Worthwhile Canadian Initiative

The Wall Street Journal has just published the full story on Mark Carney's year-long campaign to build a Canada-Europe alliance beyond the reach of MAGA America. 

It's a must-read for anyone who cares about democracy, sovereignty, and not giving in to brute forces.

Click here.

   

Don't let the tire-kickers leave without a commitment

 I wrote this column many years ago following a business trip to Jamaica. I think these thoughts still offer value to any business trying to close a sale.

At a ramshackle roadside tourist market on the north coast of Jamaica, if you stop to investigate the goods in one stall, the high-spirited vendors who eke out a living there insist you visit them all. I managed to escape on one recent trip by saying I had a bus to catch (which was true), and that I would return the next day (which was sort of possibly true).

But I was humbled by one young vendor who implored me to visit her stall. When I said I had to go, she responded, “But you said you’d come back tomorrow. You’ll come back, right?” I assured her I would. And I did, because her earnest questioning had transformed my feeble excuse into a solemn commitment.

That brilliant marketing tactic made me wonder how many Canadian entrepreneurs are as adept as that souvenir seller at winning commitments from potential prospects. What do you do to elevate your relationship with the “just browsing” crowd, or to increase your chance of landing a sale tomorrow that you didn't make today?

This is one task that’s more easily accomplished online than IRL (“in real life,” for those who didn't know that reality is now just an acronym). If someone has visited your website, but is about to slip away without leaving their name, you can easily generate an automated “Going so soon?” screen that offers casual visitors an additional benefit (a brochure, newsletter, white paper or “special report”) if they provide their name and email address. That gives you one more shot at demonstrating the value you create, or adding the prospect to your mailing list.

Some online marketers structure that “last chance” offer as a survey, giving them a chance to learn more about the prospect, or to obtain feedback on their site or product offerings. I believe most businesses should try even harder when playing this game. Why not offer a free sample or coupon to anyone who leaves their contact points on your site, or give them a chance to enter a contest and win a prize?

Business, after all, is more than a succession of rational transactions. To build robust customer relationships, you need showmanship and community. Just because your competitors don't use fun, style or surprise as a business tool is no reason you shouldn't. Selling is about differentiation, not conformity.

Back in real life, wringing commitment from tire-kickers has to be a more personal, creative act. You and your employees have to be trained to carefully manage potential purchasers. But how often do they get away anyway?

Just last week, a friend and I met for drinks. Feeling peckish, he asked for a menu. When the server returned to take his order, he said he had changed his mind – nothing on the menu interested him. A well-coached server would have said, “What do you feel like? Maybe we can help you out.” (Our server ambled back to the kitchen.)

Therein lies the secret of winning over reluctant customers: create a dialogue. Not in a “what-can-I-do-to-sell-you-this-car-today?” kind of way, but a genuine conversation aimed at solving the prospect’s problems rather than filling your weekly quota.

At the souvenir market in Jamaica, the attendants, like sales people everywhere, asked what I was looking for. That’s the wrong question. (I had no idea. Does anyone go shopping with the intention of buying island-shaped key chains?) They should have asked more focused questions such as “Who are you buying for?,” or, “What have you seen already that you liked? Maybe I can help you find something better.”

If a prospect just won't buy today, don't let them get away. Tell them about your next upcoming sale (or other event), or ask for their contacts so you can notify them of your next product launch. Maybe, just maybe, you could let them take a sample product home if they promise to come back tomorrow. If you are running out of ideas and your prospect is in a hurry, ask for permission to call them back tomorrow with a custom solution.

Better still, develop specific tools for engaging the indecisive. A no-questions-asked returns policy may ease some buyers’ fears. Handing out a binder filled with positive testimonials from satisfied customers will reassure others. For cost-conscious clients, have a strategy ready to bring down the cost of ownership: a “value-priced” line of comparable products, flexible financing, or escalating discounts for multiple purchases.

Your employees may have additional solutions to offer. Why not hold a contest to see who can submit the best ideas for converting prospects into buyers? That can help build the can-do culture you want.

A successful business owner once told me about a customer who asked for a certain product that the business had never actually handled before. “What did you tell him?” I asked. “I’m an entrepreneur,” he said. “The answer is always yes.”

 

 

At Toronto Climate Week, experts call out Canada’s climate complacency

(This is a summary of a story that you can read (for free) at Corporate Knights.)

My latest story for Corporate Knights covers yesterday's kickoff event for Toronto Climate Week.

When will Canada stop dawdling, stop kneeling to the oil companies, and actually engage with climate change?

Climate tech will be the biggest boom of the century. And Canada is still propping up oil and gas.

Here are the first four paragraphs of my story. Follow the link to read the rest.

(It gets better as it goes along.)

The  second annual Toronto Climate Week kicked off yesterday with an eight-hour conference on “the Canadian climate advantage.” Intended as a city-wide community-building event to inspire new collaboration on climate solutions, the opening-day talkfest arguably served more to expose the ironies and contradictions in the Canadian climate fight.

In her keynote speech at the flagship event, Diana Fox Carney called climate change “the biggest challenge of our lifetime” and said the movement’s task is to convince people “that a more climate-friendly future is not only possible, it’s the one everyone wants” – safer, more inclusive and more just. But subsequent speakers charged that Canada is backsliding on climate performance, weakening standards and putting its own zero-emission targets beyond reach.

Fox Carney is a well-known economist, policy expert and adviser on climate issues to global investors – and her husband is Prime Minister Mark Carney, who has faced criticism from environmental groups on his climate agenda thus far. The former central banker has been a powerful proponent of sustainable finance, but his response to growing global protectionism has been, in part, to unleash Canada’s fossil-fuel industries, roll back emissions caps and support new pipelines.

In her opening remarks, Fox Carney did note that economic concerns such as “security and affordability” have been edging out climate concerns. Nonetheless, she added, “we need a shared sense of purpose around these issues.” Climate champions need to act fast, she said, and offer “solutions that are affordable, practical and able to improve people’s lives now.”

Read the rest here.

Bonus! My favourite slide of the day. From Joannah Lawson, a principal with Climate Week platinum sponsor The Brian + Joannah Lawson Family Foundation.

 

Customer service matters. Does it matter to you?

“Customer service is reactive — it’s what happens when something goes wrong. Customer experience is proactive — it’s every interaction, every touchpoint, every moment between a brand and a customer that shapes their perception and their loyalty.”

Everyone complains about customer service – but entrepreneurs and CEOs rarely focus on it. As Jeannie Walters, author of Experience Is Everything: Making Every Moment Count in the Age of Customer Expectations, points out in a recent article, “many leaders think customer experience is someone else’s job.”

In “The leadership blind spot that’s quietly killing revenue,” Walters notes that companies prioritizing proactive customer experience achieve 41% faster revenue growth and 51% better customer retention. “Those aren’t customer service metrics,” she writes. “They’re business outcomes, directly tied to leadership decisions at the top.”

Walters says business leaders who consistently drive strong customer experiences share three behaviours:

1. They define what success looks like for the customer, not just the organization. “When both sets of goals are visible, decisions vastly improve.”
2. They make the customer’s voice a leadership-level input. Customer feedback rarely reaches the leadership table. “Leaders who build direct lines to customer insight make faster, more informed decisions.”
3. They treat consistency as a competitive advantage. “Customers form their perceptions from patterns, not individual moments. Leaders who establish clear standards for every touchpoint create the conditions for trust to accumulate over time.”

Read more at “The leadership blind spot that’s quietly killing revenue.”

Read more about Jeannie Walters’ work.

What you need to know about raising funds for your business

When you're just starting out in your own business, the venture-funding scene can be quite confusing. So many sources of capital -- but who are they, and when should you hit them up?

Eric Partaker, a CEO, coach and business writer, has produced a handy chart to help you understand the roles and functions of different funding partners.

This is pretty much commodity information, but Eric has summarized it very well. And he's helpfully added "red flags" to watch for at each level.  

Keep in mind that only 1% of startups will ever qualify for professional funding. And that every percent you give away early on could cost you BIG in the event of a successful exit.

Angels can be amazing first funding partners -- they're usually experienced entrepreneurs with lots of useful advice. But the longer you can grow your business with your own team and your own funds before you call for help, the less equity you will generally have to give up. 

One other caveat: Some entrepreneurs go looking for venture capital too soon -- when they clearly sh0uld be starting with risk-taking angels. The VCs will judge you for that, and remember. So make sure you understand this chart before you start dialing for dollars.

You can learn more about Eric Partaker's work, and the events he runs, at https://ericpartaker.com/the-ceo-accelerator.

"Listening isn’t a soft skill. It’s a competitive advantage.”

How do you build trust as a leader AND create a platform for ongoing innvation?

Through "reverse mentorship” - in which leaders actively seek feedback and advice from juniors in their organization. 

Canadian Business writer Sara Horowitz explores the possibilities in this Feb. 2026 article about Max Schramm, CEO of Calgary-based Lufthansa Technik Canada. 

"Each week, he sets aside time for reverse mentorship—a practice that flips the traditional mentorship model by having junior employees share their ideas and experiences with senior staff, creating a more holistic feedback loop and helping leaders like him make decisions that reflect a wider range of perspectives."

We all know that CEOs often feel constrained about opening up too much to team members of all ages and backgrounds. But Schramm says it helps him identify new opportunities, and challenges his own assumptions, such as work-from-home policies and technology trends.

Feedback is a gift, says Schramm.

"What matters to me is that reverse mentorship isn’t just a program, but a practice. If you aren’t genuinely interested, it won’t reach its full potential.”

Read the full story here.

Changing Canada's "Supplier Mindset"

Wattpad cofounder Allen Lau, now a venture investor (and one of the most modest brilliant people you could ever meet), just posted a great article on LinkedIn. It's about Canada's fundamental need for better, stronger entrepreneurs - and our chronic "supplier's mindset."

Here are some snippets:

"Canada invented modern AI. And yet, the most important AI companies are almost all based in the US.

We lost Game 1. But losing Game 1 does not mean the series is over....

The root problem is not talent, capital, or policy. It is a mindset.

We have collectively learned to think like suppliers, not owners. The largest and most valuable companies are technology companies, almost all based in the US, many co-founded or led by Canadians.

We do not have an auto industry. We have an auto supplier industry — collectively worth a fraction of the companies that own the customer relationship and set the rules. We signed EV deals to become suppliers again, taxpayer-subsidized, while the ownership and margin stayed elsewhere. The supplier takes the risk. The owner captures the upside.

The most important insight: the supplier mindset is not learned on the job. It is learned in school. Engineering schools are the single most underleveraged force in Canada's innovation economy.

The real call to action is not to encourage more entrepreneurship. It is to start and scale world-class companies here in Canada."

You can read Allen's full post here.

Look for the rising tides -- and leave some upside on the table

Toronto-based Yung Wu, a serial entrepreneur and former chair of MaRS Innovation District, offers the best one-page Entreprenurs' Playbook I've ever seen.

You just know that every lesson here was learned in real time.

Click to embiggen, or download.

Follow Yung's blog at https://www.nfqventures.com/

Message to local governments: How best to help your most ambitious entrepreneurs

The best blog topics surface organically. This post began as a Linkedin discussion with my friend and NextStars colleague, Saeed Zienali. 

Saeed posted about his chat with the mayor of Richmond Hill, a growing city north of Toronto. He praised Richmond Hill for how they help entreprneurs succeed. Then he wrote, 

"Richmond Hill is emerging as a hub for innovation and entrepreneurship, attracting global talent and investment. With one of the most diverse populations in Canada, this region understands that immigrant entrepreneurs are not just contributors to the economy, but drivers of it.

At NextStars , we see firsthand how connecting international founders with Canadian ecosystems creates jobs, brings fresh capital, and positions Ontario as a destination for global innovation.

The municipalities that embrace this mindset will lead the next wave of economic growth. Excited to explore how we can collaborate to make that happen."

I thought that was very good insight. But in the comments, I asked him to take things a bit further: "What do you think are the best tools that municipalities have to attract and support new entrepreneurs?"

Rick and Saeed bring the energy
 at Scotiabank Arena, May 2025.

Saeed's response provided lots of ideas on how municipalities can best help local entrepreneurs succeed:

"Great question, Rick. My research shows Richmond Hill already has a solid foundation with its Small Business Enterprise Centre offering free consultations, mentorship, and grant programs like Starter Company Plus that have supported over 150 young entrepreneurs.

To take it further, municipalities can create welcoming environments where entrepreneurs from all backgrounds feel they belong, develop navigation services connecting newcomers to resources they may not know exist, convene stakeholders in the same room to support new ventures, and expand mentorship programs pairing experienced leaders with emerging founders.
What do you think!?"

I loved Saeed's answer. The secret to cities helping entrepeneurs is not through formal programs, but by helping them forge connections: to markets, to talent, to expertise, to mentorship, to capital. 

Since Saeed asked, I offered these thoughts, based on my three decades of interviewing and supporting growth entrepreneurs. 

"I think very few communities have the insight and patience to deal with impatient, ambitious growth entrepreneurs. They're a very rare species, like hothouse flowers, and they need lots of light and care to grow.
In my experience, most communities do an okay job of aggregating information to give new entrepreneurs when they come calling, but they don't have a clue how to help these trail-breakers progress in their journeys.
City administrations need to embrace all aspects of entrepreneurship, and build local contacts in all industries, at all stages of growth, so they can connect these special people to each other and the specialized resources they need.
You're right, it's all about connection."

Helping entrepreneurs is not a rote civil-service, fill-out-these-forms job. My friend Ken Tencer of Say Hi To the Future joined the conversation to point out how alert, caring and nimble civil servants can really help local entreprenurs:

"You need space, mentorship, education and 'real' access to capital (not just a link to a website). I have been very impressed by some forward-thinking organizations who organize investors to come in and pitch the entrepreneurs — this is our firm, our mandate, our deal parameters and our expectations from you, the entrepreneur. It demonstrates a willingness to work with the entrepreneurs."

Every community wants and needs organic growth. Home-grown and immigrant entrepreneurs are your best hope. But municipal advisory services have to meet them where they are -- and understand their real needs. 

Launching a Longshot: Never give up on your dreams

Rocket Lab is a New Zealand spacecraft company founded in New Zealand that I wrote about several years ago. The founder, non-engineer but rocket fanboy Peter Beck, has been in the news lately for lots of reasons - some good, some bad.

The key takeway is that this maverick satellite-launching company is now worth US$23 billion. The stock price, while erratic lately, is up  over 800% in the past three years.

Click to read my 2017 column in the National Post on Peter Beck and his journey to building a 21st-century space company in the southern hemisphere.  

Highlights:

"Like many kids, Beck began experimenting with home-made rockets. He says he comes from a long line of engineers, and before that, blacksmiths. He experimented with engines and combustion chambers, created a rocket-powered bicycle that went 160 mph, and even built a rocket pack to propel him forward on a scooter. How fast was that? “Faster than I could control,” he says."

"On his flight back to New Zealand [from visiting NASA], Beck decided to create his own rocket-launching business — and even designed the space-age logo his company still uses. He believed his system could revolutionize satellite launches. More organizations would be able to launch weather satellites, observation cameras and sensors, or even provide Internet access from space. Once space became affordable, he knew it would spawn new services and entirely new industries."

"Beck worked for years without a salary. To stay afloat, Rocket Labs performed contract R&D on propulsion and guidance systems for the U.S. Defense Department’s advanced research agency and other international organizations. “That’s how we built our credibility and reputation,” he says, “so I could try to raise capital.” 

“My definition of success will be that space has become a domain no different than building infrastructure anywhere else,” says Beck. “The domain of the few will become a domain for the many.”

Never give up on your dreams.

We interrupt this blog for lions, elephants, giraffes and a warthog

Someone suggested I post some of my South Africa safari pictures here. My response: Try and stop me!

I flew into Johannesburg in February, looked around for a couple of days, then rented a car and drove 300 miles to Kruger National Park. I "camped" in rough, atttached huts (think 1955 motel quality) in a few different fenced compounds. There's no exploring Kruger on foot or camping outside the fence (for reasons that soon become obvious). 

I took truck safaris that leave just before sunset and just before sunrise. And I drove from compound to compound by myself. (I also did a walking safari, with two rifle-toting guides. I had to be cautioned a few times for dawdling, because I kept pausing to take too many pictures!)

The whole experience was wonderful. All the South Africans I met were warm and welcoming. And considering my "good" camera conked out just before I left, I got some pretty good shots with just my phone.

My first elephant!

Zebra herd

Giraffes in a relationship

There's a hippo in my bathtub! 

Sunrise Buffalo

Rare warthog sighting

She was as curious about me as I was about her!

This lion walked right by our truck, untroubled by 40 tourists. 

But if it had been just one person, he would have pounced!

. 

The lion's girlfriend followed close behind, but stopped for a few minutes to size us up.

Ranger Rick ready for a sunrise safari.

Getting Started with AI in your Business

Today I recorded a podcast with Google's Natasha Walji about how AI is changing the game for Canadian entrepreneurs. (Link.)

I'm still new at this - as many entrepreneurs are. But it turns out that it's easy to get started with AI. Just find the right prompt, and see what it can do for you.

AI can help with so many problems, from prioritizing to strategy, from marketing to
production. But as always, the better you frame your questions, the better the results will be.  

Walji urges entrepreneurs to embrace curiosity and a learning mindset to find the best ways AI can help their business. "You don't have to be a know-it-all," she says. "Be a learn-it-all."   

To get you started, I just asked Google Gemini, "What are the 7 best prompts to begin using AI to manage my business?"

Here's what Gemini gave me back. I think you'll find lots of ideas to get you started down this brave new road.

===================

The key to getting the most out of AI is to use specific and well-structured prompts.

Here are 7 of the best types of prompts to begin using AI to manage your business, categorized by function:

1. For Strategic Planning and Market Analysis

These prompts help you gain a better understanding of your business's position in the market, identify opportunities, and create a roadmap for growth.

• Prompt: "Act as a business strategist. Conduct a SWOT analysis for my business, [Your Company Name]. Our strengths are [list strengths], our weaknesses are [list weaknesses], our target market is [describe target market], and our industry is [industry]. Identify key opportunities and threats, and suggest a plan to leverage our strengths to mitigate our weaknesses and capitalize on opportunities."

• Why it works: This prompt provides the AI with a clear persona and all the necessary context to generate a thoughtful and relevant analysis. The specific details about your company and industry will lead to a more tailored and actionable response.

2. For Marketing and Content Creation

AI excels at generating a wide range of marketing materials, from social media posts to email campaigns and ad copy.

• Prompt: "Act as a marketing copywriter. Write a series of three social media posts for [Platform, e.g., LinkedIn, Instagram, Facebook] announcing the launch of our new [product/service]. The tone should be [e.g., exciting, professional, fun], and the goal is to [e.g., drive sign-ups, increase brand awareness, generate sales]. Include relevant hashtags and a clear call-to-action."

• Why it works: This prompt is highly specific, providing details on the content type, platform, tone, and objective. This allows the AI to generate a highly targeted and effective marketing message that aligns with your brand.

3. For Customer Service and Communication

AI can draft professional and empathetic responses to customer inquiries, saving time and ensuring consistency.

• Prompt: "Act as a customer service representative. Draft a polite and professional email response to a customer who is unhappy with their recent purchase of [product]. The customer's main issue is [describe the issue]. Provide a solution that offers a [e.g., full refund, store credit, replacement] and maintains a positive relationship. The company policy is [describe policy]."

• Why it works: By giving the AI a role and a clear set of parameters, you can ensure that the response is both helpful and on-brand. Including details about the customer's issue and your company's policy prevents the AI from making unhelpful or inaccurate suggestions.

4. For Financial Analysis and Reporting

AI can help you make sense of complex financial data and create clear, concise reports for stakeholders.

• Prompt: "Act as a financial analyst. Analyze our Q3 financial data from [attach or paste data]. Identify key trends in [e.g., revenue growth, expenses, profit margins]. Summarize the findings in a concise executive summary and highlight two areas for potential cost savings and two areas for revenue growth in the next quarter."

• Why it works: This prompt assigns a specific role and provides the AI with a task that leverages its analytical capabilities. The request for a summary and specific recommendations helps you get actionable insights rather than just raw data analysis.

5. For Operations and Productivity

AI can help you streamline workflows, create checklists, and improve efficiency.

• Prompt: "Act as an operations manager. Create a step-by-step project timeline for launching our new [product/service] in the next three months. Include key milestones, potential roadblocks, and a plan for how to address them. The timeline should include tasks for [e.g., marketing, sales, product development, logistics]."

• Why it works: This prompt uses a specific persona and asks for a structured, multi-step plan. By identifying the different teams involved, you ensure the AI's response is comprehensive and considers all aspects of the project.

6. For Human Resources and Hiring

From writing job descriptions to drafting employee communications, AI can help you with a variety of HR tasks.

• Prompt: "Act as an HR manager. Write a compelling and inclusive job description for a [Job Title] role. The key responsibilities include [list responsibilities], and the required skills are [list skills]. The job description should also highlight our company culture of [describe culture] and be designed to attract diverse candidates."

• Why it works: This prompt provides all the necessary information for a detailed job description while also guiding the AI to focus on important elements like inclusivity and company culture.

7. For Brainstorming and Problem-Solving

When you're facing a challenge, AI can be a great partner for generating ideas and exploring solutions.

• Prompt: "Act as a creative consultant. We are looking for new ways to [e.g., attract new customers, retain existing clients, increase brand loyalty]. Brainstorm 10 innovative and cost-effective ideas, with a brief explanation of each, that we could implement in the next quarter."

• Why it works: This prompt is open-ended and leverages the AI's creative abilities. By providing a clear objective and a desired number of ideas, you can ensure the output is focused and easy to digest.

CEOs are in the simplification business

I just sent a note to a friend embarking on his first business media project, to help him understand his audience.

Business leaders are a coveted audience, and they are always looking for relevant information and intelligence. But they are elusive, always busy, and very hard to reach.

Which means you have to carve a message that gets through to them immediately. You may only get one shot.

So here is my advice:

Business leaders are in the simplification business.

They demand inputs that are clear and uncomplicated, and their outgoing messaging is very much the same. Give them too much detail and their eyes glaze over.

So make sure your messaging is always easy to follow, shuns technical jargon, and avoids unnecessary complications. CEOs want clear solutions and easy-to-follow strategies for success.

As the writer/marketer, value their needs over your own. Use the word "you" at least three times more often  than you use "I" or "me" or "us." 

The buck stops here. But so does nuance, indecision, evasion and ambiguity.

  

Five Rules for Selling to Small Business

 

"Never close the door on someone wanting help"

My friend Michael Hughes, a networking coach/advisor in Ottawa, believes relationships are the root of business success. He underscored that commitment today when he published a newsletter article revealing his list of 10 personal goals and values. They turn out to be very apsirational, but practical and also doable.

I like to think I live by my values, but I was never smart (or brave) enough to actually write them down.

Michael shared this list in hopes they might inspire others. And I am proud to amplify his list of goals and values by republishing them here, with his permission.  

Almost thirty years ago, as I was finding my way as an entrepreneur, I wrote a list of 10 personal goals and values. They aren't world-changing; but they were important to me at the time. 

They have guided my intentions and my actions. They remain my moral compass and guide me to this day 

I'm listing them below in hopes that they encourage you to create your own, if you haven't already.

P.S. It's not how many there are that matters; it's your commitment to the ones you decide on that does. 
 

Michael Hughes' personal goals and values 

Secure financial freedom. Make enough money to do the things I want to do. Live comfortably. Take care of my family. 

Own my own company. Decide my own future; be master of my own fate. Have the ability to choose how and when to work. 

Do work which I enjoy. Do things based on the fact that I believe they are worthwhile. Be creative. Lead.

Always maintain the highest level of integrity and professionalism in all business relationships. Never make money at someone else's expense. Do business with people who believe in my abilities and capabilities. 

Ensure that all relationships are positive and in the best interests of all parties. Work on the basis that I will be working for or with this person in the future. Come out of business relationships feeling that I have gained something. Make the customer #1 and they'll take care of you. 

Help others grow where possible. Always seek out individuals who could have a positive impact. Never close the door on someone wanting help.

Continue expanding horizons and learning new things. Make it a point to learn from every experience. Look for new experiences. 

Meet interesting and compatible individuals. Always take the first step in relationships. Never be afraid to go out of my way to meet or spend time with someone new. 

Travel and see other parts of the world. Take the initiative to travel whenever it presents itself. Plan future travel, especially with the family. 

Be the best person I can be. Always be positive. Try to help when I can. Treat people as I want to be treated.

Notes from Rick again: Which of these values are your favourites?

I particularly love "Never make money at someone else's expense," and "Work on the basis that I will be working for or with this person in the future. Come out of business relationships feeling that I have gained something."

If you follow guidelines like these, you can't go wrong.

You can learn more about Michael at https://networkingforresults.com.

"Talk to 100 customers"

Talking to some startup entrepreneurs yesterday, I got the definite feeling they haven't spent enough time talking to customers. It reminded me of some of my conversations with Steve Blank, one of the original Silicon Valley tech entrepreneurs, founder of the "Lean Startup" concept, and the guy who first recognized that startups aren’t baby businesses – but platforms for testing business ideas (which he insists on calling hypotheses).

Steve has been hammering this idea home for four decades now. But it never gets old, because we all know entrepreneurs who have great business ideas, but would rather stick pins in their eyes than actually go visit customers and ask what they need.

Click here to read one of my columns on this subject at the Financial Post.

If you don't have time to click, here’s the meat of the interview:

SB The lean startup now has three components. They are all based on the fact that for a startup, there are no facts inside your building. While you might be the smartest person inside your building, there’s no possible way you could be smarter than the collective intelligence of your potential customers.

I remind my students at Stanford and Berkeley that while you think you understand the problems of your customer, all you really have is a series of untested hypotheses. So the whole idea of the lean startup is to validate, or test, your guesses before you spend a lot of time and money on it.

RS But I know so many entrepreneurs who really like their office, or their garage. They leave there only reluctantly.

SB That gets to the core of, What is an entrepreneur? A founder is a visionary; a founder sees something or hears something other people don’t. But it turns out that if you’re a founder, and you envision something new, the odds are you’re hallucinating, not being a visionary. You’re actually seeing things that aren’t there.

To differentiate the hallucination from the vision requires you to get out of the building and validate: Is this a mirage? Is my passion overwhelming the rest of my senses? That’s what makes customer development hard. It just goes against the DNA of a founder who says, “Let me just build this. Get out of my way!”

And here’s the big idea. In the old days, investors would expect that if there was any failure, it was your problem. You personally failed. Now we know that startups go from failure to failure, learning as fast as they can. And this process allows us to do that learning as quickly as we can.

RS What about the shy entrepreneur? Is there no way they can get out of this without talking to customers?

SB No. When we teach this process to 22-year-olds in hoodies and flip-flops, or to 52-year-old scientists, by the time they’re done they will have talked to 100 customers, eyeball to eyeball. There is no faking that data. There’s no denying what you’ve heard.