Maxims for Supporting Entrepreneurs

These are lessons I’ve learned over a decade of supporting early-stage entrepreneurs at Stanford and in El Paso. No entrepreneurial journey is the same, but these principles are broadly applicable.

  • Only entrepreneurs can build companies.
  • Only entrepreneurs can build themselves into entrepreneurs.
  • There are unknowable and uncontrollable factors that can dictate an entrepreneur’s success or failure. Even the best founders can fail if market conditions aren’t favorable.
  • In most cases, you will not have the applicable skills or experience to help entrepreneurs with their particular problem.
  • The best ways to reliably support entrepreneurs are to 1) help them maintain morale and 2) find people who can help.
  • There is no right way to build a company, but there are countless wrong ways.
  • Bad advice is worse than no advice.
  • Your advice should be regarded as one data point.
  • The winner is often whoever stays alive the longest.
  • Every successful tech company must break a few important conventions, but it must not break all conventions. The challenge lies in picking the right conventions to break.
  • Most companies should do most things conventionally so they can focus on breaking the right conventions.
  • There are no shortcuts. Whatever impedes the entrepreneur’s path should become the path.
  • A company needs people who can sell and people who can build.
  • It is significantly easier to become a salesperson than it is to become a builder.
  • A salesperson who cannot hire builders will not succeed.
  • Everyone wants to connect the dots, but few people want to go through the trouble of collecting dots.
  • 99.9% of great ideas come from experience or networks with experience. Students and young entrepreneurs typically have little of either.
  • Expertise must be lived, and it goes stale fast.
  • Real entrepreneurs don’t need permission to start.
  • Money is an accelerant, not permission.
  • If you think you know how to find the next great entrepreneur, quit your job and make billions as an investor.
  • You cannot alter risk preferences of sophisticated investors. Entrepreneurs should only take investments from sophisticated investors.
  • If you continuously tell people they are something, they will eventually start to believe you.