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5 Types of People Successful Entrepreneurs Keep Around
To many, being an entrepreneur may seem like a solo adventure, but the truth is, your success hinges on the people around you. In fact, research definitely shows that having a strong support network can boost your chances of success by up to 80%, a staggering figure that underscores the importance of building meaningful connections and having a support group that helps you constantly grow.
Here are the five essential types of people every successful entrepreneur and business owner should have in their corner: Please note this also works for your children if you see that entrepreneurial spirit in them help them build these 5.
1. Visionaries and Role Models You Model
Visionaries are the trailblazers who inspire you to think big and aim higher. They are often the ones who’ve walked the road before you, providing a blueprint for success while challenging you to push beyond your comfort zone. You should always have at least 3-5 role models you are intimately stalking online. Learning from their every business move how they operate and think.
Fact: Entrepreneurs with role models are 3.6 times more likely to lead high-growth businesses.
Who inspires you to dream beyond what feels possible? Seek out those individuals and let their stories fuel your ambition.
2. Mentors and Advisors
Have at least 5 seasoned professionals act as your personal board of directors, offering invaluable guidance and sharing their hard-earned wisdom. Remember wisdom should be learned from others as much as possible. Whether it’s navigating uncharted waters or avoiding common business mistakes, mentors play a pivotal role in shaping your journey.
Fact: A UPS survey found that 70% of small business owners who receive mentoring survive for five years or more double the survival rate of those who don’t.
Don’t wait for mentorship to find you; actively seek mentors who resonate with your vision and values. You can use FounderCentered.com or LinkedIn to find really good mentors.
3. Partners and Team Members
No great business became great by doing it all alone. The right partners or team members are the co-creators of your entrepreneurial dream. These are the people who share your vision, complement your skills, and roll up their sleeves to help bring your business ideas to life. They are your cheerleaders and you theirs. Make sure you build a solid team around you and your business.
Fact: Companies with engaged employees outperform their competitors by an impressive 147%, according to Gallup.
When building your team, look for alignment in values and diversity in expertise. A strong team doesn’t just execute as a team; they innovate together.
4. Supporters and Friends
When the road gets tough and trust me it will, having emotional support can be the difference between pressing forward and giving up. These are your friends, family, or trusted confidants who celebrate your wins and lift you up during setbacks. They are the people who are there no matter what. Good or bad they got your back. They are also truthful and sincere which is key. Want to leave your wife because of your job… they will tell you “HELL NO” and put you back on track on building your relationship and business at the same time. Those are the friends I am talking about. Ensure you have supporters and friends. I can’t tell you how important this has been for me and others I know.
Fact: Entrepreneurs with strong emotional support experience 50% less stress and burnout.
Never underestimate the power of a kind word, a listening ear, or a heartfelt “You’ve got this.” can do to elevate you. They can reignite your drive when it matters most.
5. Connectors and Networkers
Opportunities often come from who you know, not just what you know. Connectors are the individuals who expand your network, introducing you to clients, collaborators, or investors who can catapult your business forward.
Fact: LinkedIn reports that 85% of jobs are filled through networking a statistic that applies just as powerfully to entrepreneurial opportunities.
Cultivating relationships with connectors can open doors you didn’t even know existed. Be intentional about networking and giving back to your network in return.
Entrepreneurship is a team sport. By surrounding yourself with these five types of people, you’re not just building a business with a strong foundation, you’re creating an ecosystem for sustainable success.
So, take a moment to evaluate your five. Do you have these key figures in your corner? If not, start seeking them out. Success is never a clear line, but with the right people by your side, the path becomes much clearer.
Who’s in your entrepreneurial circle?
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