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Building the Entrepreneurial Team

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One of the most powerful and effective things we can do for our clients is to help them to think really hard about how they build the full range of skills and passion that their enterprise is going to need if it is to really work well.

It will need a managing director – someone to work on the business rather than in it.  Someone who can make objective decisions for the benefit of the organisation.

It will need someone who is passionate and knowledgeable about the product or service, someone who is passionate about marketing and sales and someone who loves doing the books and preparing financial projections and cases for investment.

  • Can your client really fulfil all these demands?
  • Will they?
  • Or will they default to doing the stuff that they love most?

If they do then at least one vital part of their business will be stunted – and that will be enough to bring them down.

Even if we train the entrepreneur to do everything this problem will develop – because they will always be drawn towards the work that they love – and away from the work that they hate – no matter how important it is to the success of the business.

The biggest favour that we can do them is to help them to build a team that they trust, where other in the team love to do the bits that they hate.

If we don’t do this then it might be easy for us to diagnose the problem (your financial management is weak) and to make a recommendation (why don’t you spend more time on it?) but we will be wasting our breath.  If they don’t love financial management they are not going to do it well.

So why do so few advisers actively encourage entrepreneurs to build a team before they write their business plan?

Do you?

Learned Helplessness

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If you keep a predatory fish, such as a pike, in an aquarium it will display normal healthy predator behaviours.  Put a prey fish in and a hungry pike will attack and swallow it in the blink of an eye.

If you use a glass wall to divide the aquarium in half, with the pike on one side and a prey fish on the other, then the pike will pursue the prey fish again.  But this time it just smacks into the glass and gets a painful bang on the head for its trouble.  No matter!  It regroups, attacks again and ‘crack’ the same result – a whole load of pain and no gain.

After a while the pike learns that going for the prey fish is not such a smart move.  Chasing what you want just ends in failure and pain.  You can even remove the glass wall from the tank, surround the starving pike with prey fish and it still will not attack.  It has learned helplessness.

There is a lot of learned helplessness out there.  A lot of people who used to have dreams and aspirations, but in pursuing them have just got pain and no gain.  Painful experiences and memories from school, parents and peers who do not believe in them and perhaps a history of redundancy and unemployment.  You can dangle ‘opportunities’ in front of them and still they will not grab them.  They have learned that this will only end in pain – and no gain.  Learned helplessness.

And ‘advice’ even well meaning, technically competent and powerful advice will not help.  In fact it will hinder – it will reinforce the idea that they are somehow deficient.  That if they were OK they would not be in this situation.  It reinforces the helplessness.

So what does work?  Knowing someone who believes in you – unconditionally.  Who encourages you to pick yourself up, learn the lesson and move on.  Someone who has faith in you and wants to see you become the wonderful person that you have the potential to become.  Someone who does not preach or advise but just helps you to grow – and to keep growing.  Someone who puts your well-being at the top of the agenda – and their contracted outputs much lower down.  A facilitator, a coach, a true friend who will help tackle the real barriers to progress – not just the technical challenges to be overcome but the personal ones too.

Facilitating The Power of Faith and Belief

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Imagine a client who is about to commit him/herself to a significant investment in a new business.  The market does not seem to be there.  The finance is not yet in place.  The business (from any logical rational perspective) looks like a money pit.

Yet they know they can make it work.  They can see the business in its final form.  They know that they will find a way.  They just need to commit to it.  So they make the investment.  They burn their bridges.  There is no going back.  They have to find a way.

Enterprise Based on Faith or a Plan?
Enterprise Based on Faith or a Plan?

You ask them why they are so sure that the business will work.  They answer,

“I just know it will work – I can feel it in my bones”

or perhaps

“God told me to do this – he will find a way”

or

“I know it is a risk – but it is a risk that I comfortable to take”.

Now just suppose they are the Head of Sony on the brink of launching the Walkman – even though all the business anlaysts were screaming – DON’T DO IT.  Or imagine your client is Rupert Murdoch, about to launch Sky Sports – even though the market research says that overwhelmingly people will not pay to watch football matches on satellite TV.

Now imagine it is a local person about to launch into their first enterprise – no financial reserves to fall back on.

  • How would you handle the situation?
  • What would you say?
  • What would you do?
  • Who else might you involve?

If you manage a support service – how would you want your advisers and coaches to handle it?

Reflecting for Effective Practice?

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  1. What percentage of your clients come back to you for further support?
  2. What percentage do you just see once?
  3. What percentage of your clients go on to open a business?
  4. What percentage decide that enterprise is not for them?
  5. What percentage decide that they want to run their own business – but decide that they can’t make THIS business idea work.
  6. What percentage open a business – but don’t make it through the first/second/third year?
  7. How many different clients do you meet in a month/year?
  8. How many 121 sessions do you run in a month/year with clients?
  9. What is your average percentage occupancy? ie how much of your capacity is being used (by the people that you are meant to be supporting)?
  10. Are you really contributing to the development of an enterprise culture?
  11. What is your reputation with:
  • clients and their friends and families
  • funders
  • partners
  • other regeneration and community development professionals in the community?

Helping Does Not Help…

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We need to stop being helpful.

Trying to be helpful and giving advice are really just ways to control others.

Advice is a conversation stopper…we should substitute curiosity for advice.

Do not tell people how you handled the same concern in the past.  Do not immediately offer the text book solution to the problem – unless you want to kill creativity, enquiry and insight.

Do not ask questions that have advice hidden in them, such as “have you ever thought of talking to the customers directly?”

Often people will ask for advice. The ‘request for advice’ is how we surrender our independence. If we give in to this request we have affirmed their dependnece on us; their belief that they do not have the capacity to create the world from their own resources; and more importantly, we have supported their escape from their own freedom.

For more on this I would recomend almost anyhtingby Peter Block – but especially:

Community – The structure of belonging – Peter Block

“One of the basic elements of the relationship between oppressor and oppressed is prescription. Every prescription represents the imposition of one individual’s choice upon another, transforming the consciousness of the person prescribed to into one that conforms with the prescriber’s consciousness.”

Pedagogy of the Oppressed – Paulo Friere

“It was wonderful! Incredibly powerful – just to be listened to.”

Participant on an Introduction to Enterprise Coaching Programme.