Lesson 2: Entrepreneurial Style

Entrepreneurial Venture

is a journey that calls for you to hone your abilities and cultivate your interest.

Walt Disney

• he had an ideal childhood on a farm and developed a strong interest in drawing at an early age

• while attending high school he took art classes to develop these skills

• his interest led him to become successful in business.

Flow

Effectuation

Bird in hand principle

• start with your means

Affordable Loss Principle

• set affordable loss

Crazy Quilt Principle

• form partnerships

• focus on building partnerships rather than beating competitors

Lemonade Principle

• leverage contingencies

Pilot in the Plane Principle

• control the controllable

Effectual Cycle

• effectuation isn’t a static, one-time exercise. it is a logic and process that can be used as the firm develops in the “0-60mph” (early startup) phase of growth.

• expert entrepreneurs follow the process to gain early customers and committed partners who then create new means and new goals as resources and viewpoints are added to the mix.

The Maker

• Brings idea into life

• sees the big picture and smallest details and simplifies complex problems

• strength in execution

• prefers process over people

Core Desire: Solve problems efficiently

Core Fear: Losing control

Core Priority: Process

Henry Ford

• example of “the maker” entrepreneur

• was an american industrialist and business magnate. as founder of the form motor company, he is credited as a pioneer in making automobiles affordable for middle-class Americans through the fordism system.

The Merchant

• often on the look out for the next big thing; can quickly spot a market opportunity

• can identify how to match demand with supply

• improvise on existing ideas

• innovately apply concepts from other industries

Core Desire: capitalize on opportunities

Core Fear: Lose Money

Core Priority: Profit

Richard Branson

• example of the merchant entrepreneur

• owes his fortune to a conglomerate of businesses bearing the “virgin” brand name, including virgin atlantic and virgin galactic (space tourism)

The Magician

• often challenges the status quo; dreams of what can be

• takes risks that are not calculated and stays ahead of the market

• creates the future and surprises the market and customer

• visionaries and rule breakers who ask “why not”

Core Desire: To innovate

Core Fear: Run out of creative ideas

Core Priority: Ideas

Steve Jobs

• example of the magician entrepreneur

• was an american businessman, inventor, investor best known for co-founding the technology giant Apple Inc. He was also the found of neXT and chairman and majority shareholder of Pixar

The Mobilizer

• The connecting thread-connecting people, ideas and resources

• Great at building relationships

• Acts as catalyst to bring about change

• Tend to focus on large scale social problems

Core Desire: To help others

Core Fear: Conflict

Core Priority: People

Muhammad Yunus

• example of the mobilizer entrepreneur

• a bangladeshi economist and founder of the grameen bank, an institution that provides microcredit (small loans to poor people possessing no collateral) to help its clients establish creditworthiness and financial self-sufficiency. in 2006 he received the nobel prize for peace.

The Master

• The connecting thread-connecting people, ideas and resources

• Great at building relationships

• Acts as catalyst to bring about change

• Tend to focus on large scale social problems

Core Desire: To be an expert

Core Fear: Being average

Core Priority: knowledge

Bill Gates

• example of the master entrepreneur

• is an