Do you really create your own luck?

Today, I'm diverting from my usual Profile of a startup or a VC. I'm blogging about my thoughts, and it's somewhat extensive.

I have a client who just got funded after 5+ years of total focus and perseverance. It is all worth it for him now that funding has been achieved, and he is ready to rock'n roll. The timing was critical. If he had not received substantial funding for his company by end of 2007, his wife may have kicked him out the door to find a "real job" come January 1, 2008.

Most people I meet in my line of work are those I consider to be in the 99th percentile of intelligence in the US -- if not the world; 99th percentile in their ability to focus, and 99th percentile in their ability to execute... and yet they do not realize their goal. What is the success factor that these people are "missing"?

Many successful entrepreneurs I personally know admit that their friends worked harder, pushed themselves harder, focused better, executed better, but had bad "luck". They, on the other had had good luck. They were at the right place at the right time. The market was ripe for their product. Many will tell you, "it was luck".

Some would argue that you make your own luck. Others would argue that timing is not luck. I say timing is luck, and you don't make your own luck. That is an oxymoron. Luck is chance. If there is truly a formula to make "luck", everyone would be making this thing called "luck" and making a fortune.

From my experience coaching entrepreneurs through their fundraising process and beyond for over six years in the Silicon Valley, I'm taking the liberty to characterize successful entrepreneurs into three categories: 1) entrepreneurs who have "star power", 2) entrepreneurs who people genuinely want to help, and 3) entrepreneurs who are relentless and keep jumping and finding their safety net. The combination of these characteristics give you a better chance (a.k.a. "luck") of achieving your goals.

Let's start with entrepreneurs who have star power. This is merely a discussion, not even an opinion -- but, take it as you will. How does one have star power? Is it an innate talent? For some, yes. Can you develop charisma? I say yes. Many individuals that have star power today have forced themselves out there in very vulnerable positions again, and again, and again. You mean they practiced? Absolutely! Why do you think serial entrepreneurs that have been successful before are sought out by investors to fund their next gig? They've gotten more practice time.

One of my favorite movies is "Out of Africa" where Meryl Streep plays a lonely woman named Karen who married for the security of having a man, such as he was, in her life. One quote I took to heart many year back was when Dennis, her lover came to visit her for the last time in her house in Africa, she said something like this, "when I think I can't go one more step, I take that step. And when I do, I feel like I can do anything."

When I started Right-Hand Partners back in 2001, I was so afraid of public speaking. I intuitively knew that I needed to learn to comfortably speak in front of a large group of people in order to grow as an entrepreneur and build my company. So, I forced myself to moderate panels, MC my own events and conferences, and put myself out there where I felt most vulnerable. And, I'm still practicing. :-)

So, practice makes perfect? Not really... no one is perfect, and no one can be at their strength all the time. For the sake of "discussion", let's just say that for some reason, God won't allow it.

So, there is the other category of entrepreneurs that people genuinely want to help. Are you sure there aren't just Samaritans in this world that help those they don't really want to help? Sure there are such people.

And, there are entrepreneurs that people genuinely want to help. I talk about this often with venture capitalists. When I'm asked by VCs about what I think of individual entrepreneurs, I've found myself describing several as "entrepreneurs who you want to help." And, the VCs begin to reach inward to find their nurturing emotion within their complex stack of personalities to reach out to these entrepreneurs. So, what innate "something, something" do these entrepreneurs have that make grown left brained men want to genuinely nurture them? It comes down to being "likable", and having someone like me, willing to say how "likable" they are. When do I describe an entrepreneur as "likable"? When they are coachable, considerate, and respectful of my time -- all sum up to the essential skill of listening. Listen, and you will be heard.

Lastly but no least, entrepreneurs who are relentless and keep jumping and finding their safety net. We all respect these people. How do they do that? What does it take to keep jumping off of cliffs into what people around them describe as "never never land". VCs tend to view entrepreneurs who invest north of $500K of their own money into their startup, and will give major brownie points to entrepreneurs who have made that $500K investment last over a year with products in production and $500K in realized revenue. Is that the bar to attain Series A financing today? Perhaps not..but, it helps! There is a quote I love written by Cadet Maxim that reads like this: "Risk more than others think is safe. Care more than others think is wise. Dream more than others think is practical. Expect more than others think is possible." I believe these entrepreneurs live by these "signature rules".

So, the entrepreneur that I talked about at the beginning of this blog is an entrepreneur who people genuinely want to help, and he is also an entrepreneur who keeps jumping and finding a safety net. And, he's well on his way to reaching his goals!

Thank you for reading this unusually long post! The post is now open for discussion. If you are an entrepreneur, tell us which category or categories you think you fit into as an entrepreneur? Do you think there is a formula to creating your own luck? If so, what is it?

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