Despite the high failure rate of 90% for startups, many still enter the game with the hope of beating the odds and creating the next billion-dollar enterprise through a brilliant idea and a strong work ethic. However, the harsh reality is that these factors alone cannot ensure success. Various other factors, such as location and mindset, play a significant role, and the best idea does not always emerge victorious.
Nevertheless, there is a silver lining. You possess an unfair advantage that could help you get closer to your goal. By identifying your unique quality or asset and learning how to leverage it, you can position yourself to build the startup of your dreams.
How Unique Circumstances Can Contribute to Success
Everyone has unique circumstances that can contribute to their success, regardless of whether they are wealthy, famous, or attractive. While we often associate these qualities with success, they are not the only advantages that exist. No matter where you are in life, you have something that can help you succeed.
Some advantages are more apparent, such as those related to wealth or physical appearance. For example, Evan Spiegel, the co-founder of Snapchat, had access to money, funders, and mentors from an early age due to his wealthy and successful parents. This undoubtedly helped him launch Snapchat and become a billionaire by the age of 25.
However, there are many other advantages that are less apparent. For instance, the story of Ash Ali, co-author of The Unfair Advantage, is a great example of how hidden talents can contribute to success. Ali grew up in a rough area of Birmingham, England, dropped out of high school, and worked at an office supply store while his peers were getting degrees. But Ali had a natural entrepreneurial talent, which he had been honing since he was 13 years old. When a friend approached him about building an online shoe shop, Ali taught himself how to build websites, and the online store eventually became a success. This kickstarted Ali’s career, and he has since founded several startups and become an angel investor. Whether it is wealth, talent, or something else, success is about identifying and leveraging your unique advantage.
While it’s true that money isn’t everything, it can definitely give you a boost when starting a business. For most startups, profits won’t come in right away, so having money on hand is important for keeping the business afloat and paying bills. The recommended amount to have on hand is between 6 and 18 months worth of funds, although more is always better. Having a wealthy background or wealthy connections can also help, as they can potentially invest in your business.
However, having a lot of money also means you have something to fall back on in case things don’t work out. Wealthy individuals are able to afford to take bigger risks, whereas those without massive savings or a rich uncle have to be more careful with their investments. But even if you don’t have access to a lot of cash, you can still start your business. Focusing on a business that requires minimal capital upfront and can gain paying customers quickly is a good option, as is using your skills to earn extra cash on the side. Offering your services in social media management or design, for example, can help kickstart your business.
While money can be helpful, it’s not the only advantage you can have. The key is to identify your unique circumstances and leverage them to your advantage, whether that’s wealth, connections, skills, or something else altogether. With the right approach and mindset, you can start and grow a successful business regardless of your financial situation.
Why Creativity and People Skills Matter as Much as Book Smarts in Business
Intelligence is not limited to IQ and academic performance, as it also encompasses understanding people and the world around us. Many successful entrepreneurs have excelled in learning skills quickly and efficiently, thanks to their innate abilities. However, intelligence goes beyond academic aptitude, and skills such as effective communication, negotiation, and critical thinking are also crucial for success in business.
The Collison brothers, who co-founded Stripe, a popular online payment platform, are examples of such people. Patrick, who learned programming at the age of ten and created a new programming language at sixteen, and John, who earned top grades in high school despite already being accepted to Harvard, exemplify the intellectual superiority that can give startup founders an edge.
Nevertheless, being book-smart does not guarantee success, and other types of intelligence are equally important in business. For instance, Nikola Tesla, an ingenious inventor, died penniless despite developing revolutionary technology because he lacked the savvy to capitalize on his ideas. His experience illustrates the importance of being able to see through scams and make sound financial decisions.
Furthermore, creativity is a crucial aspect of intelligence in business. Steve Jobs, the co-founder of Apple, took a calligraphy class in college, which inspired him and his team to develop fonts for the Mac, demonstrating the potential of making connections between seemingly unrelated topics.
Therefore, while being intellectually gifted is a definite advantage, it does not guarantee success in business. Other types of intelligence, such as social intelligence, financial intelligence, and creative intelligence, can be just as essential.
Finding the Right Problem to Solve
To come up with a successful business idea, it’s essential to find the right problem to solve, and you might be the ideal person to solve it. The genesis of a brilliant idea is often the result of unique insights that allow entrepreneurs to perceive gaps in the market. These insights are deep understandings of a particular issue or situation. Sometimes, these insights come from personal experience or from being part of a specific group.
Tristan Walker’s success in creating Walker & Co., a startup that produces health and beauty products for people of color, is a great example. As someone who had struggled with ingrown hairs and razor burn, Walker realized that there was a lack of shaving products that catered to his needs. This realization led him to create his own products, which later became so successful that Procter & Gamble acquired his company for an estimated $20 to $40 million.
Even if you are not your target audience, you can still gain valuable insights by putting yourself in your customers’ shoes. Will Shu, the founder of Deliveroo, spent nine months delivering food on a bike to understand every detail of his company’s service. By doing so, he learned about the challenges faced by delivery riders, restaurants, and customers.
There are several ways to gather insights for your business idea, and you don’t necessarily have to go undercover. Simply observing and talking to your customers can help you learn about their experiences and start developing the solution they need.
The Importance of Location and Timing in Entrepreneurship
Being at the right place at the right time can be a key factor in achieving success, as the right location and timing can unlock valuable opportunities for entrepreneurs. Silicon Valley, for instance, is famous for being home to successful startups such as Google, Apple, and Facebook, and it offers a unique combination of a large talent pool, world-class research, and available venture capital funding. Even if it is not in a famous startup hub, the right location can still offer a competitive advantage for entrepreneurs.
Timing is also crucial for the success of a startup, as even a good idea can fail if introduced too early or too late. For instance, the idea of cloud storage was introduced in the 1990s but failed because internet connections were not fast enough at the time. Dropbox, which has over 500 million users, took advantage of the more advanced technology available later and became successful. Bill Gross, the founder of startup incubator Idealab, discovered that timing was the most important factor for success after his team compared their top-performing startups with promising ones that failed.
Entrepreneurs can take advantage of their location and timing by doing market research, networking, and observing customer behavior to develop insights and ideas that match market needs. Having the right connections, resources, and a competitive edge can help entrepreneurs seize opportunities and succeed in their ventures. However, it is important to note that success is not solely determined by location and timing, but also by hard work, perseverance, and the ability to adapt to changes in the market.
How Learning Can Lead to Expertise and Success
While a college education is often touted as a means to a successful career, there are other advantages to learning that extend beyond obtaining a degree. One such advantage is the social connections that can be made through attending elite universities like Stanford or Harvard. The high tuition fees at these institutions attract a wealthy student body, which can lead to valuable connections with potential investors and co-founders.
Additionally, being an alumnus of an elite university can provide a certain level of prestige that can be beneficial for those seeking to start a billion-dollar startup. Most of the founders of the fastest-growing billion-dollar startups in recent years came from universities like Stanford, Harvard, UC Berkeley, and MIT. Having one of these universities on your resume can give you the “right” pedigree and make you appear more attractive to investors and customers.
For those who didn’t attend an elite university, there’s still an advantage to be gained from learning: expertise. Mastery of a skill or field can help you spot opportunities that others might miss. Expertise can be gained through years of experience, self-directed learning through online resources and books, or by learning from mentors. Once you have developed expertise, you can use it to your advantage to start a business or advise others in your field.
Ash Ali and Hasan Kubba, co-authors of The Unfair Advantage, developed their expertise in different ways. Ali used what he learned from books to start an online shoe shop, while Kubba took an online course and started his own web design and marketing business. Both honed their skills over time and now advise other founders. If you have spent years working in a field, you may already be an expert at something – now is the time to start using that expertise to your advantage.
While a degree can be useful, it is not the only path to success. Social connections and expertise can be gained through a variety of means, and both can be leveraged to achieve success in entrepreneurship. Regardless of the path you take, hard work, perseverance, and adaptability are key to success in any field.
How Status and Relationships Can Impact Your Success
The saying “it’s not what you know, it’s who you know” can hold some truth in both social and professional situations. The benefits of status and connections can be the difference between getting a foot in the door and being left out in the cold.
Status can play a role in professional settings when employers use it to make hiring decisions. In some industries, wearing brown shoes instead of black shoes can signal to an employer that you are from a lower social class, leading to a disadvantage in the hiring process. However, being born into the upper class is not the only way to understand and blend into the social norms of high society. Learning from the experiences of others can be a way to learn how to adapt to different social settings.
Knowing the right people can also be crucial to achieving success in business. Developing relationships with individuals who can offer advice, opportunities, or help in times of need can be invaluable. Even a chance meeting at school, work, or social gatherings can lead to a strong network of connections that can open doors to success. These relationships, however, must be genuine and reciprocal, meaning that you should look for ways to help your connections while also receiving assistance in return.
The story of Snapchat founder Evan Spiegel and his relationship with venture capitalist Peter Wendell highlights the value of knowing the right people. After meeting Wendell through his wealthy family, Spiegel was introduced to high-profile figures like Eric Schmidt, Chad Hurley, and Scott Cook, the latter of whom became his mentor and provided funding for Snapchat. While not everyone may have the same opportunities as Spiegel, building and maintaining relationships with the right people can still be a path to success.
Everyone possesses some kind of advantage that can be leveraged for the success of a startup. To gain traction and eventual success, it is recommended to use these advantages, which may include connections, assets, insights, or a favorable location, and combine them with hard work.
Additionally, it is suggested to find a startup partner who complements your own skills and advantages. By partnering with someone who has something you lack, you can increase your chances of success. For example, a creative mastermind might benefit from partnering with someone who has technical skills, while an introverted founder might benefit from an extroverted co-founder who can build connections. The key to successful partnership is mutual trust and the ability to work well together.
Inspired by a book “The Unfair Advantage”; Ash Ali & Hasan Kubba