Entrepreneurship can be daunting, no matter how long you’ve been doing it. Just ask self-diagnosed “serial entrepreneur” Luke Butterworth, ’20 MBA, the entrepreneur in residence for eHUB, the U of A’s entrepreneurship centre.
While completing his MBA, Butterworth helped found three companies — in telehealth, robotics and financial technology. He has since co-founded EPIC, a hospitality and events company where he is chief of operations. At a recent event, he joined eHUB director, Peter Keith, ’19 BCom, ’19 Cert(Leadership), ’20 MBA, to bust some myths about entrepreneurship. Here are their tips.
1. Anyone can apply
You don’t have to be 22 and just out of school to be an entrepreneur. Age and experience are often an asset, says Butterworth. A lot of successful entrepreneurs start later in life, once they have the resources and abilities to start a successful business. “A lot of experience will actually help you determine how your solution is going to come about.”
“Many of the people who’ve made world-changing innovations have struggled early on,” says Keith. “They’ve found that the system doesn’t work for them, and instead of mastering the system, they learn how to change and adapt it. They shape the world rather than trying to find the solution that everyone else says is the solution.”
2. Big isn’t always better
Butterworth highlights the importance of thinking about what you want to achieve by owning a business in order to ensure it will fit your lifestyle.
Whether you want to found a startup with the potential to scale into a billion-dollar company with hundreds of employees or simply want the freedom to be your own boss, there are plenty of opportunities.
“You should be thinking about starting a business that is aligned with your goals, your values, your vision,” says Butterworth. “How do you want to spend your life? Entrepreneurs pour their hearts and souls into things and need to be doing that for the right reasons, not for someone else's reasons.”
3. Know what you have to offer
A business is often a solution to a problem. Knowing how to define and communicate the problem and the solutions you can offer is an essential part of being an entrepreneur.
No one likes to be on the receiving end of a sales pitch, so remember that what you’re offering is an opportunity. Showcase your enthusiasm and point of view. How can you ease a pain point for a client? What excites you about your solution? Telling your story in a way that builds genuine human connection will help people believe in your ideas.
“If you’re not taking a step as an entrepreneur because you feel like you haven’t had the million-dollar idea yet, you will be waiting forever,” Keith says. “These things don’t just pop into your mind, perfectly formulated.”
4. Is it building value for you?
In the age of the internet, there’s no shortage of get-rich-quick schemes. Being an online retailer can be a legitimate way to build a business, Butterworth says, but it’s important to be diligent about how the business is structured. Ask yourself if you own any part of the process or intellectual property. “If somebody wanted to acquire your business tomorrow, could you sell it? Is there anything to sell?”
Creating a business with staying power is not quick or easy, says Butterworth. It takes a lot of time and effort to build relationships with customers so they continue to return.
5. Finding the million-dollar idea
There is no “million-dollar idea.” Ideas are just ideas until you take them further and create something of real value, says Butterworth. The chances are slim that you’ll come up with a fully synthesized idea right off the top.
“The true test of any entrepreneur is having these great ideas, picking one that you’re actually going to go forward with, and then putting in the effort to see whether or not this can be something of real value,” says Butterworth. That’s where the real challenges can crop up.”
A good starting point is to seek out feedback from others, he says. Feedback is crucial to be able to hone your concept based on realities. Would-be entrepreneurs are often protective of their ideas, but there’s a difference between protecting an idea and being a barrier to your own success.
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