What El Chapo Can Teach Entrepreneurs About Startup Success

If you were expecting a discussion about initiating a drug trade, this is not the appropriate forum.

However, if you’re interested in exploring the positive aspects of the El Chapo enterprise, you’ve come to the right place.

I have a fondness for Mexican TV series, and recently, I immersed myself in watching El Chapo.

Upon completing the series, I gleaned valuable lessons from the life of Joaquin, famously known as El Chapo.

Despite his role as a prominent figure in the global drug trade, El Chapo exhibited remarkable skills that contributed to the establishment of a thriving business within the industry.

In this article, I aim to share the insights gained and discuss how these lessons can be applied to your startup ventures.

Are you ready?

Let’s delve into the details.

1. Ensure fair compensation for your workforce

El Chapo demonstrated generosity by ensuring that his support staff received competitive salaries and proper care.

Many sought employment with him due to his benevolence and commitment to employee welfare.

When initiating a startup, it’s crucial to establish a robust budget that allows for fair compensation.

Well-compensated employees not only contribute to achieving business goals but also safeguard your business interests.

2. Uphold commitments to your clientele.

Fulfilling customer needs is integral to the profitability and growth of your startup.

Maintain well-stocked products and timely delivery to instill trust and elevate your business.

El Chapo excelled in meeting customer demands, a practice that contributed to increased profits through expanded production.

Emulating this approach can enhance your business success.

3. Aspire to excel on a grand scale

When embarking on a startup venture, it is crucial to envision significant achievements.

Develop a comprehensive plan that propels your startup toward major milestones.

Cultivate a robust network comprising successful founders, influential opinion leaders, and mentors who can assist you in ascending the ladder.

El Chapo consistently harbored ambitions of becoming one of the world’s foremost drug lords, uniquely supplying cocaine to both North and South America.

His realization of this desire involved nearly controlling the entire Sinaloa region.

4. Collaborate with competitors

In the face of intense competition, consider forming partnerships with your rivals and devise mutually beneficial business strategies.

Although this decision can be challenging and intricate, if circumstances permit, it can be a viable option.

5. Assess your business achievements

During periods of growth in your startup, reflection on success is pivotal.

This practice allows you to pinpoint gaps in your operations for improvement.

Encourage employee participation in this reflection process to generate new ideas and strategies for enhancing your business.

6. Implement employee rotation

Maintaining employees in the same role can limit their effectiveness.

Foster a culture of employee rotation to expose them to different responsibilities.

This approach benefits your startup by promoting diversification, aiding in succession planning, fostering loyalty, and facilitating the acquisition of new skills.

EL Chapo’s failure to implement this practice resulted in weaknesses, with some employees disclosing sensitive information to competitors.

Prevent the risk of losing valuable personnel to competitors by embracing a rotation strategy.

7. Explore business expansion

Once your startup enters a growth phase, venturing into new territories becomes a pivotal achievement.

Seek diverse markets in different regions to significantly expand your business, positioning yourself as one of the most esteemed entrepreneurs.

8. Recruit the right talent

To ensure the substantial success of your startup, it’s crucial to hire individuals who contribute to its growth.

By “right people,” I mean those with the requisite skills, experience, and positive character.

These key areas should guide your hiring process for building a competent and effective team.

9. Seize opportunities

Just as Don Sol recognized an opportunity for mutual benefit when interrogating El Chapo, entrepreneurs should remain vigilant in identifying collaboration or information exchange opportunities that can enhance the growth and development of their startups.

10. Embrace adaptability and contingency planning

In the entrepreneurial journey, unforeseen legal challenges or external pressures may surface, necessitating prompt and strategic responses.

You must be prepared to adapt, formulate contingency plans, and explore alternative paths when confronted with unexpected government regulations or external threats.

Infusing resilience and agility into your startup strategy ensures the company’s ability to not only survive but also grow in the face of unforeseen obstacles.

11. Embrace exemplary ethical standards

You can glean a vital lesson from El Chapo’s attempt to bribe a prison guard.

The significance of ethical leadership and upholding integrity in all business operations cannot be overstated.

When constructing a startup, prioritize ethical conduct, transparent practices, and adherence to legal standards.

Taking shortcuts or compromising on ethical principles can result in severe consequences, tarnishing the business’s reputation and long-term viability.

Upholding high ethical standards is not only a moral imperative but also a strategic choice for sustainable success in the entrepreneurial journey.

12. Proactively assess and manage potential external threats

El Chapo’s experience underscores the impact of external threats on personal and business fronts.

In building a startup, it is imperative to proactively assess and manage potential external threats that could harm the company’s reputation or operations.

Implementing robust security measures, crisis management plans, and maintaining a focus on ethical conduct are essential elements to safeguard the business from unexpected challenges.

A proactive approach to mitigating external risks can help preserve the startup’s reputation, instill trust among stakeholders, and ensure the company’s resilience in the face of unforeseen adversities.

13. Cultivating strategic partnerships

Drawing lessons from the Mexican government recruiting Amado and the Avendaño brothers crossing ethical boundaries, forming strategic partnerships can be a powerful tool for growth and stability in building a startup.

However, it is crucial to establish clear ethical boundaries and guidelines when entering collaborations or alliances.

Entrepreneurs should carefully evaluate potential partners, ensuring shared values align and ethical standards are maintained.

Crossing ethical lines, as exemplified by the Avendaño brothers, can lead to severe consequences, highlighting the importance of conducting due diligence and prioritizing ethical considerations in all business relationships.

Final Thoughts

As you contemplate these lessons, I encourage you to share your thoughts and insights in the comments below.

Which lessons resonate with you, and how do you plan to apply them to your own startup journey?

Feel free to share this post with others who might find these unconventional yet valuable entrepreneurial lessons intriguing.

Your comments and shares contribute to a collective discussion that can inspire and guide aspiring entrepreneurs on their path to success.

Bill Achola, an experienced HR consultant, is dedicated to assisting small businesses and startups in attaining sustainable growth through his insightful blog on HR Loom. Connect with Bill Achola on LinkedIn for further updates and insights.