Wise Entrepreneurial Quotes

Your energy is a valuable resource, distribute it wisely.

The essential difference between rich societies and poor societies does not stem from any greater effort the former devote to work, nor even from any greater technological knowledge the former hold. Instead it arises mainly from the fact that rich nations possess a more extensive network of capital goods wisely invested from an entrepreneurial standpoint. These goods consists of machines, tools, computers, buildings, semi-manufactured goods, software, etc., and they exist due to prior savings of the nation's citizens. In other words, comparatively rich societies possess more wealth because they have more time accumulated in the form of capital goods, which places them closer in time to the achievement of much more valuable goals.

There’s a Jewish folktale about a biblical king who dispatches one of his wise men to craft him a mantra that would both humble the proud and console the unfortunate. After searching in the market, where our wise man consults a local jeweler, he returns to the king with an engraved ring. The king holds the ring close and reads: THIS TOO SHALL PASS. So remember that, when lamenting your troubles, contemplating the perceived triumphs of peers and competitors, or rejoicing in that rare entrepreneurial triumph. It will all soon pass, and much faster than you think.

The faster you act, the more stable your company becomes and the higher your chances of success. Perfectionists make lousy entrepreneurs.

Before 2000, proof of concept was often defined as: I turn on the light, and the light goes on, thus the technology worked. Today, proof of concept has evolved, and many Angels (and Dragons) want to ensure not only that the light goes on but also that someone will pay to read under the light.

There’s a real lesson in the observation that most VC funds have a hit ratio of only 1-in-10 investees becoming successful. But most VC investors are unable to learn from it because they are caught in their own over-confidence.

There are numerous examples of successful cultures among our portfolio companies: the empowerment of branch managers that promotes responsible banking at Sweden’s Svenska Handelsbanken, for instance. Reckitt Benckiser, another holding, fosters an entrepreneurial spirit among its senior managers. Yet even if a strong culture is instilled in a company, it can take many years for its full effects to play out. That may be beyond Wall Street’s limited investment horizon. Long-term investors, however, would be wise to take heed.