1
308 Part III The Forurdel ancl Tt,:rnr propel]eil the comprrnv into i,Lncl thrrrigh lirpid aDCl srlccesslul gro\\rth. It is the ilbilit\- to ieacl a high- potential limi tlirough tlre stages cil grou-tli tliL,Lt cle- {ines tlie entrepreneur in tl're 21st centurr,. Entrepreneuritrl leirclers such as Clates ancl Co{Iin epitomize the entreprerieuri ul u,ii\.s ol re,lsoning. trtti- tucles, r:rhrcs. irnd beliefs tlrat u,e cliscussed in clc.trril in Cliapter' 2. Tiieir leirclership approach mmiil'ests itself in actions ancl behiiriors that irttr:rct ancl keep the best ttrlent. \\rliat about therl ls so coinpeiling'P Fnr one tliing, tirer Iead bv cleecls, not u,orc.[s, ancl set L]11 eraln- ple u,ith tl high lr,ork ethic, integritv ilncl honestr. rrnd {hirness. Thev o{terr have n keen sensc o1'hrurior alcl spontaneitl' that engenders trust, as u,ell rrs confi- clence: \llhtrt rrou see is u,hat \:ou get. Thcir c'rt-rrtiritv rund innor.ati\ eness, especi irlhl in tiic opportr urih' c,re- iltion process u.ith neri- procluct or scrricc idr'iis. ot- in soh,irg a triclo personrrel rtr rtrqarrizatton problelit. in- r-ar:iabh' s-hr c'onficlerlc e ;uic1 eritlrusiastic lirilori-c.rs. Thcr rrrc' rluick to qive creclit iurcl recognize goocl per- firrm,urce. ilnd tlie\- irls'avs accept nrore thtrrr tlreir slrirle ol the blirrue i ,hen ihings dirn't rl,ork out. Ther. are teilm lldldels. rntrl<e heroes out o{'otliers. alcl clo not have to be thc center clf iittention ilncl recognition. This is vital irr nes, r'entures bcctruse tlie l<er- t<r thelr success, irs \\,e hltve clcrnonstraterl previousir'. is tlie tule.nt arid qualitl' of tlic lcrrd entrepleneur mrcl {brrncling tean'i. There is little tirne or prioritr-in a start-up lbr coiicliiri.q, triiining. rncntoring, iirrcl clevel- opmcnt o{'rrerv hires. .Eucrry rtetc hirc lu.r,s to llLir* onrl act likc on ottner ancl perlbnri u.ithout rrmch guid- :lnce ilnd clirection. People Know Leoders When They Experience Them For veitls. research hils shoutr thrrt peers irrc morc iLccurate in iclenti{-r'1ng trncl rarikirrg leaders thttl :rre outside obsen,ers, resetrlchers, ancl crpcrts. \\rliether it is ii high schooi sports tearur. rr club. or some other orgirniziltion, people htrve irn Llrcanlt\i. intuitirre sense olu4ro i,rrc ald rvill be the best lc-acl- ers. Thcr' l<norr. Lvlren sorneone is trulr- ccintniittecl rtrther tlian iust sin'ing the u'orrls arrcl goilg througli tlre nrotions. Tirev clistinguisli the exceptionallr,' creatile ,ud in.'enii.,e entri.preneur u.ith a nose {'o, opportunitr.. Ther-kncxv u,hen people trrlv c:rre :utcl shou,respect {bl oti-iers. A rccent conversirtion, fbr exarnple. uritli the lieacl of i,L n-icdictrl clinic of molcr tlian 30 prof'essionals revealecl thtrt although the. bclss is considelecl ir clecent nianagel'. hc cleirrlr- is no ieacler. "IIe just cloc'sn't sccrll to care u'ho I arrr or lrrhat I clo. I'r,e beerr here ovel'11 \erlr rlo\\'rui(i iie has ncvcr asked about mr tri,, lr,,r-r. rrl u.ife. or an1. of nlv personiil irrterests." Unclerstr,Lnclnblr, this talentecl nric.lcrrreer cloctclr plans to 1]rove on rrs \' its hc citn. Thirik o{'sorue of tlre colkrrlial tcrrris that clesr:. lnallv urallirgers and trchliuistrators u,ho are uot 1. ers: control freak, corrrplialce. crrstoclii,rl, policies . proceclures, bureilrcri,it, clonrinating or dicti,rt(,r. nitpicker. bl arner-. rr anipuli,Ltor. sel{lcenterecl. rur, or-r. lt is no u'oncler eltrcprcnenliirl leirclers arc' ' ning the *rce to attrtrct and keep the best talent. The lmportonte ol the Teom The Connection to Success Eviclencc suggests that tr rr-iar-ragement tearn crur r r .. all tlie cli{I'clcncc in vernture success. There is a str. colrrrection bchlccn tlie grouth potential o1 ,r r, r-enture (:rncl its rrbilitr,' to attract czrpital bevolcl : lorurcler.s resources frorrr prir':rte and r.cnture r'.1' - bnckers) irncl the qualitv o1-its rnanilgement teilrr i The eristcncc of tr qualitr- nranagement tetl onc o{'the nrajor clilferences betu,een iL lirm : proi'iclcs its founcler siriiplv a jolt substitute, anri .. abilitv to ernplov perhtrps a ferl, familr' member\ .. others, trncl a }iigher.potential vcnture. The lonc-'' cntreprerieur mur nake a living. brrt tlie team bur. . creates irn orgnriization ancl a colnpan\i u,ith srrl r. . ti:rl l-nhrc ancl }iarr..est options. \rcntures that clo not harre te:irns :rLe not nc'ces:-. preclestinecl for tlie neur l'enture gr:rr-evi,Llr1. ', brrilding a liigher-poterrtial venture u,ithorit a t- ls crtrenrell. difficLilt. Sorle entreprenerrrs har.. quircci a clistirste for ptrrtriers. rtnd some leacl er. prerlclrrs can be happr-clnlY if thev trre in corrrl c:ontlol; tliirt is, thev u,'trtt erlpkrl-ees, not prrltr eitlrer interrrallr-or as outsiclc inr.cstors. Takc', 1i , stance, itn entrepr-eneur u,ho {bundcd n high-teclu, - firrrr that grer,v steacliil; but slou,lt,. o\-cr 10 rear.. ' nearlv $2 rlilliorr iri strles. As ncrl'pirtterns i,urcl t-- nologlcal ildvarices in liber optics clre\\,rnuch lntr:. from r-enttire cirpitalists, he hr,Lcl morc than orle i of up to S5 nrillion of luncling, u,hich }ie tunrecl c1 because tlre irn-estors u,antcd to ou'n 51 perc'c,:,. rnore of his veriture. Plainll,:rnd sirrrplr,, lie saicl. I not rvarit to gir-e up coritrol o{'u,liirt I har-e u,orii... - Iong ancl harcl to cre:rte." \\rliile cleerrl1, tl-re ercr.p: to the rule, this entrr:prenerir lrns rnzrna"ged to :: his business to urorc than 320 million in strles. Since the 1970s, rlurnerorls stuclies halrs p,i' - to the import:rncc of a teiun itppt'oach to leu. r'er , . cre:rtion. Solid tearns rrre far rnorr: likeh' to att:. venture cnpital; teaur-led start-rrps harre a gre,.: chilrrce of sun ival; and those enterprises o{terr lt . ize higher over:rll Leturns than ventures mri br s, entrepleneurs. l
