It’s common knowledge that 90 percent of startups die. So what do the 10 percent have that the 90 percent don’t?
We are taught that succeeding as an entrepreneur is all about working ridiculously harder than anyone else and persisting beyond the challenges. Then, and only then, will you “make it.” That is a big bunch of hooey.
I believe there is one factor above the others that allows for great success: brutal honesty. Unfortunately, we are fed lies in the form of inspirational quotes and fairytale stories about entrepreneurship, which tempt us not to engage in brutal honesty.
What is brutal honesty? Brutal honesty is about being excruciatingly self-aware so that you can hear the real feedback the market is telling you, and correct course before it is too late. This is the true test of entrepreneurship, since tearing down the walls you built with your blood, sweat, tears (and limited funds) is not for the faint of heart.
Here are the top five lies they feed you as an entrepreneur and how to combat them with the right mindset:
1. Listen to the data.
Whether it is Eric Reis’ Lean Startup or the countless other modern entrepreneurial books on agile/lean approaches to building businesses, the emphasis on data can be dangerous. Many entrepreneurs interpret this as logging into your Google Analytics or Mixpanel dashboards, often ignoring underlying assumptions and often simply reinforcing your existing beliefs (i.e. confirmation bias, or reading into data to prove out what you already believe). While data is essential, the data that is most important is the one spit out by your brain, not by the computer. The data on the screen is full of shoddy underlying assumptions. The only way to be brutally honest is to take this digital data and force yourself to create real-world, self-critical human conclusions about what the data means. Without that, you will agile or lean yourself out of existence.
2. Follow your dreams.
Am I really going to argue with this? Yes, I am. I completely agree that one must follow their dreams, no matter how crazy and unrealistic they may be, but it is absolutely critical to your success to make an important distinction about which aspect of the dream you will follow. This is the part that takes brutal honesty. In my experience, success tends to follow entrepreneurs who have a wild idea that they want to make…