Reid Hoffman: How Entrepreneurs Can Invent The Future

Reid Hoffman, founder of LinkedIn and a member of Endeavor’s Global Board of Directors, shared his top 10 rules for entrepreneurship @ this year’s SXSW.

When I co-founded LinkedIn the tech industry was in a deep depression. I looked at all the opportunities created by the Internet and had the idea that eventually everyone would need a professional profile online. The disruption was that people were able to directly reach the best candidates rather than hoping for responses from a listing in the paper or an ad on a Web site.

1. Try to create “disruptive change”.“It’s got to be something that changes an industry.”
2. The disruptive idea should take $10 revenue and replace it with $1 of revenue, because that’s creating opportunities for new ecosystems.
3. It usually takes the same amount of work to run a the small company as it does a big company (except that if you sell the small company early, the work ends sooner).
4. Entrepreneurs try to build big companies that revolutionize their industry rather than create a startup they “flip” after a couple of years.
5. Build a network to amplify your company — That network includes investors, advisors, employees, customers, and others.
6. Plan for good luck — Sometimes entrepreneurs are surprised when something good happens, and they must take advantage of it by changing their plans.
7. Maintain flexible persistence — The art is knowing when to be persistent and when to be flexible and how to blend them.”
8. Pivot on key data! Know when to change!
9. Maintain your aspiration but always look for good perspective on how you are doing. It is very easy for creative innovators to get caught up in their own story.
10. The things a smart person learned a decade ago won’t help you now – you’re doing things that have never been done before, and the world and the competitive landscape are changing at hyper speeds.
11. Do not pay too much attention to rules set by other people. Entrepreneurs are inventors.
12. Entrepreneurs sometimes just make new rules.
13. Very often entrepreneurs are given conflicting advice: “Be persistent! Stay committed to your vision!” The challenge is to follow them both, but know which advice is most appropriate for which situation.