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Steve Jobs’ Major Mistake: Wrong Business Track. (Photo by Justin Sullivan/Getty Images)
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Steve Jobs was one of the greatest entrepreneurs and one of the luckiest entrepreneurs of the last 100 years. His biggest mistake was potentially breaking Apple. Luckily he got his second chance.
Jobs’ biggest mistake was not claiming control when he co-founded Apple. perhaps:
· At first he had no choice and was willing to risk being fired from Apple.
· He wasn’t financially smart and didn’t know how to start Apple while maintaining control. This is how Walton, Gates, Dell, Bloomberg, Bezos, Zuckerberg and his 94% of unicorn entrepreneurs have done in their ventures.
· He didn’t mind losing control because he didn’t expect anyone to fire him.
Jobs lost control and was fired from the company he co-founded because he chose the wrong business track, the path used to launch and build his venture. , is to choose the right business track for your venture. Unlike jobs, there may be no second chances.
What is the right business track for your venture and for you? How can you find it? These are the questions every entrepreneur should ask themselves.
Business Truck for Unicorn Entrepreneurship
The four business tracks include:
· Small Business (SMB) Track: Most entrepreneurs fail or start small businesses. These businesses can be built on existing or emerging trends. They are on the edge of trends, not the dominant players in the industry. The question for small business entrepreneurs is whether they can build a unicorn using the right strategies and skills. VCs are generally not interested in ventures with small goals.
· Product based unicorn truck: In a sample of $85 billion entrepreneurs I funded, interviewed, or analyzed, 1% built product-based unicorns (Please know the truth VC). VCs are early funders of these ventures, and these product-based unicorns are led by professional CEOs hired by VCs. This track is based on a product whose potential was evident even before the venture was launched. Such products are mainly found in the biotechnology and medical device industries. As an example, if a cure for cancer is proven, we can raise funds to become a unicorn. Genentech followed this strategy by using VC after the technology was proven.
· Strategy based unicorn truck: 5% of the billion dollar entrepreneurs in the sample were unicorn starters, proving the unicorn potential of their strategy by launching ventures before seeking VC. VCs replace entrepreneurs with professional CEOs because they have not demonstrated leadership skills. This track requires entrepreneurs to have startup skills to develop and prove a unicorn strategy. Entrepreneurs like Pierre Omidyar (eBay) and Jobs I (when Steve Jobs co-founded his Apple and was fired) fit into this category.
· A skill-based unicorn dominated by entrepreneurs: These unicorns were started by billion dollar entrepreneurs and built by them. 18% used late VC after Leadership Aha and remained as CEO. 76% built unicorns without VC and stayed CEO, reducing dilution and retaining more of the wealth they created. Billion-dollar entrepreneurs delaying VC include Bill Gates and Jeff Bezos. UEs that avoid VC include Sam Walton, Michael Dell, and Michael Bloomberg.
Jobs was very lucky CEO of Apple Between the time he left Apple and the time he came back, I knew what to do with Apple. And when Apple nearly went bankrupt, the board wanted him back. And he built one of the world’s biggest companies with iPods, iPhones and iPads.
My take: You may not be as lucky as Jobs. Without smart financial skills, potential unicorns may never build, or be passed on to VCs and the CEOs they hire, and never become unicorns. Replaced by a professional CEO. Very little of the wealth generated by ventures can be retained as it is diluted by VCs and CEOs. Unicorn entrepreneurs who had their CEOs fired did not retain their share of the wealth created more than those who delay or avoid VC. Learn how to grow and stay in control, as his 94% of unicorn entrepreneurs did.