PS#075: The 4 Foundational Skills
For today’s issue (and next week’s issue), I’m going to take a bit of a step back.
Over the past few weeks, I’ve been thinking about the skills that have really contributed to my success. The things that I think helped position me for a long-term career in venture capital.
I’d like to share what I’ve found. I’ve defined it as the …
4 foundational skills
3 operating principles
Today, we’re going to discuss the 4 foundational skills, which include…
Finance
Business
EQ/Politics
How to work
Before we cover these topics, I’d like to provide a bit of context.
I believe these skills are critical for any ambitious career, not just one in venture capital. If you’re looking to be an investor, entrepreneur, or just a better professional, these are the four skills (or subjects) that you need to keep building and investing in over time. They will give you a broader understanding of your individual role within the context of a team, firm, and broader industry.
Looking back on my career, investing in these areas early and often laid the foundation for a long-term competitive advantage in my career.
I recognize that (on the surface) these skills sound a bit vague, so let’s dive into the details.
1. Finance.
Finance was the first skill that I learned in my career.
I started my career in investment banking, which gave me a great foundation for this skill. I learned how to build financial models, how the different financial statements worked, and ultimately how everything that was done in a business translated into cold, hard numbers.
At the end of the day, it doesn’t matter what you’re doing from a business perspective if it’s not able to produce results. Finance is the language of results.
This is a key skill to learn.
Being able to build a financial model is a super power. Being able to manage your company’s finances is a super power. Being able to understand how your role drives value for the firm in terms of revenue, gross margins, profit, etc. is a super power.
Dedicate time to learning this super power.
2. Business.
The next skill in the foundation is business.
Alright, I know, that’s about as vague as it gets. Let me explain…
When I say “business,” I’m talking about all of the different functions, departments, and processes that make up the execution of a business. This means…
Sales
Marketing
Customer service
Operations
Legal
Finance & accounting
People & human resources
Product & engineering
Management
etc.
Learn how all of these different professions work.
It sounds like a lot (and it is), but it will give you a tactical advantage in the working world. The better you understand these different aspects of a business, the better you will understand your own role and the way to make the highest level of impact.
3. EQ / Politics.
Every role, firm, and industry has a set of “unwritten rules.”
Over the course of my career, I’ve come to bucket these “unwritten rules” into the EQ (“emotional intelligence”) or Politics bucket. If you’re looking for them, you can better navigate the context of the situation. You’ll understand how decisions are made, how people are rewarded, and why certain people get certain opportunities.
The problem is… most people are not looking for them.
We sort of just observe and adapt, rather unintentionally. It’s not that strange when you think about the fact that you’ve been doing this your whole life. From the time you were a child until now, you’ve been watching how others behave and have been adjusting your behavior to match the situation (usually subconsciously).
Well, the workplace isn’t any different. A lot of the behaviors and modes of operating in the workplace are not clearly defined. They require intentionally observing your environment and those operating in it.
If you can (1) figure out what is expected and what is rewarded, and then (2) execute against those aspects, you’ll be able to find a whole lot of success in your career.
4. How to work.
The final one is how to work.
This one is pretty straightforward. In my mind, it comes down to 4 qualities…
High horsepower
Resourcefulness
Accountability
Organization
Almost all of the uber successful people I have met have found some way of consistently, demonstrating all four of these qualities. It might not look the same for everyone, but the essence is there.
How to get started.
First things first, I’m still adding to these skills. I think being a lifelong learner is one the most important mindsets an individual can maintain. The world is constantly changing and so we need to be constantly adding to our stores of knowledge.
Thankfully, in today’s world, the opportunity to learn is everywhere. It doesn’t matter if you’re pursuing an undergraduate/graduate degree or working a full-time job, there are all sorts of ways to learn these skills. And even better, they are readily available.
My recommendation is to start small. Spend some time researching on the internet, watch some YouTube videos, find an online course, read books, etc. From there, you can decide if you’d like to pursue some type of bootcamp, formal education, work experience, or another avenue that is a bit higher stakes.
For whatever route you take, make it a consistent practice. Spend time each day, each week, adding to this skill set. In a few years, you’ll be shocked at just how much you’ve learned.
