How to increase your luck as a founder: part 2

Part 1 is here.

We've explored what is luck & different types of luck.

Now it's time to get to the practical stuff: Actual steps you, as a founder, can take to increase your luck.

Part 2 is all about getting better at noticing luck.

Your mood limits your luck

Do you know there's an actual book about luck?

The name of the book is "The Luck Factor". It's a research-based book by Richard Wiseman, who's a professor at the University of Hertfordshire in the United Kingdom.

Wiseman did an experiment where he gave people who considered themselves lucky & unlucky a newspaper. The instructions were: Look through the newspaper and tell me how many photographs are inside.

The unlucky people took ~2 minutes to count the number of photographs. For the lucky people, it took seconds.

The reason: On the second page of the newspaper, there was a message saying: Stop counting - There are 43 photographs in this newspaper.

As a founder, how many times did you spend going through something (i.e. "reading through a newspaper") without noticing a lucky break (the answer in the newspaper telling you there are 43 photographs inside)?

As a bonus, Wiseman also placed a second large message half way through the newspaper. The message said: "Stop counting, tell the experiment you have seen this and win $250". Again, the unlucky people missed this message.

All this tells us that noticing luck is all about the mindset.

Paradoxically, this experiment tells us that thinking of yourself as "lucky" actually increases your luck.

According to Wiseman, unlucky people are much more anxious and tense than lucky people.

This anxiety hinders your ability to notice luck, i.e., unexpected things. Here are some examples:

Missing Networking Opportunities:

Imagine attending a conference filled with potential investors, partners, and customers. Your job is to make a pitch at your conference. If you're too anxious or focused on delivering the perfect pitch, you might miss a casual comment from someone nearby hinting at a lucrative business opportunity or valuable connection.

But if you're more relaxed and open, you'd catch that comment and follow up, potentially leading to a new partnership or investment.

Overlooking Market Signals:

You might be so focused on perfecting your product that you miss subtle signals from early adopters or market trends.

For instance, if you suddenly notice a spike in sign-ups from a particular demographic, it could be an unexpected product-market fit.

A "lucky" mindset would prompt you to explore this trend and adjust your marketing strategy, whereas being overly focused might make you dismiss it as a random occurrence.

Missing a Trend:

You're so anxious about your competitors that you fail to notice an industry shift during a conference keynote, missing the chance to pivot early and gain a first-mover advantage.

Undervaluing Unexpected Positive Events:

Imagine you launch a new feature, and it goes viral unexpectedly.

If you're too caught up in the next big release or too anxious about potential issues, you might fail to fully capitalize on this sudden success. A founder with a "lucky" mindset would seize the moment, doubling down on what’s working and leveraging the momentum to boost visibility and growth.

Missing Additional Revenue Streams:

As you focus on your core business model, you might miss opportunities for alternative revenue streams that could diversify your income.

For instance, a side project or a feature you developed might have the potential to be spun off into its own product or service. A "lucky" founder would recognise this and explore these opportunities, creating additional revenue streams.

Ignoring Cross-Industry Opportunities:

You might be so focused on your niche market that you miss opportunities to apply your product in different industries.

For example, a SaaS designed for marketers might have unexpected applications in education or healthcare. A founder with a "lucky" mindset would explore these cross-industry possibilities, potentially unlocking new markets and revenue streams.

As a founder, think of every touchpoint a potential customer has with our product as "trying our luck". Some of these customers convert to paying customers, but some leave other clues to what they want (some might open a request, some might use the product in an unexpected way, etc.)

Focusing only on whether or not a person will convert to a paying customer can significantly affect your ability to notice "lucky breaks". Here are a few examples of founders who were "open to luck" and noticed such lucky breaks:

Slack’s Pivot from a Failed Game to a Communication Tool:

Stewart Butterfield and his team initially set out to create a multiplayer online game called Glitch. While the game didn’t gain the traction they hoped for, they noticed that the internal communication tool they had developed to coordinate the game’s development was incredibly effective.

Instead of focusing solely on the game’s failure, Butterfield saw the potential in this tool. This led to the creation of Slack, now one of the most widely used communication platforms in the business world.

Your mindset can have a HUGE influence on your success as a founder. So how can you get better at this?

Instagram’s Shift from Burbn to a Photo-Sharing App:

Kevin Systrom and Mike Krieger originally developed Instagram as Burbn, a check-in app similar to Foursquare but with additional features.

However, they noticed that users were primarily engaging with the photo-sharing aspect of the app. Instead of clinging to the original concept, they decided to pivot and focus exclusively on photo sharing. This decision, based on paying attention to user behavior, turned Instagram into a massive success.

WhatsApp’s Evolution from a Status App to a Messaging Service:

WhatsApp was originally developed as a status update app where users could post about what they were doing.

However, Jan Koum and Brian Acton noticed that users were more interested in using the app to send messages to each other. They quickly shifted the focus to messaging, which led to WhatsApp becoming one of the most widely used messaging apps in the world, eventually acquired by Facebook.

How to get better at noticing luck

Meditate: Richard Wiseman found that lucky people were 20% more likely to meditate than unlucky people.

Meditation, in the long run, puts you in a state where you're more open to the world & notice opportunities more easily.

See the good things in bad luck: Wiseman recalled an event where a person who just broke their leg came on an interview.

Wiseman asked the man: "Hey, now that's bad luck, isn't it?"

The person replied: "Well, I could've hit my head instead! Plus, coming for the interview could open new opportunities. I've met my now-wife when I ended up in a hospital, where I fell in love with my nurse and later married her."

Lucky people have a very resilient attitude, according to Wiseman. Here are some examples on how to improve your resiliency as a founder:

1. Embrace Uncertainty:

As a founder, you’ll face countless uncertainties, from market fluctuations to changing customer preferences.

Instead of fearing the unknown, approach it with curiosity and openness. For example, if a key product feature doesn’t resonate with your users, see it as a chance to learn more about what they truly need. This mindset allows you to adapt quickly and turn potential failures into growth opportunities.

2. Focus on Long-Term Gains:

When faced with short-term losses, maintain your focus on the bigger picture. For instance, if an investor pulls out at the last minute, it’s easy to feel defeated.

However, resilient founders understand that this might be a blessing in disguise—perhaps this setback gives you more time to refine your pitch or find an investor who is a better fit for your vision.

3. Find the Silver Lining in Tough Situations:

When faced with a difficult situation, look for the positive aspects.

For example, if your team faces a major setback, like a failed product launch, use it as a team-building experience. Reflect on what went wrong, celebrate what went right, and use the experience to strengthen your team’s bond and improve your processes.

4. Cultivate a Growth Mindset:

At the beginning of your startup journey, every day is a learning experience.

Instead of being discouraged by challenges, view them as opportunities to grow. For instance, if you’re struggling with customer acquisition, take it as a chance to dive deep into marketing strategies, learn new skills, or even seek advice from more experienced entrepreneurs.

5. Build a Support Network:

As an early-stage founder, it’s easy to feel isolated, especially if you’re a solo founder. Building a support network can provide the resilience you need to keep going. Some ideas:

Connect with other early-stage founders through networking events, online communities, or accelerators. For example, having a mentor who’s been through the startup grind can offer guidance, encouragement, and perspective during challenging times.

It's easy to see how having a positive/lucky/resilient attitude is a self-fulfilling prophecy. Especially for someone like us, founders, who face uncertainty on daily basis.

Hope you found this article to be useful! Expect part 3 next week.