Dan Martell - May 23, 2022


Advice For First Time Founders (How Not to Fail)


Episode Stats


Length

11 minutes

Words per minute

188.6955

Word count

2,190

Sentence count

77

Harmful content

Toxicity

3

sentences flagged

Hate speech

1

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, I talk about the 3 biggest fears you have as a non-technical founder, and how you can overcome them. 1. Fear of failure 2. Fear that you re not going to get any customers 3. Fear you re going to fail These are the 3 areas that are going to help you overcome these fears.

Transcript

Transcript generated with Whisper (turbo).
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 you know that you're not building something nobody wants because that is the ultimate risk
00:00:04.400 in the software world.
00:00:18.540 Hey there, Dan Martell here, serial entrepreneur, investor, and creator of SaaS Academy. In this
00:00:23.660 episode, I've got a really fun one, okay? I was on Twitter the other day and I asked the
00:00:29.720 question about you know what's the biggest fear you have as a non-technical founder starting a
00:00:35.720 software business okay so i got everybody's answers literally i've got like 55 000 followers and i had
00:00:41.720 dozens of replies and i took all the replies and i put them into three answers to the biggest
00:00:48.440 buckets the biggest fears and i want to share with you like i know if you're starting a software
00:00:53.720 business and you can't write code that's a scary proposition like you if you're starting a
00:00:58.520 restaurant and you'd never cooked a meal but you're just passionate about being in the hospitality
00:01:04.040 in the restaurant space like there's a lot of motivation but crazy fear anxiety that you're not
00:01:08.920 gonna you know get any customers come through the door uh you're gonna get somebody sick with food
00:01:13.960 poisoning you're gonna have a menu that's too complicated or that isn't profitable or there's
00:01:19.000 like all these pitfalls that you're not even aware it's the unknown unknowns right so what i want to
00:01:24.040 share with you is what i heard from twitter and the three areas that is going to help you overcome
00:01:31.320 these fears because if you don't know my story i've built over um 30 different prototypes okay
00:01:38.760 and a lot of them i didn't even code so i've built a ton of prototypes clickable prototypes
00:01:43.640 you know code-based prototypes i've scaled and exited four software companies i've coached a
00:01:49.640 thousand plus SaaS founders, software as a service people that are in the technology industry.
00:01:55.000 I've invested in 50 plus companies. I tell you all that so you understand that like
00:01:59.320 my background is one thing, building technology companies, building software, managing engineers.
00:02:06.920 So all these three strategies are based on that level of experience. And I want to give it to you
00:02:13.160 if you're in anxiety and fear and doubt and concern, I'm hoping that this is going to help pull you
00:02:18.760 through because what I know is that when we build software, we unlock the human potential that's in
00:02:25.040 the world. If you think about it, every tool, software is tools, it's workflows. Steve Jobs
00:02:29.860 called it the bicycle of the mind. Every software will help people get their time back, make less
00:02:35.820 mistakes to be able to be more creative. And that's why I'm so passionate about helping software
00:02:41.020 founders grow and scale and help you if you're thinking about getting into it. So here's what I
00:02:45.940 got number one skill development so here's the deal if you start your software business
00:02:50.900 and you completely fail here's what i know is you will develop a new skill you will become
00:02:56.340 better at managing projects on a remote team probably managing software these are all things
00:03:03.780 that are actually very very valuable in the market you know i recently hired a new program lead
00:03:09.780 and his background the the person that's leading this had a failed startup software
00:03:15.220 or how to fail a software startup and what i love is that anybody starts building a technology
00:03:21.460 company they build the skill of product management they build the skill of talking to the market and
00:03:25.700 trying to translate that into a workflow and interface activities and that is an incredibly
00:03:34.100 valuable skill that for me translates into program ownership you know product development so you know
00:03:41.060 don't underestimate how valuable going into the business and developing new skills like i know
00:03:47.780 when i started coaching in my youtube channel one of the biggest skills i want to develop is
00:03:52.580 communication and i knew that the more i did this the more i got in front of a camera and i talked
00:03:57.780 to people and guess what one take right took me months to get to this point where i can get in
00:04:02.580 front of a camera and just talk about the strategies that i knew in my heart when i was talking to a
00:04:07.540 to a friend at a dinner table,
00:04:09.020 I didn't need an outline, I didn't need a script,
00:04:11.140 I didn't need a teleprompter, why can't I talk about it?
00:04:14.260 Just the same way I would do to a friend at a dinner.
00:04:16.420 And that skill, even if I failed,
00:04:19.200 even if my YouTube channel didn't get 10 bazillion views
00:04:22.440 and 10 million subscribers,
00:04:24.260 I knew it was something worth learning for me
00:04:27.640 in everything I do, and I wouldn't change a thing.
00:04:30.420 I've gone live every Monday, not live,
00:04:33.160 but I've published every Monday for the last six years,
00:04:36.080 I haven't missed a week ever, and I don't plan to.
00:04:39.260 I gave myself a 10-year commitment, which is a long time,
00:04:41.360 but it's kind of how I roll.
00:04:42.800 And that skill development is valuable.
00:04:46.080 So I want you to think about that.
00:04:48.160 And I really want to encourage you to just do it,
00:04:50.100 but that's one of the big beliefs that I want you to adopt.
00:04:53.360 Even if the whole thing fails,
00:04:54.940 you will be a better person because of it.
00:04:56.420 Number two is find a technical friend.
00:04:59.620 So, you know, if I was starting a restaurant,
00:05:02.280 I would definitely find a chef.
00:05:04.860 I would probably find two or three.
00:05:06.360 I actually know who I would reach out to
00:05:07.800 because I've thought of this so many times.
00:05:09.020 Anybody in business at some point thinks to themselves,
00:05:11.960 I should own a restaurant.
00:05:14.180 And then they work out the numbers and they go,
00:05:16.840 man, what a bad business to be in.
00:05:18.920 And usually go back to the thing they were doing.
00:05:20.460 That's always been the case for me.
00:05:21.920 I haven't even invested in a restaurant as an investor.
00:05:24.840 And look, I have friends,
00:05:26.460 like my buddy James crushes it,
00:05:27.840 25 million a year in one location.
00:05:30.720 Those are the exceptions.
00:05:31.740 And if James was starting a restaurant
00:05:33.160 you want investment here's my money but for all those building software businesses find a technical
00:05:40.120 friend okay so i remember when i was building my company uh spheric and i needed to build even a
00:05:46.200 new part of the code i found this guy named scott wadden scott was working as a teacher at the
00:05:53.080 college the way i found him is how i tell a lot of people is call your local college and ask who
00:05:57.240 their top students are in the programming class and what was funny is everybody kept saying because i
00:06:02.360 Because I would talk to the students and I would say, who's the smartest program we've
00:06:05.380 ever met?
00:06:06.380 And they go, Scott.
00:06:07.380 I was like, Scott, your teacher?
00:06:08.380 And they go, yeah.
00:06:09.380 And I just kept hearing that.
00:06:11.600 So eventually I asked Scott to have coffee.
00:06:13.520 We met at this coffee shop on Mountain Road at Tim Hortons, right next to the Community
00:06:18.060 College.
00:06:19.060 And I remember him showing up.
00:06:20.060 He looked like the Unabomber. 1.00
00:06:21.060 He had a big freaking beard and glasses and a big winter jacket. 0.92
00:06:25.300 And he looked like a technical person, a guy that liked to write code and listen to music. 0.93
00:06:30.260 And I remember talking to him and there's just something about his demeanor.
00:06:34.740 He was obviously bright and talented, but he was also somebody that I was like,
00:06:39.000 man, this guy's a really kind human being,
00:06:41.080 somebody that I could spend some time with.
00:06:42.760 So I invited Scott to help me work on this new project
00:06:46.300 and go deep on the analysis of what we were trying to do.
00:06:49.500 And over time, eventually he left the college and came and worked with me full time.
00:06:53.000 And we ended up starting another company.
00:06:55.300 Clarity was founded because Scott was my technical co-founder.
00:06:58.420 But even before that, I want to encourage you
00:07:00.620 to just find some people around you
00:07:02.500 that you're technical friends.
00:07:04.220 So you can learn from them.
00:07:05.220 So you can ask them to look at what you're doing.
00:07:06.700 So you can protect yourself
00:07:08.340 from getting scammed from other people.
00:07:10.180 That's a big idea.
00:07:11.580 And then finally, this is the big one, okay?
00:07:14.820 And I've talked about it so many different episodes.
00:07:17.620 It's pre-sell before you build, okay?
00:07:21.020 And if you, like, this is the reason why I say
00:07:25.140 starting an event is one of the most powerful things
00:07:28.060 can do as an entrepreneur because it's going to teach you the whole thing it's going to teach you
00:07:32.380 what to name the event how to recruit speakers how to sell tickets how to manage logistics and
00:07:37.020 it has a finite date you know many of my friends that i've met it's because i've encouraged them
00:07:41.900 they were like trying to be entrepreneurial and i was like just start an event and they did the
00:07:45.980 event and they learned all these skills and then they realized they wanted to be in business and
00:07:49.500 i like them and hey let's build a business together and literally some of my my buddy
00:07:53.740 Marcel. That's how we became business partners. He called me up. He wanted to start a business.
00:07:58.400 I wanted to do an event. He wanted to help me with the event. I said, don't do my event,
00:08:01.480 do your event. That's an awesome idea. And he did. And it just kept snowballing from there.
00:08:05.580 And I share that because the pre-selling before you build, essentially that's how events work.
00:08:11.480 You build an events page and you pre-sell tickets to the event. And then hopefully you sell enough
00:08:17.020 tickets that one day you got to deliver the event. And people think, well, I can't pre-sell
00:08:22.240 my software yeah you can well who would i sell it to that's the problem guess what you could go spend
00:08:28.080 100 grand to build your software and you're still gonna have that same problem so if you can't solve
00:08:31.760 that problem before you build the software it's still gonna be a problem that you're gonna have
00:08:35.520 to solve and and to me that has always been my approach everything i've done even today pre-sell
00:08:43.200 i just got involved i sit on the board of a company called pila and they came out with a
00:08:46.880 a new product called Lomi and we did the largest crowdfunding product launch. It was $20 million,
00:08:54.080 20 some millions in the ecosystem ever. So even today in my world, when we have access to tens
00:09:00.520 of millions of dollars on the board of this company, we did pre-sales. We listened to the
00:09:07.460 same philosophy. Why? Because the biggest risk in any business is not the product risk. Can we build
00:09:12.760 this it's does anybody want to buy it and those are the three things that i see non-technical
00:09:18.960 founders make the mistake all the time it's the fear that keeps them up at night and i'm giving
00:09:23.240 you the answer to overcome it and that's what i heard on twitter and those were my replies to all
00:09:27.980 those people that are saying this so quick recap number one understand that even if you fail and
00:09:33.560 you probably will 80 chance you'll probably fail you will develop some new skills number two
00:09:38.120 that if you find a technical friend they can give you advice you're going to reduce the potential
00:09:42.620 of building you know bad code but you'll also find somebody that could become your technical co-founder
00:09:47.980 maybe in this company or a future company just like in my case scott did and then finally make
00:09:53.340 sure you pre-sell before you launch before you go and raise money from friends and family and spend
00:09:58.220 all this time building stuff like go find some customers talk to the customers get them excited
00:10:03.020 about it have them make a financial kit commitment to you so that you know that you're not building
00:10:10.140 something nobody wants because that is the ultimate risk in software world so i hope those three
00:10:15.340 strategies landed for you that help you overcome the fear because at the end of the day i really
00:10:20.700 really really encourage you to start something software is one of the most rewarding industries
00:10:24.940 it's why the valuations are so high it's why you see multi-billion dollar exits on a daily
00:10:30.700 and it's why i think you know i've gotten to the position i'm at i just absolutely love the
00:10:36.380 the reoccurring nature, the subscription nature,
00:10:38.660 the predictability of the business model.
00:10:40.760 It just speaks to the chaotic world I grew up in.
00:10:43.000 So I just wanted to share those ideas with you.
00:10:45.940 And if you like what you've heard,
00:10:47.300 please subscribe to this channel and leave a comment below.
00:10:50.000 Let me know what was the number one takeaway for you?
00:10:52.640 What did you need to hear most today?
00:10:55.100 And as per usual,
00:10:55.940 I want to challenge you to live a bigger life
00:10:57.580 and a bigger business.
00:10:58.980 And I'll see you next Monday.
00:11:00.220 Have a great day.
00:11:06.380 Thank you.