Andy Lurling
Staying Informed about Emerging Trends and Opportunities in Entrepreneurship
Due to the fast pace of changes in emerging technologies, we need to make sure that we have relevant information to take into account in our selection of potential winners. It is important to avoid tunnel vision and to become biased. Therefore, one needs to keep a holistic view, see patterns, and turn them into an investment focus. To be honest, most books nowadays are outdated before we have a chance to read them. Therefore, our main sources are scraping the internet for trustworthy information and staying in touch with thought leaders, industry leaders, and scientists. This is what we do, and it is one of the reasons why we are such active ecosystem players. Furthermore, we receive hundreds of pitch decks, mainly within our investment focus. Overlooking these decks, you also can see trends, as I believe that start-ups are the scouts of where technologies and the market are heading.
Challenges Encountered in Your New Business Development Efforts
We invest in emerging and potentially disrupting technologies, such as AI, Blockchain, IoT, VR/AR, and digital security. The words emerging and disrupting often are, for the established world, initially rather scary as they imply change. As with LUMO, we are an impact-driven fund; besides investing in financially sustainable and attractive companies, we invest in companies that use technology that creates a positive impact. Though initially, we see that it often takes quite some persuasion power for our portfolio companies, initially start-ups, to convince their potential clients. This is why we, as partners of LUMO Labs, actively help our portfolio companies with introductions to relevant companies within our extensive networks in the phase of the product market fit. This gives the start-ups just the bit of creditability needed to start collaboration. Also, with LUMO, we help the founders of our portfolio companies with the storytelling of the companies’ propositions and purposes. This helps them with their business development and sales as well as with finding the right talent.
‘Just learn and don't be afraid to ask people for help; you will be surprised how many people are willing to support you if they see that you are dedicated.’
Personal Experiences or Lessons Learned from the Journey as an Entrepreneur
Where to start? Starting and developing a company is really like a rollercoaster with ups and downs and unexpected events happening. As an entrepreneur, it is your job to guide the company as well as possible to the next phase, and this in a repetitive way till you exit the company. I would say my top three lessons learned are as follows: First of all, gather people around you who are better at executing their role than you could do. This sounds scary at the beginning, but it is the only way to grow the company without it being too dependent on you. I always say: "As an entrepreneur, you need to ensure that you become dispensable as soon as possible, and then you can focus on the next phase of the company again." This is why, with my own company, pretty soon after I started, I asked Sven (Bakkes) to join. Now, more than 20 years later, we still work together. He is the other founding partner of LUMO Labs, and we complement each other in our skills and talents. Related to this, it is important to occasionally take a pause and review the company and your role as an entrepreneur within the company. Often, you see that at a different stage of the company, another skill set and talent are needed for a particular role, such as CEO. Only a few entrepreneurs stay on as CEO till the exit, simply because, as an entrepreneur, typically you have a few skills that are perfect to start a company but less of a match to grow the company beyond a particular point. Another lesson learned is that selling starts with listening. Know what your customer is looking for and what triggers are for the customer to start a relationship with you. I have seen many entrepreneurs who just talk and send instead of first finding out what the client's challenge is. Last but not least, and I keep repeating myself, as an entrepreneur, you often find yourself alone as you believe nobody will understand you or help you. Just learn, and don’t be afraid to ask people for help; you will be surprised how many people are willing to support you if they see that you are dedicated. Of course, it is important that you ask the right people who can really help you. You need to develop a sixth sense for that.
Advice for Aspiring Entrepreneurs
I can only say, just do it! But be well prepared. Do thorough research before you start, and only start if you really have a good plan! Are you really solving a problem? Why would people or organizations become your clients? What alternative products or services could they buy instead of your product or service? Always make a three-year plan that includes the development of your team, the costs and a realistic prognosis of your revenues. Good cash flow management will be crucial in the initial phase. Also, here I again will say, make sure you ask for advice from some other entrepreneurs or former entrepreneurs who are preferably active in the same market. Just proactively approach them, and many will help you! So just do it, and don’t forget to enjoy the journey!
