How Great Entrepreneurs Think. Are you one of them?

Do you consider yourself a great entrepreneur or one in the making?

This past weekend, I read this great article, Inside the Minds of Great Entrepreneurs, in the February issue of Inc. magazine. The article outlined a study that was done by Saras Sarasvathy to determine how expert entrepreneurs think.  She wanted to share the knowledge gleaned from the study with aspiring entrepreneurs to help them be successful.

Do you employ effectual or causal reasoning?

You’re probably asking, what the heck does that mean?  An effectual entrepreneur does not have concrete specific goals. They develop goals on the fly and then decide how they are going to use their strengths and resources to achieve them. On the other hand, a causal entrepreneur sets a specific goal and looks for the most optimal way to achieve it.

What would you do?

As part of the interviewing process, these master entrepreneurs were given a specific scenario. They were asked to imagine themselves as the founder of a start-up that had developed a computer game simulating the experience of launching a company. Participants responded to questions about potential customer, competitors, pricing, marketing strategy, growth opportunities, and related issues.

One of the questions they were asked were what kind of market research would they conduct for this new company?  One expert entrepreneur said, “Ultimately, the best test of any product is to go to your target market and pretend like it’s a real business. You’ll find out soon enough if it is or not.”

Another one said, “I always live by the motto, Ready, Fire, Aim, I think if you spend too much time doing Ready, aim, aim, aim, you’re never going to see all the good things that would happened if you actually started doing it.?

What do you think?

I found their remarks quite interesting. Why?  Because most entrepreneurs either think business planning and market research is a waste of time or it is an essential part of starting a business.

The take home message is that both are fine, but you have to get out there and engage with your customers to figure what they want and if your product and service is viable. Haven’t you heard that before?

It’s part art and part science!

The bottom line is that the really successful entrepreneurs use a combination of both. As their business grew, they became more strategic in their thinking and approach to their business. Nevertheless, they were always willing to see things from a new perspective to capitalize on new opportunities or adapt to current realities.

To be a Great Entrepreneur, we must not only think like one, we must act like one! Live Your Vision!

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