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Entrepreneurs Don’t Build Businesses

I wish with all my heart that I could write a comprehensive article detailing when, where, and why to partner with other people.

I would charge $5,000 for this article, because, trust me, avoiding partnership mistakes in your first business would save you 10X that cost.

I used to think that the decision to partner or not was binary.

You either co-found or you don’t.

You either do it yourself, or you do it with other people.

It never occurred to me that I wasn’t taking my own advice – To reject the default.

While the successful startup stories may be portrayed in a cookie cutter fashion.
I think we all know that the media doesn’t exactly always hit the nail on the head.

If we were all just a bunch of computers, lacking emotion, it would be simple.
It would be programmable.
But it’s not simple.
And we aren’t computers.
As much as we type-A’s would like to think we can behave as one.

I used to carry around this quote in my head and would think of it anytime I discussed partnerships.

“If you want to go fast, go alone. If you want to go far, go together.”

It makes literal sense.
It makes philosophical sense.
I accepted this as a truth.
And it confirmed my binary understanding of partnerships.
You either co-found or found.
It’s that simple.

I was having a conversation with a local entrepreneur who has founded 5+ successful businesses, 3 of which had large exits.
And we were discussing just this topic.
Co-found or found?

I was all smiles and hi-fives confident about bringing up this topic.
But as they say, “What goes up..”

I got a good verbal slap in the face about 60 seconds into our conversation.
And it shook me.
He made one statement that completely changed my paradigm.

“Entrepreneurs don’t build businesses, entrepreneurs build organizations that build businesses.”

I used to think that great entrepreneurs (or great wantrepreneurs in my case) built great companies and hired great people to support that great company.

Can you see where I mixed up the last two?

My initial belief.
Entrepreneur – Business – Organization

My new understanding.
Entrepreneur – Organization – Business

So what?
Big deal!
I mixed up the last two items!
Well, consider that if this were a 3 question exam, I missed 2 of the questions and failed by a large margin.
And while failing is glamorized in the press, I think this failure would have a ripple effect of failures that would ultimately kill a company.

If you’re still with me, you may be asking yourself, “Where is all this going?”

If you’re like me, for the past year you’ve been asking yourself a seemingly simple question.

“What kind of business can I start and build alone?”

It sounds so perfect doesn’t it?
Just remove the human component.
Humans are exhausting.
Incalculable.
Unpredictable.
Irrational.
Illogical.
Emotional.

But me and a computer are predictable!
Programmable.
Rational.
Logical.
Emotionless.
Fast.
Dependable.

I thought I had it all figured out.
I thought it was simple.
A binary decision, each with its own consequences.
No particular right or wrong answer.
Just whatever matches your preferences.

I was wrong though.
I was foolish.
I was irrational.
I was unpredictable.
I was illogical.

What great company was built on the back of one person alone?
While the press many praise the founder and give them all the credit.
I think we misunderstand what exactly the founder is getting praised for.

The founder is getting praised for building a great organization that in turn has built a great business.
But upon first glance it looks as if the founder is getting praised for building a great business that then needs an organization to support it.

Hell, media probably misunderstands this as well and praises the founder for building the great business!

But we entrepreneurs know the truth!
The founder deserves praise for building the organization!

Small difference?
Massive difference.

If you’re still a little rocky on what exactly I am trying to say, consider this.
A football coach wants to win games (Make money).
So he recruits a great running back and quarterback to score touchdowns (Entrepreneur).
But the coach knows that the running back and quarterback can’t score without a great offensive line (Organization).

In the postgame interviews, it’s always the running back and quarterback (Entrepreneur) that get interviewed.
But the people who have played football know that without the offensive line (Organization) executing their blocks, the running back (Entrepreneur) can’t get past the line of scrimmage and the quarterback (Entrepreneur) gets sacked every play.

When’s the last time you saw an offensive lineman getting interviewed after a game?

Partnerships aren’t the enemy.

Poor hiring practices are the enemy.
Bad people are the enemy.
Poor incentives are the enemy.
Duplicate teammates are the enemy.
Handouts are the enemy.

I write this for the same reason I write everything.
I have a strong belief and passion.
You see, I love this start-up world.
I love early-stage businesses.
I love venture investment.
I don’t have 30 years of experience in either.
But like they say in relationships, when you finally meet the right person, you’ll know.

We have far too many problems and far too few entrepreneurs to tackle those problems.

Entrepreneurs build great organizations that build great companies.
We are in the people business.
Whether we like it or not.
Even if you are sitting behind a computer for 10 hours a day.
Even if you are an introvert.
You are in the people business.

Be smart about partnerships.
Do your homework.
Partner with people that compliment you.
Not with people that are exactly like you.

Be creative about partnerships.
You don’t have to follow the cookie-cutter formula.
You’re an entrepreneur after all.
You’re used to breaking rules.

This is just a small bite into a massive whale of a topic.
And there will be more to come.
But for now, my advice is simple.
Be entrepreneurial about your partnerships.
Disrupt them like you disrupt other things.
Don’t follow the rules.
Don’t follow the standards.
Get creative and build incredible organizations.
The talent is out there.
People want fulfilling, challenging work.

It’s our job to deploy them.

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