The Reum brothers, Courtney and Carter, are known for their roles on the television show Hatched. They are also behind many household brand names including big names such as Lyft, Pinterest, Warby Parker, and Shake Snack. Their new book, Shortcut Your Startup: Speed Up Success with Unconventional Advice from the Trenches is full of advice and shortcuts for those who want to take a start-up organization and scale it quickly.
In the Introduction of your book, you talk about both how it’s cheaper and easier than ever to start a business but also that the competition is more fierce than ever, too. What are the implications of these market forces?
The effects are twofold. On one hand, an abundance of resources has recently come into existence that—in a vacuum—would make life infinitely easier for any entrepreneur. Obvious examples are Kickstarter, social media marketing, Amazon’s e-commerce platform, data analytics—the list goes on. Obviously, these facilitate the arduous and historically expensive process of starting a business. Just look at the following graph showing the decrease in time needed to scale a brand.
Copyright Reum Brothers, Used by Permission.
The problem with these resources, however, is that everybody has access to them. Since these goods and services simplify business building, more and more people enter the landscape and competition increases. While the increased number of competitors certainly is an implication, a more important one is that it becomes significantly more difficult for the best business to separate itself from the crowd.
Use a Microscope and a Telescope
Another juxtaposition of ideas is from the old saying that you need to have a microscope on one eye and a telescope on another. You also use the speedboat versus sailboat analogy. Talk about this and how aspiring entrepreneurs need to understand the differences and their role.
Many business books are written on how to innovate, achieve faster growth, or beat the competition. I’ve not read many that focus on the personality of the leader. But the founder’s personality has a dramatic impact on all aspects of the company culture and its potential.
If entrepreneurs understand their personalities, it will help them choose the right team to enhance their strengths and manage around their weaknesses.
I recently spoke with the authors about their fascinating research into personality in this context. John Danner is a senior fellow at the University of California Berkley’s Institute for Business Innovation. A faculty member, a business adviser, and an entrepreneur, he speaks widely on topics from innovation to strategy. Chris Kuenne is a member of Princeton University’s entrepreneurship faculty, a growth capital investor, an entrepreneur, and a speaker.
“To win in the twenty-first century, you must empower others.” -Jack Ma
Personality is one of the least understood elements of entrepreneurial and business success. Why is that still the case after decades of study and research?
We think there might be three converging reasons. First, the business world often tends to overlook introspection and reflection in its bias for action and results, so the issue of who you are can get lost in the impatient focus on what you’ve done. The “do” trumps the “who.” But as any manager or leader knows, personality does matter . . . a lot; so that action-bias has left a void in our understanding.
Second, we love icons. Movies and the media naturally latch onto a compelling storyline, a fascinating individual, and retell that one person’s experience, character and personality. But icons can quickly become stereotypes, and those stereotypes reinforce the notion that you have to be an extraordinarily exceptional person to find success as an entrepreneur. That shorthand can substitute for a deeper understanding of what’s really at play here. In other words, every entrepreneur doesn’t have to be a Steve Jobs or Elon Musk to be successful; our research discovered there are four distinct personalities of successful entrepreneurs. And there are likely millions of individuals the world over who share those same personality patterns.
Third, although most people are intensely curious about who they are and how they’re wired, most personality assessments are ill-suited to the task of cracking the code of successful business building. Many address very broad issues, e.g., am I an extrovert or introvert, a Type A or Type B, etc. Or they’re designed to answer other questions in personal domains, like who might be a good match for me, what music might I like, etc.
Some broad-gauge tools can help people decide whether they might be cut out for entrepreneurship generally, e.g., are they comfortable with taking risks or working for themselves? But those resources don’t address the fundamental question: what are the key personality characteristics of the women and men who actually succeed in building lasting businesses of impressive scale? What makes those individuals tick, and am I like any of them?
And context is key here; people want to know about personalities in action in particular settings. That’s why we concentrated on examining personalities in the context of successful business ventures and used a patented Personality-ClusteringTM methodology that has proven its effectiveness in decoding specific customer behavior in hundreds of markets around the world.
But our research is just a first step in understanding the central mystery of the who of successful entrepreneurship. We invite others to build upon our findings as we refine our own work. After all, entrepreneurship is vital to economic growth and opportunity globally. We welcome others’ insights into this complicated and essential domain of human endeavor.
“Teams need captains, and vice versa-if you want to get things done.” -Mark Coopersmith
Briefly walk through the four types of Builder personalities.
The Driver: Relentless, Commercially Focused, and Highly Conﬁdent – Drivers can’t help themselves. They have to become builders of business or social ventures of their own as a means of self-validation. Entrepreneurship is almost hardwired into their very identity. They are supremely confident individuals, fixated on their products, relentless in pursuing commercial success based on their uncanny anticipation of what markets and customers are looking for. Drivers – like Steve Jobs or Elon Musk – often don’t last long as employees in other people’s organizations. They eschew rules and bureaucracy, seeing them as tools to focus the average person, yet often confine the truly gifted, independent-thinking actor. These builders are willing to do whatever it takes to realize the commercial success inherent in what they believe is their unbounded potential, in fact their destiny.