Your next pivot—will it embrace entrepreneurship?

Entrepreneurship—it’s not just for millennials and can include innovative technology, above and beyond “bits and bytes.” Could it be the new you–2.0? 

Recently, I invested a Saturday participating in an SPE - Gulf Coast Section (SPE GCS) workshop entitled, “Innovate: Pitch Perfect- How to create a great business plan.” The session, developed and executed by the GCS INNOVATE committee, smartly pulled together my favorite topics of entrepreneurship and technical innovation. I was delighted to see a wide diversity of participants—fresh out of school to retired and now embarking on a second career; local to international (furthest participants–India!); start-up to large multi-national; and everywhere in between. 

Panelist views. The workshop featured a keynote and three panels: venture capital (VC) investors, start-up entrepreneurs, and large company “clients.” Yes, the VCs were all heralding companies focused in Artificial Intelligence (AI), Big Data, Software as a Service (SaaS), etc. They see low initial outlay, a potential to scale to unicorn status, and if not, at least a fast-fail exit before costs get out-of-hand. Three of the five VC panelists also would “consider” non-IT investments in facilities or hardware. Only one of the five would consider companies focused on offshore projects.

On the flipside, the entire client panel emphatically declared offshore—and deepwater itself—as not dead but capable of world-class returns when done right. The guidance for all entrepreneurs was to start by identifying who has the problem, and then pitch how your product—or better yet service—can safely and radically reduce cost and/or increase revenue. Incremental (20% to 50%) gains are not welcomed; think in terms of order of magnitudes. Caution was suggested with branding a start-up as “disruptive” or “revolutionary.” Not an easy task, to radically reduce costs without being disruptive, at least to the client. Disruptive with competitors—that’s expected!

One of the most important take-aways that all speakers emphasized was the importance of teams, not just an individual. A solo entrepreneur with a great idea is not investable. A team with a great leader, a “rain-maker” (salesperson) and a technical guru—even with a mediocre idea— is a better bet. The idea (product and/or service) must be focused, and to use a hockey game analogy, go to where the puck is headed, not where it is now. A “me too” or “fast follower” concept is unlikely to be funded. Having worked with multiple dozens of start-up/early-stage companies, in capacities ranging from contractor, advisor, investor and board member to owner, I am well-aware that great technology is necessary, but not sufficient for survival, much less success, unless led by a stellar team. 

Key attributes and skills. Now, this will be difficult on some readers. The keynote “look-back” on successful companies indicated that leader attributes of importance can be ranked as follows: young; successful exits from previous start-ups; top-flight MBA; and previous VC experience. It was recognized that at the right moment, bringing in a “gray-beard,” particularly in a tech or sales role, can be worth the cost. My own experience indicates that the panel VCs were talking about a particular subset of the start-up universe. 

A number of my colleagues have been well-funded with their start-ups as oil and gas producers. In this area, experience does seem to trump youth. The successful E&P start-up teams tend to have worked together for decades at progressively higher levels within smaller companies and then, as a team, launch their new companies. And these same teams tend to hire and/or consult with older/more experienced experts. Life itself, including business, is mainly about people and their relationships. You have got to get the team right. 

Acquiring the right skills is not a one-time exercise. Professional societies and universities can be good venues for life-long learning, at least on the technical side. To gain knowledge and understanding regarding start-up of a company, support and community are very important. One of the world’s largest and most influential entities is Rice University’s Alliance for Technology and Entrepreneurship under the leadership of Brad Burke. Since its inception in 2000, more than 1,800 companies have participated, raising more than $3.6 billion in early-stage capital in over 185 programs with 46,000 delegates. 

For the second year in a row, the Alliance has conducted a start-up program at the Offshore Technology Conference (OTC), attracting more than 60 start-ups, dozens of investors, and over 500 participants. For the first time, and with great success, the Alliance conducted a similar program at SPE’s annual meeting. Launched in 2016 by CEO and co-founder John Reale, Station Houston is also creating a vibrant district where people live, work and play, with Station fostering a culture of tech innovation and entrepreneurship. Membership includes more than 150 early-stage start-ups, 300 members, 120 mentors, and strategic relationships with corporations that represent the key industries driving our city and the world. 

Long-time entrepreneur Stacey Horne and his Noel Group recently initiated Launch Pad, with a mission to provide early-stage international companies a community environment with a full suite of services, including space, infrastructure and back-office support. Their focus has been companies from New Zealand, where governmental support of the initiative is strong. An example client, Who’s on Location, is a cloud-based people presence solution for enterprise-scale organizations. At fractions of a cent per month, per person, their solution sets—which range from employee, contractor and visitor to evacuation management—provide an unparalleled level of safety and asset security. The Launch Pad location has helped propel triple-digit growth and provides synergistic reinforcement and sense of community with other portfolio companies. In early 2018, Launch Pad will begin hosting a New Zealand-based Med-Tech delegation made up of 10 to 12 companies. After an earlier less-than-successful effort on the U.S. West Coast, it is great to see the New Zealanders feeling at home, here in Houston. 

As we approach 2018, I encourage each of you to take a learning from the entrepreneurs’ support system and apply it to your career, whether within an existing corporate framework or as part of a start-up enterprise. Go for it, and best regards for success!