The Unglamorous Work That Builds Businesses

I’m in a classroom, listening to *David, a venture capitalist, deliver a talk to a group of university business students. His key premise? Any business idea must have a differentiator—something that sets it apart from competitors. “Without this, your business is not worth funding,” he concludes.

Then it’s my turn to speak.

“I agree that having a differentiator is where you want to end up,” I begin, “but it’s not necessarily where you need to start. To secure funding from a venture capitalist, angel investor, or even on Dragons’ Den—and yes, a dozen of my clients have made it there—you do need a differentiator and proof that your business can scale."

“But the truth is, most startups aren’t aiming for that right away. The majority are micro-businesses—one- or two-person operations, often with no employees. They span sectors like retail, e-commerce, professional services, and food. And most don’t have anything remarkably different. What makes them successful is not a flashy differentiator—it’s their ability to provide value and execute well enough to get paying customers.”

The Reality of Starting Small

Let’s take a look at the numbers:

• 4% of self-employed Canadians have employees (Stats Canada, 2022).

• First-time entrepreneurs in Canada typically invest between $5,000 and $30,000 to start their business (Stats Canada, 2024).

• 76% rely on their own finances, while just 0.4% secure funding from venture capitalists or angel investors (Stats Canada, 2022).

  
  

Here’s what that tells us:

1. Getting money for your business is hard.

2. Most entrepreneurs self-finance in the early stages.

   
   

I turned back to the students.

“The case studies you’ll work on in class are fascinating. They’ll involve big budgets and robust teams, helping you develop problem-solving skills for a corporate setting. But when you start working for yourself, you’ll need a different mindset."

“To get to the point where someone like David is listening to your pitch, you’ll have to do a lot of unglamorous work. This means tackling the uncomfortable: extensive research, starting small, selling, and managing your money carefully.”

The Myth of “Exciting” Startups

There’s something in our psyche that skews how we think about startups. Consider these examples:

• A news story highlights a business with a unique concept.

• A venture capitalist showcases an innovative company they funded.

• A marketing agency shares how they helped a brand achieve massive success.

• A friend shows you a TikTok campaign that went viral.

  
  

What do these have in common? They’re all about exciting business ideas.

But here’s the reality: Your business probably won’t fit that mold right away. And that’s okay.

You might be starting a food truck, launching an e-commerce site for gift baskets, or offering social media services. None of these scream exciting—at least not to others. But you don’t need to apologize for pursuing them. If you have a clear differentiator, by all means, lead with it (as long as it’s real). Just don’t invent one for the sake of standing out. Give yourself time to fine-tune and grow. This process takes patience. You’re not supposed to have all the answers from day one.

Vision vs. Reality

After the talk, as I was packing up, a student approached me.

“What if I have no interest in being a micro-entrepreneur? My vision is to build a large company,” he said.

“There’s nothing wrong with that,” I replied. “In fact, being a micro-entrepreneur can be a stepping stone to where you want to go.”

“Is it necessary?” he pressed.

I asked if he was involved in any sports. He told me he was in the marathon club.

“So, if I told you I wanted to run a marathon without first seeing if I could complete a 10K or a half-marathon, what would you say?”

We both laughed.

“The difference with your vision,” I added, “is that it’s a much longer marathon—and that much more rewarding.”

*The name has been changed to protect confidentiality.