How to launch a startup. Five tips from Thomas Edison

Just to give you a brief glimpse of Edison’s awe-inspiring achievements, this extraordinary man held an astonishing 1,093 patents during his lifetime. That’s a number that’s hard to comprehend! During Edison’s most active years, around 1900, he held an astounding number of patents. To put this into perspective, let’s consider that the U.S. Patent and Trademark Office granted an average of 354,430 patents per year as of September 2021. Now, imagine having three years’ worth of those average annual U.S. patents accredited solely to you — that’s the kind of prolific innovation Edison brought to the world? That was Edison for you.

And that’s not all: he also founded over 100 companies, including the powerhouse General Electric (GE). You know, that massive company that still thrives today, with a market capitalization of around $90 billion and a rank of 44th on the Fortune 500 list? Yup, that’s Edison’s brainchild.

But what I find most fascinating is that Edison’s life experiences hold some valuable lessons for startups and entrepreneurs, even in our present-day world. So, let’s dive into the captivating story of Thomas Edison, uncover the secrets of his success, and learn how these lessons from history can have a real impact on our lives today. Ready to be inspired?

Tip 1: Embrace Failure and Learn from It (Lightbulb)

Ah, the tale of Thomas Edison and his creation of the lightbulb is a story of perseverance, determination, and collaboration.

Thomas Edison didn’t invent the concept of the electric lightbulb, but he improved it by creating a practical and long-lasting version. In the 1870s, several inventors were working on different designs, but most of these early bulbs had very short lifespans, usually just a few hours.

Edison was determined to create a better version that could be used in homes and businesses, and he was ready to face countless failures to achieve his goal. One of the major challenges Edison faced was finding the right filament material that would burn brightly for an extended period without breaking or burning out quickly.

To help him in his pursuit, Edison assembled a team of skilled engineers, scientists, and workers in his famous Menlo Park laboratory. This group of individuals, often referred to as “muckers,” assisted Edison with his experiments and offered valuable insights and suggestions.

Through trial and error, Edison and his team tested over 6,000 different materials for the filament, including platinum, carbonized cotton, and even the hairs from a colleague’s beard! With each failure, Edison and his team learned something new and applied that knowledge to improve their design.

Finally, in October 1879, after thousands of experiments, Edison and his team discovered the ideal filament material: a carbonized cotton thread. This filament glowed brightly for over 13 hours, and it was a breakthrough moment in the development of the practical electric lightbulb. Edison went on to perfect his design, eventually using a carbonized bamboo filament that could last up to 1,200 hours.

So, what’s the lesson for us aspiring entrepreneurs and visionaries? Simple: Embrace failure and learn from it. It’s a vital part of the process. Edison himself once said, “I have not failed. I’ve just found 10,000 ways that won‘t work.” Talk about a growth mindset!

When it comes to starting a business or pursuing a dream, remember that the road to success is paved with setbacks, obstacles, and yes, failures. The key is to analyze your mistakes, learn from them, and use that knowledge to grow and improve.

Tip 2: Diversify Your Business Interests (from electric power to mining)

You know what they say: don’t put all your eggs in one basket. Thomas Edison, the Wizard of Menlo Park, was a true embodiment of this wisdom. Not only did he excel in electric power, but he also ventured into other industries such as mining, leaving his mark wherever he went.

Here are only some of the many industries in which Edison was involved:

1. Electric Power: Edison’s development of the direct current (DC) power distribution system in the late 19th century helped establish electric power as a viable alternative to gas lighting. He founded the Edison Illuminating Company in 1880 to provide electricity to customers in New York City.
2. Motion Pictures: Edison is credited with inventing the kinetoscope, a precursor to the modern motion picture projector. He established the Edison Manufacturing Company in 1889 to produce films and equipment for the burgeoning movie industry.
3. Mining: Edison was interested in finding ways to extract iron from low-grade ore, and in 1881 he formed the Edison Ore-Milling Company to pursue this goal. Although the company was ultimately unsuccessful in this endeavor, Edison continued to be involved in mining ventures throughout his career.
4. Telecommunications: Edison was involved in the development of the telephone and the telegraph, and he established the Edison Speaking Phonograph Company in 1878 to manufacture and sell phonographs.
5. Cement: In the early 1900s, Edison became interested in developing a new type of cement that could be made from low-grade materials. He established the Edison Portland Cement Company in 1899, and although the company was ultimately unsuccessful, Edison continued to experiment with cement production throughout his career.
6. Batteries: Edison was interested in improving battery technology, and he formed the Edison Storage Battery Company in 1901 to develop a new type of battery. The company ultimately produced batteries for use in electric cars and other applications.

Edison’s success in these industries depended on a variety of factors, including his technical expertise, his ability to attract investors, and his willingness to experiment with new ideas and technologies. While not all of his ventures were successful, Edison’s willingness to diversify his business interests allowed him to make significant contributions to a wide range of industries.

So, some Edison-inspired tips for diversification:

Embrace diversification

• Risk management: By diversifying his interests, Edison reduced his reliance on a single revenue stream and managed risks more effectively.
• Increased market reach: Edison expanded his customer base and revenue potential by entering new industries, such as ore milling.
• Boost innovation: Edison’s commitment to diversification encouraged him to develop innovative solutions across various sectors.
• Follow Edison’s footsteps: When to diversify and when to focus
• Finding the right balance between diversification and focus is crucial. Too much diversification can dilute your resources and cause a loss of direction. Focus on your core competencies, and only diversify when you have the capacity and expertise to do so successfully, just as Edison did.

Identifying promising sectors or niches

• Analyze market trends: Edison kept a keen eye on emerging trends and technologies, which allowed him to identify and exploit new opportunities.
• Leverage your expertise: Edison applied his skills and knowledge to new areas that complemented his current businesses, leading to even greater success.
• Listen to customer feedback: Like Edison, learn from your customers’ needs and desires to discover new business opportunities.

In a nutshell, Edison’s unwavering commitment to diversification teaches us the importance of exploring multiple avenues to success. So, my ambitious friends, don’t be afraid to take calculated risks and dabble in various sectors — because you never know what could be the next big thing! Just remember, Edison’s incredible legacy was built on both focus and diversification, and you too can achieve greatness by finding the right balance.

Tip 3: Focus on Real-world Problems (phonograph and alkaline storage battery)

One of the critical lessons that Edison’s life and work can offer startups is the importance of focusing on real-world problems.

During Edison’s time, significant technological advancements were happening across the world, particularly in the United States. Industrialization was in full swing, and electricity was rapidly replacing other forms of energy like steam power. This rapid transformation created new opportunities for entrepreneurs to identify and solve real-world problems.

Edison’s invention of the phonograph in 1877 was a breakthrough in the recording and reproduction of sound. He had been working on a device that could transcribe telegraph messages when he stumbled upon the idea of using a stylus to create indentations on a tin foil cylinder, which could then be played back with a separate stylus.

He spent countless hours experimenting with different materials for the cylinder, including lead, wax, and brass, before finally settling on a more durable wax material. The first successful test of the phonograph took place on December 6, 1877, when Edison spoke the words “Mary had a little lamb” into the machine and played them back. Edison’s original phonograph was not a commercial success, but he continued to refine the design, ultimately creating a model that could reproduce sound more accurately and at a higher volume.

In 1888, Edison introduced the improved phonograph, which used a zinc-coated cylinder and a diamond stylus. This version was a hit, and Edison went on to found the National Phonograph Company to manufacture and sell his invention.

Edison’s invention of the phonograph revolutionized the music industry and paved the way for the modern recording and reproduction of sound. It allowed for the creation of recorded music, radio broadcasting, and even speech therapy.

Another great Edison example of solving real-world problems is the alkaline storage battery. In the late 19th century, the use of batteries was growing rapidly, but their limitations were becoming increasingly apparent. The lead-acid battery, which was the most common type at the time, had a relatively short lifespan and was prone to leaking and other issues. Edison recognized the potential of batteries and set out to create a better alternative. His first attempt was the nickel-iron battery, which was an improvement over the lead-acid battery but still had its limitations. In 1901, he turned his attention to the alkaline storage battery, which he believed had the potential to be a game-changer.

The process of creating the alkaline storage battery was a long and arduous one. Edison and his team conducted thousands of experiments over several years to find the right combination of materials and chemicals. Finally, in 1908, they succeeded in creating a battery that was reliable, efficient, and long-lasting. The battery was initially used for submarine telegraph cables and was later used in various other applications, including the early electric cars.

In 1910, Edison saw an opportunity to showcase the capabilities of electric vehicles by participating in a 1000-mile-long endurance motor racing with the Bailey Electric Phaeton. The race was part of the Glidden Tour, which was a popular automobile endurance race at the time.

Edison was a firm believer in the potential of electric vehicles, and he saw the race as an opportunity to prove that electric cars could keep pace with gasoline cars. However, during the race, the Bailey Electric Phaeton faced several technical issues that slowed its performance.

The alkaline storage battery had a significant impact on the world and was an important precursor to modern batteries. It was more efficient than previous batteries and had a longer lifespan, which made it a valuable tool for various industries. Edison’s dedication to solving the problem of battery limitations and his willingness to conduct extensive research and experimentation helped to pave the way for future advancements in battery technology.

As startups look to identify problems and pain points in the market, Edison’s process of trial and error and relentless experimentation serves as a valuable lesson. By focusing on real-world problems and persistently refining their solutions, startups can create products and services that truly make a difference.

Tip 4: Foster a Collaborative Environment (Menlo Park)

Thomas Edison was a genius, but he didn’t achieve incredible feats alone. He understood the power of teamwork and collaboration. One of his most significant achievements was the establishment of the Menlo Park laboratory and the team he brought together to drive innovation.

In 1876, Edison opened the doors to his Menlo Park laboratory, the first privately-funded research and development facility of its kind. It was here that Edison created a collaborative work environment, bringing together a diverse and talented group of people who would contribute to his numerous projects.

One of these brilliant individuals was Charles Batchelor, a skilled mechanic, draftsman, and manager. Batchelor quickly became one of Edison’s closest associates and played a crucial role in various projects, such as the development of the phonograph and the lightbulb. With his technical expertise, Batchelor was a valuable partner, helping Edison overcome obstacles and refine his ideas.

Another key figure in the Menlo Park story was Francis Jehl, an assistant to Edison. Jehl worked on experiments related to the lightbulb and the electrical distribution system, and his contributions were instrumental in bringing Edison’s vision to life. Later, Jehl became a pivotal figure in the promotion and commercialization of Edison’s inventions.

William J. Hammer, a scientist and inventor, was also an important member of the team. Hammer contributed to Edison’s work on electric light and power systems. He would later become a successful inventor and businessperson in his own right, carrying forward the innovative spirit of Menlo Park.

The Menlo Park laboratory became a hub for groundbreaking ideas, attracting more than 60 researchers, engineers, machinists, and support staff at its peak. This melting pot of talent and creativity allowed Edison and his team to file over 300 patents between 1876 and 1884, amounting to an astounding average of 40 patents per year.

Building upon the principles demonstrated by Edison, a collaborative work environment can provide numerous benefits:

• Encourage innovation: A diverse team with a variety of skills and perspectives can spark new ideas and drive innovation, much like the talented individuals at Menlo Park who contributed to the development of the electric lightbulb, phonograph, and other groundbreaking inventions.
• Boost productivity: Collaboration often results in faster problem-solving and decision-making, as well as more efficient allocation of resources. Edison’s team worked tirelessly, supporting one another to achieve their common goals, leading to rapid progress and success.
• Enhance employee satisfaction: Employees who feel valued and supported in a collaborative environment are more likely to be engaged and committed to the success of the company. Edison’s “muckers” were devoted to their work and took pride in their achievements.
• Improve adaptability: A collaborative workforce can adapt more quickly to changes in the market or business landscape, as team members can easily communicate and adjust their strategies accordingly. Edison’s team pivoted seamlessly between various projects and industries, showcasing their adaptability.

To create a collaborative work environment inspired by Edison’s Menlo Park laboratory, consider these strategies:

1. Hire diverse talent: Assemble a team with various skills, backgrounds, and experiences to ensure a rich pool of ideas and perspectives, much like Edison’s mix of engineers, scientists, and mechanics.
2. Promote open communication: Encourage open and honest dialogue, constructive feedback, and active listening among team members, following the example of the open atmosphere Edison nurtured at Menlo Park.
3. Provide the right tools and resources: Equip your team with the necessary tools and resources to collaborate effectively, such as project management software, file-sharing platforms, and communication tools, mirroring the cutting-edge facilities at the Menlo Park laboratory.
4. Recognize and reward teamwork: Show appreciation for team efforts and successes, and recognize individuals who contribute to the collaborative spirit of the company, emulating Edison’s dedication to his team’s growth and accomplishments.

By fostering a collaborative work environment, you’ll be well on your way to building a startup that thrives on innovation, teamwork, and the relentless pursuit of excellence, just like Edison’s Menlo Park laboratory.

Tip 5: Value Persistence and Hard Work (Edison’s Tireless Work Ethic and 18-Hour Workdays)

Thomas Edison’s work ethic was legendary, with some even calling him the “King of Inventors.” From the time he was a young man, Edison had an insatiable curiosity and a thirst for knowledge. His passion for inventing and problem-solving drove him to work tirelessly, often at the expense of sleep and personal relationships. Just imagine working 18-hour days, sometimes even extending to 20 hours. Thomas Edison did just that. His relentless pursuit of ideas and inventions was fueled by this demanding schedule. While most people would find such long hours exhausting, Edison embraced this lifestyle wholeheartedly, believing it was the key to unlocking breakthroughs.

Edison’s approach to rest was as unconventional as his work habits. Instead of sleeping for long stretches, he took short power naps throughout the day. You could find him dozing off in a chair or even on his workbench, catching a few minutes of shut-eye before diving back into his experiments. He believed these brief moments of rest were enough to recharge and maintain his productivity.

The quiet of the night held a special allure for Edison. As his lab emptied and distractions faded away, he often worked late into the night, immersed in his experiments. This peaceful solitude allowed him to focus intensely on his work, giving birth to countless innovative ideas.

Edison’s commitment to his work went far beyond the walls of his laboratory. His dedication was so profound that it permeated every aspect of his daily life. Mealtime conversations with family and friends would revolve around his ideas and discoveries, as Edison’s thoughts were always occupied with solving problems and developing new inventions.

William Kennedy Laurie Dickson, a Scottish inventor who worked closely with Edison, recalled that “Mr. Edison had one or two little rooms fitted up as a bedroom, and a small cook stove in the cellar; here he would sometimes spend several nights and days in succession, with only short snatches of sleep on a narrow cot.”

Edison’s persistence teaches us a valuable lesson about the power of perseverance in entrepreneurship. A study conducted by Shikhar Ghosh, a senior lecturer at Harvard Business School, found that 75% of venture-backed startups fail, highlighting the challenges entrepreneurs face. However, persistence is often what separates the successful from the unsuccessful. For example, Walt Disney was fired from a newspaper for a lack of creativity and went bankrupt with his first animation studio before creating the Disney empire. Similarly, Steve Jobs was fired from Apple, the company he co-founded, before returning to lead it to unprecedented heights. These examples, along with Edison’s journey, underscore the importance of persistence in the face of adversity.

While Edison’s tireless work ethic is undoubtedly inspiring, it’s essential to recognize that balancing hard work with self-care and sustainable practices is crucial for long-term success. According to a study conducted by the American Institute of Stress, 80% of American workers reported feeling stressed because of their jobs, while 42% reported feeling the need for help in learning how to manage stress.

Here are some tips to balance hard work with self-care and sustainable practices:

• Set boundaries: In a survey conducted by FlexJobs, 29% of remote workers cited work-life balance as their top challenge. Establish clear boundaries between your work and personal life to avoid burnout and enhance productivity.
• Prioritize your health: According to the World Health Organization, insufficient physical activity is a key risk factor for non-communicable diseases. Make time for regular exercise and ensure you’re getting enough sleep to maintain your physical and mental well-being.
• Delegate and share responsibilities: Edison effectively utilized his Menlo Park team to accomplish his goals. Learn to delegate tasks and share responsibilities with others to avoid becoming overwhelmed and overworked.
• Take regular breaks: A study by DeskTime found that the top 10% of most productive employees worked for 52 minutes and then took a 17-minute break. Stepping away from work for short breaks throughout the day can help you recharge and maintain focus.

The Recap

Thomas Edison’s life and work offer us timeless lessons. Looking back at history can indeed change our lives if we are willing to learn from the trailblazers who came before us. By learning from the successes and failures of those who came before us, we can build on their experiences and turn the impossible into the possible, changing the world just as Edison did.