Young Founders and CEOs Make This 1 Easily Avoidable Mistake, And It Ends Up Hurting Their Startup
Being a startup founder today is “cool.” But there’s more to it than that.
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Being a startup founder today is "cool."
It's a lot "cooler" to say you're the founder of a company when you're in your twenties or even thirties than it is to start your first venture when you're in your forties, fifties, sixties or above. Reason being, there is a significant amount of responsibility that comes with leading and building a company. And being able to say you're starting down the path at such a young age is something many people admire.
Unfortunately, it's a double-edged sword to venture into the world of entrepreneurship so early.
While there is absolutely something to be said for being a young self starter, what you gain in independence is what you lose in experience. As an entrepreneur for over 40 years, I often find myself working alongside young, smart, and hungry people. Sometimes, they're a co-founder and we have a positive business relationship. Other times, they're young and hungry employees at promising companies. But in both cases, I see plenty of opportunities for older entrepreneurs like myself to be able to help younger self starters from making decisions based purely on intuition.
Unfortunately, these questions don't get asked often enough. When you're young, you always want to prove you can do it by yourself (I know I did).
I remember when the movie "The Founder" came about, detailing Ray Kroc's rise as the man who brought McDonald's franchise to the forefront of American culture. He was 52-years-old when he dove headfirst into that venture--and McDonald's came after dozens of other "startup" attempts. And I believe a huge reason Kroc was able to succeed was because he had spent a lifetime of learning hard lessons, some related to entrepreneurship, some not. He knew what he didn't know, and was able to apply decades of experience to building a massively successful franchise.
Another great example of lessons learned is Home Depot founder Bernie Marcus. He actually endorsed my book, All In. And while millions upon millions of people know of the brand Home Depot, what most people don't know is that Bernie started the company when he was 50 years old. This was far from his first venture.
These stories are what come to mind when I see young and hungry founders leap into the world of entrepreneurship, but don't have the wherewithal to fill the gaps of their own knowledge. Most people don't even know that the average age of a startup entrepreneur isn't someone in their 20s--it's someone in their 40s.
Instead, they think they can do it alone, or think they need business school--when what they really need is some real world experience.
A mentor is a great way to shorten your growth curve.
Formal education was something I never really had. I dropped out of college after I realized my company, Wilmar, a wholesale hardware distribution business, was already doing bigger deals than what my professor had personally experienced. For me, school was nice, but it wasn't worth the cost. I went on to take Wilmar public less than a decade later, and have founded and invested in handfuls of companies ever since.
The issue I have always had with formal education as it relates to entrepreneurship is that education doesn't show you what you don't know. I still believe that, for most people, getting an undergraduate degree is still important to build a general basis of discipline--and graduate school is a great path for certain types of individuals. But school won't be the thing that explains to you how to deal with difficult customers or tough situations with employees--or how to scale a service business, or any of the other stresses that come with building a company. These are things you either have to learn by working for someone else, or from someone who has personally experienced those same challenges.
Which is why I believe entrepreneurs that start their first venture in their late thirties, forties, and beyond, end up having something that young entrepreneurs don't: life experience.
The confidence you have in your decisions once you move into mid life is a far cry from the kind of decision making that happens in your twenties. You've grown up. You've faced life head-on, worked for a few different companies, dealt with a handful of different kind of bosses. You've gained valuable experience that can help inform the decisions that need to be made when you're the one leading the ship.
Which is why, if you're a young founder, or a hungry employee looking to move up the ranks, the thing you need to solve for is exposure to experience. Trust me, nobody is going to think you're incapable if you ask questions and look for opportunities to learn from those older than you.
If anything, they'll take that as a sign of maturity, and be even more willing to help you.