In 2002, I was the recipient of the ProMontreal Entrepreneurs (PME) funding (start up capital coupled with guidance and support) for my then eponymous company, The Tendler Group, a medical market research agency. Fast forward to 2007, I was invited to sit on the opposite side of the table, as an Executive of the Selection Committee. How exciting I thought, to be able to listen to passionate and driven entrepreneurs pitch their businesses. As I enter my 11th year on the selection committee (kind of like a Dragon on the show Dragon’s Den), I continue to have the privilege of meeting, mentoring, some incredible Montreal based entrepreneurs.
So… what have I learnt by sitting on either side of the table? Quite a bit:
1. Not everyone is an entrepreneur. Sorry. Instinct, the nucleus of entrepreneurship, cannot be taught. I know it stings, but it’s the truth. The sooner a person realizes this, the better off they are. An innovative idea as great as it is does not mean the person who conjured it up is an entrepreneur. I don’t have a litmus test to share, but, sitting on a selection committee we can somehow sniff out the true ones. We just can.
2. It’s never too late to start a business, it can be ‘too early’: Some entrepreneurs like myself garnered years of experience at other firms prior to branching out on my own, within the same industry. It allowed me to learn from others, anticipate weak points, learn management skills and mimic what worked well, while avoiding what didn’t. It also lent credibility, as clients knew me. Hence, logging in a few years at a few companies will only prepare and you and get you closer to your end goal. Subsequently, some of my best clients, were my former co-workers.
The 2nd type of entrepreneur that we see, are those who are entering industries for which they have little to no experience. It’s not to say that they won’t succeed. Look at all the disruptive industries that we see today, Casper mattresses, Warby Parker etc.… the founders had little experience in their respective industries but brought a fresh and a new perspective to rather stale industries that had not progressed in decades. Either way, timing of when one starts a business is critical. You must know when to move full throttle forward and when to hit the pause key. While many articles have been written on this topic, it truly comes down to instinct.
3. A great idea but a poorly executed plan: This plagues many entrepreneurs. Coming up with a great idea, is great, but how will this translate into a business? What will the structure of the firm look like? What is the timeline? How will the financials look like initially and further down the road? What is the plan for the first 12 months? How will everything support this engine? Not every great idea translates into a company, and not every company has to have an amazing idea. Sometimes the simplest idea is the best. Improving on an existing service or product. A great idea poorly executed will rarely succeed. If you can’t properly execute the ideas, surround yourself with those who can.
4. Underestimating competitors: Putting down your competitors is the equivalent of a short person criticizing a tall person in order to feel taller. We see it all the time. Don’t bother as it only makes you look bad. Hopefully your competition will drive you to be better and stronger. Period.
5. The Pitch: Within PME, entrepreneurs are allotted 15 minutes to pitch their business plan. As nonsensical as it sounds, plenty of entrepreneurs will waste a quarter of their time talking about how they came up with the nifty name company name, or how they met their partner years back. I always sit stunned thinking to myself, what a waste of precious time on such trivial information. More times than less, that same person is left short changed as when their time is up, they have not been able to properly showcase their business.
6. Lastly, create your own Board of Directors. I am always impressed with entrepreneurs who build their own personal network of advisors. It shows they are willing to humble themselves and learn from others. I have yet to meet an entrepreneur who was not willing to help a fellow business starter. Create a circle of advisors with different talents and backgrounds and seek their guidance.
For more information on ProMontreal Entrepreneurs please visit: https://www.promontrealentrepreneurs.org/