A version of this article previously appeared in Forbes. Despite the fact that I teach entrepreneurship at UC Santa Barbara, I do not believe that entrepreneurs are created in classrooms. Instead of trying to teach students to be an entrepreneur, I expose my entrepreneurial students to tools that will help them solve real-world problems.
A version of this article previously appeared on Forbes. Some of the all-time greatest business deals involve entrepreneurs who viewed the scope of their negotiations in terms of decades, rather than years. Too often, entrepreneurs negotiate deals which consider a relatively short-term time horizon. This tendency is understandable, as most business negotiations address near-term objectives, such as driving incremental revenue or acquiring customers. However, shrewd entrepreneurs look beyond a deal’s near-term impact.
A version of this article previously appeared in Forbes. In 1862, Charles Darwin predicted that an insect with an extraordinary tongue must exist by observing an orchid which stores its nectar at bottom of long stem. Darwin surmised the anatomical structure of the phantom insect based on the mechanics required to pollinate the flower. 130-years later, scientists discovered X. morganii praedicta, a moth with a freakishly long tongue which fed on the orchid’s pollen. Successful entrepreneurs make similarly educated guesses. By observing innovations and existing market conditions, they anticipate emerging technological trends.
A version of this article previously appeared in Forbes. Underdogs have a romantic appeal. Western societies relish fables which celebrate the victories of those who were expected to lose. Sophisticated entrepreneurs harness the power of their venture's underdog status, driving their teams to be unabashedly passionate risk takers who refuse to acknowledge failure as an option.
A version of this article previously appeared in Forbes. I recently came across a disturbing article entitled, "The American Dream Is An Illusion," written by a college Economics Professor. The Professor argues that, "... recent evidence suggests that, in reality, social mobility rates are extremely low. Seven to ten generations are required before the descendants of high and low status families achieve average status."
A version of this article previously appeared in the Wall Street Journal. “With a name like Smucker’s, it has to be good.” Really? If Smucker’s can annually generate hundreds of millions in sales for a variety of food products, there is little risk that a mediocre company or product name will preclude you from achieving similar success. The value of an ideal name, attached to a product or company that does not deliver an economically viable value proposition, is zero. Beyond names, the only thing you should spend less time obsessing over is your logo. Thus, do not obsess during the naming process. Instead, expeditiously pick a reasonable moniker and then get back to work delivering value to your customers.
A version of this article previously appeared in Forbes. One of my top former students, Fredi Fernandez, recently sent me a compelling email. After studying at UC Santa Barbara's entrepreneurial program, he returned to Spain, excited to start a venture and make a positive impact on his homeland. He founded Alpha Origins in 2011. Although he has helped a number of startups gain traction, he is now questioning if he should flee Spain, given the recent passage of the unprecedented Exit Tax, which seeks to tax potential, unrealized wealth. Fredi's email is worth reading, as it reinforces how lucky American entrepreneurs truly are. It is difficult to not be moved by his passionate desire for his country to share the entrepreneurial spirit that he experienced during his stay in California. One could certainly argue that the US government could be more business friendly. However, when compared to the anti-startup environment prevalent in Spain, the relative degree to which entrepreneurship is an indelible aspect of American society is undeniable.
A version of this article previously appeared in Forbes. In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch this 93-second clip and see if you can identify the pricing pitfall addressed in this humorous snippet. Caution: contains a bit of profanity (it is Chris Rock, after all).
A version of this article previously appeared on Forbes. Standing on the courthouse steps, moments after receiving his permanent residency Green Card, John Lennon was asked if he harbored a grudge against the Nixon Administration for tapping his phone, putting him under surveillance and mounting a multi-year attempt to deport him. Without missing a beat, John smiled and said, “Time wounds all heels.” Truer words were never spoken.
A version of this article previously appeared in Forbes. It is common sense that entrepreneurs should cultivate friends outside of work. However, too often, entrepreneurs allow their non-work friendships to wither, as they struggle to maintain a healthy relationship with their family while nurturing their startups. Although difficult, cultivating friendships beyond your office can actually make it easier to deal with the stress of your startup because such friends offer a degree of objectivity that family and co-workers cannot provide.