Ever feel like the "best practices" taught in business school just don't quite fit when you're trying to build something new? You're not alone. Large corporations often preach strategies that can stifle true innovation. But what if there's another way?
John Mullins, entrepreneurship professor, shares six counter-conventional mindsets for entrepreneurs in his TED Talk, looking to think strategically, navigate challenges, and change the world. You can watch the full TED Talk here: 6 Tips on Being a Successful Entrepreneur.
Think of Lynda Weinman. In 1995, she was a graphic design teacher and aspiring entrepreneur. She needed a space to experiment with new digital design tools like Photoshop and Illustrator. She also wanted a place to showcase her students' work. So, she created Lynda.com.
The business grew, and in 2002, Weinman moved her teaching online. Eventually, LinkedIn acquired Lynda.com for a staggering $1.5 billion, renaming it LinkedIn Learning. Lynda Weinman embodies the counter-conventional mindsets that Mullins discusses.
But what exactly is a mindset? Mullins defines it as the attitudes, habits, and thoughts that predetermine how we respond to opportunities. It's how we approach challenges and see possibilities.
Let's explore these six mindsets that can help any entrepreneur break the rules and achieve success. Which of these mindsets resonate with you the most?
"Yes, We Can" - Embracing Opportunities Outside Your Comfort Zone
Business schools often teach the strategy of "stick to your knitting." Focus on your core competencies, invest in them, and build on them. If someone asks you to do something outside of that, the conventional response is, "No, we don't do that around here."
Arnold Correia, a Brazilian entrepreneur, built Atmo Digital by ignoring that rule. He'd already reinvented his business twice when a customer with 260 stores across Brazil asked if he could broadcast training and motivational events to all locations in real-time. The customer wanted televisions in each store's training room with a satellite uplink.
Even though Correia knew nothing about satellite technology and had never operated outside São Paulo, he said, "Yes, we can do that." He figured it out.
Years later, Walmart asked if they could put those same television screens on the sales floor to run advertising. Once again, Correia responded, "Yes, we can do that."
Correia reinvented his business four times by saying "yes" to new customer requests that were outside his comfort zone. The takeaway? Successful entrepreneurs are willing to learn and adapt to meet customer needs, even if it means venturing into unfamiliar territory.
Problem-First Logic - Solving Needs, Not Just Pushing Products
Big companies often focus on products. Think about your favorite brands; how often do they release "new and improved" versions with minor tweaks? Is that real innovation?
Entrepreneurs, on the other hand, focus on problems. Jonathan Thorne developed a technology that solved a real issue with surgical forceps. These tools, used by surgeons in almost every discipline, tend to stick to human tissue.
Imagine a plastic surgeon performing the final touches on a facelift when the tissue sticks to the forceps. It could affect the outcome and frustrate the surgeon. Thorne knew he could solve this problem with a new silver-nickel alloy.
Initially, his business didn't grow quickly focusing on plastic surgeons. So, he looked for another surgical specialty with an even bigger problem. He found it with neurosurgeons.
Brain surgery is delicate. If forceps stick to surrounding tissue while removing a tumor, it can damage healthy brain cells. Thorne's innovation became a success. He later sold his company to Stryker. Both Thorne and Stryker were very happy. Why? Thorne focused on solving problems, not just creating products. What problems do you see that need solving?
Think Narrow, Not Broad - Targeting a Specific Niche for Maximum Impact
Big companies want big target markets to "move the needle." Why bother with something small? But sometimes, thinking narrow is the key to success.
Like Jonathan Thorne, Philip Knight and Bill Bowerman, the founders of Nike, identified a problem for a very specific group. Knight was a distance runner, and Bowerman was his track coach. They recognized that existing running shoes were designed for sprinters who ran on smooth tracks.
Distance runners, however, ran on country paths and dirt roads, often stepping on sticks and rocks. This led to sprained ankles and shin splints. Knight and Bowerman wanted better shoes specifically for elite distance runners who trained extensively.
They designed shoes with better lateral stability, a wider footbed, and more cushioning to protect against shin splints. They also made them lighter for faster race times.
Nike's initial focus on a narrow market allowed them to develop expertise and build a loyal customer base. Once they mastered designing and importing shoes for elite distance runners, they expanded to other sports, signing athletes like John McEnroe in tennis and Michael Jordan in basketball. Today, Nike is the global leader in athletic footwear. The lesson? Dominate a niche market before expanding. What's your niche?
Asking for the Cash, and Riding the Float - Prioritizing Cash Flow and Customer Funding
Large companies often have plenty of cash. They might even struggle to find enough R&D to spend it on. For entrepreneurs, however, cash is the lifeblood of their ventures.
When Elon Musk joined Tesla, the team had a plan: build a fancy sports car, make money from it, use that money to build a lower-priced car, and then build a mass-market car. This would help them address the emissions problem in the automotive industry.
Musk suggested selling some cars first. They organized a roadshow in California and invited people who cared about the environment, were wealthy, and wanted the next big thing. They sold 100 Tesla Roadsters for $100,000 each, in cash, before building the cars. That's $10 million in the bank to start building Roadster number one.
Tesla has continued this principle throughout its journey. When they introduced the Model 3, nearly half a million consumers put down deposits of $1,000 each. That's half a billion dollars in the bank to begin engineering, tooling, and factory setup. Wouldn't you want to build your entrepreneurial venture with that business model?
Beg, Borrow, But Please, Please Don’t Steal - Leveraging Existing Resources
Business schools teach students to analyze projects based on return on investment (ROI). But Tristram Mayhew and Rebecca Mayhew, who built Go Ape, a treetop adventure business in the UK, didn't think that way.
They wanted to build a treetop adventure business. So they went to the UK Forestry Commission, which owned lots of trees. The Forestry Commission wanted to increase visitor count. What better way than to have a Go Ape course on their land?
Tris and Becs essentially asked the Forestry Commission to let them build five courses to prove the concept. In exchange, they wanted a 25-year exclusive for the rest of the Forestry Commission sites. The deal was done.
Today, there are over 30 Go Ape adventure sites across the UK and many in the US. They borrowed the trees, the restrooms, and the parking lots. All they had to do was put their kit on the trees. Pretty cool.
It's Easier to Ask Forgiveness Than Permission - Taking Action and Challenging the Status Quo
In big companies, getting something new done requires navigating layers of bureaucracy and legal approvals. It's hard to get a "yes" answer for something innovative. But it’s really easy to get a “no.”
For entrepreneurs like Travis Kalanick and Garrett Camp, the founders of Uber, asking for permission might have been a mistake. Should they have asked San Francisco regulators, "Can we start a taxi company without any taxis?"
If they had asked, the regulators likely would have said no. It would threaten the existing taxi industry. So entrepreneurs often don't ask permission; they just get on with it.
While Uber's journey had ethical missteps, the principle remains: entrepreneurs move forward when regulations are ambiguous or haven't considered digital possibilities. Remember to balance innovation with ethical and legal considerations.
Applying the Counter-Conventional Mindsets
These six counter-conventional mindsets can help anyone change the world. Here is a quick list of them:
- "Yes, We Can"
- Problem-First Logic
- Think Narrow, Not Broad
- Asking for the Cash, and Riding the Float
- Beg, Borrow, But Please, Please Don’t Steal
- It's Easier to Ask Forgiveness Than Permission
Think about these four questions:
- Which of these mindsets are embodied in you today?
- Which of the others can you learn?
- Can you teach these to somebody you work with?
- Is there a challenge you face today for which one of these mindsets might help?
Reflect on these mindsets and consider how you can apply them to your own entrepreneurial endeavors. Share your thoughts or experiences in the comments below!
0 facebook:
Post a Comment