Aspiring Founder? How to Prepare Today to Become a Founder Tomorrow
Steps to Take Now to Prepare for Entrepreneurship
Up until now, I've focused my writing on current startup founders. But this week, I want to speak to aspiring founders - those who dream of launching their own company one day. As an investor who has met with many successful entrepreneurs, I've noticed some common threads in their backgrounds that prepared them well for the challenges of building a business. In this blog, I'll share essential tips on how to proactively set yourself up for the founder's path in the future.
When I was at business school, I learned the surprising fact that the average age of successful startup founders when they launched their companies was 45 years old (Harvard Business Review). They are not what I imagined - a young college dropout from Harvard like Mark Zuckerberg or Bill Gates. Older entrepreneurs have a substantially higher success rate, and the probability of success increases with age before peaking in the late fifties. So whether you're a recent college graduate considering entrepreneurship someday or a mid-career professional looking to pivot, it's never too early or too late to start preparing for the founder's path.
1) Start Flexing Idea Generation Muscles
I recently spoke with a serial entrepreneur who constantly has new business ideas. "Generating ideas is like exercise," she said. "You have to build that muscle by regularly coming up with new ideas." Indeed, creating business ideas is an ongoing process that requires practice in identifying problems and imagining solutions.
In learning how founders generate their business ideas, I've noticed a few common patterns - their inspirations often stem from:
Addressing a personal frustration they've experienced
Identifying unmet needs or pain points faced by their employers, customers, or partners
Envisioning improvements to existing solutions they find inadequate
Importing solutions from other markets that have yet to be locally introduced
Aspiring founders can start practicing this idea-generation muscle by regularly brainstorming startup ideas. At first, there’s no need to judge whether the ideas are great or not - the goal is to come up with as many as possible. Challenge yourself to generate a certain number of new ideas per week or month (say, 1 per day, 7 per week, or 30 per month) and write them down as part of your idea portfolio. This preparation stage isn't about landing on ideas to pursue yet, but rather flexing that creative muscle.
2) Building a Network
I'm currently attending a real estate technology conference and have noticed a common theme - many founders launch businesses where they already have strong relationships with potential customers or partners. For example, a former real estate developer started a SaaS company selling to real estate owners and operators; an experienced photographer leveraged his relationships with top real estate brokers to build an app helping them succeed; co-founders with access to wealthy Indian families created an asset management solution tailored to them.
A recent study from the Journal of Open Innovation found that founders who leverage personal and business networks are more likely to achieve successful fundraising outcomes. Studies done by MIT and Chicago Booth found that founders who leverage large and diverse networks are more likely to succeed. Expanding the professional network lays the groundwork, as connections made today could become future co-founders, early hires, customers, partners, or investors down the road. If you currently work for a company, grab coffee with colleagues to get to know them outside of work - including those in different functions like engineering, marketing, HR, legal, etc. Learn about their lives and aspirations. Other ways to expand your network include attending industry events and conferences, joining the local alumni community, and seeking out accomplished entrepreneurs who can serve as mentors.
3) Developing an Expertise
When people hear brand names like Coca-Cola, Starbucks, or Dell, they immediately know what those companies sell. But when asked about your name, what do you want to be known for? When I first joined IBM, my manager emphasized the importance of developing specialized skills and knowledge. "You want to be known for something," he told me. Figuring out your superpowers - the specialized skills, experience, or expertise that makes you stand out - is crucial.
Research shows that founders with at least three years of prior work experience in the same narrow industry as their startup are significantly more likely to achieve success, with 85% greater odds compared to those without relevant experience. You can build expertise by focusing your education or experience on a technical skill like coding or AI, or becoming an industry or market segment expert by deeply understanding customers. These specialized skills and deep knowledge will serve you well when starting your own company down the road. They will help you identify promising opportunities and speak credibly to customers and investors based on your track record.
Rather than being a generalist, find ways to distinguish yourself and become known as a go-to person for something specific. That's how you build a personal brand and reputation.
The path to a successful startup begins long before having that next big idea. Whether your goal is to launch a business in one year, five years, or twenty years, it's never too late to start preparing now. Becoming a successful founder doesn't happen overnight. The work put in today to nurture creativity, relationships, and expertise will all contribute to unlocking the entrepreneurial potential down the road. So start taking steps - big or small - that set you up to translate ideas into reality.
The ceo of the company I work for right now is a repeat unicorn founder. Experience really matters！