Bite Size thoughts by Dr. Constantine “Dino” Kiritsis, Founder StudySmart
Everyone around the world is talking about entrepreneurship and Start ups. Everywhere I travel to, there is a conference, an event, funding opportunities and great hype. I have participated as a speaker and panelist in many of these in a number of countries. However, it seems that we have too many activities and events, but not any real entrepreneurs. Most “startupers” are thinking about the funding and a start without really investing in their own idea (and with their own funds). There are great stories from the “valley” where someone made loads of cash really fast and prospective “startupers” are losing focus. I have the impression that most aspiring entrepreneurs are trying to learn on ‘how to pitch’ to a venture capital instead of actually creating some value first.
There are different types of funding and it is imperative that the funding one receives helps the idea itself and it makes it workable. OK, I do understand that to move forward in some instances funding is a critical factor. However, in most cases, especially when the concept has to do with a service, an app, young entrepreneurs need to invest more time and effort to make the idea reliable and valid. This can take time and entrepreneurs take their eyes off the ball as they focus on VC’s when they should take it to the market to check feasibility. The risk is therefore “short-term” rather than “whatever it takes”. Stats also reinforce the above point. In a recent talk by Bill Gross, funding was ‘last’ among the reasons why start – ups fail. There are more important things like team, timing and the business model that need to be mastered and actually do NOT require funding. Especially in this day and age.
Cameron Herord, an American Entrepreneur suggests that we should teach our children how to become entrepreneurs from a very young age. We should try to stimulate their thinking, try to make them be creative, find solutions and as he states “let them catch the fish…not just eat it”. I totally agree with him. It’s all about taking the risk that makes one feel that something has been accomplished. But please take the risk first, as entrepreneurs do: They take risk (as most definitions would suggest), and they do not necessarily go for the profit from day 1, and this is probably why those who do so, actually succeed. I do feel unfortunately that the whole start up ecosystem is focusing more on funding when they should be focusing on sharpening business models, attracting the right talent and testing their ideas. But there are no conferences on “sharpening your business model” or “testing ideas”…
To those who are looking for “funding” only: You need to produce something first and invest YOURSELF. You will have more chances if you invest your own cash. You need to feel that pressure. It’s part of the learning process when you take risks. Entrepreneurs take risks, not with other people’s money, but also investing some of their own, in whatever shape and form…
