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2. A Particular Set of Skills

Founder literally means he who goes first. Not everyone is comfortable with going first. A lot of people could be followers but not a lot of people can be founders. There are a few things that you won't find in tutorials on the lean canvas. Today we will cover them.


Welcome back. The homework wasn’t a walk in the park, was it? It’s the big boy stuff. Doing a lean canvas takes a lot of work. There’s a reason why most people don’t like doing that part. They do everything to avoid it. But if you want to be an entrepreneur, this is the work you have to do. As a founder that is basically your job. You can hire people to do everything else. You are the one who has to do that part. That is what it takes to be a founder. That is why you do the homework. If you can’t answer the questions then you are spinning your wheels trying to raise money because those answers are what an investor needs to know in order to write the check.


It is not easy. It takes a lot of mental and physical effort. It usually requires asking for help, which is something that even the most experienced of us frequently do. You can’t avoid it. There are many ways to get help out there. You might be shocked by how many tools there are. Everything you need to know is already known; all you have to do is let yourself be open to learning it. It’s not something you make yourself do. It’s an experience you allow yourself to undergo. You don’t force yourself to do it. It is something you let yourself go through. It’s something you allow to happen. No one makes you do this kind of work. You have to want to do it. You have to want “it” and filling out a lean canvas that is what wanting it actually means. No one can do it for you. This is something you do by yourself and for yourself all I can do is show you how.


Now, I’m going to present you with a truth that might be difficult to swallow: while anyone can be an entrepreneur, being a founder of a startup is not a path meant for everyone. This is an inconvenient and harsh reality to confront. It is the truth. This journey is not for everyone. It’s simply not. It’s not designed for everyone, and frankly, it might not be the right path for you either. That’s the side of the story that social media often omits. The term “Startup Bro” can sometimes be a mere euphemism for a narcissistic personality disorder. Playing the part of an entrepreneur and being an entrepreneur are two entirely different things. A genuine entrepreneur simply doesn’t have the luxury of time for pretense.


It’s crucial to comprehend that projecting an entrepreneurial persona on Instagram and actually embodying an entrepreneur in the real world are two vastly different realities. Constructing a startup is a far more intricate endeavor than merely initiating a business. The stark reality is that approximately 90% of all startups fail, and that’s a generous estimate. So, despite all the hype, it’s important to acknowledge that not everyone possesses what it takes. Disregard all the hype; not everyone is cut out for it, and that’s the unvarnished truth. Not everyone can erect a startup. It takes a specific set of skills.


Building a startup demands a specific set of skills; it’s more a matter of aptitude than mere attitude. In fact, I often advise business school graduates to abandon the entrepreneurial illusion and pursue a path of stable employment. Choosing a solid job can often lead to a superior quality of life, a fact that both you and your partner will appreciate in the long run. There’s a greater degree of stability and longevity in a good job compared to the unpredictable journey of a startup. It can be a more productive use of your Ivy League education to lend your skills to existing founders in building their business. Very few founders can build a business. A startup is not a business.


The stark reality is that very few individuals possess the capacity to successfully construct a startup. You typically have to stumble and fall a few times before you can truly master it. It’s crucial to comprehend that a startup is not a conventional business. You don’t secure a job at a startup. What you get is a calling, a mission, and a conduit to pursue a passion. This is not a job. If you would engage in it even without monetary compensation, if you would undertake it just for the sake of it, then you are probably in the right place. A startup is not a business. You don’t secure employment there. You might manage to cover some bills, but you don’t secure a job. Therefore, resigning from your job and plunging headfirst into entrepreneurship might not be the most prudent decision. Instead, it’s generally more advisable to seek employment that genuinely resonates with you. Being part of a startup is not for everyone. You need to be brutally honest with yourself. If you need a job then a startup might not be right for you.


If you’re just starting out in life, no matter how old you are — and this is really important — being a founder of a startup is all about work ethic. It’s crucial to prioritize learning how to work effectively. Get a job and learn how to work. Surprisingly, many people put more effort into avoiding work than they would if they just followed instructions and committed themselves to the task. If they did what they were supposed to do, they would be done by now. People spend more money saving than just paying the price. Therefore, it’s vital to develop a strong work ethic and discipline before even considering becoming a startup founder. Being a founder is a significant commitment that demands hard, thankless work. It’s akin to toiling in a sewer, where no matter how much shit you shovel today, there’s always more to deal with tomorrow. Unlike a regular job, where you get paid for your efforts, being a founder is a voluntary position. If you don’t have the passion or dedication to put in the necessary work, then becoming a startup founder is probably not the right path for you.


Becoming the founder of a genuine startup requires a specific skill set that cannot be acquired through traditional schooling. It’s more of a hands-on, real-world experience — aa street-smart approach. It’s reminiscent of the old medieval guild system, where masters imparted their knowledge to apprentices. If you delve into the backgrounds of successful founders, you’ll often discover the presence of a mentor or guide. In the words of Yoda from Star Wars, “Always two there are, no more, no less. A master and an apprentice.” This relationship is precisely what a good venture capitalist (VC) brings to the table. What you need as a founder is help, and that goes beyond mere financial support; that’s why we also paired you with coaches.


So let go of the fanciful notions of sugar plums and fairies dancing in your head. As evident from the previous exercise, building a startup is hard work — lots of it. So get rid of the sugar plums and fairies dancing in your head. As you can see from having to do the last exercise, This is work — a lot of work — and Unicorn Factory is boot camp


You have a lot of home work to do. Lean Canvas isn’t done in a day. Time takes time. So today’s seminar is about a shift in thinking that you need make. I am going to talk to you today about a few important concepts you need to think about.


This is workshop we call the Unicorn Factory. So, what is a Unicorn? In the realm of startups, a unicorn is a privately held venture with a valuation exceeding a billion dollars. But why, you might ask, would a fledgling enterprise command such a staggering valuation? Let’s revisit our previous discussion: a startup is not a conventional business. A startup is a proposition of value, a hypothesis, in pursuit of validation. It’s not about immediate revenue. It’s about the untapped potential. It’s not about immediate profits. It’s about the proof of concept.


Imagine, if you will, that I have incontrovertible proof of a cure for COVID. Would that be worth a billion dollars? Undoubtedly. What if I could demonstrate a disruptive paradigm shift in a large industry? Consider the trucking industry, a behemoth of a business. If I could provide evidence that I could manufacture an affordable electric truck, would that be worth a billion dollars? Unquestionably. What about proof of a disruptive business model? Or evidence that I have a user base of 100 million willing to pay for my product? Suppose my hypothesis is that I could charge each user $10 a month or $100 a year, and most would gladly pay it. If I had 100 million users, would that potential be worth a billion dollars? Of course, it would. That’s merely arithmetic. You have to give yourself permission to think like a billionaire.


Therefore, it is entirely plausible that a startup can be worth a billion dollars. Groundbreaking technologies, untapped markets, paradigm shifts, lucrative business models — all these kinds of hypotheses, with proof, can command a billion-dollar potential. Remember, a startup is not a business. A startup is a value proposition in search of proof. A startup is a hypothesis in search of a business model. A Unicorn is not a business with revenues of a billion dollars or more. A Unicorn is a startup with proof, a hypothesis, and a repeatable and scalable business model whose valuation is a billion dollars or more.


Valuation, however, is subjective. It is not a measure of success. It is a measure of what investors are willing to pay to participate in an opportunity. It is the result of a logical argument made by a founder to investors that the value of the proof that they have a solution to a problem that has the potential to earn, usually more than $10 billion or more, if a business can be built on it.


This brings me to my last point. Is your thesis even worth the investment to find the proof?


Often, entrepreneurs overlook a crucial element: time. Most people fixate on money, valuing it above time. A successful entrepreneur, however, is an individual with a unique set of skills who has undergone a shift in perspective, learning to value time over money. I’ve had the privilege in life of fulfilling a goal I set when I was 18, which was to work and learn directly from six billionaires. I wanted to know the difference between being rich and being wealthy. A NFL Quarterback is rich. The guy that writes his paycheck is wealthy. There is a difference. I deciphered that guild concept I mentioned earlier, early on. I understood that to learn what I needed to know I needed to learn if from someone. By any means necessary. I will tell you that the one thing I learned that distinguishes regular people from billionaires is a belief you might not share, they know something other people do not and I’ll reveal what that is. They understand that they will always make more money, but they will never get more time. They ready-fire-aim while everyone else ready-aim-fire. You contemplate money. They contemplate time. You need to instigate that shift in your mindset. It’s not about money. It’s about time.


You need to use this criterion when you take a step back and look at your value proposition on a lean canvas. When you are finished assembling it, you need to detach yourself from it. Get a glass of wine or whatever you do to relax, put it up on a whiteboard or a big sheet of paper, step back, and evaluate it. You have to perceive it through the lens of an investor because, as a founder, you’re investing the most precious thing you possess in life: time. You ask people for money, and you have to write the first check or no one else will, but more than that, you have to understand that the real cost of a startup is something you will never recuperate. The cost is time. You will always generate more money. You will always get more money. You will never have more time. So, once you construct your Lean Canvas, view it like an investor and pose the tough question, Is this a problem worth solving?


The most important piece of the lean canvas and your value proposition is the answer to the question, Is the problem worth solving? This isn’t a startup incubator. This is the Unicorn Factory, and a unicorn is a solution that has a billion dollars worth of value. A startup is a value proposition in search of proof. A startup is a hypothesis in search of a viable and, in this case, scaleable and repeatable business model. So when you build a lean canvas about a problem-solution fit, ask the hard question. Is this even worth your time?

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