Stop Trying To Make A Squirrel Fly!

[NeoDialectic]

This thread will have two parts. Part one is advice to aspiring entrepreneurs while part two is a request from those that have a good amount of business experience.

Part 1​

I wholeheartedly agree with the Fastlane notion that your business should not have to be based on your passions.

HOWEVER

I think that the proliferation of this idea has led to a lot of beginners trying to make a squirrel fly. There are unlimited ways to provide value and make money. While your business should not be limited to things that you are passionate about, you should choose a type of business or a way to run your business that is amenable with your personality and life circumstances.

It seems like so many entrepreneurs that I personally know are imitating pop entrepreneurs that are nothing like them or trying to copy methods that are clearly not consistent with their lifestyle. Instead they should live their lives and think of ways that they could provide value to others. Copying others is smart. But only if you are ready to accept both the advantages and disadvantages of the actions.

Example of what this looks like in real life:

In my intro, I mentioned how my first relatively successful business was in affiliate marketing. Part of what made me successful was my willingness to sit on the computer all day figuring stuff out and adjusting inputs/outputs. There were times in my career where I "worked" 12+ hr days, 7 days a week. Telling me that I had to "work" more that day was the equivalent of threatening me with a good time. If you are a super extroverted person that needed to talk to people all day to feel fulfilled, you would have an extremely hard time competing against me in a space with that requirement. While you are burning through mental energy and discipline just to stay seated, I was excited to be on the computer and could use that energy on other problems.

So I would say that my personality type was a big advantage in the business I chose at the time, while a typical politicians (random example) personality type would be a huge disadvantage. They love being out there, talking to people, shaking hands, attention, etc.

Think of this idea as an addition to CENTS, where violating this doesn't mean you can't be successful. It's just that abiding by this idea will help maximize your chances of success.

Also keep in mind that there are no hard set requirements for any venture. Someone can do affiliate marketing with good ole fashion in-person hand shaking. But certain methods, paths, and business models will invariably demand certain things. You could still jump on idea X that requires you to do a lot of things you don't want to do. You would just need to approach it with your eyes wide open. You would need to do it in a way that is consistent with your ability or make it a point to hire or partner with someone that could eventually fill that role more effectively.

So when thinking about what starting your business, make sure to ask yourself the following:

What are the typical demands of a business of this type and will my life circumstances and personality be a benefit or detriment to my success?

This shouldn't be used as an excuse to not do action though. It is a perfectly reasonable answer to say "well I don't know exactly what I am ok with and/or my environment is very flexible". Start jumping on all opportunities and sooner or later you will hone in on what is right.

Part 2​

If you have a good amount of experience in business, the rest of us would really love to hear your nuggets of wisdom on this topic. Keep in mind that I am not saying your answers are obstacles that cannot be overcome. Simply that these things would be big obstacles.

1. What kind of personality traits do you think would be advantages in your business?
2. What kind of personality traits do you think would specifically be detrimental to your business?
3. What kind of life circumstances do you believe are detrimental to your business? (ex. It would be very difficult to be a real estate developer with no experience in real estate and no starting capital of your own)

 

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[Antifragile]

Hi @NeoDialectic

Thank you for the post and directing me here to provide an answer. I wonder how many people will feel comfortable proclaiming they have been successful in their businesses.

If you have been successful in your business, the rest of us would really love to hear your nuggets of wisdom on this topic.

I am perpetually dissatisfied, and people who know me in the real world (vs forum/internet) know my persona and demeanour ... they know that I am genuinely of the belief that I am just starting out. Yes, even after all these years...

At the same time, it is not lack of confidence either. It is that I sincerely believe I could be doing so much more and want to do more.

I write this to highlight that in my own mind, I am nowhere near what I would see as "have been successful in business". Enough of that philosophy... in practical terms, I co-founded two businesses. First one I am now a passive shareholder, my partner runs it as CEO. He's doing great and 90%+ credit goes to him for current level of success. I'll take the 10% from vision and some business set up rules that served us well over the years.

My 2nd business has been profitable from year 1 and is where I spend more of my time. It is a bit of both: passion and where I make the most money. This is my real estate development business. And as I said above, I feel like I am just getting started because I know and want to do 10x and then 10x again. It has nothing to do with numbers, but a personality thing. As @Kak (who I reference a lot because I believe he's very wise, at such young age too for that level of wisdom) says "I want to leave a legacy".

My answers to your questions come from my RE Development "start up" business...

1. What kind of personality traits do you think would be advantages in your business?

You nailed it. Advantage is very important and I'll take every fair and unfair advantage I can find. Business is hard enough as it is. It's sometimes impossibly hard, why make it even harder. Unlike you, I cannot sit 12 hours a day for 7 days in front of a computer. It is not my natural state. But I can obsess about strategy, meet people, read ferociously, work on psychology of persuasion through the night... if I have a negotiation upcoming. Somewhat like @Kung Fu Steve mentions many times from his experience with Tony Robbins.

This obsession with being able to negotiate a deal fit very well with RE development. Best short description of what our business does daily is - we negotiate. Surprised to hear that? Consider that we have up to 300 consultants, workers, government workers, politicians etc. to convince of our vision for a site to make it happen. Some we can just tell (think "I am paying you, do it this way") but a large number of people aren't like that. Architects are independent, our Quality Surveyors are too, banks, councillors, mayors, appraisers, community! Yes, if public is not convinced, they can stop us from doing development. The list goes on and on...

Being able to negotiate, nurturing people to agreement - that is probably key advantage in our business.

The other two are a little more obvious:
- being good with numbers (liking those excel sheets) is an asset for access to capital
- also being social (imagine that, people who are good with number and good socially! yikes!) helps knowing who to ask for capital, managing brokers, vendors, hiring good people etc.

1. What kind of personality traits do you think would specifically be detrimental to your business?

Being completely inflexible and "rule" bound. Let me explain. Looking at zoning for a site and only doing what it says will not be profitable. Money is hidden in interpretation of what you read. I haven't met any successful developers who are rigid.

Note that I didn't say "introverted"! That's because it is not detrimental. I found that most introverted people are typically capable of being more creative than those who are fully extroverted. This helps in our business.

The best solution to the juxtaposition of introvert + social skills? Partner with people who compliment your skills (that is what I did).

1. What kind of life circumstances do you believe are detrimental to your business? (ex. It would be very difficult to be a real estate developer with no experience in real estate and no starting capital of your own)

This is limiting thinking and is true if you believe it to be true.
Let's break it down:
Money: if you have no money and no access to money, you can think it's impossible to become a RE Developer. Well... I had no money and no access to money at first. I got a job. I built a network and found money for my employer! When I left to go on my own, I already had those relationships.
Experience: one could say that because RE Development is so complicated, if you've never done it is detrimental to your success. If you think it so, it will be so. But then... I don't need to have all the skills at once. I just need to know that I can put a team together to compliment whatever is missing. And just like with money, I chose to get a job first.

Many years ago I had a breakfast with a very successful RE Developer. He was volunteering his time to the rest of us young people and he asked our group (maybe 4-5 of us) about money. Do we think you must have money to become a developer? Almost everyone said "yes", I said "no". Even back then I knew it was just another problem that can be solved.

In fact, I'll go as far as to say that having money can hurt your chances of being great. I've seen the start of Kit & Ace brand, funded by Chip Wilson (Lululemon for those who don't know, a billionare). They wanted to occupy space in our building and I told my bosses back then to be careful. To their surprise. Why? I explained that I am always concerned when a business grows because it has money, it loses that start up quality of decision making. To protect ourselves I asked them for a massive deposit and they said yes. Less than 2 months later, they started shutting down stores all over and the company was in deep trouble.

On a lighter note:
When I first started our business I slept like a baby - woke up every 3 hours and cried.

 

[NeoDialectic]

Hi @NeoDialectic

Thank you for the post and directing me here to provide an answer. I wonder how many people will feel comfortable proclaiming they have been successful in their businesses.

I am perpetually dissatisfied, and people who know me in the real world (vs forum/internet) know my persona and demeanour ... they know that I am genuinely of the belief that I am just starting out. Yes, even after all these years...

At the same time, it is not lack of confidence either. It is that I sincerely believe I could be doing so much more and want to do more.

I write this to highlight that in my own mind, I am nowhere near what I would see as "have been successful in business". Enough of that philosophy... in practical terms, I co-founded two businesses. First one I am now a passive shareholder, my partner runs it as CEO. He's doing great and 90%+ credit goes to him for current level of success. I'll take the 10% from vision and some business set up rules that served us well over the years.

My 2nd business has been profitable from year 1 and is where I spend more of my time. It is a bit of both: passion and where I make the most money. This is my real estate development business. And as I said above, I feel like I am just getting started because I know and want to do 10x and then 10x again. It has nothing to do with numbers, but a personality thing. As @Kak (who I reference a lot because I believe he's very wise, at such young age too for that level of wisdom) says "I want to leave a legacy".

Good point. I changed the wording in my post to more accurately reflect what I meant. In the context of this forum, I consider someone to be successful in business if they have reached goals they previous looked up to. The actual journey is never ended and you never "fully" succeed!

I've never seen what I do as exceptional and to be honest during most parts of my life it usually feels like like I am not doing nearly enough. Growing older, I have learned to occasionally look back and smell the roses. Seeing how much has been accomplished over years, versus focusing on WHAT HAVE I DONE TODAY levels me out a bit these days and has made me more comfortable to wear the "successful" badge in certain contexts.

My answers to your questions come from my RE Development "start up" business...


You nailed it. Advantage is very important and I'll take every fair and unfair advantage I can find. Business is hard enough as it is. It's sometimes impossibly hard, why make it even harder. Unlike you, I cannot sit 12 hours a day for 7 days in front of a computer. It is not my natural state. But I can obsess about strategy, meet people, read ferociously, work on psychology of persuasion through the night... if I have a negotiation upcoming. Somewhat like @Kung Fu Steve mentions many times from his experience with Tony Robbins.

This obsession with being able to negotiate a deal fit very well with RE development. Best short description of what our business does daily is - we negotiate. Surprised to hear that? Consider that we have up to 300 consultants, workers, government workers, politicians etc. to convince of our vision for a site to make it happen. Some we can just tell (think "I am paying you, do it this way") but a large number of people aren't like that. Architects are independent, our Quality Surveyors are too, banks, councillors, mayors, appraisers, community! Yes, if public is not convinced, they can stop us from doing development. The list goes on and on...

Being able to negotiate, nurturing people to agreement - that is probably key advantage in our business.

The other two are a little more obvious:
- being good with numbers (liking those excel sheets) is an asset for access to capital
- also being social (imagine that, people who are good with number and good socially! yikes!) helps knowing who to ask for capital, managing brokers, vendors, hiring good people etc.



Being completely inflexible and "rule" bound. Let me explain. Looking at zoning for a site and only doing what it says will not be profitable. Money is hidden in interpretation of what you read. I haven't met any successful developers who are rigid.

Note that I didn't say "introverted"! That's because it is not detrimental. I found that most introverted people are typically capable of being more creative than those who are fully extroverted. This helps in our business.

The best solution to the juxtaposition of introvert + social skills? Partner with people who compliment your skills (that is what I did).



This is limiting thinking and is true if you believe it to be true.
Let's break it down:
Money: if you have no money and no access to money, you can think it's impossible to become a RE Developer. Well... I had no money and no access to money at first. I got a job. I built a network and found money for my employer! When I left to go on my own, I already had those relationships.
Experience: one could say that because RE Development is so complicated, if you've never done it is detrimental to your success. If you think it so, it will be so. But then... I don't need to have all the skills at once. I just need to know that I can put a team together to compliment whatever is missing. And just like with money, I chose to get a job first.

Many years ago I had a breakfast with a very successful RE Developer. He was volunteering his time to the rest of us young people and he asked our group (maybe 4-5 of us) about money. Do we think you must have money to become a developer? Almost everyone said "yes", I said "no". Even back then I knew it was just another problem that can be solved.

In fact, I'll go as far as to say that having money can hurt your chances of being great. I've seen the start of Kit & Ace brand, funded by Chip Wilson (Lululemon for those who don't know, a billionare). They wanted to occupy space in our building and I told my bosses back then to be careful. To their surprise. Why? I explained that I am always concerned when a business grows because it has money, it loses that start up quality of decision making. To protect ourselves I asked them for a massive deposit and they said yes. Less than 2 months later, they started shutting down stores all over and the company was in deep trouble.

On a lighter note:
When I first started our business I slept like a baby - woke up every 3 hours and cried.

Thank you for passing along your experience. I knew I was potentially stepping on a landmine prescribing limitations on topics I don't have experience in. I'm glad you stepped in and corrected me!