This is a subscriber-only article. Join Entrepreneur+ today for access

Learn More

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Do Entrepreneurs Make Their Own Luck -- Or Not? Some entrepreneurs find themselves in the right place at the right time. In business, as in anything, some people have all the luck.

By Sam Hogg

Opinions expressed by Entrepreneur contributors are their own.

Heads or Tails?After I sold my company last year, I was swarmed with folks looking for me to jump to the next thing. I was amazed at the doors that opened thanks to the small victory of having my first startup acquired. I thought back to two months earlier, when I was just another dreamer with a huge credit card bill. I was the same person, with the same probability of success, but nobody wanted to chat with me about opportunities then.

The world of venture capital is obsessed with winners. Former CEOs are recycled into new positions at new companies. Profitable VC groups raise new and bigger funds. The successful CEOs hobnob with the successful VCs, and the cycle continues. But should it? I didn't acquire many new skills in the two months between being completely broke and decently flush; someone just bought my company. In truth, luck and timing had a lot to do with it.

It occurred to me that distinguishing between probability and talent is a talent in itself. Consider the following example: Eight people are backed up to the edge of a cliff, and each flips a coin three times. Heads means a step forward; tails, a step back, or utter failure. By straight probability, half the field falls off the cliff after the first flip. On the second flip, two will advance another step and two will return to the start, likely terrified to flip again knowing that the cliff is behind them once more. On the final flip, probability dictates that one will fall off the cliff, two will end up a step ahead and one will be in quite an enviable position--two full steps ahead of the nearest competitors and three ahead of the start point.

Editor's Pick

Related Topics

Side Hustle

Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First.

The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.

Side Hustle

He Launched His Creative Side Hustle Out of a Garage. Now It's Worth $225 Million.

Tom Humble, CXO and founder of E.C.D. Automotive Design, followed his passion for custom auto design into big business.

Marketing

Don't Just Babble on LinkedIn — You Need to Carve Out Your Own Niche. Here's Why.

To ultimately unlock the full potential of your LinkedIn experience, you need to establish yourself as a thought leader in a specific niche. This is why (and how).

Growing a Business

How an Executive Coach Can Help You Set Better Goals — And Transform Your Business

Ways to enhance your competitive advantage — and psychological wellbeing — with the assistance of a seasoned, results-focused professional.

Business News

This Company Promised to Transform Drive-Thrus With AI — But the Secret Powering Its Tech? Humans.

Presto Automation Inc., one of several major players in AI-ordering tech, has made headlines for using off-site employees in places like the Phillippines.

Business News

An Hermès Heir Wants to Give Half His $12 Billion Fortune to His Gardener—and Lawyers Are Going Nuts

Nicolas Puech, the grandson of Hermès' founder, intends to legally adopt the 51-year-old former groundskeeper as his son, ensuring he inherits his billions.