18 Sep 7 lessons I learned about entrepreneurship at Stanford and Silicon Valley
Expectation drives behavior
Summarizing, it’s the famous “have faith”! When you believe that you can, your head starts to create ways for you to get it.
Or as Paulo Coelho wrote: “When you want something, the universe conspires for you to get it.”
And it’s the same trick in the book “The Secret”.
So this is the first point I learned: believe that you will get there and you will begin to behave in order to arrive at your goal. Even if you do not arrive there, you will be above average.
Nothing happens by chance
You may have read about numerous success stories that happened in Silicon Valley – Google, Apple, Oracle, HP, etc.
Yeah, it happened in Silicon Valley because all the Silicon Valley culture is geared to this – to grow companies.
There are risk investors, startup mentors, entrepreneurs are heroes, even when they fail.
Silicon Valley is like Venice in the Renaissance and it is there that you find the culture of entrepreneurship, innovation and everything you need to scale a business.
Universities like Stanford for example, are aligned with professors and venture capitalists to create millionaires who will generate return in investments and fame for the university.
Fail fast, fail forward
Silicon Valley already embraced errors and fails as an indispensable process of growing a company.
And everyone knows that no business plan resists the first meeting with customers.
So they want people with an open mind, that listen to the customer and quickly learn what customers really like and do not like.
They know that the process of business creation is a constant trial with failures and tests until the startup discover a gold mine, where it can climb, cross the chasm, gain market share and scale.
Customer rating must be above 9
You are able to survive your business if the customer reviews are greater than 9 out of 10.
Simply because people do business with who they trust.
Those who do not liked your service or product, will drop out of your business and also take potential customers from you.
Entrepreneurs must be good at listening
Entrepreneurs must understand that they are not the owners of the truth and that each iteration with a client can be a market opportunity that they can explore.
Moreover, entrepreneurs are willing to fully change their business if they see that their original idea was wrong.
Developers in Silicon Valley create business much faster than any other region of the world
Many developers in Silicon Valley are entrepreneurs following tech news and new startups businesses at the same time, so they have everything to create a new venture as technology and business opportunities meet.
Furthermore, the whole culture of entrepreneurship is already part of the region.
So when they see an opportunity, they come together, work in code marathons and begin to test the market and attract investors.
Fast, all very fast.
So, it becomes very difficult for a businessman who does not know how to code in the other side of the world cope with those guys.
High risk investment firms lose hundreds of millions
Investment companies may have more than $ 500 million to invest in startups.
They place 2 million to 15 million in each and most fail and never grow.
Of course there are investment companies that work with different strategies and work with different growth stages of startups.
But the general rule is toast hundreds of millions of dollars and wait for one of these startup to turn into a “Google” and become worth more than $ 2 billion – and then they have an absurd profit.
Image courtesy of entrepreneur tshirt.