Cracking the code to entrepreneurial success: insights from an innovation coach
In a recent interview with Jose Luis Otero, Innovation Coach/Portfolio Manager, Ben Franklin Technology Partners of Central & Northern PA, he highlighted the importance of knowledge, relationships with money, and networking for entrepreneurial success.
With years of experience with startups, Otero has seen the mistakes and misconceptions founders experience. If you are considering launching a business, connecting with a Startup Alleghenies coach can help you navigate these pain points and grow your business.
Knowledge Rules—know what you have
Otero says that a big part of being an entrepreneur is to keep learning about the products that are being sold and how they are being used. “Many entrepreneurs make the mistake of thinking they know everything about their product, but they don’t.”
The example he shared was the PopSocket. This tiny device that sticks on the back of your phone was initially created as a place to wrap your headphones so they wouldn’t get lost or tangled. Once the circular gadget got into customers’ hands, a new use was discovered, as a phone grip. This new use went viral, selling over 200 million units.
Improve your relationship with money for success
He said that another key opportunity for success is having a healthy relationship with money. “It’s more about the relationship with money than the amount needed,” Otero said. “Focusing on your money mindset will help you understand the financials so that you know what is truly needed to execute over time, not just right now.”
He said there is a dichotomy of money in this country that labels money as inherently good or bad. “Entrepreneurs need to discard that notion and instead cultivate a comprehensive understanding of financial management,” he said.
Focusing on your money mindset will help you understand the financials so that you know what is truly needed to execute over time, not just right now.
An Entrepreneur article said that people often make two money mistakes in starting a business. The first is relying too heavily on financing, and the second is spending money on things that are not propelling the business forward.
Otero agreed—“Sometimes you have to take on debt to accelerate,” he said. “This shouldn’t get in the way, but you should evaluate to ensure the output can cover the debt.”
“Shifting to an accrual accounting system will give entrepreneurs a clearer picture of their financial standing,” Otero said. “That will enable better decision-making and future planning.”
The Mom Test
“You have to look beyond the idea,” Otero said. “You have to socialize your idea to measure its viability in the market.”
The Mom Test is a guidebook that walks entrepreneurs through getting in front of the right customers and asking the right questions. It talks about ways to tell if your business idea is great or terrible by assessing the opinions of your friends, family, and investors accordingly and not believing everything they say just to make you feel good. “This guide helps entrepreneurs ask the right questions to understand if their business idea is actually good,” Otero said. “Those close to you won’t always provide the best feedback, but this book helps walk you through the process.”
“By mastering The Mom Test,” he continued, “you will be perfectly positioned to dive into customer discovery. By completing these two pieces, founders can minimize risk and increase their chances of success.”
Networking is essential
“Entrepreneurs thrive in this region’s exceptional networking opportunities, building connections is key for achieving success,” Otero said. “Networking increases visibility. It helps founders find partnerships and connections. It’s not just about what you can get out of it, but also how you can contribute to the growth of the network.”
“Founders don’t have to go it alone—with a solid network, you are rubbing shoulders with like-minded people who can support you, encourage your growth and impact your bottom line,” he said.
Building connections is key for achieving success. It’s not just about what you can get out of it, but also how you can contribute to the growth of the network.
Entrepreneurship is a rewarding journey that requires constant learning, financial savvy, effective networking and a deep understanding of customer needs. As highlighted by Otero, entrepreneurs should focus on acquiring and applying knowledge, seeking honest feedback from the right people, mastering customer discovery and building strong networks to overcome common hurdles. By adopting a growth mindset, seeking mentorship and collaboration and leveraging available resources, founders can turn their ideas into successful businesses that create value for themselves and their communities.
Startup Alleghenies helps startup and emerging small businesses succeed by providing free coaching to entrepreneurs in Bedford, Blair, Cambria, Fulton, Huntingdon and Somerset counties. To access personal, one-on-one support from a coach in your county, including guidance, resources, tools and networking opportunities, sign up at startupalleghenies.com.
