Building a startup is sort like a game of poker. Each are games of high risk, and high reward. What entrepreneurs will learn from the sport of poker is that a flourishing startup is the right combination of the luck, risk, bets, and a founder’s ability to execute against the odds.
Here are five lessons entrepreneurs will learn from the game of poker:
1. Odds are never Zero: about 9 out of 10 startups fail. Founders argue that the explanation for failure will come down to a variety of things, e.g. inadequate capital (29%), the incorrect team (23%) bad location (9%) or perhaps a failure to pivot (7%).But what you’ll be able to find out about startups from poker is that sure, one ‘hand’ has higher odds of winning than another, however, no hand ever has zero odds. What sets poker aside from the remainder of the games played at a casino is that—the house doesn’t always win. an entrepreneur will have all the chances against him/her, however, if they savvy to play their hand — what innovation or added product they carry to their market — then they have an opportunity to win big.
2. measure Risk: A gambler is somebody who ‘takes risky action within the hopes of a desired result.’ several would argue a poker player isn’t a gambler. Instead, one judge says that ‘poker is a lot of a game of talent than of probability.’ Like startups, a thoughtful and diligent entrepeneur is one who understands the risks on the table and uses knowledge, gut, and rationale to create what he or she feels is the best call. do not gamble, measure risk.
3. do not expect excellent Information: In poker, you place bets while not knowing the hands of the opposite players at the table. With every new piece of knowledge, you value the danger and build predictions regarding however you foresee the game development. this can be an equivalent scenario that you are in as an entrepreneur. you may never have good info. Instead, you’re perpetually evaluating new knowledge from the market, the competitors, the customers etc. therefore you need to use what you recognize to create choices based on what is going to increase your odds of success. Generally, you’ve got to pivot and sometimes you’ve got to push through. However, if you pay an excessive amount of time expecting all the cards to unfold, you will simply miss your shot. you’ve got to take bets on imperfect info.
4. Do not Underestimate Luck: Entrepreneurship may be a game. There’ll be plenty of losers and really few winners. Like all games, you can gather as much info as you like and you can calculate all the chances properly, however some unforeseen wild card may take you unexpectedly. Luck, randomness and therefore the right timing plays a big role in your success or failure.
5. The entrepreneur is the Secret Sauce: Poker will need luck, however you play your cards can ultimately verify your outcome. however huge of a win or a loss is in the hands of the player. Investors can continuously say that one of the foremost vital reasons a startup succeeds is their belief within the founder. The entrepreneur is that the one who evaluates the danger takes the bets and calls the shots. while not a robust visionary and fiduciary, an idea is valued nothing. The entrepreneur is that the secret sauce.
There are plenty of individuals who say they want to be an entrepreneur however at the end of the game, you have to bare all and place your chips on the table to stand a chance of winning.