I am never surprised by what entrepreneurs today can do and Evan Hammer’s story is no exception.
At a recent Techstars event, I had the opportunity to meet Evan Hammer, the co-founder and CEO of the vacation rental pricing company, Smart Host. Evan started Smart Host with co-founders Dave Redding and Nick Persico out of frustration of the status quo, but the company was created in a unique way.
Evan was leaving his current startup venture in New York City and he wanted to pursue something new, innovative and empowering to users. As he looked for an environment to incubate a new idea, he came across “StartupBus”, a 3-day mobile hackathon competition started by entrepreneur Elias Bizannes. It was founded on the principle that entrepreneurship cannot be taught; rather a learned experience through taking chances.
Evan was accepted into the StartupBus program and began his journey by boarding a bus from New York City to San Antonio, Texas. The 30 bus members all joined the program without a plan, Redding and Persico included, and over the course of the three-day trip, Evan, Dave, Nick and 2 other hopeful entrepreneurs collaborated to develop the framework of what would become Smart Host. Their idea was that the company could help vacation rental hosts accurately price their rental depending on supply and demand in the marketplace. The idea was presented to judges at the end of the trip and won the competition.
Today, Smart Host and the team graduated from the startup incubator program, Techstars moved to Brooklyn, and they have already piloted a program with HomeAway, one of the largest vacation rental marketplaces in the world.
A story like Evan’s makes me question—what does it truly take today to be an entrepreneur?
When I started my company in 1989, resources were slim for entrepreneurs. Social media didn’t exist, email was a figment of our imagination and contracting employees was not as easy as it is today. My only viable resources were $16,000 from my IRA, a typewriter, two employees and my business plan. Today, it’s a very different environment with new technology at our fingertips, but many similar challenges still exist– being an entrepreneur is both a little easier and a little more complicated.
Deciding to be an entrepreneur and the process of becoming an entrepreneur are very different than they were in 1989. It means you, as a businessperson, are able to walk down several different paths in the digital age and choose many different paths to success. The possibilities are wider, the pace is faster and the interconnectivity is greater—creating more opportunity (and more pressure) than ever to succeed. This has led to the wide diversification of what it means to be a successful entrepreneur.
More financing, more complexity.
Take finances, for instance. From incubators to partnerships; Kickstarters to sponsored events. There are now many new methods that allow entrepreneurs to access more resources than their personal savings and resources. That in itself allows hopeful business professionals, tech gurus and anyone in between to expand any business plan into many possible different directions. The ability to access finances is promising, but with that comes significant pressure to make a return. It is something always to be conscious of when investors are introduced into the mix and that makes an entrepreneur’s life just one step more complicated.
The pace of entrepreneurship has also redefined what it means to fit within the industry. Instead of basing an entrepreneurial career on one attempt, business professionals are now known as “serial entrepreneurs”, taking on an average of 2.3 ventures in their lifetime, according to the Kauffman Foundation’s “Anatomy of an Entrepreneur”. The process of concept-to-fruition has quickened the pace to an all-time high and the days of starting with a brick-and-mortar are almost invisible. Entrepreneurs are now creating businesses that are externally slim and continually pivoting internally.
Collaborate – and great ideas happen.
After interviewing Evan Hammer, I realized the uniqueness of the culture around entrepreneurship today. Companies are looking to test the limits on how far entrepreneurs will go and instead of joining forces with close connections and contacts, a company like StartupBus allows aspiring entrepreneurs to take a chance and create their team from sources they may have never engaged with otherwise.
To Evan, that was the most valuable part. “I was leaving a startup in New York when I got on the bus. That meant I had nothing to lose but also understood what it would take to make something a success. The team that was created totally made Smart Host happen. Our chemistry worked so well that when we presented it to the judges, it was easy to see that we had a real concept in our hands after just three days of hard work.”
Entrepreneurship is not a solo project anymore.
The Techstars program and other startup incubators also introduce potentially successful entrepreneurs to each other—allowing greater opportunities for talent or a more connected entrepreneurial environment. The fast pace of the incubator accelerates growth but also ties another group into the business by allowing most of them to take 5-7% equity in the company in return.
Another key strategy can be to collaborate with established businesses that are looking for smart, agile people and an opportunity “pay it forward”. For example, Unilever’s Foundry Academy allows startups and creative to have access to Unilever’s branding, marketing and creative expertise.
What it takes is nothing new.
The new entrepreneur is an interesting breed of person who intertwines contractors and true entrepreneurs. They take risks, but those who don’t want to take a risk can access partnerships or incubators without the restraint of timed returns. Delving into modern service providers is even considered a form of entrepreneurship. Companies like Uber and Lyft, as well as something like TaskRabbit and Angie’s List, are allowing hopeful entrepreneurs to develop their own service. All of these examples place entrepreneurs under an umbrella, but allow them to expand their own skills.
In the end, the correlation for entrepreneurial success remains very similar today compared to yesterday. Staying connected is crucial. Taking risk is essential. “The Anatomy of an Entrepreneur” notes that 73% of “successful” entrepreneurs considered professional networks important and on a similar level, 62% percent valued their personal networks (family, friends, etc.) on the same scale of impact in their success. And 98% thought that the lack of willingness or ability to take risks was the greatest barrier to success.
Today, the entrepreneurial spirit is as strong as ever. The digital age has expanded the opportunities for success, as well as how entrepreneurs can leverage resources, add additional brainpower and manage risk. It’s easier than ever—and harder than ever.
