Masterclass With Startup Growth Specialist Diala Daoud
Diala Daoud shares the 10 most common misconceptions about entrepreneurship, and tells us what the process is really like.
StartupScene’s op-ed series ‘Masterclass’ invites some of the region’s most dynamic entrepreneurs and experts to divulge their secrets, dispense their knowledge, and share their experiences with the MENA region’s ever-growing startup ecosystem. Whether they’re written by old guards or trailblazers, these masterclasses have been created to illuminate the path for aspiring entrepreneurs.
This month’s Masterclass contributor is Diala Daoud, startup accelerator and growth specialist in the GCC. Daoud shares her views on common misconceptions surrounding entrepreneurship to help dispel fact from fiction, giving aspiring entrepreneurs a glimpse of what building a successful startup really entails.
Ten Common Misconceptions About Entrepreneurship
In our digital age, involvement in technology and innovation is becoming increasingly celebrated as the norm. I would say overly celebrated. Many people may question your ambition and drive in life if you're not actively participating in this movement as an entrepreneur. However, not everyone needs to be an entrepreneur to be successful.
While I am a massive advocate of entrepreneurial education, university pre-acceleration initiatives, and democratizing access to entrepreneurship events, I see entrepreneurship being oversold to the public and the younger generation. What makes it worse is that many unrealistic expectations are associated with entrepreneurship. So, I decided to dedicate this article to demystifying some of the most common unrealistic expectations I encounter regularly.
Misconception No. 1: Entrepreneurship is for everyone
A successful entrepreneur requires a diverse soft, technical, and business skill set to build and lead a startup. Even with these skills, access to resources, industry expertise, and market background are crucial variables. So yes, not everyone can be a successful entrepreneur.
Misconception No. 2: Entrepreneurship brings freedom
On the contrary, it adds responsibility and anxiety. Leading your own company means your salary and your team members depend on you. Forget about the 9-to-5 schedule; entrepreneurs often find themselves in a never-ending schedule.
Misconception No. 3: Innovative ideas are enough
Ideas alone don't matter in the startup world. Execution and traction do. Investors, except in unique and rare situations, typically no longer invest in mere ideas; they invest in validated prototypes.
Misconception No. 4: Failure should be avoided
Failure is part of a startup’s success. Experimentation, pivoting, testing and altering your approach are essential. Failure is a lesson, not a setback. If things fail, well, that is a win, a lesson on what to do next, and the things you need to change to move forward and succeed.
Misconception No. 5: All first-time founders are bound to fail
Many successful founders have disproven the notion that first-time founders are doomed to fail. Mark Zuckerberg with Facebook, Evan Spiegel and Bobby Murphy with Snapchat, Brian Chesky, Joe Gebbia, and Nathan Blecharczyk with Airbnb, and Whitney Wolfe Herd with Bumble are great examples.
Misconception No. 6: Lack of capital is the reason for not launching or growing a startup
Expecting investors to trust and invest in your company without you investing in it yourself first is unrealistic. This includes your sweat, time, money, and resources. While significant capital is necessary for some industries, you should start somewhere and build something before seeking any investment. And you can do that!
However, you should be conscious of your finances and expected runway. Don't stretch your finances thin. Be aware of the capital needed now, in six months and one year. And if you need to raise capital, plan for it early on to maintain your startup’s momentum.
Misconception No. 7: There is a specific formula for successful entrepreneurship
A model that worked for one startup might not work for yours. Many factors, such as the founders' background, access to resources, and market conditions, come into play. Be patient and trust the process.
But there are some general guidelines to entrepreneurship success, including having good financial planning, a concrete path to profitability, and adapting to market conditions quickly and effectively.
Misconception No. 8: You can build a company alone
Regardless of your expertise, a founder needs a qualified, cohesive, and motivated team. You cannot build a startup alone. This also includes access to mentors and experts who can add value to your startup.
There are also active public and private sector communities, incubators, accelerators, and support initiatives that you can add to your support network.
Misconception No. 9: A business plan is not important
No matter how established you are, a clear business plan that maps out your strategy is crucial. Plan, action, and resource mapping should not be overlooked. Even if you have to pivot, you can alter your business plan to suit the current market conditions and give your startup a real chance at success.
Misconception No. 10: Rejection leads to failure
In entrepreneurship, accept and welcome the rejections you will face - there will be plenty! Gamify rejection, accept it and learn from it. Also, never take things personally.
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