Internal Entrepreneuring, Part 2

The Art of the Start: The Time-tested, Battle-hardened Guide For Anyone Starting Anything
by Guy Kawasaki

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BUILD ON WHAT EXISTS. The downside of trying to innovate within a big company is clear and well documented, but there are also benefits to doing so. Don't hesitate to utilize the existing infrastructure to make innovation easier - start by stealing, if you have to. You'll not only garner resources, but also make friends as other employees begin to feel as if they are part of your team. If you try to roll your own solutions (as an extreme example, building your own factory), you'll only make enemies. The last thing a startup inside a big company needs is internal enemies - there will be enough enemies in the marketplace.

COLLECT AND SHARE DATA. The day will inevitably arrive when a bean counter or lawyer is suddenly going to take notice of you and question the reasons for your project's existence. If you're lucky, this will happen later rather than sooner, but it will happen. Prepare for that day by (1) collecting data about how much you've spent and how much you've accomplished and (2) then sharing it openly. In big companies, data suppresses antibodies, but it might be too late to get the data once the antibodies appear.

LET THE VICE PRESIDENTS COME TO YOU. Quick question: Do you think that your first step should be to get your vice president to sign off on your project? It shouldn't be. This is one of the last steps. A vice president will "own" your idea and support it more if he "discovers" it and then approaches you about sponsoring it. You may have to ensure that a vice president "accidentally" makes that discovery when the time is right, but this is not the same as seeking permission to get started.

DISMANTLE WHEN DONE. The beauty of an internal entrepreneurial group is that it can rapidly develop new products and services. Unfortunately, the very cohesiveness that makes it so effective can lead to its downfall later if it remains separate (and usually aloof) from the rest of the organization. Its effectiveness declines further as its members come to believe that only they "know" what to do, and the entrepreneurial group creates its own, new bureaucracy.* If the product or service is successful, consider dismantling the group and integrating it into the larger organization. Then create a new group to jump ahead again.

REBOOT YOUR BRAIN. Many internal entrepreneurs will find that the rest of this book prescribes actions that are contrary to what they've experienced, learned, and maybe even taught in big companies. The reality is that starting something within an existing company requires adopting new patterns of behavior - essentially, rebooting your brain. The following table will prepare you for what's to come:

Faq (Frequently Avoided Questions)

Q. I admit it: I'm scared. I can't afford to quit my current job. Is this a sign that I don't have what it takes to succeed? Am I not truly committed?

A. You should be scared. If you aren't scared, something is wrong with you. Your fears are not a sign that you don't have the right stuff. In the beginning, every entrepreneur is scared. It's just that some deceive themselves about it, and others don't.

You can reduce these fears by diving into the business and making a little progress every day. One day you'll wake up and you won't be afraid anymore - or at least you'll have a whole new set of fears.

No matter what, never admit that you're scared to other employees. A CEO can never have a bad day. But don't go overboard, either, and act as if you have no concerns, because then they will know you're scared stiff.

Q. Should I share my secret ideas with anybody other than my dog?

A. The only thing worse than a paranoid entrepreneur is a paranoid entrepreneur who talks to his dog. There is much more to gain - feedback, connections, opened doors - by freely discussing your idea than there is to lose. If simply discussing your idea makes it indefensible, you don't have much of an idea in the first place. (See the FAQ section of Chapter 7, "The Art of Raising Capital," for a detailed discussion of nondisclosure agreements.)

Q. How far along should I be before I start talking to people about what I'm doing?

A. Start right away. By doing so you'll be constantly mulling over your idea - as both a foreground and background task. The more people you talk to, the richer your thoughts will be. If it's just you staring at your navel, all you'll see is lint building up.

Q. How do you know if it's time to give up rather than continuing to pursue a doomed venture?

A. The old platitude is that good entrepreneurs never give up. This is fine for books and speeches, but not for the real world. If three close friends tell you to give up, you should listen. As the saying goes, when three people tell you you're drunk, you should take a cab home. It's okay to fail as long as you try again.

Q. I think that I have a great idea, but I don't have a business background. What should I do now?

A. First, if all you've done is come up with a great idea - for example, "a new computer operating system that's fast, elegant, and bug free" - but you can't implement it, then you have nothing. In this case, don't waste anyone's time until you've found other people who can do the engineering.

Assuming that you can implement, there are two kinds of people you can recruit. First, you can get a mentor. This would be an older person who is willing to coach you from time to time but never actually do any work. Second, you could get a business partner. This is someone who's willing to work side by side with you - even on a part-time basis - whose skill set complements yours. Either kind of person can make a big difference in your business.

Q. When should I worry about looking like a real business, with business cards, letterhead, and an office?

A. Make business cards and letterhead immediately. Spend a few bucks and get them designed by a professional or don't do them at all. Ensure that the smallest type size is twelve points. An office isn't necessary until customers are coming to see you, or you run out of space for the team.

Q. Do I need a Web site?

A. Yes, particularly if you're going to raise money, serve lots of customers, change the world in a big way, and achieve liquidity. Customers, partners, and investors will look for your Web site from the very start.

Recommended Reading

Christensen, Clayton. The Innovator's Dilemma: When New Technologies Cause Grate Films to Fail. New York: HarperBusiness, 1997.

Drucker, Peter F. Innovation and Entrepreneurship: Practice and Principles. New York: Harper & Row, 1985.

Hargadon, Andrew. How Breakthroughs Happen: The Surprising Truth About How Companies Innovate. Boston: Harvard Business School Press, 2003.

Kuhn, Thomas. The Structure of Scientific Revolutions. Chicago: University of Chicago Press, 1962.

Shekerjian, Denise. Uncommon Genius: How Great Ideas Are Born. New York: Penguin Books, 1990.

Ueland, Brenda. If You Want to Write. St. Paul: Graywolf Press, 1987.

Utterback, James M. Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities in the Face of Technological Change. Boston: Harvard Business School Press, 1994.

Copyright © 2004 Guy Kawasaki. All rights reserved. This excerpt, or any parts thereof, may not be reproduced without permission.

About the Author

Guy Kawasaki, who helped make Macintosh a household name, now runs Garage Technology Ventures, a venture-capital firm. He has held his workshop, "Boot Camp for Start-ups," around the world. Kawasaki is the author of seven previous books, including Rules for Revolutionaries.