Nothing happens till something moves. Entrepreneurship is both mindset and action orientation that moves ideas with passion and purpose into action. Not ordinary ideas—But extraordinary ideas. Ideas whose implementation and outcomes are uncertain.
Entrepreneurs invent the future!
In a word: Action!
The future is always created through action.
What differentiates entrepreneurs from other businesses creators is the level of risk and uncertainty they are willing to take on. Most startups attempt to mitigate risk by reducing that amount of uncertainty in their business model. This usually means a detailed business plan which explores and plans for the risks involved. This approach has been used and accepted for many years.
Its logical. And it demonstrates that some forethought was put into the process of developing the idea into a product or service.
It’s a good start but has one substantial weakness: no business plan survives first contact with its target customers.
What we’ve learned is that a business plan works best for business models that have a high degree of predictability. It by no means guarantees success. What it does provide is a starting point.
Entrepreneurs tend to tread in the outer edges of possibility. Uncertainty and risks are their dance partners. Naturally every business has some degree of risk. What distinguishes entrepreneurial risk from conventional business startups is this: Entrepreneurs have a bias to act in the face of uncertainty.
They recognize that action trumps everything! They know what they are willing to risk and most importantly they know the cost of failure prior to acting.
And the they know this—Risk aversion is a venture killer.
So what does the intelligent and risk savvy entrepreneur do to reduce the cost of failure? Simple: They manage the risks through a series of controlled experiments. They act. They learn. They build. And they course correct in the process of advancing the development of their business model.
So…how does an entrepreneur go about her business in a high risk environment?
There are three essential components which provide the entrepreneur with the tools to navigate and chart his course through uncertainty:
1. Using an adaptive approach such as Lean Startup or Just Start.
2. Structuring their passion and vision into a value proposition using Business Model Generation tools.
3. Developing a minimum viable product with which they test its value and viability with real potential customers.
The details are many. Guidance through this process of controlled experiments is extraordinarily helpful. I’ve been down this dusty road. I can help you forge ahead.