Gearing up to drive in 'founder mode'

Uncertain times can lead people to life-changing decisions. Volatility can be the best catalyst for change. In my world, that often means the launch of a new venture by a first-time entrepreneur seeking to solve a problem, launch a passion project, or leave a longstanding and uninspiring day job. This is happening, again and now.

More than 532,000 new-business applications were filed this January, 37% more than a year ago, according to recent data from Morning Brew. And on LinkedIn, the number of people listing themselves as “founder” is up 69% over last year. New business formations in recent months nearly have matched the pandemic peak of mid-2020. That’s a lot of new ventures.

I love brainstorming with innovators. This work brings an undaunted energy all its own. Yet my initial advice for ambitious founders usually is the same: “Don’t just do something — stand there, at least initially.” And by that I mean, learn as much as you can before you launch, and always have handy a few essential books. 

You’ll get the same advice from advisers at MIT, or more specifically, Lita Nelsen, renowned former director at MIT’s licensing office, and MIT innovator and venture capitalist Maureen Stancik Boyce, authors of the new book Launching from the Lab, a smart, practical guide for innovators and founding teams. This is a fast, comprehensive read, covering everything from the entrepreneurial mindset to IP licensing, entity alternatives, dilution, projections and financing strategy. Aspiring entrepreneurs should ditch the background queries with ChatGPT; this insightful volume covers them all. I’m going to use it in my classes.

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I hope too that I can entice MIT thinkers Louis Shipley and Patricia Favreau, authors of the informative new book Unlikely Entrepreneurs, to join as guest speakers this fall. The most successful entrepreneurs learn and build from failure, they argue, and persistence, planning and pivoting can matter even more than a finely honed business plan. Shipley and Favreau build their book around seven curated topics, and they share timely, fun, and memorable examples from their decades-long work with notable media, tech and nonprofit organizations. If I ever build an advisory board for Project Entrepreneur, I want them on it.

Planning for the launch is clearly crucial—but scaling matters even more. That’s why every aspiring entrepreneur, regardless of industry and market, will want to read MIT alum and venture capitalist Mark Roberge’s incisive new book: The Science of Scaling. Roberge, Hubspot’s founding CRO, argues that all too often, companies chase “top line revenue” metrics from successful companies without truly assessing how to generate consistent profits from their own unique product-market fit. Finding that fit should be a data-driven process. Among Roberge’s key tips: don’t hire salespeople just because you raised the money and must “scale” fast—consider your own data and follow where it leads. 

Finally even the most seasoned founders know a fresh perspective can spark essential changes. Jon McNeill, serial entrepreneur, board member and big thinker — and author of the engaging new book The Algorithm — knows well the benefit of shaking things up. From his work with Tesla, Lyft, GM, lululemon, Crossfit and others, McNeill has learned to question assumptions and delete extra steps, and he’s distilled a five-step framework for rapidly tackling the most intractable operational problems. For any emerging and established business, who doesn’t ask: Why can’t we do this better and faster? Readers also will find the description of his thought partnership with Elon Musk in streamlining the manufacturing, promotion, and delivery of cars to be a fascinating ride. 

An uneven economy tests us all, but history shows that great businesses like Uber, Warby Parker and Airbnb can emerge especially when times seem tough. Compelling problems often draw entrepreneurs out to solve them. For anyone willing to embrace unsettling change, this might just be your time.

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Larry Gennari is a business lawyer and chief curator of Authors & Innovators, an annual business book and ideas festival. Watch recent interviews with authors here. Gennari also teaches Project Entrepreneur, a business fundamentals bootcamp for returning citizens, at BC Law School.