For a couple of years in my twenties I turned into “Mr Quotation” and could ream off words of wisdom from all the sages in the last Millennia. Then I promptly forgot them all again. Perhaps a case of a befuddled youth, reading every self help book in the library, then deciding life was for living instead!?
That said, from time to time, some perennial wisdom still pops out. When working with early stage entrepreneurs I always remind them of three things; that “a journey of a thousand miles begins with the first step” (Lao Tzu), that “most people overestimate what they can achieve in one year, but underestimate what can be achieved in ten” (Tony Robbins), and “compound growth is the most powerful force in the universe” (Albert Einstein).
No-one would argue that patience, long-term view and persistence are critical in business, as with long-term success in many other arenas. Similarly, an entrepreneur is almost by definition someone who gets up from their chair and takes that first step and most observers understand that early stage companies must throw “boulders against eggshells” (The Art of War) to succeed, and put “buy when there is blood on the streets” (Baron Rothschild)at the core of their acquisition strategy (as you can see, I still like a quote or two!).
At Lough Shore, we feature a start-up blog on Twitter each day and one of this week’s offerings, from San Fran VC Bryce Roberts, really got me thinking.
The Entrepreneurial Commitment Problem bit.ly/wrol1v
— Bryce Roberts (@bryce) January 19, 2012
Bryce refers to some fascinating research which suggests that long-term commitment rather than raw talent could be the core determinant in how quickly people show the benefits of practice. The research was based on a study of children undertaking piano lessons, but presumably could be applied to the practice of any activity. It compliments the conventional 10,000 hour wisdom by adding the caveat that those taking a long term view will develop a lot further and faster (in relative terms) than those possessing a short-term outlook. Bryce used this example in the context of founders and start-ups, believing those entrepreneurs with a long-term commitment will create the most impactful businesses.
As with all results that seem obvious in hindsight, my first caveat is that I’d like to really understand the empirical evidence supporting the conclusions. However, if the methodology holds the conclusion really resonates with the Lough Shore view of the world. Our mission was constructed quite deliberately, giving ten years to deliver the goal. Even this belies a long term commitment to build a world class investment company that will be around for the next fifty years.
We don’t have a view on how successful Lough Shore can be thirty years from now, but firmly believe in the long term power of compounding and commitment to one’s art.
I’m going to order a copy of the Talent Code. Bryce’s blog has certainly whetted my appetite, and in particular I can’t help but wonder where and how passion fits in!