The Entrepreneurial Mindset Pitfallssite.iugaza.edu.ps/.../08/The-Entrepreneurial-Mindset.pdf ·...

ECOM 5368

Dr. Hatem Elaydi

Islamic University of Gaza Dec 6, 2017

The Entrepreneurial Mindset

Pitfalls

Watch out for

critical obstacles

of new venture

THE

ENTREPREN

EURIAL

MINDSET

2 ECOM 5368, Fall 2017, IUG, Dr. H. Elaydi

KEEP THE “SURVIVORSHIP BIAS” IN MIND


Pitfall: Entrepreneurial Overconfidence


Pitfall: Need for Ego Boost

Why Do You Want to Start A Business?


Pitfall: Example “There is a difference between determination and

overconfidence.

[…] entrepreneurship is hard, and you will face risks or obstacles; that you have to tackle these one at a time and take them down; […] entrepreneurship is about identifying those risks and nailing them down one at a time, creatively finding your way around obstacles, and bringing your customer-validated product to market. […] overconfidence […] is about being sure you are right to the point you don’t listen and make mistakes that kill you.

Determined entrepreneurs really listen and then find a way to solve the challenge.”


The fire that fuels innovation, persistence &

ultimate success”

LEARNINGS & HOW TO MITIGATE


Correct Idea Evaluation


Pitfall I: Real Problem

Try to understand the others and to see the problem

out of their perspective: Is there really a problem


Pitfall II: Inadequate Customer Identification

Is there really a customer for your solution? Does another

solution exist already?

Considering a problem from different perspectives helps identifying

customers


PITFALL I: EXAMPLE “Your idea should solve a real problem.

Will your service or product solve a problem many

people are facing? That idea you had to make a cup

holder on washing machines so that people have a

place to put their drink while doing laundry -- is that

even a thing?

If your great idea is a solution for an imagined problem,

you’ve just made a huge mistake in entrepreneurship.

Because if nobody has the problem that you have the

solution for, nobody’s going to come looking for it.”

42% of failed startups do so because there is no market need!


PITFALL I: EXAMPLE “Nobody

inherently

needed a

Segway.

Everyone

was

getting

around by

foot,

bicycle,

motorcycl

e and car

just fine.”


PITFALL II: EXAMPLE

“Confidently believe that you have no real competitors.

Usually, no competitors means no market -- or it

means you haven’t looked.”

“It's absolutely amazing how many potential business owners

include this statement […]:

"We have no competition."

If that's what you think, you couldn't be further from the

truth. Every successful business has competitors,

both direct and indirect.”


Learning & How to Mitigate

Be open to competition to asses your markets & customers in the

right way: Think about the problem you are trying to solve

& how it is currently solved!


Pitfall I: Anxiety for Mistakes


Pitfall II: No Capturing of Learning


Pitfall I & II: Example

“Those who fail the most, learn the most. When you

fail, you learn what works and what doesn’t.

Venture capitalists have been known to invest in

entrepreneurs that have undergone multiple entrepreneurial

failures.

For some, an entrepreneur who has never experienced failure

is untested and has not learned from adversity.”



Go out as early as possible & make mistakes

Capture your learnings

Maintain positive attitude

Structure your approach but do not overplan

Failed ideas can teach you a lot

Read & listen to motivating material


Pitfall I: Only Hiring People You Like


Pitfall II: No Active Managing of Conflicts


Pitfall I: Example “It may sound great to do business with your friends, but

remember, in the business world, it's always business

first and friendships second.

Also remember, most times when the business

ends, so does the friendship.”


Pitfall II: Example

“Feeling that he needed an experienced

operating and marketing partner, the

then 29-year-old Jobs lured Sculley to

Apple with the now legendary pitch:

’Do you want to sell sugared water for the

rest of your life? Or do you want to come

with me and change the world?’

Sculley took the bait and within two

years, Sculley had organized a board

campaign to fire Jobs. Jobs himself

would surely consider hiring Sculley

as a great mistake.”


Learning & How to Mitigate Know what everyone brings to the table

Determine skills that are required to make your

company successful

Develop a culture that promotes your company's values

& vision

Disregard personal feelings or former collaboration

when making a hiring decision


Pitfall I: Failing to Bring MVP to Market


Pitfall I:Example “A minimum viable product is the least amount

of product or service you can bring to market

[…].

Good judgment only comes from experience,

and experience typically comes from bad judgment.

The toughest lessons to learn are usually the most costly

in terms of resources and capital.”



Do not try getting everything right the first time

Bring your MVP to market early on

Test new features without considering sunk costs

Be willing to adapt your original idea

Determine why customers value your product &

service


ECOM 5368, Fall 2017, IUG, Dr. H. Elaydi 34

Thank You

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