Reader Question: Can I Help an Entrepreneur Outside My Focus Area?

Q: I know you are tech oriented. I seek invesment and feedback in something much different (exciting & cool however). Industry interest tells me I need to pursue the idea. Can you help?
Posted by Daren

A: Hi Daren, thanks for the question. I love working with entrepreneurs and helping them succeed, and I feel very lucky that I get to do that full-time. That said, I’m also a big believer in Charlie Munger’s maxim that investors should stick to a narrowly defined circle of competence.

I’ve posted recently on the kind of ideas I’m excited about, and if yours fits somewhere in this general zone I’d be happy to kick it around with you and offer my perspective (for what it’s worth). But if your vision sits outside this range, you’d be much better served by finding a mentor who’s spent their career in or near the market you want to serve.

A close friend likes to joke that she’s “often wrong, never in doubt”, and it’s a great reminder that opinions are easy to generate, but useful advice is rare.  The worst thing you could do is attach yourself to someone with a full bag of opinions about your idea but no sound basis of experience or perspective.