entrepreneurship

This is part two of my discussion and thoughts on seeking to become an entrepreneur as a software engineer.  These are my current thoughts on the process and how to achieve my overall goals in becoming an entrepreneur.  This entry centers on the belief that becoming an entrepreneur occurs in several distinct phases.  Currently, I have identified three core stages.  During each of these phases our rolls and responsibilities change and grow drastically.

Stage 1: Working for someone else

This stage is the simple “do work” stage.  We work to fulfill someone elses vision, we work to complete their goals and bring life to their ideas.  We work to solve their problems.  Since we are, at our core, this state is the default for most workers in industry.

Stage 2: Startup

This stage where we work to get our company off the ground.  We are working to fulfill our own vision.  We have identified a product or service area and are actively working to produce something.  We may or may not have a small team but at worst case we are the pitchman, sales rep, accountant, architect and coder all in one.  We are still the problem solvers, just with more hats to wear.

Stage 3: Liftoff

In the other stages we still participated in the day to day work being done, in this one we have progressed to something else.  What that may be is up to the structure of the company.  We have at the very least transitioned from problem solver at the code level to problem solver at the company level.  We are actively deciding the direction of our company and product.  We transitioned to a form of problem creator for the people in our company.

This is the first post in what I plan to be a series.  In these posts, I will explore ideas in entrepreneurship.  It’s a given that working for yourself, while it brings many risks, can bring many rewards.  I believe that it is one of the only ways to achieve freedom from the daily grind and to meet long term financial goals.

Benefits Of Working For Yourself

• Achieve – The sky is the limit.
• Vision – Your the one with the vision (for the company and/or product).
• Destiny – You make your own destiny.
• Freedom – You call the shots.
• Profit – As owner, you reap the rewards.

What I Think Works

My thoughts on what works will probably change a lot over time, but currently I think one of the best ways to become a successful entrepreneur is to develop applications, websites, devices, etc that are an improvement to a larger company’s product in the hopes that they buy out your company.  For example, $10 million is a lot for an individual working the daily grind, but pocket change to large corporations.  Buying other companies is at the heart of how Apple, Google, Microsoft, Facebook, or any other major companies acquire new technology and features so it definitely works for some people.  Think of whatever your company is bought for as excellent seed money into the next.  The big “but” here is don’t undersell either.  If you can see a larger valuation for your company/product, stick with it and don’t take a buyout.

What Doesn’t Work – Writing Books

Apparently, writing books isn’t as profitable as you would think.  If you listen to the Entreprogrammers podcast, you’ll hear just how much they make on their books.  While I don’t remember the exact numbers they say, it wasn’t a lot (only a fraction of a good year’s salary).  It’s enough to make me think that unless you are some big publishing company its simply not worth your time and effort.