Grrrrrrreat! You’ve found yourself a million dollar, BILLION DOLLAR idea! Now you want to be the next Mark Zuckerberg. Dope.
Here’s the bad news… You’ve probably heard that famous statistic that 90% of startups fail.
(I personally find that stat to be a piece of fallacious, unscientific bullshit. Seriously. How many of those “startups” are just pipe dreams that never actually launched? But that’s another story for another day…)
Whether true or not, it’s generally accepted that a high percentage of startups do meet an early demise. According to research from our homies at CB Insights—which I do trust—a very high 70% of real startups end up having to bite the dust.
Even among those with funding — which excludes wantrepreneurs, no-hopers and bozos — nearly HALF of funded companies never make it past that stage.
And even if you do survive this bloody carnage, the odds of becoming a unicorn — a billion dollar business — are next to nil.
In fact, less than one fucking percent of companies, 0.91% to be exact, end up earning unicorn status.
And yeah, just like you thought: Those ones are among the most hyped tech companies of freakin’ ever, including Uber, Airbnb, and Slack.
OK, now that this apocalyptic tirade is over, you’re probably wondering (sh*t, I’M even wondering)…
Why do the startups fail?
The beasts at CB Insights actually looked through 101 startup suicide notes and broke down exactly why these startups never make it to the promised land.
Check it out.
The Art And Science Of How To Keep Talented People Around
(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)
The number one reason talented people leave their jobs is because of the failure of their direct managers. Businesses are defined by the strength of their people. Even in the most successful company (think Google, Amazon, etc.), a bad manager can drive talented employees out the door. So what is the true art and science of keeping talented people around?
Successful managers apply targeted, dynamic coaching to each individual team member. There is not one management style that works for everyone or every situation. Managers need to adapt their approach to every situation and every team member. This is called situational leadership. This situational leadership model has been used across 70 percent of Fortune 500 companies and has received numerous accolades from training experts.
The model details how we learn new skills and the four stages of mastering new tasks. For every stage and task, managers need to adapt their approach to managing their report.
When your team member approaches a new and unfamiliar task with a determination to master it, they see opportunity. They are complete beginners in execution, but they possess high motivation and low skill. In this step, the manager needs to take a highly directive approach, where they demonstrate how the task should be done, setting concrete goals and closely reviewing the report’s progress as well. You are not being a micromanager by supporting the growth and training of your team. Sometimes your team needs to use your expertise as training wheels.
This stage is full of frustration. Why? Because it generally takes people more time to master a skill than they’d like. Discouragement will set it and their confidence will lower. While they have built up more skills, their confidence is at its lowest in this stage. In this stage, the manager needs to serve as a cheerleader and remind their team member of why they were chosen to do this task and remind them of how far they have already come.
In the third stage, people have gained enough skill to complete the task but still maintain a mentality of imposter syndrome in which they are more skilled than their confidence allows them to believe. They may even still be discouraged. In this stage, managers need to do less guiding and allow their team member to perform while self-directly more consistently. These acts of trust can boost the team member’s confidence and their dependence on the manager will fade while their confidence increases.
People reach stage four when their confidence is at the same level as their skill. They become veterans and will continue to boost their confidence and skill set. This is the stage in which the manager steps back and gives the employee the space to continue fostering growth. Check in every now and then and help as needed. Also be sure to recognize the team member for all of their accomplishments along the way.
Keeping talented people around is not hard. Managers just need to apply situational leadership and remember that every team member works and learns differently and need an environment in which they can thrive in. As the leader, you are building this environment, so make sure it is a healthy one.
Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here.
$137 Billion On The Line With Jeff and MacKenzie Bezos Divorce
A year after becoming the richest person, Jeff Bezos, founder of Amazon.com, is getting a divorce from his wife MacKenzie. The news broke in the below tweet from Jeff last Wednesday.
— Jeff Bezos (@JeffBezos) January 9, 2019
MacKenzie is said to have played a significant role in Amazon in the early years of the company. If the split goes as predicted, she will then become the richest woman in the world.
Investors will be comfortable once the divorce does not affect the growth and profitability of Amazon.
What Are Your Favorite Christmas Songs And How Much Money Do They Make?
Christmas is the gift that keeps on giving for a select group of singers, songwriters and producers. An article in Forbes recently pegged U.S’s Christmas Music as the “Global King” compared to other genres of music like Pop.
So how much money are they talking? CNBC’s Tom Chitty explains.