork, I put together some thoughts related to building startups.

When building your business, don’t get bogged down with administrative perfection. Instead, just get it done with the best’ish approach to each pressing need.

When building your team, choose wisely and don’t settle for mediocrity. Choose true players that “get it”, celebrate group victories and push onward through group failures.

When building your operation, capitalize on your team dynamic by being a smart employer. Focus on what’s important in an effort to maximize productivity and minimize attrition.