Written by Davis Nguyen
You’re 26 years old with $100,000 in student loans. Your recent start-up has just collapsed. You have a law degree and your friends and family pressure you to be a lawyer, but what you really want to do is build things.
What do you do?
This was a real dilemma facing Andrew Yang, who is the author of Smart People Should Build Things: How to Restore Our Culture of Achievement, Build a Path for Entrepreneurs, and Create New Jobs in America, a few years ago.
I met Andrew a few month ago at a conference where he delivered our keynote. The conference had nothing to do with business or start-ups, but when Andrew asked “how many of you would want to start your own business or join a start-up?” 80% of the attendees raised their hands.
Andrew followed up by telling us that while the dream of building a company is one most of us have, when it comes time to choose, most of us will defer our dream for security and comfort. He understood that this was a normal reaction.
Bootstrapping Your Life
Andrew graduated from Brown University in 1996 and earned his law degree from Columbia Law School in 1999. After graduation he started working at private firm. Despite the job security and six-figure salary, Andrew couldn’t find much meaning and purpose in his work. Six months into his career as a lawyer, Andrew quit to pursue his passion of building things with no experience in business and $100,000 in student loans. Less than a year later, his first company, Stargiving.com, was a victim of the dot-com bubble in 2001 leaving him with no back-up plan.
Despite his parents jeering him, “Didn’t you used to be smart?”, his friends introducing him as a lawyer, and his growing pile of bills, Andrew decided to give entrepreneurship another chance.
Today, thirteen years later, Andrew has had a successful career as an entrepreneur and founded Venture for America, a non-profit helping recent college grads become entrepreneurs by pairing them with early-stage companies to gain experience. He was recently named Champion of Change by the White House and one of Fast Company’s “100 Most Creative People in Business” for his work with Venture for America.
While most people in the audience were amazed by Andrew’s successes, I wanted to ask him about the story behind the success: the nights no one will talk about.
Two lessons I learned about being a successful entrepreneur from Andrew Yang
1. Find Your Yoda (Mentor)
After Andrew’s first start-up failed, he started to work for Manu Capoor, whom he met while networking for Stargiving. Manu was a former doctor and investment banker who had started a healthcare software company, MMF Systems. Andrew had no prior experience in this industry, but working under Manu, Andrew had found his Yoda.
Andrew notes in the book that it was from Manu where he learned the most important lesson about getting things done in business. It comes down to “people, processes, and technology.” Andrew left MMF after three years to work under his friend Zeke Vanderhoek at Manhattan GMAT where he learned to shape company culture, scale a business, and provide unparalleled customer service. Andrew eventually became the CEO in 2006 and ultimately grew the company to employ over one hundred people and had it acquired by The Washington Post Company/Kaplan three years later.
2. Learn to live within your means
Andrew gave up a six-figure lawyering job to work at start-ups that were paying him just enough to cover food, housing, and other essential needs. Through this process, Andrew learned that what he previously thought he “needed” were really just “wants.”
Besides paying for living costs and his student loans, Andrew never went broke or homeless. As one of my favorite quote about entrepreneurship goes, “Entrepreneurship is living a few years of your life like most people won’t so you can spend the rest of your life like most people can’t.”
Audio Interview with Andrew Yang
I had a chance to do a 18-minute audio interview Andrew, where I went into more depth about Andrew’s decision to quit his six-figure job, managing a start-up with student loans, and how you can take the first steps towards being an entrepreneur today if you wanted. You can listen it below.
You can buy your own copy of Smart People Should Build Things here.
We’d love to hear from you in the comments below:
What is the biggest obstacles facing your entrepreneurial endeavors?
What is one first small step you can take?
Davis Nguyen (@SpeakfortheMeek) goes out of his way to get rejected…every day. He believes that if you allow fear of rejection to prevent you from taking action, you will miss a ton of awesome opportunities. As a former shy introvert, Davis started Speak for the Meek to help others develop their social confidence and is giving out free copies of his e-book How to turn a “No” into a “Yes” to the first 1000 subscribers. Davis is currently a junior at Yale University.