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Ignorance: The Secret Weapon for Entrepreneurs and Startup Founders
In the world of entrepreneurship, we’re constantly encouraged to seek knowledge, become experts, and stay ahead of the curve. However, there’s an unconventional but highly effective teacher that often goes unnoticed—ignorance. Yes, you read that right. Ignorance can be a powerful ally for entrepreneurs, if approached the right way.
Many of the world’s best CEOs and founders have something in common: they regularly ask themselves a simple yet transformative question: W.H.Y?—What Have You _______ today? This question is the key to unlocking a mindset that embraces ignorance, driving continual learning and rapid growth. Here’s how.
Why Embracing Ignorance Works
The typical entrepreneurial mindset is often about being proactive, coming up with solutions, and positioning yourself as the authority in your field. While these traits are valuable, the real magic happens when you accept that you don’t know everything. In fact, the more you recognize what you don’t know, the more you open yourself to learning and gaining a competitive edge.
By asking What Have You _______ today?—whether it’s learned about your business, heard about your customer, or observed about your competitor—you shift your focus from what you think you know to what you still need to discover. This humble approach enables you to:
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Continuously learn and adapt: Industries change, customers evolve, and competitors innovate. By staying open to ignorance, you remain adaptable, learning from new information instead of resting on old assumptions.
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Discover blind spots: Every entrepreneur has blind spots. By consistently asking W.H.Y., you’ll be more likely to uncover gaps in your knowledge that could otherwise hinder your progress.
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Challenge your assumptions: The “customer is always right” is an outdated notion. The reality is that both customers and businesses can get things wrong. When you approach decisions with an open mind and curiosity, you move beyond assumptions to uncover the real needs and challenges of your market.
Applying W.H.Y. to Your Entrepreneurial Journey
Here are some ways to apply the W.H.Y. framework in your own entrepreneurial journey:
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Ask W.H.Y. every day: Make it a daily habit to ask yourself: What Have You _______ today? What have you learned about your business, your customer, or your market? This keeps you in a constant state of curiosity and readiness to pivot or refine your approach.
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Leverage ignorance as a tool for growth: When you encounter an unfamiliar situation, instead of immediately trying to become the expert, take a step back. Ask yourself what you don’t know about it and be intentional about filling those gaps. This humility will help you grow faster and more sustainably than charging forward with incomplete information.
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Listen more than you speak: The most successful entrepreneurs are often the best listeners. Whether it’s feedback from your customers, advice from mentors, or insights from your team, listen with an open mind and recognize that there’s always something new to learn.
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Foster a culture of learning: If you’re a founder with a team, encourage this mindset within your organization. Make “What Have You Learned Today?” a team mantra, and build a culture that values discovery over ego. When everyone in your business is comfortable acknowledging what they don’t know, innovation flourishes.
The Sweet Music of Ignorance
Many see ignorance as a weakness. But in reality, it’s the beginning of learning, growth, and innovation. When you embrace your ignorance, you set yourself up to grow at a rate faster than most, and you significantly increase the likelihood of your success. In this rapidly changing world, the most valuable skill isn’t what you know—it’s the ability to recognize what you don’t know and fill in those gaps.
So, as you continue on your entrepreneurial journey, remember to regularly ask yourself: W.H.Y.? It’s one of the simplest, yet most profound questions you can ask to drive growth, stay curious, and ultimately, build a thriving company.
If you want to dive deeper into this topic, check out my latest podcast episode where we explore the power of ignorance in entrepreneurship in greater detail. You can listen at www.founderholic.com or find “Founderholic” on your favorite streaming platform.
How much is my startup worth?
Every week, I receive a bunch of pitch decks from startups around the world asking for advice. They are all eager to raise pre-seed, seed, or their first A round. As you know, these decks usually include a “Funding” page. Here, you’ll find the first of two clues to the question “How much is my startup worth?”. The first clue is – the founder’s valuation of their own company. A bit of simple deductive math will reveal this figure swiftly. As an investor, mentor, or simply a curious reader, you’ll likely have one of three reactions.
Reaction 1: A Massive Heart Attack from Laughter
Take a fintech company, for example. Buckle up for this one. They’re raising $5,000,000 for 5%—pre-revenue, pre-launch, pre-everything. Such decks speak volumes about the founders’ experience with valuations (or lack thereof) and their need for mentorship. Essentially, they’re valuing their non-existent company at $100 million. While the idea might be brilliant and the industry booming, the valuation raises a critical question: Do we have a confident CEO shooting for the stars, or one who lacks the experience and understanding to develop value and, potentially, a business? Yes, I know there are many other questions you can ask or deductions you can come up with about the founder … I totally get it and agree but let’s keep that as a secret between you and I.
Reaction 2: A Satisfied Smile
Here, you receive a pitch deck that feels just right. The founder has clearly considered the TAM, SAM, SOM, market variables, comparables, and conducted thorough due diligence, arriving at a reasonable valuation. For instance I got this one a few months ago, a fintech AI-driven company raising $250,000 at a $5,400,000 valuation with a solid track record. You can hop on this train with confidence. There’s market traction, a sensible valuation, and a clear methodology behind it. This indicates the founder is either experienced or has stellar mentors and advisors guiding them. Allowing them to understand how to have a grounded value of one’s company.
Reaction 3: Jaw-Dropping Shock (where did your mouth go?)
Sometimes, the raise and valuation make absolutely no sense together. Your mouth drops, gets on a rocket and flies to Mars looking for Martians to ask if they had anything to do with the pitch deck. Here’s a real example I got inFebruary: a MedTech company, pre-revenue, raising $50,000 and valuing the company at $100,000,000. You wonder if the founder is serious, understands basic math, or perhaps needs money to pay off a debt that is due. When I asked if they were serious and looked over the numbers, the answer was a resounding “Yes.” This means a $50,000 investment nets you less than 0.01% of the pre-revenue company. This founder needs more than just support and mentorship—they need a reality check.
So, what does this all mean? Well, the first clue is the founder’s valuation is just that. It’s your valuation as a founder. It can be backed by earthly logic or a concoction of stardust and martian math. It could be sound or ridiculous but it’s a founder’s view of their company and you have to respect that and consider that as an investor.
The second clue is the investor’s valuation. Ultimately, your company’s worth is determined by what investors are willing to pay, not what you think your business is worth. Your company might legitimately be worth $5,000,000, but if no one is willing to invest at that valuation, it’s not worth $5,000,000. It might be worth 80% or 70% of that.
Factors Influencing Your Company’s Valuation:
- Social and Political Climates: Valuations fluctuate based on these factors.
- Industry Trends: It changes based on your industry and it being hot or not at the time you are seeking an investment. For example several years ago it was ecommerce, then medtech (covid years), then electric vehicles, then crypto and block chain, and now it’s all about Artificial Intelligence (AI). 5 years from now who knows what it will be. So you have to be strategic.
- Partnerships and LOIs: The value of your company changes with partnerships and LOIs you may have in place. Have some solid partnerships that can show drastic growth and you can increase your valuation.
- Mentors, Network and Advisors: A strong network can open doors and enhance your company’s value. Never underestimate your network. It’s highly underrated but it’s a secret weapon and you should never be afraid to use.
- Sector-Specific Investors: Finding the right investor who invests predominantly in your sector is more likely to understand the value of your business over an investor who is sector agnostic. This also helps as investors who are sector specific have a ton of networks they can connect you with to help increase your business and valuation post investment.
- Market Feedback: Launching your product even an MVP, Customer positive feedback, CAC, Customer stickiness, ease of growth expansion, market trial data, and analytics. All these play a critical role in valuation enhancement.
Now to bluntly answer the question, “How much is my startup worth?”—it’s worth only as much as an investor is willing to pay at the time you’re seeking investment. It’s not about how much you think it’s worth. If you’ve studied negotiations, you understand anchoring and its pros and cons. Be cautious with your valuation; if it sends investors to the ER or Mars, you’ve likely lost them before you’ve even started. Do your research, be reasonable, and remember your valuation is probably going to be wrong since investors will do their own due diligence and calculations. Your key focus is to secure a meeting, and the way to do that isn’t by scaring them off. The way to do that is to be reasonable and flexible. If you found this helpful consider reading my award winning book “From Pitch to Close” for more advice, insight and how to start and build a high value company.
Pro Tip: On your financial slide, only state how much you’re raising. Leave the specifics of what the investor gets for the investment to a conversation. Your goal is to secure a meeting and sell the investor on your business. The deck is just the teaser to get the meeting. You are the closer that gets the funding.
Stay blessed.
Chris Folayan
Serial Entrepreneur and Passionate about helping people and founders
5 Ways to Grab Investor Attention in a Crowded Market
Entrepreneurs, listen up! Securing funding is a critical hurdle, and with so many businesses vying for investor attention, it’s crucial to stand out from the pack. Randomly sending emails to potential investors is almost guaranteed to get you nowhere fast. We’ve all been there. You’ve poured your heart and soul into your idea, built a groundbreaking product, and now it’s time to secure the funding to take it to the next level. But with a sea of amazing founders looking for investor attention, how do you make yourself stand out? I discuss this and building a passion-based business on my latest podcast episode “How to grab an investors attention.” With a world class global investor Sid Mofya who has seen more pitch decks, deployed more millions and received more emails than 99% of the population. Listen to the episode now.
Here are 5 proven data-driven strategies to make your pitch irresistible to investors:
- Target the Right Investors: Not all investors are created equal. Did you know that according to PitchBook, angel investors account for nearly 70% of early-stage seed funding? So, if you’re just starting out, prioritize angel funds with a history of investing in your sector. Research their portfolio companies and tailor your approach to resonate with their interests. If you really want to get an investor, take the time to research the right investor. For example, don’t send an investment pitch deck for an eCommerce business to someone who only focuses on agriculture.
- Find Your Investor Champion: Investors are humans who have lives they live and value over their jobs like us all. Tapping into that aspect of the investor can get you further than you think. Instead of a generic email blast, personalize your outreach. Leverage LinkedIn and social media platforms they post on to identify the specific person within a firm who aligns with your niche. Also use those platforms to learn their interests and tailor your message accordingly. Remember, a genuine connection goes a long way. For example, if they invest in sports and your product is sport related connect, the dots for them. So they relate to you, the problem and your solution. Get more tips on this on the Founderholic podcast episode with Sid Mofya and I titled “How to grab an investors attention”.
- Craft an Intriguing Subject Line: The first impression is key. A recent study by Yesware revealed that emails with personalized subject lines are 3x more likely to be opened. Intrigue them with a subject line that references a shared interest or a specific pain point your product solves. Take the information from #2 above and craft a subject line that is personal yet intriguing. Fore example a great subject line would be “A sports enthusiast solution to muscle cramps.” Or “We built a learning tool parents can’t get enough of”. As an investor who is into sports or who has children the likelihood of opening such emails is extremely high. Keep it short but connect the dots for the investor to get them to open the email. The subject line is golden. Oh, yeah… don’t put as a subject line “I have a billion-dollar idea” – no one is going to open that email. As much as you feel it speaks to investors that is a solid DELTE on sight.
- Keep it Short and Sweet: Investors are busy. Make your email concise and impactful. Briefly introduce yourself, your company, and how your product disrupts the market. Focus on the “why” – explain what makes you unique and the problem you solve better than anyone else. This isn’t clickbait marketing so ensure your subject line ties into the email. It should be no more than 1 paragraph. I recommend 20 sentences max. The goal isn’t to tell them your life story the goal is to get on a call with the investor so you can capture them with your engaging idea. Emails don’t close deals “You” do.
- Pitch Deck Power: Your pitch deck should be attached to your email. It is your visual elevator pitch so take your time building it out. Keep it focused and impactful. Aim for 8 slides max, highlighting the problem, your solution, competitive advantage, funding amount, and your rockstar team. Don’t clutter it with financial forecasts – leave them wanting more. This creates a conversation starter, prompting them to reach out and learn more about your exciting venture. Remember there are only 2 things that are unique about you to an investor. You and your idea. So make sure you both standout.
By implementing these targeted strategies, you’ll increase your chances of capturing investor attention and securing the funding you need to turn your dream into reality. If you want to hear way more ideas and deeper insights into everything you just read from an investor tune into the Founderholic.com podcast episode “How to grab an investors attention” . Stay blessed and remember “You got this”
Stay blessed.
Chris Folayan
Serial Entrepreneur and Passionate about helping people and founders
Copy of 11 things no one told you before starting a business
So you’ve got this incredible idea – a product or service that you know is going to change the world. You’re buzzing with excitement and chomping at the bit to get started. But hold on there cowboy and cowgirl! Before you dive headfirst into building your business empire, there are some things you need to understand based on my over 25 years of building companies globally and mentoring countless numbers of brilliant entrepreneurs like yourself. Consider these ten nuggets of experience based wisdom as your trusty compass, guiding you through the exhilarating yet often challenging journey of entrepreneurship.
- Raise what you need, not what you want: Bootstrapping or securing funding are both viable paths to launching your company. The key is to be realistic about your financial needs. Don’t get caught up in the allure of a hefty investment windfall and lose sight of your core objectives. As a reminder the core objective is building a great company where you own a good portion of it. It’s your baby, let’s not give most of it away so quickly. Carefully assess your immediate requirements to get your business off the ground. This might include funding for product development, initial marketing campaigns, or securing a physical workspace. Focus on raising what you need to achieve these critical milestones, and demonstrate a clear understanding of how those funds will be used. Your valuation will go up as you grow so giving away so much at your current valuation isn’t a smart move. If you have to raise money to start, remember that it’s not worth giving away too much of your business at an early stage if you truly believe in it. Only give enough away to get enough funding to prove your business. Remember, responsible financial management is a hallmark of successful businesses, and investors appreciate founders who can make the most of every dollar.
- Don’t start a business based on an idea, start it based on something you are passionate about: Don’t be fooled by the allure of the latest business buzzword like AI, Crypto, or whatever the new health fad is today. While a great idea can spark your initial interest, it’s unwavering passion that will fuel your engine over the long haul. Building a company is a marathon, not a sprint. There will be roadblocks, detours, and moments of self-doubt. It’s your deep-seated passion that will propel you forward when the going gets tough. That passion will also be your fuel to learn more and be all you can be. When do do something you are passionate about you feel fulfilled and that is something no one can take away from you.
- Not Everyone Gets Your Vision (and That’s Okay): Have you ever shared your brilliant idea with someone, only to be met with a blank stare or a lukewarm response? Don’t let it discourage you. History is littered with examples of revolutionary ideas that were initially met with skepticism. Remember, Vincent van Gogh never achieved fame in his lifetime, and people scoffed at the idea of bottled water (including Pepsi!). Some didn’t even think the internet will ever be a big thing. Yes, there was a time before the internet. Believe in your vision, refine your message, and find your tribe – the people who resonate with what you’re trying to achieve. I am not saying don’t listen to people, I am saying not everyone gets your vision and that’s okay. They shouldn’t destroy your dream. One of my dreams was to enable African shoppers to shop on global sites without a credit card. Oh my goodness so many laughs from friends and even family. But I did it and we made millions each month. I knew it could be done and focused on the goal and kept the tribe that did believe in me close. This is a great time to know those who believe in you and share your vision. Keep them close; you will need them to cheer you on when things go rough.
- Craft a Story that Captivates your audience: In today’s crowded marketplace, a compelling narrative is more often than not a your secret weapon. Don’t just tell people what you do – tell them why you do it. What ignited your passion for this idea? What unique experiences and skills do you bring to the table? Weave your story into the fabric of your brand, and use it to capture the hearts and minds of potential customers, employees, and investors. Everyone went to some cool school, everyone has a brilliant idea, everyone wants to make money, everyone has a brilliant business plan. I get it but. What makes you different. What makes you the right person for the job. Tell me about how you were raised, what experience you had that has injected this passion into you to build a business, what cavity are you filling in the market that makes you unique and why are you the best superhero for the job. Tell a story people can’t forget. That’s how you standout and craft a story. Do this well and you can get investors, employees, and customers simply by telling a well crafted story. I have done this several times and due to my passion and story it has been a huge benefit to my life. Reach out to me on linkedIn or at ChrisFolayan.com I love hearing stories and helping people craft them.
- Build Your Network Before You Build Your Business: Most people don’t think about this but it’s so true. Think of your network as your entrepreneurial support foundation. You need it to build a well structured building with a poor foundation you will probably not have a building that stands. What I highly recommend and have done myself several times successfully is to start building a mentor and experienced network early to ensure my thesis is right. Start cultivating relationships with mentors, advisors, and even potential collaborators well before you launch. These connections can provide invaluable guidance on everything from refining your idea to navigating the complexities of starting a business. Your network can also be a fantastic sounding board for your strategy, pricing, and growth plans. Utilizing platforms like FounderCentered.com is a great way to build a network. Social groups, professors, and people you meet face-to-face at conferences are also great ways to build a network.
- Embrace the Detour don’t follow your business plan: Your Business Plan is a brain dump guide not a strategy to be followed: While a well-crafted business plan is a valuable tool to many, it shouldn’t be etched in stone ever. From the title you can probably tell I am not a huge fan of a business plan. Reason being I haven’t read one that anyone has stuck to once they have launched their business. This goes for me. I am more in support of a business idea document which contains business goals and milestones. The entrepreneurial journey is never a straight shot to success as business plans claim them to be. Be prepared to adapt your course as you encounter new information, market shifts, and unexpected opportunities. Think of your business plan as a roadmap, not a rigid script. Be ready to take detours (pivots) as needed while focused on the goal which may also move from time to time. Embrace the detours and pivots as they arise – they could be the springboard for incredible growth and innovation. Caution here is don’t always think you have to detour make sure all detours are calculated efforts you make and not knee jerk reactions. Take time to make pivot decisions and always talk to your mentors. Plus prayer never hurt anyone, I have found that to be extremely helpful in situations where detour signs just hit you in the face like covid did to the world.
- Failure to learn is failure to earn: Failure is inevitable. How you run towards it or away from it is really what counts and defines you and your business. Let’s face it, every entrepreneur experiences failure at some point. The key isn’t to avoid missteps altogether, but to learn from them and grow stronger. Develop a growth mindset – view setbacks as opportunities to refine your approach and build resilience. Remember, some of the most successful companies in the world, like Apple and Amazon, faced massive challenges and succeeded because they ran right into failure and learned from every lesson. I recall a few times where things were failing with our logistics and with another company of mine we had issues with a software we were developing for an arm of the US Govt. I didn’t throw my hands in the air I admitted the issue and ran towards the storm to figure out how we could fix them and use the failures we had as an opportunity to improve not only service but the product. Both worked out really well.
- Become Customer Obsession, Not Profit Focused: Sure, making money is an important aspect of any business. If you don’t you will fail. I totally get it. But here’s the secret: sustainable success hinges on building a loyal customer base. Focus on providing exceptional value and exceeding customer expectations at every touchpoint. When you prioritize customer satisfaction, the profits will naturally follow. Think of companies like Costco, Google and Amazon – they’ve built empires on the foundation of customer-centricity and not profit. When last did you pay to use Google Maps or your free gmail account. There are so many ways to make customers happy and still make money with tools and services. Remember without your customers you don’t exist. Customers come before money and profit each and every time.
- Give Back and Reap the Rewards: Building a successful business isn’t just about financial gain. Remember success isn’t about how much you make it’s scout how fulfilled you are. You could have a billion dollars in the bank and still be sad. So many millionaires and billionaires are unhappy. Google it. To prevent yourself from falling into such a hole, work with the community. Consider the positive impact you can make on your community. Get involved in philanthropic initiatives, support local causes, or volunteer your time and expertise. Contributing to the greater good not only strengthens your brand image but also fosters a sense of purpose and camaraderie within your team and the community. So give back and watch how happy that makes you feel. It has a much more lasting and impactful feeling than you could ever imagine.
- Launch, Learn, and Iterate: Don’t Wait for Perfection: Striving for perfection is a recipe for procrastination and failure to launch. Instead, adopt a “launch and learn” mentality. Get your minimum viable product (MVP) out there in front of real customers as soon as possible. Gather feedback, iterate based on what you learn, and continuously refine your offering. Launch – Get Feedback – Update – Repeat. Remember, even the most established companies like Microsoft, Ford, Tesla, and Sony are constantly innovating and improving their products. If they waited to be perfect before launching we wouldn’t have advanced as far as we have today. I have always been a huge believer in getting going and making changes even if things are not perfect. Adding the name “Beta” on a product or service lets the world know you are aware it’s not perfect and are still working on it. But at least you launched and that is so much better than waiting and waiting and waiting.
- Grow with Your Customers, Not Your Dreams – Hire when you need people not when you want people: Build and grow to support current customers not future dreams. It’s tempting to get caught up in ambitious projections and fantasize about exponential growth. I have had many founders during investor meetings with me say they plan on hiring huge teams. Because they expect 5X growth once they get an investment. Seriously, do you live on Earth or Mars? Nothing goes as you plan. Hire when you need people, not when you want people it’s that simple. As you see growth, hire not as you dream or hope of growth. Focus on providing exceptional service to your existing customer base and letting your business grow organically. This will allow you to maintain control, identify and address any potential issues early on, and ensure your foundation is strong before scaling your operations. Remember, even the mightiest oak tree started from a tiny acorn.
I truly hope these 11 points help you on your entrepreneurial journey. I had to learn some of these the hard way but you don’t. Remember you will be punched to the ground a few times when building your business. Just make sure you fall on your back so you can look up to what you need to do. Never fall flat on your face to the ground. You are a rock star, a superhero who knows how to fight and get things done to accomplish their goals.
Stay blessed.
Chris Folayan
Serial Entrepreneur and Passionate about helping people and founders
Questions Founders Forget to Ask Investors
Have you ever heard this horror story? A founder locked in bitter arguments with investors, the dream turning into a nightmare. The investor did everything they could to get out because they didn’t see eye to eye with the founder. But no one wanted to invest in your company. Why? Because the current investor didn’t give other investors the right impression of the founder. The company takes a nosedive and BAM!! Crash. All because an investor didn’t like something said, a strategy the founder presented, a potential partnership the founder was looking at, and the list goes on and on. Please don’t get me wrong, disagreements happen. Sometimes they are healthy but most of the time they are not. The question here is what if you could avoid the negative drama entirely? The key is – Asking the right questions to an investor well before you get tangled in legalese and term sheets. Why put a ring on it and sign a deal if you haven’t interviewed your investor yet. There is nothing wrong with interviewing an investor. Not all investors are created equal and you need to make sure your potential new investor partner is perfect for you. Money isn’t everything and you don’t want to make of getting money from an investor that is a nightmare for your business.
I would like to tell you of a technique I have used and recommended to others for years which works. Think of it as rapid dating questions and investor revelation tactics for founders to use on investors. I developed a method I call I.N.V.E.S.T, which you can interview potential investors and ensure a match made in startup heaven. Here’s how to unlock the power of INVEST:
I stands for Interest or Industry Expertise: Imagine your investor as a seasoned guru, guiding you through the treacherous peaks of your market. That’s why industry knowledge is crucial. Quiz them on your industry, its challenges, and its opportunities. Feeling confident in their understanding is like having a reliable guide by your side. How knowledgeable are they about your industry? Talk to them about recent news say 3-4 weeks old in your sector and see if they know anything about it. Similar to dating someone you want to make sure you have the same interests. If you don’t then it’s not the right fit. If they are not Intune with your industry how can they be of significant support and value when it comes to business related matters? Make sure you are comfortable with your investors’ interest levels.
N is for NetworkPowerhouse: Connections are currency in the startup world. A well-respected investor can open doors to dream partnerships and customers. Ask them about their network – who are the power players they can connect you with? How have they leveraged their network for past investments? This will be very helpful in understanding how well connected they are and if they can truly help you grow rapidly with the aid of solid connections. An investor should be able to open doors you need to open so make sure you ask about their network and get some names and see if you feel those contacts would be of great use to your business.
V is for Values & Vision Alignment: A company’s core values and vision are its guiding stars. Mismatched stars with an investor’s beliefs can lead to constant arguments and misalignment. Talk openly about your values and future goals. Does your investor see the same alignment? This is your chance to assess their fit and potential to be a valuable compass on your journey.
E is for Engaged:You don’t want a silent investor, a ghost in the machine. You want a teammate, someone who actively participates in your success. Ask about their communication style – how often do they connect with founders? What’s the size of their portfolio in your industry? How engaging do they expect you to be with them? These questions reveal how much priority they’ll give you.
S is for Strategy Synergy: Don’t keep your long-term plan under lock and key! Share your strategy beyond the initial phases. Get your investor’s input – their experience could be a treasure trove of insights or you reveal they are not the right investor for you. This two-way conversation fosters collaboration and ensures your strategies are in sync for the long haul.
T is for Trustworthy:This is the bedrock of any successful partnership. Research your potential investor, check references, and ask for referrals. Test the waters! Request time-sensitive information and see if they deliver on their promises. A trustworthy investor is someone you can build a solid foundation with, someone who walks the walk, not just talks the talk. Someone you can trust to help you when you need help and give you the priority you need.
Remember, investors come in all flavors. By using the INVEST method, you’ll weed out the wrong ones and find the perfect partner to propel your startup to success! A happy marriage (founder-investor style) starts with the right questions. So, don’t rush to the altar just to get into a bad divorce – interview your potential investors thoroughly and find your perfect match!
Stay blessed,
Chris Folayan
Award-Winning Author / Serial Entrepreneur / Founder
Are You Ready To Be Your Own Boss? Five Important Questions for the Aspiring Entrepreneur
Plenty of people have dreams about starting a business and becoming their own boss and with good reason. Entrepreneurship can be a fulfilling experience, and for many people, it is preferable to working 9-to-5 for someone else. Yet entrepreneurship can also be challenging work, so if you plan on launching a business, it is important to give the decision some serious thought rather than just jumping head-on into it.
There are five important questions that every aspiring entrepreneur should ask themselves before starting a business.
Question 1: The Discipline Test: Do I have the discipline it takes to start a business?
Starting a business can seem like fun when it is just an idea in your head, but in practice, it will be a lot of work. The U.S. Bureau of Labor Statistics reports that approximately 20% of new businesses fail during the first two years of being open, with only 25% lasting past 15 years of operation. If you want to be successful, you need to be ready to put in the work, so you need to consider if you will be motivated enough to push on through when the going gets tough, because trust me, they will get tough.
Test: Before you quit your job or anything practice/pretend for a few weeks what it would look like and feel like to be your own boss. See how motivated you are and if you have the discipline to do what you need to be successful without personal excuses. You are now technically your own boss so assess yourself and see if you have what it takes to be disciplined and self-motivated.
Question 2. The Idea Test: Do I have an idea that is amazing enough to attract customers to my business and leave my competitors behind?
So many would-be entrepreneurs go into the market convinced that they have a great product or service to offer, only to find out that no one really wants that product or service. This is why research is key to success: by doing your homework and researching your market, you will know what your potential customers are looking for and what your competition looks like. From there, you can determine if you have something with lasting value.
Test: Talk to friends and family about your idea and see what they think. Don’t be afraid anyone will steal your idea. Focus on getting feedback and information. Make sure you can take on critical responses so you can adapt. Also, be open to judgmental input which is all part of getting critical feedback. If you can’t handle the feedback you should reconsider moving forward.
Question 3. The Mentor Test: Your willingness and ability to seek out and successfully engage with a mentor who can help you succeed?
Even if you come in prepared with the necessary research, you’re inevitably going to make some mistakes as a first-time business owner. Some people are content to face these challenges alone, but the most successful entrepreneurs are the ones who seek out the expertise of others to support them in their endeavors. People who are too proud to seek help aren’t likely to last, so if you don’t already have mentors to rely on, you need to be ready to find them.
Test: See if you are ready for a mentor by presenting your idea and the story behind why you want to build your company. Doing this is the first step in being successful at selling your vision and encouraging critical feedback. This is extremely necessary if you want to build a business.
Question 4. The Passion Test: Is this a business that will make me happy, and proud and lead toward my life goals?
For some people, a business is their passion, something that they want to fully dedicate themselves to. For others, it might just be a hobby or a way to make some extra cash on the side. Before you start a business, you should have a clear sense of why you want to do it and what you hope to get out of it. If you are passionate about starting a business, it is worth the effort, but if you are only looking to make gas money, you aren’t going to be inclined to do the work needed to make a successful business in the long term.
Test: Gauge your passion and love towards the business during your research, review, and experiment phase. Please only work on businesses you are passionate about. Don’t spend your time doing something just to make you money. Passion will not only feed you with money it will feed you with success.
Question 5. The Money Test: Do I have adequate financial support to start a business?
One of the most common reasons that a business fails early on is simply that the money ran out. There are many reasons the money might have run out, but often comes down to an inability to find proper funding. Before even considering launching a business, you need to know how expensive it will be to start and operate, then determine if you have access to the funds to manage these expenses. Do you have investors lined up, or perhaps some financial support from friends and family? If not, you might need to take on another job to make your plans work.
Test: Do all your financial costing before you spend a cent. Ensure after purchasing everything you need to start your business you still have enough saved to support your living expenses. Make sure you test the money factor to make sure you will be profitable sooner than later. Being financially responsible is key to growing a successful business. So make sure you test your accounts to ensure this is a venture you can afford.
There is always going to be some level of uncertainty when starting a business, but if you answer these questions honestly, you can get a good sense of whether you’re ready to be your own boss. If you ARE ready, it’s time to start planning and getting your business in order. But if you AREN’T, don’t be discouraged! You might simply need more time to get prepared.
I hope you found these tips helpful. Be sure to share this with others who are thinking of starting a business. Stay blessed.
Stay blessed,
Chris Folayan
Award-Winning Author / Serial Entrepreneur / Founder
Top 10 Secrets Entrepreneurs Forget to Unlock:
- Delegate to Win: Trustworthy teammates are your growth rocket fuel. Hire with care, or start with consultants to find your perfect fit.
- Know Your Customer, Not Just Your Pitch: Marketing is a love story, not a sales battle. Understand your customers’ desires, then craft solutions they crave.
- Time is Gold, Automate Where You Can: Trade billable hours for scalable systems. Leverage assets and processes to build a wealth machine, not a time trap.
- Plant for a Forest, Not Just a Tree: Focus on long-term growth, not instant gratification. Sustainable profits blossom from nurtured roots, not quick fixes.
- Meaning Fuels Motivation: Your employees aren’t robots. Make them feel valued, connected, and like their work matters.
- Embrace the Pivot, Dance with Change: Be nimble, be ready to adapt. The future is unwritten, so grab your dancing shoes and lean into what’s coming.
- Learn from Every Stumble: Adversity is your best teacher. Embrace challenges, analyze mistakes, and turn them into stepping stones to success.
- Celebrate Every Milestone, Big or Small: Victories, no matter how tiny, deserve confetti. Keep your team motivated by acknowledging and celebrating progress along the way.
- Bet Bold, Win Big: Encourage calculated risks and affordable leaps of faith. Every game-changing company took a daring bet at some point.
- Find Your Tribe, Not Just Your Clients: Surround yourself with mentors, fellow founders, and genuine cheerleaders who believe in your journey.
Here are some additional pointers:
- Invest in Yourself, the Growth Engine: (your mind) Sharpen your skills, nurture your well-being, and fuel your learning fire. You’re the heart of your business, so take care of it.
- Build Your Support System: The entrepreneurial road can be lonely. Lean on a trusted network of advisors, allies, and friends who understand your struggles and celebrate your wins.
- Know Your Numbers, Inside and Out: Don’t be afraid of the books. Review your finances regularly, track efficiencies, and understand where your money goes.
Stay blessed,
Chris Folayan
Award-Winning Author / Serial Entrepreneur / Founder