It’s not easy being a young entrepreneur. I should know, I was once a twenty-something founder who had to learn startup lessons the hard way. While nothing is more valuable than the lessons you learn yourself, sometimes it helps to learn from the wisdom of those who have gone before.
I recently talked to 23-year-old entrepreneur Ryan Glynn, who is the co-founder and COO of mhoto. His company provides technology helping businesses and individuals create original music compositions using photos, videos, and text. The mhoto software analyzes the image and then creates a specially tailored song. While a picture might be worth a thousand words, mhoto sees music notes instead.
Skip the VCs and fly with the angels
According to mhoto’s co-founder Daniel Ketter, “If venture capitalists existed back in the day with Thomas
Glynn isn’t the only one weary of VCs either. Vinod Khosla, a venture capitalist worth over $1.5 billion, stated anywhere from 70 to 80 percent of VCs actually add negative value to startups. Instead of jumping right into the VC pond, try flying with the angels or bootstrapping yourself. Get to know your company and it’s needs before bringing someone else’s money into the mix. And once you start looking for investors, make sure they’re a good fit and have a sincere interest in the service or product.
The word “disruptive” doesn’t mean what you think
Spending a lot of time at conferences and trade shows, Glynn has seen plenty of what he terms “bubble businesses.” These are businesses that were innovative two to five years ago, but now already have a major company in the space raking in tons of money. Yet these businesses still claim to be innovative and disruptive. While competition is great, actual innovation is much better.
“Entrepreneurs should know why they are in the startup scene,” Glynn said. “Is it for money? It’s very important to know yourself and know those that you trust.”
Never stop pushing the limits
You never know where your big break is going to come from. At the Disrupt conference, Glynn and co-founder Ketter never turned their nose up at the prospect of talking to anyone who expressed interest in their product. One person they spoke with turned out to be a reporter for Al-Jazeera America, who filmed a report on their company. Their time at Disrupt also landed them interest from a major TV network interested in using the software.
“While we were presented with basic opportunities, we pushed and kept trying to grab at more than what we were originally given,” Glynn said. “Sometimes you will lose, but sometimes you’ll win, and those wins can be critical for success.”
Find co-founders you wouldn’t kill if stranded on a desert island
“Being able to “click” personality-wise and also in terms of motivation is critical,” Glynn said. “It’s probably the most important lesson I’ve learned.”
You’re going to spend a lot of time with your co-founder. A lot of time. Imagine being stuck on a desert island with this person, and you’ve pretty accurately imagined the experience of running a company together.
Sometimes saying no to big payouts is the right choice
“Being offered a quarter of a million dollars is awesome. Being offered a quarter of a million dollars for a large chunk of your company by a company that doesn’t care about your long-term goals is not awesome,” Glynn said.
Glynn used to dwell on the deals he turned down, wondering if he had thrown away the golden egg. At one point, a company in China offered the pair a six-figure deal that would have made Glynn’s bank account very happy. The only problem? The deal felt more like an acquisition than a partnership.
With major deals in the works and the future looking bright for mhoto, Glynn is glad he waited and understood the value of his product. As an entrepreneur, you need to understand yourself and your co-founders. Are you in it for the innovation and the product, or for the money? Knowing the answer can help you make the tough decisions when investors come calling.
Think big, but remember you’re small
You believe in your product and you know, deep down in your heart, your company will be successful. This doesn’t mean, however, you’ve already struck it rich. Remember not everyone will immediately understand or connect with your product. Don’t blame business partners or consumers, instead ask yourself if there’s a better way you should be presenting your work. “Keep morale and confidence high,” Glynn said, “but always stay humble.”
Every entrepreneur, whether you’re 23 or 53, will learn hard lessons along the path to success. Mistakes will be made, tears will be shed, but at the end of the day it’s worth every hassle to create something you believe in.
What are some startup lessons you’ve learned? Share in the comments!
