Being a quitter makes you a good entrepreneur

George Carol When we look at successful entrepreneurs, it may appear that they spend their lives relentlessly going for a particular goal. We assume the path to success is a straight shot, lined with mile markers throughout. In fact, it is not like that at all. Entrepreneurs make it up as they go. The nature and uncertainty of entrepreneurship favours those who can find the most efficient path quickly, regardless of where the crowd may be headed.

Finding the optimal path, that is, doing only the stuff that matters most and quitting the rest, is paramount to an entrepreneur’s success. In this final article, related with Malta’s Best Entrepreneur of the Year Awards, I touch on the lessons and parallels of running a business and running as an athlete, I will be looking at why quitting is as important as commitment.

Lesson 1: Quit to win

Every week, I meet entrepreneurs who are passionate about their business. When I am asked to advise someone, I usually ask what the top issue is that I could help him or her with. True to form, they begin to describe their social media plan, followed by a description of the slides in the investor presentation they will inevitably make. They would be hard-pressed to omit the amazing code they are in the process of building and the great feedback received from a PR agency they met. Invariably, and quite clearly, there is a lot on their mind.

I usually find myself interrupting the barrage of lofty plans and ask, “So what’s most important right now? What are you working on first?” It often results in slightly confused looks, hands still aloft in mid-air from the high-velocity gestures used to describe their plans. “Well, all of them,” I will hear. “That’s why I need help.” This is a tell-tale sign that I will not be acting as adviser to that company much longer.

Prioritization is an entrepreneur’s most important responsibility. Start-up CEOs need to know what to do and what to quit doing. Doing everything at once does not work. Andy Rachleff, a University professor in a business school and a prominent venture capitalist, once shared a technique he uses to weed out founders who have not learned the critical skill of knowing what to work on, and what to quit. After hearing the pitch of a business he is interested in, he will email the CEO a litany of questions he wants answered ASAP. Unbeknownst to the entrepreneur, Andy intentionally mixes important questions with fluff questions. These fluff questions require a good deal of timewasting research and so the entrepreneur has some important decisions to make, and quick. The founder, eager to please the VC and get the investment, has to choose where to best spend his time. If the CEO answers all the questions and does all the research requested, he fails the test and Andy passes on the deal. If the founder prioritizes correctly, picking the most important questions to address while selectively de-prioritizing the rest, he passes the test and goes to the next round of the investment process.

Instead of trying to do everything all at once, the start-up CEO needs to focus on what really matters. Like in running, all that matters is the next step. Particularly when running barefoot, I scan the road ahead to see what my foot will come into contact with when it hits the pavement. By focusing the mind on the next step, you prioritize what you should be doing right now. Do it correctly, and quit worrying about everything else.

The size of your next step depends proportionally on the size of your company. In very early companies, you need to focus on baby steps to validate your vi- sion. Questions like, “how do we get a user to open our app daily?” or “how do we get a user to register with their email?” are often the most important next steps. For larger companies, next steps include bigger strides. The OKR, or Objectives and Key Results method is one taught to me by one of my key consultants, Prof. David J. Dingli, and I recommend it for growing companies.

Just make sure to match the size of your next step with the size of your company. Taking too big a stride can distract you from the small steps needed to get you there. Keep the steps small and actionable. Taking too big a step often leads to confusion and exhaustion as team members struggle with objectives too far out of reach to know exactly what to do next. You will know your next step is the right size when, like running, it is easy but not effortless. It should flow from your organization like one foot following the last. People love to see progress, even in small steps. This is one of the reasons burn down charts work so well in Agile software development, but the principle of taking small steps along a journey can be applied in many situations, in business and in life.

By taking small, attainable, and thoughtful steps in your business, you will increase team motivation and focus. Successful people thrive on re-prioritizing work by quitting some tasks to maintain focus on more important work. Do not think too far down the road to the finish line; just keep moving forward. Like running barefoot, successful entrepreneurs follow their feet.

Some of these successful entrepreneurs can also be lawyers working with law/audit/consultancy firms, which makes them eligible to be nominated in Malta’s most respected and largest business awards, which attract over 500 guests for a gala dinner on the final night.

Anyone, including employees, company advisers and financiers can nominate an entrepreneur, including legal advisers/lawyers. Many of the nominations can raise a company’s profile through exposure to other entrepreneurs, sponsors, judges and guests. The winners also benefit from significant international visibility which could drive the next phase of their company’s growth. Most business owners will agree on one thing – being an entrepreneur is great. There are endless reasons for this, and every entrepreneur will have his or her own personal reasons as well. Since its founding over eight years ago, Malta’s Best Entrepreneur of the Year Awards has officially represented the voices of entrepreneurs among close to 5,000 Maltese companies. The MBEOTYA is proud to confer the Entrepreneurial Excellence Awards for the MBEOTYA Entrepreneur of the year and Excellence Awards, celebrating the contributions of great entrepreneurs that embody and exemplify the spirit of men and women for others and a passion for innovation.

The MBEOTYA 2018 is currently seeking nominations for this year’s awards and Annual Excellence Awards celebrating achievers and role models in the tech, retail, hospitality, legal, social impact areas and one rising star in the entrepreneurial world. Malta’s Best Entrepreneur of the Year Award is the highest honour bestowed to Maltese entrepreneurs. The full slate of awards, which will be presented at the Castello dei Baroni on Friday, 27 July, are fully accredited and under the patronage of HE the President of Malta. For further information regarding nominations, sponsor and advertising/branding, please contact Margaret Brincat on 9940 6743 / Margaret:@mbrpublications.net or visit the website www.mbrpublications.net