The Irrational Act Of Entrepreneurship

The Irrational Act of Entrepreneurship Pravin R. Chaturvedi

Why Do You Want to be an Entrepreneur?
Make money?
Social improvement?
Freedom (economic or social)?
Empowerment?
Novelty?
Self-realization?
Cannot really explain?
THAT’S WHY ENTREPRENEURSHIP IS AN IRRATIONAL ACT!!!

What Approach to Take?
Traditional?
Finding the ‘right opportunity’ through systematic study
Evaluate the market
Recognize the need
Create a specific solution (product or service)
Passionate?
Do what you love
Self-discovery and observation
Reflection on ‘true interests’
Figuring out a business angle for the ‘true interest’

How Does One Recognize that “it is Time”?
Inspiration
Passion takes control
Catalytic event occurs
Eureka moment happens
Meet like-minded folks – create a movement
Frustration with ‘status quo’
Fill an unmet need
Turn-key solution for a specific problem
BUT ONE NEVER KNOWS WHEN IS THE RIGHT TIME!!

What Is an Entrepreneur?
Entrepreneurship is about Ideas
Entrepreneurship is an Act of Leadership
Entrepreneurs Stitch Circumstances with their Ideas
Entrepreneurs Love to Own Challenges
but good entrepreneurs Manage Risk
Entrepreneurs are “Sales People & Deal Makers”
Entrepreneurs are Not Optimists
they are Realists
Entrepreneurs Do Not Give Up the Vision
but they revise their strategy & tactics, based on findings

Entrepreneurship is an Act of Leadership
Entrepreneurs “Take a Stand & Believe”
but are constantly willing to learn about the problem
Fearless about Doing Something
and are fearful of Not Doing Anything
Strong in their belief
but humble in their attitude
Have extraordinary Understanding & Knowledge
and do not use coercion to convince
Entrepreneurs accept accountability for failures
but reward and recognize their team for successes

Entrepreneurial Qualities
Vision and Motivation
Positive (can-do) attitude
Self realization and introspective
Knowing one’s limits
Seeking help without hesitation
Not being an “expert of everything”
Humility (coupled with hubris)
Recognition of other’s abilities
Interest in fulfilling the vision – rather than ego

How Does One Get Started?
Strong Drive is a Pre-requisite
Starts with People
Build a Strong Team – There is No Substitute for People!!!
Complementary intellect (rather than gofers)
Founder may not be the person in-charge
Seek appropriate experience & knowledge
Either within the organization or get it from outside
Devise strategy
That fits the vision and mission, but is flexible
Execute to perfection
And constantly re-evaluate strategy in light of your experiences
Get cash!!

The Process of Creating a New Venture – Cloaking Irrationality with Rational Metrics
Create and evaluate the Idea(s)
critically evaluate the idea with peers/experts
openly discuss pros and cons
Build collaborations with people (Create the Team)
and develop a cohesive & defensible strategy
Describe the vision and strategy (Business plan)
that provides evidence of achievable milestones
Invest in the idea with other investors (your risk capital)
raise adequate amount of capital and live frugally
Give the Team the latitude to devise appropriate tactics
execute the strategic and tactical plans
Use the results from execution to revise strategy
to provide sustainability to the venture
and provide avenues for surviving difficult technical or market conditions

The 3 S-Phases of Entrepreneurship are Cyclical
Start-Up
Very hard to get going
Zero to >0 mph!!
Sustaining
Maintaining the momentum – this is harder
Managing ups & downs
Surviving
Reality bites – this phase is even harder
Internal and external forces demand “death”

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The Irrational Act Of Entrepreneurship

by Anupendra Sharma on Nov 16, 2008

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The Irrational Act Of Entrepreneurship — Presentation Transcript