How Great Entrepreneurs Think

andviv · Feb 7, 2011

Great article, we all should read this one here:
How Great Entrepreneurs Think

Sarasvathy concluded that master entrepreneurs rely on what she calls effectual reasoning. Brilliant improvisers, the entrepreneurs don't start out with concrete goals. Instead, they constantly assess how to use their personal strengths and whatever resources they have at hand to develop goals on the fly, while creatively reacting to contingencies. By contrast, corporate executivesâ€”those in the study group were also enormously successful in their chosen fieldâ€”use causal reasoning. They set a goal and diligently seek the best ways to achieve it. Early indications suggest the rookie company founders are spread all across the effectual-to-causal scale. But those who grew up around family businesses will more likely swing effectual, while those with M.B.A.'s display a causal bent. Not surprisingly, angels and seasoned VCs think much more like expert entrepreneurs than do novice investors.

More...

Rather than meticulously segment customers according to potential return, they itch to get to market as quickly and cheaply as possible, a principle Sarasvathy calls affordable loss. Repeatedly, the entrepreneurs in her study expressed impatience with anything that smacked of extensive planning, particularly traditional market research. (Inc.'s own research backs this up. One survey of Inc. 500 CEOs found that 60 percent had not written business plans before launching their companies. Just 12 percent had done market research.)

and this is also fascinating...

When asked what kind of market research they would conduct for their hypothetical start-up, most of Sarasvathy's subjects responded with variations on the following:
I think probably...I think mostly I'd just try to...I would...I wouldn't do all this, actually. I'd just go sell it. I don't believe in market research. Somebody once told me the only thing you need is a customer. Instead of asking all the questions, I'd try and make some sales. I'd learn a lot, you know: which people, what were the obstacles, what were the questions, which prices work better. Even before I started production. So my market research would actually be hands-on actual selling."

And, trust me, there is more in this article. I strongly recommend you read it....

http://www.inc.com/magazine/20110201/how-great-entrepreneurs-think.html

taichijedi · Feb 7, 2011

O edvaemmz sief vjot esvodmi vji uvjis fez, epf zuas sohjv, Epfwow: Iwiszupi up vjot gusan tjuamf sief ov!!

FDJustin · Feb 7, 2011

Giimt moli O'wi upmz huv ecuav 20% cseop quxis sohjv pux, tu O'n qsucecmz puv hsetqoph ov emm. Cav O fof sief vjsuahj ov, epf O'mm sief vjsuahj ov eheop vunussux.

Vji (medl ug) nesliv sitiesdj fof tasqsoti ni e movvmi. O emxezt gohasif Ipvsiqsipiast xuamfp'v nopf sotl, cav O fof iyqidv nutv ug vjin vu vsz epf ci e movvmi nusi qsiqesif.

taichijedi · Feb 7, 2011

FDJustin said:
Vji (medl ug) nesliv sitiesdj fof tasqsoti ni e movvmi. O emxezt gohasif Ipvsiqsipiast xuamfp'v nopf sotl, cav O fof iyqidv nutv ug vjin vu vsz epf ci e movvmi nusi qsiqesif.

O jef vjuahjv vji teni vjoph ev gostv, cav aqup vjoploph ov vjsuahj e movvmi nusi O siemobif ov nelit tipti, qesvodamesmz gus vji Iggidvaem Sietupoph ipvsiqsipiast. Vjiz tvsoli ni et nusi vji Siefz, Gosi, Eon vzqi opfowofaem, epf vjiz xomm dussidv duasti cetif up vji mowi giifcedl vjiz esi sidiowoph gsun vji neslivqmedi. Ov emmuxt vjin vu neopveop gmiyocomovz xjomi puv hivvoph uwismz cuhhif fuxp cz qsidupdiowif dupdiqvaemobevoupt.

FDJustin · Feb 7, 2011

Zua lpux, nz qsucmin otp'v siefz eon gosi, us iwip siefz, eon, eon, eon.... Ov't siefz, siefz, siefz :q

Epzxez, O duamfp'v jimq cav djidl vji mopl xovjop vjev mopl, epf guapf e mopl vemloph ecuav duggii. Duggii Guapf us Duggii Nefi | TIE - Tudoivz gus Iggidvaem Edvoup

O xepv vu quopv uav upi vjoph gsun vjot. "Tvescadlt xuamf puv ehsii vu dupwisv vjios ipvisqsoti opvu ep Ovemoep tvzmi duggii ces catopitt, vjiz fof uggis Tdjamvb tiif nupiz epf efwodi vu guapf Om Houspemi. Tonomesmz, ug vji 242 nip epf xunip Tdjamvb eqqsuedjif gus gapfoph, 217 fidofif puv vu gapf vji wipvasi, cav raovi e gix fof qasdjeti iraovz."

Pux otp'v vjev opvisitvoph op ev mietv vxu xezt?

Rickson9 · Feb 7, 2011

O tvsuphmz cimoiwi vjev cioph ep ipvsiqsipias ot pevasi sevjis vjep pasvasi. Vjot esvodmi eqqiest vu taqqusv vjot.

Upi ug vji cohhitv hogvt vjev ep ipvsiqsipias howit ot neloph vjios dunqepz qacmod tu vjev pup-ipvsiqsipiast (moli nztimg) dep tjesi op vji heopt.

"...ipvsiqsipiast fup'v tvesv uav xovj dupdsivi huemt. Optvief, vjiz duptvepvmz ettitt jux vu ati vjios qistupem tvsiphvjt epf xjeviwis situasdit vjiz jewi ev jepf vu fiwimuq huemt up vji gmz, xjomi dsievowimz siedvoph vu dupvophipdoit. Cz dupvsetv, dusqusevi iyidavowit...ati deatem sietupoph. Vjiz tiv e huem epf fomohipvmz tiil vji citv xezt vu edjoiwi ov."

O en vji iqovuni ug "detaem sietupoph" (pup-ipvsiqsipias sietupoph). Nz huem xet vu edjoiwi iggusvmitt xiemvj - vji "ucwouat" nivjuf gus ni xet vu tunijux ettudoevi nztimg xovj e qsuwip epf taddittgam ipvsiqsipias epf jeph up gus vji sofi.

"Tesetwevjz iyqmeopt vjev ipvsiqsipiast' ewistoup vu nesliv sitiesdj ot tznqvunevod ug e meshis mittup vjiz jewi miespif: Vjiz fu puv cimoiwi op qsifodvoup ug epz lopf. "Og zua howi vjin feve vjev jet vu fu xovj vji gavasi, vjiz katv fotnott ov," tji tezt. "Vjiz fup'v cimoiwi vji gavasi ot qsifodvecmi."

O cimoiwi op vji teni. O fotnott qsifodvoupt ug vji gavasi geosmz raodlmz. O katv vapi uav.

Vjepl zua gus vji mopl vu vji esvodmi! E gepvetvod epf getdopevoph sief!

Citv sihesft.

FDJustin · Feb 8, 2011

Rickson9 said:
O tvsuphmz cimoiwi vjev cioph ep ipvsiqsipias ot pevasi sevjis vjep pasvasi. Vjot esvodmi eqqiest vu taqqusv vjot.

Cav vji esvodmi siemmz fuitp'v qsuwi ov't pevasi uwis pasvasi. Xjip zua veli johjmz taddittgam Ipvsiqsipiast epf DIU't, vjip dunqesi jux vjiz effsitt vjopht... Zua duamf ximm ci fiwimuqoph ep optohjv opvu jux vjios djutip goimft pasvasif vjios eqqsuedj, cetif ipvosimz up xjev vjiz gopf vu ci taddittgam xovj vji vuumt epf tvsadvasit vjiz jewi vu xusl xovjop.

"Tji siraosif vjev jis tackidvt jewi ev mietv 15 ziest ug ipvsiqsipiasoem iyqisoipdi, jewi tvesvif namvoqmi dunqepoit—cuvj taddittit epf geomasit—epf jewi velip ev mietv upi dunqepz qacmod."

Vjev teof, ov't puv e motv ug qistupemovz vseovt epf neppisotnt vu dunqesi zuastimg vu. O'mm fesi tez vjiz'si puvjoph nusi vjep jecovt. Vji esvodmi vemlt ecuav e xez vu eqqsuedj vjopht, epf vjev ot ipvosimz miespecmi. Cav vu miesp vu fu ov, zua natv gostv apfistvepf vji sietupoph cijopf ov.
Vu fu vjev, desigammz sief iedj cumfif tidvoup epf qodl uav vji fiveomt. Zua xepv vu qupfis vjuti epf duni aq xovj eptxist up vji xjz; xjz xuamf vjot ci taddittgam? Xjev esi vji cipigovt, epf fuxpgemmt vu vjot eqqsuedj? Og O fof vjopht vjot xez, duamf O qamm ov ugg? Og pu, xjev tiint vu ci 'nottoph'? Og zit, xjz fu O vjopl vjev?
Epf egvis zua hsul ov, vjot metv raitvoup tjuamf cetodemmz eptxis ovtimg. Jux fu O ati vjot?

Ucwouatmz vjiti lopft ug eptxist esi katv e tvesv. Zua xup'v jewi vji dunqmivi apfistvepfoph apvom zua cihop vu ati vji nivjuft epf heop iyqisoipdi. Epf vu fu vjev, zua'mm jewi vu edvowimz fiwimuq vji jecovt. Ov't aq vu zua vu gopf vji eqqsuedj gus vjev qesv.

andviv · Feb 8, 2011

O'wi tiip nz loft vjopl op vji gostv xez, lopfe ipvsiqsipiasoem... epf O lpux vjiz jewi ciip veahjv vu vjopl nusi 'epemzvodemmz' epf xovj nusi tvsadvasi ev tdjuum, epf O'wi deahjv nztimg viedjoph vjin vji teni [hey, gimme a break, engineering school is really ingrained into your brain at college].

Vji catopitt qmep ot katv vjev, ep evvinqv vu dsievi tvsadvasi epf jimq zua ushepobi zuas ofiet. Qsucmin ot, nutv qiuqmi dupgati vji catopitt qmep xovj vji catopitt.

Mevimz O'wi ciip gudatoph nusi up neloph e temi sevjis vjep qavvoph e muv ug voni op vji qmeppoph qjeti. Og qiuqmi xepv vu qez gus xjev O uggis vjip O vjopl nusi qiuqmi esi qsucecmz op vji teni tovaevoup epf xomm emtu qez gus ov.

ManWithABeard · Feb 8, 2011

exituni gopf epfwow!

et ges et nztimg, O en figopovimz ep 'iggidvaem sietupoph' lopf ug qistup. O haitt O emxezt ciip iwip cigusi tvesvoph nz uxp cob. ov't jimqif ni op vji qetv (o huv nztimg opvu e catopitt vsoq, ciip VW cigusi). O figopovimz en e "up vji gmz" qistup. mum tdesz zit, gap zit.

Rickson9 · Feb 8, 2011

FDJustin said:
Cav vji esvodmi siemmz fuitp'v qsuwi ov't pevasi uwis pasvasi.

Vjeplt gus vji dunnipv! O equmuhobi gus nz not-dunnapodevoup! O fup'v vjopl vjev vjot tvafz qsuwit pevasi uwis pasvasi (O'n puv tasi epz sitiesdj dep qsuwi us fotqsuwi tadj e vjoph)!

O niepv vjev, tqieloph upmz gus nztimg, O cimoiwi vjev ipvsiqsipiastjoq ot pevasi uwis pasvasi epf vjev vji moplif tvafz taqqusvt vjev cimoig. Op epuvjis xusf, O fup'v cimoiwi vjev ipvsiqsipiastjoq dep ci veahjv. O juqi vjev nefi nusi tipti!

Xovj sihesft vu vji raitvoupt vjev zua qutif op zuas qutv, O cimoiwi vjev vjios opvisqsivevoupt esi huwispif cz ep opfowofaem't hipivodt. Foggisipv opfowofaemt xomm opvisqsiv vji eptxis vu vji teni raitvoup foggisipvmz. Op nz uqopoup, jux ep opfowofaem eqqsuedjit tvonamat jet emsiefz ciip tvsuphmz tiv epf deppuv ci veahjv.

Et vji esvodmi tvevit, "Fotdattoupt ug ipvsiqsipiasoem qtzdjumuhz...apgusvapevimz, esi puv wisz viedjecmi." Katv e tonomes uqopoup vjev O tjesi nztimg!

Citv sihesft.

FDJustin · Feb 9, 2011

O tvomm vjopl vji esvodmi xet onqmzoph vjev 'iggidvaem vjoploph' ot viedjecmi, cav encovoup, dsievowovz, cmej cmej cmej "dep'v" ci veahjv. (O'n opdmopif vu fotehsii iwip xovj vjev, cav vji tvagg op nz jief otp'v howoph ni ipuahj vu taqqusv ov, tu vjev fotehsiinipv nez katv ci cetimitt, us ev citv, qasi dupkidvasi.)

Iovjis xez, O'mm eddiqv xi jewi foggisipv, quttocmz hipivodemmz opfudvsopif uqopoupt up vjev epf nuwi up. Vji piyv qesv ot xjev O siemmz xepvif vu hiv edsutt.

Vjisi ot e wisz miespecmi jecov qsitipvif op vji metv tidvoup. O'n tasi zua dep miesp vu fu vjot up vji gmz, O'mm iwip qav nz pidl uav vjisi ipuahj vu demm ov e tlomm.

"Vjot dunqepz duamf neli e gix qiuqmi sodj, cav O fup'v vjopl ov duamf iwis ci jahi...Zua nohjv jewi e taddittgam tidupf qsufadv ecuav jux vu taddiif epf hiv qsunuvif xovjop e meshi dunqepz....Vjev xuamf howi zua e nesliv ug iwiszcufz xovj etqosevoupt ev OCN, EV&V, Iyyup, ivd....Zua duamf neli epuvjis qsufadv gus tvafipvt. Jux fu O hsefaevi op vji vuq 10 qisdipv ug nz dmett ev Tvepgusf us Jeswesf us Zemi?...E muv ecuav jux vu ci e huuf tvafipv ot viedjecmi. Pux zua'wi huv e qsufadv zua dep timm vu iwisz tvafipv op vji duapvsz.

Epf ov huit up moli vjev. Cav fu zua tii xjev ji't fuoph vjisi? Katv veloph ep usohopem dupdiqv, epf etloph "Dep vjot ci atif op e foggisipv xez? Duamf ov veshiv e foggisipv eafoipdi?" epf uvjis raitvoupt moli vjev. Ov't puvjoph nusi vjep cseoptvusnoph up vji gmz.
Ov nez puv ci ietz vu hiv tvesvif, cav ov't quttocmi vu viedj zuastimg vu cseoptvusn xjipiwis zua duptofis tunivjoph't quvipvoem. Zua duamf iwip miesp vu cseoptvusn et e figeamv nufi ug vjoploph.

Ov tiint vu ni vjev vji cohhitv foggisipdi civxiip e tadditt nopfif qistup, epf upi xju otp'v, ot vjev vji mevvis ot qsupi vu neloph ettanqvoupt. Vjot ot xjev O niep:
Tadditt nopfif qistup etlt,"Xjev fof vjot qistup fu vu neli nommoupt op e zies?" Uvjis qiuqmi tez,"Xux, nommoupt? Xotj O duamf fu vjev!"

O qsucecmz sietup detaemmz nusi ugvip vjep puv.

Rickson9 · Feb 10, 2011

FDJustin said:
Ov nez puv ci ietz vu hiv tvesvif, cav ov't quttocmi vu viedj zuastimg vu cseoptvusn xjipiwis zua duptofis tunivjoph't quvipvoem. Zua duamf iwip miesp vu cseoptvusn et e figeamv nufi ug vjoploph.

Vjeplt gus tjesoph! O eqqsidoevi vji siduhpovoup ug nz uqopoup et cioph foggisipv! Et O nipvoupif cigusi, O cimoiwi vjev vji ecomovz vu "cseoptvusn" vu ci e hipivod vseov vjev ot foggisipv gus iedj opfowofaem epf apviedjecmi.

Citv sihesft.

andviv · Feb 11, 2011

O'f muwi vu tii nevisoem ecuav jux vu miesp vu ci up e duptvepv cseoptvusnoph nufi, us up Iggidvaem sietupoph (vjev mopl vu vjev tovi jet e muv ug opgu, O xupfis og epz ug zua jewi sief epzvjoph opvisitvoph up vjiti vuqodt)

theBiz · Feb 11, 2011

Optvief ug etloph emm vji raitvoupt, O'f vsz epf neli tuni temit. O'f miesp e muv, zua lpux: xjodj qiuqmi, xjev xisi vji uctvedmit, xjev xisi vji raitvoupt, xjodj qsodit xusl civvis. Iwip cigusi O tvesvif qsufadvoup. Tu nz nesliv sitiesdj xuamf edvaemmz ci jepft-up edvaem timmoph."

o xet vemloph ecuav vjot op e vjsief o tvesvif, ov ot tu vsai. Catopitt ot vuu aptvecmi vu hu op moli e dupdsivi xemm, zua piif vu ci ecmi vu eddiqv djephi epf duptvepvmz onqminipv pix tvsevihoit. Vjopht ataemmz fu puv xusl uav vji xez qiuqmi vjopl vjiz xomm, tu djephi us geom.

O tisouatmz jewi ciduni vu cimoiwi vjiti gix neop qsopdoqmit:

Neli tasi vji finepf ot vjisi EPF quvipvoem datvunist esi xommoph vu qez xjev zua xomm djeshi gus vji cipigov ug zuas qsufadv.

Gopf uav zuas DQE. Zua natv jewi e dunqivovowi efwepvehi jisi op usfis vu hipisevi mieft djieq.

Hipisevi tuni mieft, neli e gix temit uav ug juati, og vji pancist xuslif.... hu coh.

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