Most guides on building a business involve the same sort of rehashed content. The thing is a lot of these pieces of advice aren’t true. They’re either misinterpreted by the new entrepreneur or they’re completely wrong.
What if you had a crystal ball that would let you see into the future to see if demand for your product or service was going to get stronger or weaker with time. Well, you can stop wishing. There is such a tool.
Business Plans vs. Business Models – When No Plan Survives First Contact With Customers Inc42By: Steve Blank I was catching up with an ex-graduate student at my favorite coffee place in Menlo Park. These guys had spent 4 months writing a 60-page business plan with 12 pages of spreadsheets. It was an exquisitely crafted plan. The problem […]
During the New Small Business Manifesto, we have looked at how the business landscape has changed, why the advice we receive from so-called experts has not kept pace, and how the reasoning skills of successful entrepreneurs have adapted to the new reality of business. Let’s conclude this series by comparing the logic practiced by the manager […]
Conventional business advice discourages entrepreneurs from practicing the leverage contingency principle. Instead of encouraging the entrepreneur to make small low-cost incremental steps to observe what happens, conventional wisdom recommend extensive upfront planning as a way to hit their ultimate target or goal on the first try without any type of feedback loop to test assumptions during the development process.
Manager entrepreneurs use their causal reasoning skills to conduct a competitive analysis to help them define a unique niche for their business. This is demonstrated by the blue ocean strategy postulated by W. Chan Kim and Renée Mauborgne. In contrast, founder entrepreneurs use their effectual reasoning skills to build strategic partnerships with customers. Founder entrepreneurs […]