Why Founders With No Industry Experience Are Winning
✨Key Points
Fresh perspectives drive innovation — founders from outside the industry challenge old assumptions and introduce bold, original ideas that insiders often overlook.
They spot opportunities others miss — without traditional biases, outside founders identify gaps, redefine value, and modernize outdated business models.
Cross-industry skills create an advantage — experience in other fields helps these founders build stronger strategies, better branding, and more adaptive businesses.
If you’ve ever started a new business, you’ve probably heard the classic question about your chosen industry:
“Do you have any experience in that?” It might seem like experience is the most important part of founding a business in any field, but more and more evidence is showing that that’s just not true!
In fact, more founders than ever before are winning and succeeding with businesses they started outside of their industries! Let’s find out why!
What Are Outside Founders?
The idea of an “outside founder” might seem like an anachronism to some, but in many ways, they make businesses better.
These founders come from one industry and enter another in which they have little experience, bringing different perspectives and insights into their new industries.
In a number of notable cases, these founders have achieved great success.
Think about it from a different angle: who is more likely to bring new and more innovative ideas to a field?
Someone from outside it, of course! People who have worked in an industry for a long time are often limited by their habituation to established practices, but an outsider can enter a new field and pursue innovative ideas, even rebranding a struggling business with their unique perspective!
Examples of Businesses With Founders From Outside the Industry
While it might seem to the untrained eye inexperienced founders are doomed to failure, there are actually dozens of incredibly successful businesses with founders from entirely different industries.
There’s really no restriction: a former publisher can easily create a tech company, while a chiropractor might very well decide to start a landscaping business!
You might be shocked by some well-known examples of non-industry founders.
Did you know that Samsung was founded by Lee Byung-chul, who once owned a dry goods store, or that Chuck E. Cheese was founded by the creator of Atari?
John Foley, who worked in publishing, founded Peloton, while Spanx was created by former saleswoman Sara Blakely.
Even online businesses like WeWork and Khan Academy were founded by the likes of Adam Neumann (who founded Krawlers) and Sal Khan (a hedge fund employee).
Advantages of Founders From Outside the Industry
- Unconventional and Innovative Perspectives
Outside founders have perspectives that are not limited by industry standards and assumptions.
They break the mold and won’t go along with the crowd of experts like many industry veterans, who may fear being the one dissenting voice.
Non-industry founders can also notice gaps overlooked by experts and insiders and potentially discover unconventional opportunities.
They see with a different vision and they can point out problems others can’t.
Think of how Chrysler was saved from financial ruin by the innovative marketing strategy of Clotaire Rapaille, a marketing psychoanalyst.
- Greater Focus on Core Principles
Outside founders do not have industry experience, so they are forced to work backwards from an industry’s goal to its core principles.
They aren’t bogged down by a complex industry past and can more easily return to thinking about first principles like customer service, while experts may distract themselves by worrying about technology or process.
Outsiders help keep a business grounded because they have no stakes in the industry.
They can help insiders who struggle to articulate their mission and goals use language from other industries to communicate ideas effectively. Like a good chiropractor, outside founders have the ability to focus on the central issue–the herniated disc of their business plan, if you will–and pour all their energy into it.
- No Industry Baggage
When they come from outside, founders have the advantage of not being limited by the existing infrastructure, politics, and bureaucracy of a legacy industry.
They may not have connections, but sometimes that’s for the best!
An expert may have more knowledge and status, but their thought process will be molded by the industry and might not be the best for self-evaluation.
Outsiders have no emotional attachment to industry norms and can be more innovative in their processes.
They have the freedom to be bold, make big changes, and revolutionize the culture of a new industry.
- Expertise in Non-Industry Fundamentals
A founder from beyond the industry may have expertise in key areas of a business that are lacking among insiders and expert founders.
Maybe they’re skilled in sales, marketing, and fundraising, able to take on these duties while expert founders focus on industry concerns.
They can also provide customers and partners with the perspective of an outsider, talking up the business and attracting attention due to their seemingly-unconventional ties to the industry.
- Speed
Another thing that often motivates outside founders is the need for speed and the desire to get a business moving rather than letting it remain stagnant.
Legacy companies run by industry insiders often slow down and fail to innovate; they’re so used to the “normal speed” of things that they are sluggish to adapt and capitalize on new trends.
Outsiders break the status quo by bringing new life and speed to a business, working fast to jump on opportunities and embrace innovation.
- Adaptability and Flexibility
Outside founders bring the diversity of other industries to a business and can enhance its adaptability.
They may be able to spot market trends more easily than those who are enmeshed in an industry, following them faster and outpacing competitors.
Skilled outsiders can make timely decisions based on fundamentals rather than complex industry concerns.
Again, much like a chiropractor, they can adjust their plans and focus in order to make the most effective changes.
- Hiring For Expertise and Completeness
Oftentimes, founders from outside an industry can hire more effectively because they know the gaps in their own experience.
Outside founders with less industry experience will want to hire qualified support and embrace industry-specific tools, giving their business a pool of expert employees.
Outsiders can also hire based on cultural and value alignment rather than expertise, helping to mold a business’ workplace environment and morale.
Should Startups Consider Bringing In an Outside Founder?
If you’re a business owner who has experience in your industry, you don’t need to worry about lacking innovation or fresh perspectives, because you can bring them in yourself!
Consider finding an outsider you trust to come in on your business and create the culture of innovation you yourself might not be able to.
Some of the best businesses balance expert knowledge with fresh perspectives; if your business is stagnating, a fresh perspective that complements your expert knowledge can kickstart a paradigm shift and a period of growth.
Outside founders can serve as consultants and in executive or legal roles, and can help a business network outside of its industry.
Don’t forget–if you are an expert in an industry, you don’t have to only be the one bringing in outsiders.
You can be the outsider who helps others! Look around for new business in other industries that you can help out with your perspective.
You might just be their key to success, and then their wins will become yours as well!
Conclusion
There’s an incredible value in outsiders entering a new field and bringing their fresh perspectives and ideas to its old and outdated standards.
While expertise is always important, if you’re a startup founder, opening up your business to new ideas and outside perspectives can help you take a new direction and experience growth.
As more and more founders come from outside their industries, business models are being revolutionized, paving the way for a new type of entrepreneurship.
