By Allan Maurer
CARY, NC – Right from day one in Robbie Allen’s MIT Introduction to Entrepreneurship class, the professor started spouting the conventional wisdom that eight of ten startups fail. Allen, founder of the of sports statistics site StatSheet.com, said he didn’t believe that particular statistic in a blog entry three years ago. He received a reply from a Small Business Administration official saying, indeed it is wrong. According to the SBA, 50 percent or more startups are still in business after four years.
An entrepreneur who says his own experience has shown that much of what is said about succeeding as an entrepreneur is just not so, recently gave a talk at a Startup Drinks and Refresh meeting sponsored by the North Carolina Startup blog (www.northcarolinastartups.com) called, “Everything you’ve been told about Entrepreneurship is WRONG!”
He cited the following myths:
Myth #1 – nine of ten or eight of ten startups fail. “Never apply a broad statistic such as that to your own situation,” says Allen. In addition to the SBA’s counter statistic, he notes, only 16 percent of MIT-based startups fail in five years, so “If you come out of MIT your chances are even better. So if you hear anyone citing that eight of ten fail, correct them.”
Myth #2 – Entrepreneurs are mostly 20-somethings, often fresh out of college. Allen points to himself to counter that myth. “When I started Stat Sheet,” he says, “I was in my early 30s, married, just had a new baby, had a heavy mortgage and was employed.” But he also cites a Kauffman Foundation study that showed most entrepreneurs are 55-64.
Myth #3 – You can’t do it by yourself. “Why not?” asks Allen. He started Stat Sheet himself and continues to run it as a one-man band. “I’m much more nimble than my competition,” he says. “It is easier for a tech person to do it. I have a technology background, but also an MIT degree in management, and I’m willing to put in the hours to do it, so why couldn’t I be successful?”
Doing it himself can be lonely at times, he says, “But that’s what your mentor, friends and spouse are for.”
Myth # 4 – Guard your secrets. “Be open about your plans, it will differentiate you,” Allen says. “A bigger competitor copying me validates what I’m doing and makes me more attractive to others.”
Myth #5 – You must have a laser focus. “You can miss big opportunities by being laser focused,” says Allen. “More irons in the pot diversifies risk.” It’s a strategy he follows in his own business, which TechJournal South will look at more closely in Monday’s story about StatSheet.com.
In his talk, Allen countered the myths with several Startup truths.
Truth #1 – Execution is more important than ideas. “Ideas are a dime a dozen and solid execution is the only reason Stat Sheet is in business today.” Several people told him they had the idea for Stat Sheet several years ago (Allen started the company in 2007).
Truth #2 – A startup is hard work. “I’m willing to outwork my competition,” Allen says.
Truth #3 – Raising money is hard. While true, Allen says money is out there, but adds that it’s important to show progress first. Having a viable business model provides an advantage over much of the competition, he says.
Monday: a profile of Allen’s company, Stat Sheet, and how he’s managed to thrive despite going against conventional wisdom.
Online: www.statsheet.com; www.northcarolinastartups.com
Southeast Venture Conference, February 29 – March 1, 2012 at the Ritz Carlton in Tysons Corner, VA – Where Smart Money Meets Smart People.
www.seventure.org
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