As an aspiring entrepreneur there are so many variables to think about and evaluate. Which skills do I focus on and acquire? Which jobs will help me develop my skills? How can I convince others to help me with my dreams? However, the question I want to focus on for this post is "How do I create, or otherwise obtain, opportunities for success?"
I recently met with Austin Allgaier of Bookoo Ventures, a Chicago based venture development company. The result was a clearer understanding of the entrepreneurs psyche in regards to opportunities and future planning. Although he was not anticipating an entrepreneurial career, Adam couldn’t help but solve problems. He built his first startup in college when the father of his friend expressed frustration with the cost of construction management software solution. Austin recognized that he could develop the solution cheaper and when to work. Despite his success with the resulting company, Sinkluge, he had always planned to work for a larger entity. After graduation he went to work for Exxon Mobil. However, his creativity and innovation continued as he and his brother, Adam, talked about solving another pain they have always felt, a way to sell used items online to locals, like an online garage sale. Four years into his management career he cut loose from Exxon to invest himself full time into, what was then their hobby, Bookoo.com. Bookoo.com quickly evolved into more than just a lifestyle business for Austin and Adam. They also use a sister company, Rolera, to do consumer product research, development and invest in other startup opportunities.
At least for Austin, success didn’t come from knowing exactly where he would end up. Instead he knew what kind of life he wanted and took the next steps to make it happen. To get a feel for their attitude toward the future, I asked what they plan to do next with Bookoo and Rolera. I was a bit surprised by Austin’s response. He said, “It’s hard to make plans around things that you can’t control. We are hesitant to lay down plans that are too concrete… We take the next step and see where that leads us.” I find that attitude common among great entrepreneurs, they simply focus on the next step.
This seems to contradict what is so commonly taught in entrepreneurship, success is the result of planning and preparation. In nearly every episode of Shark Tank, every startup case study and in conversations with successful entrepreneurs, it is insisted, or otherwise implied, that solid goals, plans and projections are necessary to create the companies strategy for moving forward. However relevant, these approaches are for a company that has successfully identified and defined their opportunity. Austin has reduced success into a foundational principle, successful products and services solve problems! I’m sure that the Allgaier’s use their financial models and goals to help direct there companies but it’s clear that their opportunities have developed from a clear understanding of customer needs. Nathan Furr’s book, Nail it then Scale it, further defines the requisite attitude and approach to make critical customer observations. Furr insists that a problem worth solving, or an opportunity, “is usually not something that customers will just up and tell you; it comes from deep observation of customer pain and the outcomes customers are trying to achieve.” When we successfully observe, connect and empathize with our customer base then we can identify great opportunity.
Once we can successfully identify worthy opportunities, a new challenge is introduced. How I do I evaluate my opportunities and choose ONE?
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