Founder-Venture Fit for Entrepreneurs

With startups, many people focus on what entrepreneur and investor Marc Andreessen calls “product/market fit”: “being in a good market with a product that can satisfy that market.” It’s a great point, and too many ventures fail or founder because they never find it.

But not nearly enough attention is paid to what I call “founder/venture fit”: when the venture matches well with the founder’s (or co-founders’) knowledge, strengths, passions, and values. Some have written about similar ideas—“founder-market fit” or “founder fit”—but too many aspiring entrepreneurs miss this critical point.

Serial entrepreneur and investor Brad Feld wrote: “I’ve come to believe that—especially among first time entrepreneurs—founder market fit is much more important than product market fit at the inception of the company.”

When we survey the startup landscape, we see founder/venture fit in spades:

We see it with Elon Musk, who grew up fascinated by technology and physics, learned to think deeply about “first principles,” and became unsettled by dark scenarios about the planet’s future without bold action, big bets, and breathtaking innovation. Looking back, he said, “I really was thinking about this stuff in college…. I like to make technologies real that I think are important for the future and useful in some sort of way.”

We see it at Spotify, where co-founder Daniel Ek combined his two passions growing up (music and technology).

We see it with Oprah Winfrey, who found a brilliant and personal way to “Turn your wounds into wisdom,” as she says.

We see it with Virgin’s Richard Branson, who exudes personality and fun in all his endeavors.

We see it at GoPro with founder Nick Woodman’s love of adventure and entertainment: “It comes down to how much authentic passion you have for something.”

We see it at Patagonia with Yvon Chouinard’s background in rock climbing and environmentalism. At Patagonia, they “use business to inspire and implement solutions to the environmental crisis.”

Thinking back about his early days with Paul Allen at Microsoft, Bill Gates mused, “We just loved writing software.”

So what are we to make of this? Tech entrepreneur and investor Chris Dixon notes that “founder/market fit can be developed through experience: No one is born with knowledge of the education market, online advertising, or clean energy technologies. You can learn about these markets by building test projects, working at relevant companies, or simply doing extensive research.”

He adds this important note as well: “founders should realize that a startup is an endeavor that generally lasts many years. You should fit your market not only because you understand it, but because you love it — and will continue to love it as your product and market change over time.”

And how do we gauge whether we (or others) have it? James Currier from NFX, a seed-stage venture firm, identified4 Signs of Founder/Venture Fit”:

  1. Obsession: he counsels founders, “don’t start a company unless you can’t not do it… unless you can’t sleep at night and your brain is exploding with the idea.”
  2. Founder Story: a compelling “why” inside the founder that resonates with the venture’s target customers.
  3. Personality: a nature and set of interests that resonates with peers and customers.
  4. Experience: knowledge and experience can surely help, but he notes that “too much experience is not always a good thing. Certainly, we do look for founders who have enough industry experience that they understand the market. But not so much experience that they don’t have any disruption left in them…. Too much knowledge is a blocker to innovation.”

Too many aspiring entrepreneurs want to be founders for reasons that may not serve them well or stand the test of time—reasons like a desire for recognition or fame.

Entrepreneurship isn’t for the faint of heart. For many, it will require an obscene amount of commitment, persistence, and resilience—the kinds that usually flow from a true sense of purpose, calling, and conviction. Do you burn for this idea, for this cause, for this opportunity to generate value and have impact?

The entrepreneurial path is both exhilarating and exasperating. You’re wise to find a great fit at the outset.

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Gregg Vanourek is an award-winning author and entrepreneurial leader who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training and development venture. Gregg is co-author of three books, including LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion) and Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards).

To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from his books, check out his Free Guide. Or check out his TEDx talk on “LIFE Entrepreneurship.”

What Is Your Quest?

What is your quest?

Where are you going? And why? What quest are you on in your life and work?

In days long gone, there were many quests. For Power. Glory. Riches. Discoveries. Love. Beauty. Truth. Peace and quiet.

These days, our quests have changed, but we still have them. Quests for success. Recognition. Wealth. Happiness.

For many of us, our quest is a bit of an ego trip. It’s all about me, and what I want, or deserve, so that I can look good, feel good, and get validation from others. The quest is fueled by an ethic of accumulation and achievement.

And so it was with Warren, a tall young man with dreadlocks working in a government agency, with a good salary and proud parents. One day, he found himself at a festival listening to a band playing Radiohead, and three questions popped into his head:

Are you there? (Yes.)
Are you you? (No.)
Are you ready? (Yes.)

So began Warren’s new chapter, leaving the old, familiar, and boring for something new, uncertain, and exciting.

And so it was with Kimberly, a small-town girl with sandy blonde hair and big ambitions who moved to the big city and found herself working as a paralegal. She was successful, for sure, but also tired, lonely, and uninspired. When she returned to her apartment from a two-day yoga retreat, she realized that her life was no longer hers and that her work was killing her soul. So she started something new in her life (yoga sessions in her apartment), and over several years, through much trial and error, it took her into a whole new chapter in life, one that fit much better with her values and aspirations.

We all have the freedom to change course. But that just begs the question: Change to what? Meanwhile, we rationalize our current path:

I’m paying my dues.
I’m doing it for my family.
This isn’t a good time.
I don’t know what to do next.
I don’t know how to begin.

And so we drift along. (And along.)

Isn’t this just the price we must pay for success? Perhaps, but what does success mean to you? Success at what? And as what? Who are you? What matters most to you? Are you living a good life, one that your future self will thank you for?

Success can be like a prison made of pride. Like the graying inmate “Red” in Stephen King’s novella, Rita Hayworth and Shawshank Redemption, we can get strangely comfortable there. We rely on its rock walls to keep our ego safely ensconced in a place where it scores its validation fix.

Has our quest become a trap? Have we outgrown the successes we’ve chased or achieved? What then?

That’s where a call comes in. It’s when we need to stop and listen to our inner voice, our intuition. That’s when we need the sweeping perspective of time—of where we come from and where we want to go, and with whom.

Calling the Questions

What is your quest? Does it still serve you? And does it fill you up, or drain you?

Are you there? Are you you? Are you ready?

Is it time to surrender the willful quest of pride and listen for something deeper?

Do you hear a call?
Are you answering it?

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training and development venture. Gregg is co-author of three books, including LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion) and Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards).

Check out Gregg’s manifesto on how to avoid the Common Traps of Living. Or view his TEDx talk on “Life Entrepreneurship.”

How to Give Effective Feedback—A Communication Superpower

Giving effective feedback is a powerful skill. When done well, it can be a big performance booster. When done poorly, a disaster bringing fear, discomfort, and resentment.

At its best, feedback is a great gift that can build trust and respect. At its worst, a spiral to anguish and despair. So tread carefully.

According to decades of research from Dr. John Hattie (2008), feedback is among the most powerful influences on levels of achievement.*

“We all need people who will give us feedback. That’s how we improve.”Bill Gates

Unfortunately, few people have learned how to give effective feedback or take the time to do it well, in part because of the fear associated with hurting feelings or damaging a relationship.

Through feedback you can provide information about how someone is doing on the way to reaching a goal. But it can also derail their learning, motivation, and performance if not handled well.

Note that feedback is not advice: “You need more examples in your report” is an example of advice, not feedback. Here are examples of feedback:

  • (Golf coach to a golfer): “Each time you swung and missed, you raised your head as you swung so you didn’t really have your eye on the ball. On the one you hit hard, you kept your head down and saw the ball.”
  • (Reader to a writer): “The first few paragraphs kept my full attention. The scene painted was vivid and interesting. But then the dialogue became hard to follow. As a reader, I was confused about who was talking, and the sequence was puzzling, so I became less engaged.” (Source: Grant Wiggins.)*

Here are some best practices for giving feedback:*

  1. Private Setting: The place where you give feedback should be private and neutral. Make the recipient as comfortable as possible, and avoid whenever possible public scrutiny that will take focus off the issue at hand. In-person feedback is much better than written, because so many important nuances get lost in emails and text.
  2. Mindset: Check your mindset to ensure that you come to the feedback session with a mindset of service, kindness, and openness, and that you’re presuming the best about the person (e.g., that they’re doing the best they can, or there may be obstacles that you don’t know about). Begin with a mindset of wanting the person to thrive and excel while feeling trusted and supported.
  3. Positive Experience: Make it a positive experience for the recipient. The purpose of feedback is to help the person improve. Note that feedback should contain positive and negative information about how their actions are affecting their progress toward goals. Simple praise is not enough. Strive for a high ratio of positive to negative observations to ensure the response is not dejection and thus counterproductive. Be kind and considerate. Developing your emotional intelligence is essential.
  4. Goal-Referenced: Indicate whether the person is on track toward goals or in need of a change. If the latter, brainstorm with them ways to get back on track.
  5. Specific and Actionable: Help the recipient answer the question, “What specifically should I do more or less of next time?” (Thus, “You did that incorrectly” or “Good job” do not cut it.) The Center for Creative Leadership points to the “SBI method”:
    • Situation: Describe the situation.
    • Behavior: Describe the actual, observed behavior being discussed. Stick to the facts and avoid opinions and judgments.
    • Impact: Describe the results of the behavior.
  6. User-Friendly: Feedback must be accepted by the recipient to be helpful. View it from his/her perspective and present it clearly. Note the most important elements (not a long list of items without priorities).
  7. Timely and Ongoing: The sooner the better, so the actions are fresh. Too many managers save feedback for performance reviews, which is way too late. Feedback should be frequent and ongoing.

“A global study of over 1,000 organizations in more than 150 countries found that more than one-third of all employees had to wait more than three months to get feedback from their manager; nearly two-thirds wish they received more feedback from their colleagues.” James Kouzes and Barry Posner in The Leadership Challenge

  1. Curious and Open: Invite their perspective and input. Search for mutual agreement and be open to their ideas. Ask them what ideas they have for moving forward. Ensure that they maintain a sense of accomplishment, competence, and agency.
  2. Humble: Research has shown that people aren’t good raters of other people’s performance (or their own). We vastly overestimate our ability to do this well. (It’s called the “idiosyncratic rater effect.”) We assume we are clear and correct in our observations and judgments, but this is often much less true than we think.

Why Feedback Gets Derailed. To be effective at giving feedback, we must step back and understand why it is so difficult and dangerous. Think back to when you received feedback from a teacher in front of class, or from an intense and critical boss. Feedback gets derailed when:

  • It focuses on the person and not the actions
  • It comes across as one-sided, with the giver of feedback assuming they are right, they have all the relevant information, or they alone have the key to the only way forward
  • It feels like an attack, not a gesture of solidarity and mutual commitment to improvement

When giving feedback, we’re not just in the land of communication and leadership but also of psychology and neuroscience. Our brains are brilliant at discounting or rejecting feedback. Our egos get engaged. We get defensive. We deflect attention away from our flaws and mistakes. We focus on what we want to hear and block out what we don’t.

“When we give feedback, we notice that the receiver isn’t good at receiving it. When we receive feedback, we notice that the giver isn’t good at giving it.” -Douglas Stone and Sheila Heen in Thanks for the Feedback: The Science and Art of Receiving Feedback Well 

We discredit or attack the one giving feedback, judging them extra harshly to protect our precious and wounded ego. Much of this is unconscious (an automatic triggering of our “fight or flight” response in sympathetic nervous system), so even harder for us to avoid (without strong self-awareness, emotional intelligence, and mindfulness practices).

The activation of this part of our brain reduces our ability to take in new information and impairs our learning, thereby defeating the very purpose of feedback. Professor Richard Boyatzis summarizes research noting that critical feedback engages strong negative emotion, which “inhibits access to existing neural circuits and invokes cognitive, emotional, and perceptual impairment.”*

The key is avoiding these negative triggers and taking care to engage more productive parts of the brain: the parasympathetic nervous system, associated with “a sense of well-being, better immune system functioning, and cognitive, emotional, and perceptual openness.” (Boyatzis)*

The way to do this is to notice what people did well, encourage them to reflect on and continue it, and add nuances or ideas to the understanding of the drivers of positive performance. Note what worked and ask the person what they were thinking or doing at the time. As Marcus Buckingham and Ashley Goodall say in “The Feedback Fallacy” in Harvard Business Review, “replay each small moment of excellence to your team.”

“As a leader, part of your job is to consistently let people know what they are doing well to reinforce those positive behaviors and to build emotional capital. Positive feedback makes work more enjoyable and more productive.”Susan Scott, Fierce Conversations

The other problem is that some people walk around giving unsolicited advice. The assumption is that they’re right, others are wrong, others need correcting, and the act of doling out advice is like a gift from above. More often, though, it trounces on people’s feelings and makes things worse. People don’t want to be fixed. They want to feel supported and valued as they go through their own journey, including wins, losses, and learnings. We all want to be the heroes of our own story.

Receiving Feedback. Feedback is a two-way street. It must also be received well. That requires an ability to listen well: focusing intently on what the other person is saying (not using the time while they’re speaking to think through your counterpoints) and being open to their point of view (not getting defensive). When listening well, we ask questions, share our feelings, and summarize points while checking for accuracy and understanding. The conversation builds naturally as we go to new places together.

“Really pay attention to negative feedback and solicit it, particularly from friends. … Hardly anyone does that, and it’s incredibly helpful… Constantly seek criticism. A well thought out critique of whatever you’re doing is as valuable as gold.” -Elon Musk

“On the Leadership Practices Inventory… the statement on which leaders consistently report engaging in least frequently is ‘asks for feedback on how my actions affect other people’s performance.’ Openness to feedback, especially negative feedback, is characteristic of the best learners.”James Kouzes and Barry Posner in The Leadership Challenge

Giving and receiving feedback well is a communication superpower. Use it wisely.

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*Sources:

  • Leo Babauta, “How to Give Kind Criticism, And Avoid Being Critical,” Zen Habits, undated
  • Ken Blanchard Companies, “Take the Fear Out of Feedback,” Perspectives, 2016
  • Richard Boyatzis, “Neuroscience and Leadership: The Promise of Insights,” Ivey Business Journal, January / February 2011
  • Marcus Buckingham and Ashley Goodall, “The Feedback Fallacy,” Harvard Business Review, March 2019
  • Center for Creative Leadership, “Immediately Improve Your Talent Development with the SBI Feedback Model,” Leading Effectively articles, undated
  • John Hattie, Visible Learning: A Synthesis of Over 800 Meta-Analyses Relating to Achievement (Routledge, 2008)
  • Robert Nash and Naomi Winstone, “Why Even the Best Feedback Can Bring Out the Worst in Us,” BBC, March 8, 2017
  • Grant Wiggins, “Seven Keys to Effective Feedback,” ASCD: Educational Leadership, September 2012

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion) and Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards).

To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.