Unleash your entrepreneurial superpowers

A mantra our guest author urge entrepreneurs to follow, is ‘start early start young’.

We all have an unfair advantage and, most times, we haven’t articulated and utilised it to our advantage. An unfair advantage in the context of an individual or start-up, refers to a distinctive and valuable set of attributes, circumstances or resources that bestows them with a favourable business condition and a significant competitive upper hand.

An advantage is your economic moat that sets them apart from your peers and rivals, providing them with a unique and difficult-to-replicate edge that contributes to their sustained success. These advantages could manifest in various forms, such as proprietary technology, exclusive access to critical resources, exceptional expertise or talent, strong intellectual property rights, a loyal and dedicated customer base, strategic partnerships or an intimate understanding of a niche market. 

By leveraging these exceptional qualities, individuals or start-ups can carve out a distinct position in the market, making it challenging for competitors to imitate or compete on equal terms. While unfair advantages can take time to develop, they serve as a formidable protective barrier that shields an entity from potential threats and enables them to thrive in an ever-evolving business landscape.

As an expert, recognising and capitalising on one’s unfair advantage is pivotal in achieving long-term sustainability and prosperity, propelling them to the forefront of their industry and solidifying their position as a key player in the market. 

In the nascent phases of a start-up, its competitive edge is intricately tied to the unique advantages possessed by its co-founders. Consequently, during a pitch session, investors naturally prioritise conducting interviews with the co-founders as they recognise the pivotal role these individuals play in shaping the venture’s success.

In the world of start-ups, the initial stages are characterised by limited resources and heightened uncertainties. At this critical juncture, the experience, expertise and vision of the co-founders, become decisive factors that can tip the scales in favour of the venture’s potential success. These entrepreneurs bring to the table their distinct skill sets, industry knowledge and innovative ideas, which serve as the foundation for the start-up’s value proposition.

Investors keenly understand that a start-up’s early trajectory largely hinges on the co-founders’ ability to navigate challenges, pivot when necessary, and steer the company toward sustainable growth. Moreover, the co-founders’ past achievements and track record serve as a valuable indicator of their capabilities and determination to overcome obstacles.

Finding your key differentiator is a strategic process also known as the MILES framework, defined in the book by Ash Ali and Hasan Kubba, ‘The Unfair Advantage: How You Already Have What It Takes to Succeed’. The MILES Framework aids in recognising your unfair advantage through five key categories: money, intelligence & insights, location & luck, education & expertise, and status.

Money impacts runway time and burn rates. Increased funds extend the runway, while lower burn rates offer longer runaway time. But this also applies to access to money. For example, Mark Zuckerberg’s $85,000 investment in Facebook, granted a crucial financial advantage for business expansion.

Intelligence & insights exhibits diverse layers – high IQ, book smarts, street smarts and creative intelligence – exemplified by Stripe’s co-founders, Patrick and John Collison. Their precocious achievement in founding stripe, like Patrick’s programming language and Collison’s early Harvard acceptance, showcase their exceptional intelligence as a potent advantage complementing their hard work.

Location & luck plays a pivotal role in success, granting access to ideas, talent and capital. Silicon Valley exemplifies this, drawing skilled innovators from prestigious universities like Stanford and Berkeley. Start-up hubs, where investors and VCs cluster, facilitate capital acquisition. Though luck plays a role, it isn’t random. Bill Gates’ access to advanced computers in high school contributed significantly to his expertise and accomplishments.

Status encompasses both social status, determined by factors like network, connections and privileges, and inner status, reflected in self-confidence and self-esteem. For instance, the Winklevoss twins, original Facebook co-founders, showcased their high social status through their privileged upbringing and education, while their inner status was demonstrated by their unwavering self-belief in their venture despite challenges.

In a case study I was analyzing on Sportz Interactive – ‘At the Crossroads’, Naveen Aranha, the founder, made great decisions that positioned himself at the right place at the right time armed with the right technology. On deep diving my analysis, I found a hidden MILES framework. Five key factors being money from making websites, selling live sports feed & taking on third party projects. 

Intellect – Developed domain knowledge, technology expertise and was an early innovator in sports feed. 

Luck – He interned the business just before the Internet boom and positioned himself as an expert. 

Education – Sold his digital vision, expert in the web domain & sports before it was mainstream. 

Status – Was known for web expertise and then went on to establish himself as a sports technology expert and no one has been able to supersede them.

What stood out as a key takeaway in the MILES Framework, is the significance of luck in achieving success. While hard work is essential, co-authors Ash and Hassan emphasise the need to combine hard work and leveraging unfair advantages. They encourage increasing visibility through social media, blogs and social events, and being open to taking more chances. 

They compare this approach to repeatedly rolling dice until getting double six, representing continuous efforts. Additionally, they propose a ‘reality growth mindset’, which involves maintaining a balance of self-awareness and self-belief, allowing individuals to be both grounded and ambitious in shaping their future. 

A mantra I urge entrepreneurs to follow, is ‘start early start young’.

(Our guest author is Ravneesh Dhaneshwar, director digital growth, Earth Rhythm).