For example, do I fold or raise on the consumer side of our business? Do I double down or raise when it comes to employees? I even know to play aggressively when I see a possible win on the other end. The list goes on.
Last week, we had Phil Gordon in to play with us. Phil Gordon is a professional poker player who has placed multiple times in the World Series of Poker – a big deal. He’s been a commentator on poker games, designed digital poker games, and written several best sellers on poker. But more importantly, Phil is also an entrepreneur.
Before we started playing, Phil took some time to share some insights that would inspire us founders at the table: eight startup lessons we can learn from poker.
Don’t just mimic competitors. That’s the opposite of innovating and leading. Take control of the betting. Generally, when it comes to people on the team (employees), I like to bet in favor of a person. Give someone the upper hand of what you can afford to compensate them with, especially in equity.
If You Can’t Be Aggressive, Fold
Folding is the next best option if you don’t have a hand worth betting on or raising. Calling says, “I don’t know if I have the best hand,” which is something you should never do. Winners make money because people call too much. In business, once you see that data is pointing in a different direction, stop playing “calls.” It might mean you don’t have product-market fit. Just pause and reassess the game. Don’t keep playing.
Wait before you identify a profitable opportunity. Then wait some more. Don’t throw money here and there or you’ll run out if it.
Choose Your Ambitions
Be selective of what you go after. Then, once you choose what you want, go for it. Be the person who raises the stakes, and clean up when everyone else is down and out.
You may know the right play, but it takes courage to act on it. Have courage and conviction, and aim for success. Otherwise, you’re just hoping for the best, rather than making it happen.
Bad things are going to happen. A bad poker player will take the bad beat then instantly spew the rest of their chips. But it’s the bounce back that will define you and the way investors think about you. You can’t teach resilience. You either have it or you don’t.
Assume the Game Will Be Hard
Just like the game of poker, starting up is not easy. We had to pivot in May 2015, and I had to make some heart-wrenching decisions that involved letting go of my team and rebuilding it from scratch. But we were able to figure out a way to rebuild a different kind of team and continue to make progress.
Look for tells. Tells are signs that give away the strength of a person’s hand. In the startup world, this means navigating to the spot competitors have overlooked and taking ownership of it. Always look for the one little tell or weakness in your industry, then be aggressive.
Desire to Improve
Work your game and don’t be afraid to ask the better players for help. Take them up on their expertise, and always work to improve your own game.
If you’re to take any entrepreneurial lesson from poker, it’s to be real. Don’t talk yourself into playing if you don’t know that you have the best hand. How you get to the end does matter. Don’t sell yourself short by running out of fuel earlier than you want.