Final Exam Nail it then scale it Flashcards
Why do most entrepreneurs fail?
“Entrepreneurs fail precisely because they believe in their idea and then follow conventional wisdom about how to build a new product or a new business. In doing so, they tackle the wrong tasks, do good things in the wrong order, and in the end fall prey to their strengths.”
3 myths of Entrepreneurship
Hero, Process, Money
Hero Myth
passionate, determined, visionary entrepreneurs lead to failure more than they lead them to success. Fall in love with their product. passion, vision, and determination don’t lead to success.
Process Myth
Don’t follow the correct way to build a product: “If you build it they will come”
Money Myth
Money leads to success. Money at the wrong time can kill you.
fundamental attribution error
Attributing any success from Entrepreneurs to the personal qualities of the individual.
Traditional Product Development
- Identify product opportunity
- Create product specs
- Build Alpha product
- Test product, build beta product
- Sell product
raditional Entrepreneurship Process Model
- Entrepreneur has a idea
- Discuss with/raise money from friends, family and fools
- Find a location
- develop the product
- perfect the product and add features for broad appeal
- sell the product.
What is the reason most entrepreneurs fail?
They didn’t build what the customers wanted.
Money More or less. Why?
The truth is less money can help you focus on the external market–on your customers– and increase your ability to develop creative solutions for those customers.
NISI 5 steps
- Nail the pain.
- Nail the solution.
- Nail the go-to-market strategy
- Nail the Business Model.
- Scale it.
Innovation distinguishes
a leader from a follower - Steve Jobs
What is key for a sustainable advantage?
Understanding and empowering the innocation process
Invention
is the discovery of a new technology, product, or service.
Innovation
is the combination of an invention with insight about a market need. Lies at the intersection of invention and market insight.
Over 90% of businesses fail because
they couldn’t get anyone to buy it, not that they couldn’t build it
2 fundamental risks when building
Technology Risk → Can we make it?
Market Risk → Will customers buy it?
Entrepreneurs _____ and customers ____
Innovate and customers validate. Entrepreneurs jobs to nice the pain and connect that with an invention to solve a problem.
Innovation diffusion
The early majority sticks with the herd. The inability to establish market credibility creates a chasm between a startup and a the mass-market adoption of its products. To cross the chasm moore suggests focusing on a single industry vertical, leveraging all of your resources to win early-majority reference customer sin that segment.
Importance of validation for bosses
The first thing you should do is get the hell out of the building” → Steve Blank. by fact of our human nature we become convinced we understand outside world when in fact we do not
Fail _____ and learn to _____. _____ when needed.
Fail fast. learn to change. Pivot when needed.
3 luck traits. Who came up with them.
Richard Wiseman
- Lucky people take advantage of chance occurrences that come their way.
- Lucky people pay attention to what’s happening around them and, therefore, are able to extract greater value from each situation
- Lucky people are extraverted - they make more eye contact and smile more frequently, leading to more positive and extended encounters
Hiring. What is not an important question
Salary
What is the best predictor of future performance?
past performance.
If you don’t build your dream
someone else will hire you to build their dream”