Interview: Lou Ellman on Entrepreneurship

Lou Ellman, founder, and CEO, of RoyaltyZone.com and I explore the challenges of bootstrapping a business, the challenges of product development and the importance of product roadmap, and what it’s like to build and sell a software company on my Everyday Entrepreneurs podcast.

 

You can listen below on Soundcloud or subscribe to the podcast on iTunesGoogle PlayStitcher, or wherever you get your podcasts.

You can learn more about Lou and connect with him on LinkedIn. You can also find him on Twitter @louellman

Thoughts on Entrepreneurial Education

In December, I will complete the required coursework and earn a master’s degree from Western Carolina University’s Master of Innovation Leadership and Entrepreneurship program. Over the course my graduate work I have been asked many times if a master’s degree is worth the money if I really needed a master’s degree to be an entrepreneur, what prompted me to continue my education, and why I chose a Master of Entrepreneurship degree over an MBA.

As I wind down the program, I wanted to share my perspectives on these questions and offer other thoughts on entrepreneurial education.

My motivation for pursuing a graduate degree.

When I started the program in January 2017, my primary purpose was to earn the credentials to teach courses as an adjunct in higher education. My goal was to teach the basics of licensing and intellectual property protection to those students, like my summer interns from Savannah College of Art and Design (SCAD), who were on a path to creative careers but seemed to have little knowledge and understanding of licensing options for generating revenue and the importance of aggressively protecting their creations.

It was apparent to me that those with aspirations for careers in the creative arts are missing education in the fundamentals of business necessary to support themselves in those careers. I saw this not only in my student interns but also in my interactions with working artists and creators some of whom have been out of school for many years. I wanted to teach students how to establish a better business foundation for extracting long-term value from their future creative careers.

Two years later, my desire remains fundamentally the same; however, my vision is different. The coursework for the master’s program led me to think more broadly. We live in a world where corporate loyalty to employees is virtually nonexistent, and many individuals are pursuing entrepreneurial endeavors—some out of desire, others out of necessity. Moreover, the Internet enables everyone who wants to start a business, a way to find an audience, sell a product or...

The Founder’s Identity Crisis

There are just a few things you need to launch a business.

You need a vision (the ability to spot an opportunity or solve a previously unsolved problem), confidence, desire or passion, and a high tolerance for the probability of losing everything.

Fundamentally, this is all you need. These four things will get your business off the ground and, probably, help you land your first few customers. You don’t need much money to make this happen, and when it does, you’ll become a startup founder.

Growth, however, will bring new challenges.

Growth means you’ll probably need more employees, maybe a partner or two, a board of directors, and likely investors. You’ll need to learn new skills—what I call “adding tools to the toolbox”—so your business can scale and so you can become more effective as a founder. You’ll need to learn how to become flexible, how to be accountable to others, and become comfortable leading rather than dictating. You’ll need to improve your communications skills. You’ll need to define, develop, and maintain a culture, and figure out how you’ll deal with internal, and external conflicts (Eisenmann, Howe, & Altringer, 2017). These basic skills will carry you far, particularly if you are self-aware and introspective, and understand your shortcomings. With these “tools in your toolbox” you’re on your way to “Chief Executive Officer (CEO)-material,” but you’re not a CEO.

This point in your growth is where you get yourself into trouble as a founder. You want that CEO title because it gives some prestige and respect. While you may be the highest ranking individual in the company, overseeing the corporate decisions and managing operations, it’s disingenuous to claim the CEO title when you have only a few employees, and you’re flying by the seat of your pants, which is usually the case in a startup. You’re not fooling anyone with the title, let alone an investor.

When you take on investors, you must become a CEO; not just call yourself the CEO. The desire to have the CEO title without accumulating the skills necessary to be the CEO is the fastest way for...