In a candid interview with Betty Liu, Scott Galloway makes a number of insightful observations. The key one is that the requisite for being an entrepreneur is a willingness to sign the front of the check–not the back–for the pleasure of working their ass off in their own company. Most people understand that theoretically, but very few are actually willing to do it.
Scott Galloway: Entrepreneurs Sign the Front of the Check
This is an edited transcript of Scott Galloway’s remarks from minute four to minute 12 in the podcast; Betty Liu was the interviewer.
https://soundcloud.com/radiatepodcast/scott-galloway-writing-the-entrepreneurial-check
Identify Your Point of Differentiation
You need to summarize your point of differentiation and how it gives you an edge. What are you good at? Why should they pick you off the shelf? You’ve got to dig deep and ask: What are the things I’m good at?
It’s a process of trial and error, but let me dispel some myths.
Do what you love is total bullshit. When someone tells you to follow your passion, it usually means they’re already rich.
The key is to find something you’re good at. Then, identify—within an organization or market—what is the one thing you can do better than anyone else. What’s the one piece of real estate you can own? Create a feature-benefit that ties back to an actual strength of yours.
Then do a market check. Talk to two or three people you trust. They don’t have to be close friends, but they should know you well. Ask them: What’s my value add? What’s different about how I contribute? They might say, You’re strategic, you’re smart, you’re good with people. Cross-check that feedback with others.
Also ask where you can improve. After you identify the positives, the next step is to figure out: What’s holding me back from going from a six or seven to a nine or ten? We don’t spend enough time honestly evaluating that, and we need others to help.
And here’s how you know feedback is real: when someone says something and it feels like a punch in the gut–that means it’s true. I get a lot of criticism and name-calling that doesn’t bother me. But when someone said, You talk about your personal life too much and it undermines your credibility, it hit me. That’s when you know it’s real.
Good feedback is a gift.
What’s the one thing you could start dialing down? I’m not saying you’ll get rid of it entirely—but acknowledging it matters. Just knowing what it is can make a huge difference.
So define your future upside, your point of differentiation, what you’re best at in the world, even if it’s a small niche. Then figure out what’s getting in the way and make the conscious choice to start dialing it down.
I’ve made a ton of mistakes—most of them rooted in my own personal flaws. One of the biggest struggles in my career has been the difference between being right and being effective. I’m a fairly combative, confrontational person. But you have to learn to pick your battles.
When you’re young, you think that if you’re right, things will work out. But there’s a big difference between being right and being effective. And if you’re seeking justice, the private sector is not the place for it. Pick your battles.
People romanticize entrepreneurs.
The primary reason I’m an entrepreneur isn’t because I have some special skill; it’s because I don’t have the skill set to survive in a big company where you need to navigate the culture, get along with people, be secure enough to thrive in that system.
For me, entrepreneurship is a defense mechanism. I still have anxiety—but now it’s productive anxiety.
- Where’s the next dollar coming from?
- How do I finance this thing?
- How can I build something.
Most entrepreneurs are too stubborn, or too naive, to realize they might fail. Every time I’ve started a company, it never made perfect sense at the beginning. If it did, someone else would’ve already done it. You just push forward, work hard, find great people, and eventually realize there’s a real market there.
The truth is, the key to being an entrepreneur is being more risk-aggressive than anyone else. You sign the front of the check, not the back. Ninety-nine percent of Americans would never consider working for a month, only to pay for the privilege.
And you know what? That sucks. It sucks to work your ass off, go home, talk to your wife—or borrow money from your parents or friends—and still put your own money into the business.
People understand that sacrifice in theory, but very few are actually willing to do it. That’s what makes an entrepreneur: someone willing to take their own hard-earned, post-tax money that took years to save and bet it all on their own company.
We tend to romanticize entrepreneurship. But it’s not nearly as glamorous or rewarding as people imagine. A small number of successful entrepreneurs get a lot of attention in the media. But you rarely hear about how the sausage actually gets made.
Scott Galloway’s website is https://profgmedia.com/
SKMurphy Take
- Entrepreneurs sign the front of the check, they are selling to meet payroll, not quota.
- I read his “Algebra of Happiness” and found it quick read but insightful.
- Many entrepreneurs succeed because they cannot face working in a larger firm.
- It’s important to build on your strengths but if some of your rough edges are holding you back, find a way to sand them down. This is not aiming for “well-rounded” as much as “minimally acceptable.”
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