I just ran into an old friend who told me she gave up "being right" for Lent. I asked her how that changed her behavior. In other words, how do you give up being right? She said she just listened to people and did not give them advice. When I asked what she learned over that 40 days, she said she learned she is not always right.
I meet with entrepreneurs who are pitching their business on a weekly basis. I am also very involved in my current portfolio. And lastly, I have over 30 years of experience in building businesses in information technology product and service businesses.
So when it comes to playing the part of potential investor it is easy for me to fall into the role of wise old sage. I realized from my friend's Lenten experience that I must protect myself from always giving advice.
Angel investing is fun. You are always surrounded by smart, motivated and totally idealistic people. People who know their idea will be the seed that grows the mighty oak of a company. People who mostly lack in experience but make it up with energy. If they knew what was ahead of them, they would never start. But start they do.
As an experienced angel, I feel it is my mission to encourage and to advise these early stage industrialists. Often times, however, I spend too much time on the advice and not enough time on the encouragement.
You advise the entrepreneur by talking and you encourage the entrepreneur by listening. It is this balance that makes for an angel who is wise, respected and sought after. This is an angel who is focused on the entrepreneur and his mission rather than an angel who needs to be right.
In reflecting on this topic, I came to realize how many times I was wrong. Times in my angel investing career when I knew I was right but later was proved wrong by the entrepreneur who did not follow my advise. Then there were the times when they followed my advice only to have it be the death of their dream.
Angel investors can add great value to the new enterprise. They can also snuff out all that is good in an entrepreneur and fresh opportunity. It is all a balance of talking and listening. What kind of angel investor are you? Are you serving you or the entrepreneur?
I was inspired to share these thoughts today because of a conversation with another friend of mine. He said he talked to a close friend who decided to practice "I don't know." I said 'What's that?" He said his friend, when asked what he thought about a particular topic, just started saying "I don't know. What do you think?" The results of practicing "I don't know" proved to be a steep learning curve.
Remember the words of Solomon.
"Even fools are thought wise when they keep silent; with their mouths shut, they seem intelligent." Proverbs 17:28 (NLT)
Silent listening has also proven to be the best advise ever given to me about successful parenting and marriage. Well written and thoughtful article Mr. Charlie.
I just got back from a road trip with my daughter. You reminded me why it was so special. I just shut up and listened. Amen
Posted by: Joseph Windover | 07/11/2011 at 08:16 PM