Mastering the Art of "Faking It" in Entrepreneurship
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Chapter 1: Understanding "Fake It 'Til You Make It"
Are you aware of how to present your startup positively without resorting to falsehoods?
The phrase "Fake it 'til you make it" has become a guiding principle for many entrepreneurs. However, it's essential to clarify that this isn't an invitation to deceive. Instead, it acknowledges the inherent uncertainties in entrepreneurship, which often contrasts with the necessity of exuding confidence.
Essentially, this mantra suggests that while you shouldn't exaggerate your product's capabilities in front of a Fortune 500 company's executives, you should approach the meeting with assurance in your product's potential to deliver value. Even if you feel insecure about your small, resource-constrained startup's ability to handle a significant client, projecting confidence is vital.
I recently met with a startup founder who struggled with this concept while rehearsing his fundraising pitch for me. He was tempted to share inflated customer acquisition metrics—something I had previously discussed with him regarding his strategy.
"But those numbers aren't accurate," I interrupted. "We reviewed them last week."
"They're close enough," he replied casually. "I just want to add some flair to the pitch."
"That’s not flair; that’s deceit," I corrected him.
"Every startup does this when seeking funds," he argued. "If we don't present our numbers attractively, we won't stand a chance against others vying for capital."
"There’s a fine line between presenting accurate information compellingly and knowingly disseminating false information," I reminded him.
"What's the distinction?" he asked. "Both are misleading. Why is one type of manipulation acceptable while the other is condemned?"
I hesitated, realizing his question was valid. From a young age, we learn that lying is wrong. But what's the difference between outright deceit and skillfully positioning something potentially negative in a more favorable light? This raises the question: why is it permissible to "fake it 'til you make it"?
The Five-Year-Old Gymnast
A few days prior to my discussion with the ethically ambiguous founder, I encountered an unexpected illustration of "faking it" during my daughter's gymnastics class.
My five-year-old is determined to emulate Simone Biles. While her aspirations may not align with her physical capabilities, my wife and I believe in supporting her dreams, so we enrolled her in gymnastics.
At her first class, I noticed a fellow student who stood out. Unlike the other kids in casual attire, she donned a miniature Team USA gymnastics uniform, complete with vibrant colors and sparkling stars. If I had to bet on which child might represent her country in the 2036 Olympics, she'd be my pick.
Admittedly, my knowledge of gymnastics is limited, and I have no frame of reference for evaluating a five-year-old gymnast's skills. Yet, her appearance led me to perceive her as more capable and promising.
The Influence of Appearance
I shared this anecdote with the founder, asking, "Why did the girl’s outfit influence my perception? How does this relate to entrepreneurship?"
"Well, wearing the leotard isn’t a lie," he replied slowly. "She wasn't claiming to be an Olympian. But if it led you to think she was better than she was, isn’t that a type of deception?"
"Is it really?" I probed. "Or is she simply demonstrating a keen awareness of the expectations in her environment? Isn’t that a positive trait?"
"Perhaps," he conceded with a shrug.
"Consider it in the context of fundraising," I elaborated. "Imagine two entrepreneurs pitching identical businesses. One employs a polished pitch and a well-designed presentation, while the other uses a disorganized, poorly constructed deck. Which one is lying?"
"Neither," he acknowledged. "The second just appears less competent."
"Exactly," I confirmed. "That illustrates the difference between deceit and effective framing. Lying involves intentional dishonesty to mislead or deceive, while framing is about showcasing your understanding of the environment's expectations. This ability to convey comprehension can significantly enhance your attractiveness as an investment."
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The first video titled "Fake It 'Til You Make It" explores the nuances of presenting confidence in entrepreneurship, emphasizing the importance of a positive projection without crossing into dishonesty.
The second video "How 'Fake It Til You Make It' Fails Entrepreneurs" discusses the potential pitfalls of misleading practices and how they can backfire in the startup world.