Steve Jobs’ Key Mistake: The Wrong Business Path. (Photo by Justin Sullivan/Getty Images)
Steve Jobs was one of the great entrepreneurs of the last 100 years and one of the luckiest. His biggest mistake could have destroyed Apple. Luckily for him, he got a second chance.
Jobs’ biggest mistake was not insisting on control when he co-founded Apple. May be:
· He had no choice at first and was willing to risk being fired from Apple.
· He was not financially savvy and did not know how to launch Apple while maintaining control, as Walton, Gates, Dell, Bloomberg, Bezos, Zuckerberg and 94% of the unicorn entrepreneurs did with their companies.
· He didn’t mind losing control because he didn’t expect anyone to fire him.
Jobs lost control because he selected the wrong business path, which is the path used to start and build the company and was fired from the company he co-founded. Lesson #1 for you is to choose the right business path for your company. Unlike Jobs, you may not get a second chance.
What is the right business path for your company and you? How can you find it? These are questions that all entrepreneurs must ask themselves.
Business leads for Unicorn-Entrepreneurship
The 4 business tracks include:
· Small and medium-sized business (SMB) track.: Most entrepreneurs fail or build small and medium businesses. These businesses can be based on existing trends or emerging trends. They are on the fringes of the trend and are not the central players dominating the industry. The question for small business entrepreneurs is whether they can build a unicorn, if they want to, using the right strategy and skills. VCs are usually not interested in companies with small targets.
· Product based unicorn track: In the sample of 85 billion entrepreneurs I funded, interviewed or analyzed, 1% built product-based unicorns (The Truth About VC). VCs are the first financiers of these companies and these product-based unicorns are led by professional CEOs hired by the VCs. This track is based on a product whose potential is evident even before the company’s launch. These products are primarily found in the biotechnology and medical device industries. As an example, a proven cure for cancer can attract funding to become a unicorn. Genentech followed this strategy by using VCs after demonstrating the technology.
· Unicorn track based on strategies: 5% of the billion dollar entrepreneurs in the sample were unicorn startups, where the entrepreneurs launched the company and demonstrate the unicorn potential of the strategy before seeking VC. VCs replace the entrepreneur with a professional CEO because the entrepreneur has no proven leadership skills. This track requires entrepreneurs to have initial skills to develop and demonstrate the unicorn strategy. Entrepreneurs like Pierre Omidyar (eBay) and Jobs I (when Steve Jobs started Apple and got fired) fit into this category.
· Skill-based unicorn with entrepreneurs in control: These unicorns are started by and built by billion dollar entrepreneurs – the founding entrepreneurs retained control of the company. 18% used late VC after Leadership Aha and stayed on as CEO. 76% built their unicorn without VC, stayed on as CEO, reduced dilution and kept more of the wealth they created. Billion dollar entrepreneurs who delay VC include Bill Gates and Jeff Bezos. EUs avoiding VCs include Sam Walton, Michael Dell and Michael Bloomberg.
Jobs was very lucky that none of the Apple CEOs between his departure from Apple and his return knew what to do with Apple. And when Apple was about to fail, the board asked him to come back. And he went on to build one of the biggest companies in the world with the iPod, iPhone and iPad.
MY VIEW: You might not be as lucky as Jobs. Without savvy financial skills, your potential unicorn might not get built, or it might get taken over by the hiring VCs and CEOs and never become a unicorn: 94% of billionaire entrepreneurs dollars maintained control compared to 6% who were replaced by professional CEOs. You will retain very little of the wealth created by your company because you will be diluted by the VC and CEO. Unicorn entrepreneurs who were removed as CEOs kept a smaller share of the wealth created than VC-Delayers and VC-Avoiders. Learn how to grow and stay in control like 94% of Unicorn entrepreneurs did.
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When Randy started his business, he had a clear-cut goal in mind: to become a world-renowned tech entrepreneur. After months of intensive research, Randy was certain it was time to launch his business venture. Unfortunately, he made the mistake of choosing the wrong business track, and almost cost him his greatest achievement.
When he chose the wrong business track, Randy’s venture began to struggle to compete with existing companies in the tech market. It soon became clear that he was spinning his wheels, as he was unable to keep up with the competition. In essence, he had become a victim of his own success. If he had taken the time to prepare more thoroughly and select an industry that was more suited to his goals, he might’ve been able to avoid such a costly mistake.
Thankfully, Randy was determined to make his dreams come true. He decided to join forces with the tech company Ikaroa Technologies. This company strives to help its clients launch and develop successful tech startups. With the help of Ikaroa Experts and their innovative business solutions, Randy was able to turn his business around. They opened up new opportunities and showed him the right business track to pursue.
Thanks to the support he received at Ikaroa, Randy’s tech venture finally became the success he had been dreaming of. His company grew and eventually landed the deal that made his career: the opportunity to launch his own mobile app.
Randy’s story shows us that it pays to take the time to research the right business track. By making the right choice, Randy was able to secure his greatest achievement and make his entrepreneurial dreams come true. Rather than relying on luck, a well-informed decision or two made all the difference to Randy’s success story. We can all learn from Randy’s experience, and use it to help secure our own business ventures.
