PPT2-Entrepreneurial-Mind (1).pdf

PPT#2 Entrepreneurial Mind over two hours that involved describing how they would bring the same specific product to market. Finding Your Flow...

PPT#2 Entrepreneurial Mind over two hours that involved describing how they would bring the same specific product to market. Finding Your Flow Effectuation “If you are interested in something, you will focus on it, and if you focus attention on anything, it is The idea that the future is unpredictable yet likely that you will become interested in it.” controllable. Sarasvathy believes that effectual entrepreneurs focus on creating a future rather - Mihaly Csikszentmihalyi, Hungarian than predicting it. Psychologist Effectual entrepreneurs o Everybody has a passion, something they enjoy doing whenever they have the  create opportunities opportunity.  make markets rather than find them o An entrepreneurial venture is a journey  accept and learn from failure that calls for you to hone your abilities  build relationships with a variety of and cultivate your interest. stakeholders o The experience of getting immersed in something you love doing is your FLOW. o Your FLOW is not your Leisure Activity. o Your Flow is your Passion, Motivation and will help you convince people to invest in you and your idea. o Think of four things that interest you. Example: Baking, Singing o Your flow is not the end but is just the Pilot in the Plane Principle beginning of the many things you can Control the controllable discover with yourself o An entrepreneurial venture is a journey Psychological research suggests that an that calls for you to hone your abilities enormous range of human behaviors relate to and cultivate your interest. control striving in some way and are intrinsically linked to healthy human functioning. Walt Disney It is normal and healthy. Many entrepreneurs Walt had an ideal childhood on a farm and instinctively recognize the importance of developed a strong interest in drawing at an early personal control: fundamentally, many chose age entrepreneurship because they want to be their While attending high school he took art classes to own boss and choose their own course. develop these skills. Control enables entrepreneurs to work on things His interest led him to become successful in they think are important, set their own schedules business. and work with whom they want. The Principles of Effectuation Bird In Hand Principle What Makes Entrepreneurs Entrepreneurial? Start with your means Saras Sarasvathy interviewed over 30 highly When expert entrepreneurs seek to build a new successful entrepreneurs and had each venture, they start with their means. These means entrepreneur go through a 17-page problem set can be grouped into three categories:   Who I am—my traits, tastes, and abilities and/or money and/or resources and, thus, self-  What I know—my education, training, select into the new-venture creation process. expertise, and experience Affordable Loss Principle  Who I know—my social and professional networks. Set affordable loss Using a combination of these means, the In much of the business world, the manager in entrepreneur begins to imagine possibilities and charge of launching a new product analyses the take action market and chooses segments with the highest expected value. It is a natural reflex that is the Scratch Labs result of years of training around a single mantra: Dr. Allen Lim started making his own training maximize returns by selecting the optimal food and sports drinks from scratch for the strategy for your target. cyclists because too many of the pre-packaged Expert entrepreneurs turn this logic on its head— sports bars and drinks that were marketed or they think in terms of affordable loss rather than given to them were laden with artificial expected returns. ingredients and literally making them sick to their stomach. They decide what they are willing to lose rather than what they expect to make. Instead of  Who I am — He cared deeply about calculating upfront how much money they will helping athletes perform at the top of need to launch their project and investing time, their game effort, and energy in raising that money, the  What I know — He also had a deep effectual entrepreneur tries to estimate the understanding of sports physiology and downside and examines what she is willing to had been making homemade sports lose. drinks for years  Who I know — He had many friends and Lemonade Principle colleagues in the amateur and pro cycling Leverage contingencies worlds. If you come across lemons, make lemonade! The Crazy Quilt Principle third principle of effectual reasoning is at the Form partnerships heart of entrepreneurial expertise—the ability to turn the unexpected into the profitable. The crazy quilt principle of effectual reasoning is the focus on building partnerships rather than Expert entrepreneurs learn not only to work with beating competitors. surprises but also to take advantage of them. In most contingency plans, surprises are bad—the Since entrepreneurs tend to start the process worst-case scenarios. without assuming the existence of a predetermined market for their idea, they don’t But because entrepreneurs do not tie their idea to know who their competitors will be, so detailed any theorized or preconceived “market,” competitive analyses have little value. Instead, anything and everything is potentially a surprise entrepreneurs generally take the product to the that can lead to a valuable opportunity. nearest potential customer. Back in 1996, Stacy Madison became sick of her Some of the people they interact with make a corporate job and decided to follow her passion commitment to the venture, committing time for food by starting a food cart in her hometown of Boston. As her pita sandwich cart grew in popularity, it was common for long lines to form. So Stacy got creative, taking the left-over pita Famous Maker: Henry Ford bread from the night before, chopping it up and Was an American industrialist and business baking it in the oven, and handing these baked magnate. As founder of the Ford Motor pita chips out to the folks while they were waiting Company, he is credited as a pioneer in making on line for their sandwiches. automobiles affordable for middle-class Stacy’s pita chips were a big hit, and this ‘happy Americans through the Fordism system. accident’ soon turned into the bigger opportunity — and Stacy’s Pita Chips was born 2. The Merchant Often on the lookout for the next big Effectual Cycle thing; can quickly spot a market opportunity Effectuation isn’t a static, one-time exercise. It is Can identify how to match demand with a logic and process that can be used as the firm supply develops phase of growth. Expert entrepreneurs Improvise on existing ideas follow the process to gain early customers and Innovatively apply concepts from other committed partners who then create new means industries and new goals as resources and viewpoints are added to the mix Famous Merchant: Richard Branson Owes his fortune to a conglomerate of businesses bearing the "Virgin" brand name, including Virgin Atlantic and Virgin Galactic (space tourism) 3. 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 Entrepreneurial Style Visionaries and rule breakers who ask” Why not” 1. The Maker Brings ideas into life Sees the big picture and smallest details and simplifies complex problems Famous Magician: Steven Paul Jobs Strength is in execution Was an American businessman, inventor, and Prefers processes over people investor best known for co-founding the technology giant Apple Inc. He was also the founder of NeXT and chairman and majority shareholder of Pixar.  4. The Mobilizer WHAT IS YOUR ENTREPRENEURIAL The connecting thread-connecting STYLE? people, ideas and resources Great at building relationships HENRY SY AND HIS 14 LIFE PRINCIPLE AND THE 17 UN SDG Acts as catalyst to bring about change Tend to focus on large scale social Henry Sy and his 14 Life Principles problems HENRY SY, SR. Filipino Chinese business tycoon and entrepreneur most famous for founding the SM Malls, Famous Mobilizer: Muhammad Yunus the Philippines' largest group of malls He owns numerous companies in the a Bangladeshi economist and founder of the areas of real estate, banking, education, Grameen Bank, an institution that provides mining, retailing, and hospitality, microcredit (small loans to poor people resulting in him being recognized as the possessing no collateral) to help its clients wealthiest person in the Philippines, with establish creditworthiness and financial self- an estimated personal wealth of 13 sufficiency. In 2006 Yunus and Grameen received billion dollars. the Nobel Prize for Peace He is also dubbed as the “Father of 5. The Master Philippine Retailing” due to owning the The connecting thread-connecting largest group of malls in the country. people, ideas and resources Great at building relationships Acts as catalyst to bring about change Tend to focus on large scale social problems Famous Master: Bill Gates THE UNITED NATIONS SUSTAINABLE (born October 28, 1955, Seattle, Washington, DEVELOPMENT GOALS - UN SDG U.S.) is an American computer programmer and entrepreneur who cofounded Microsoft UN Sustainable Development Goals: Highlights Corporation, the world’s largest personal- computer software company. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans