‘Ideas are a dime a dozen’

What is your opinion of the current financial crisis and its impact on entrepreneurship worldwide?
“All of us entrepreneurs are fully aware that there are important events going on around us; we’re not oblivious. But what we’re working on has a much longer time cycle. We’re working on creating and building the next new thing, with a 5 or 10-year time horizon. We’re going to need innovation and new technologies to pull out of this recession, and that’s what we’re creating quietly. Furthermore, even if there is less entrepreneurship opportunity for a short period of time, real entrepreneurs are not having any problems getting jobs, because with them lies the hope for the future. Since so many people are getting fired, it’s easier to recruit members of the team. And rents are low. It’s a great time to be starting a company!”

But are investors now more risk-averse and pessimistic about the risky projects of entrepreneurs? 
“The impacts on entrepreneurship are not as big as emphasized in the press. What’s important for an entrepreneur and start-up is the customer, who should be the primary source of cash flow. Besides, if you don’t have any customers, you won’t get money from investors anyway. It’s not in the interest of shareholders to support entrepreneurs if there is no reliable customer base. And remember, when it’s in their interest, they’ll invest whether in good or bad times. As long as there are customers for your product, you shouldn’t be that worried, even in hard financial times like now.”

When is the best time for TU Delft’s graduates to start their own companies? Right after graduation?
“No. Universities teach students how to think and, hopefully, to have high ambitions. But we don’t do a very good job of teaching students how to actually do stuff. To compensate, student-run activities, like AIESEC or Yes Delft, teach practical sales and execution skills. Similarly, being a teaching assistant is very helpful, as there is real world management training in the job.  The best thing students can do is to have serious jobs every summer, working in companies or on projects, so they can see how companies actually function.”

What is the best type of company for students with entrepreneurial ambitions to start their professional careers at?
“A well-run, fast-growing technology-based company or a young firm operating in a cluster of companies which are highly competitive and highly collaborative. This way they’ll learn business processes, develop a network of people with common interests, learn about getting customers, which is vital for any start-up, and learn how to coax a purchase order from a customer through the system.”

So you don’t think that consultancies or civil services are good options?
“You can learn a lot and build your network at top firms like McKinsey and BCG, but beware, consultancy is often artificial. You need to learn how to get the product out the door, to get it shipped to the customer, and to have an average person use it and make it a success with your help. You should have an understanding of contracts and IP rights. You should live and work in the real world, among all its tough realities, and not in a protected environment, and you need execution skills. With respect to government jobs, they can easily kill your ambition, passion and enthusiasm in a fairly short time. I never hire anyone who did not work in good summer jobs while at university, and I rarely hire anyone from government.”

How long should potential entrepreneurs work after graduation before starting out on their own? 
“Ideas are a dime a dozen. Really good ideas are of no use unless you have execution and customer acquisition skills. You will ruin your career by starting a company when you don’t yet know anything. Furthermore, even the best ideas will change as market conditions and customer requirements change over time.
I’m allergic to premature incorporations. In my eyes, during your paid job, it’s necessary to nurture and foster your idea, and validate that it’s a real opportunity, during your paid job in the real world, before you actually start your own company. And don’t start a company unless you’re really passionate about the idea and have customers who are ready to pay for what you’re trying to sell. The passion and ambition to solve a valuable problem are the keys to building new businesses.”

How do we put our learning from these early jobs into practice later on?
“The four key elements are: people, technology, markets, and the networks that come from school and early jobs. This learning process helps them to form top-notch teams later on, and pursue an opportunity with a new venture of their choice.”

What was your student life like?
“I got up early every morning. I had 8:30 classes and went to bed early. I was very active in a student organization called AIESEC. As part of AIESEC, we sent students from different universities – US or European- to different countries to work in summer jobs and get practical, real world experience. More importantly, we had to raise all the money we needed ourselves. The university didn’t give us a penny, so I went around and asked companies to give us money. We knew how to do our job, to go to companies and present our idea and ourselves in meetings with them, and convince them to give us money – no matter out of philanthropy or self-interest. So in this way I learned about selling, and raising money, all before my 18th birthday.”
Do you have any other advice for students during their university studies?
“The most effective people have their foot in more than one culture. Students should be aware of the protected, sheltered environment around them created by the university and the comfortable life that comes from doing all of their studies in one place. They should go to other places around the world for at least part of their studies; this helps them extend their networks, work in different academic cultures and experience different business cultures. It’s a bad move, in my opinion, to get your Bachelor’s, Master’s and PhD degrees all in the same place. There’s a big world out there. Try to see it!”