The entrepreneurial mindset: learning, scalability, and growth

¶ … Entrepreneurial Approach

M1 - Discussion

I have always thought entrepreneurship is just about starting a business. However, it is interesting to learn that entrepreneurship is more of a mindset or a behavioural tendency as opposed to just pursuing a business idea. It is a way of thinking characterised by the desire to create or exploit opportunities, take risks, to be innovative, and to grow. This mindset applies to not only individuals, but also organisations. The entrepreneurial mindset can be learned, understood, and practiced. In essence, entrepreneurship is not an inborn ability as often thought. As long as one has the passion to take charge of their life, then the rest can be learned, irrespective of one's background.

M1 - Discussion

One great lesson acquired from the first two chapters of New Ventures is that entrepreneurship is not as straightforward as often thought (Allen, 2015). People usually think as long as an idea or opportunity has been identified then it will be a bed of roses all through. Entrepreneurship is a process that requires a substantial amount of time and effort. It requires the entrepreneur to be not only innovative, but also vision-oriented and flexible. This comes out clearly in the case of the online advertising firm Adroll as described in Case Study One (Allen, 2015). Though the firm was experiencing tremendous success in its first six years, growing the company posed a major challenge.

M2 - Discussion 1

There is immense connection between entrepreneurship and the concept of creativity and inspiration. Entrepreneurs come up with unique ideas, provide solutions to unsolved problems, and offer a better way of doing things. This is the core of creativity. Whereas creativity is important, it is even more crucial to consider how scalable an idea is as explained in the concept of Mediocristan. Considering the scalability of an idea is particularly vital in a constantly evolving world, technological advancement is increasingly making ideas obsolete. The entrepreneur makes decisions based on not only the scalability of the idea, but also the characteristics of the industry (competitors, growth, trends, margins, opportunities, and so on).

M2 - Discussion 2

The notion of Mediocristan essentially relates to the extent to which an idea is scalable. Can the idea grow beyond the industry, local, national, or regional boundary? How big can the idea be? These are important questions the entrepreneur must consider when pursuing an idea. When Dr. Sharpin introduced a portable, quicker, and more reliable one-time use system for testing bacteria in water and food as described in Case Study Two, she encountered the challenge of growing the business internationally despite its success in Australasia (Allen, 2015). The decision to enter the European and American markets had to be made with consideration to aspects such as what industries to focus on, the extent of competition, government regulations, and consumer attitudes.

M3 - Discussion 1

Our view of the world keeps on changing. It changes based on the experiences we encounter in the course of our life. At some point, we come to the realisation that what may have worked in the past may not work in the future. This realisation often compels us to consider other ways of doing things. Personally, I have historically viewed entrepreneurship as an undertaking for a select few. From what I have been learning, however, my view of entrepreneurship has been changing. I now view entrepreneurship as a learnable disciple, just like any other discipline. I have learned that the feasibility of ideas is not a static phenomenon -- what may work today may not work tomorrow.

M3 - Discussion 2

The importance of embracing world views within the business or entrepreneurship context cannot be overemphasised. Though an entrepreneur may start off a business idea with a single model, they may with time realise more ways of making money from the same idea. This is well demonstrated in Case Study Three. When Jennifer Beall launched her idea of a mobile stroller and car seat cleaning service specifically targeting mothers, she never envisioned franchising her business, providing stroller repair services, introducing a line of cleaning products, participating in product sponsorships, or making money from her email list (Allen, 2015). However, as the business grew, while at the same time increasing her business knowledge, she discovered how these options could provide significant revenue streams.

M4 - Discussion 1

Finding start-up capital and protecting the venture is usually a major challenge for most entrepreneurs. Start-up capital can be obtained from a variety of sources, including loans from family and friends, seed capital, venture capitalists, and financial institutions. It is imperative to know not only where to find start-up capital, but also how to protect intellectual capital, intellectual assets, and intellectual property. This can be achieved by registering patents, trademarks, and copyrights, as well as deploying confidentiality agreements to protect trade secrets. The narrative fallacy exemplifies the value of protecting one's business. Instead of trying to copy what others do, one should focus on their own unique way of doing things.

M4 - Discussion 2

Case Study 4 demonstrates the value of protecting intellectual assets and intellectual capital (Allen, 2015). When Don Bogue, together with John Ryan, launched Command Audio in 1995, he applied for over 60 U.S. and foreign patents, keen on protecting his idea in any way it could be monetised. His proprietary technology not only attracted investment capital, but also lured customers and strategic partners and enabled the licensing of patent rights. The patent application protected three business models, even though the first two failed. If Bogue had not cleverly protected his intellectual assets and capital, he perhaps would not have had a chance to try various business models before finding the right one.

M5 - Discussion 1

A significant percentage of entrepreneurial start-ups do not survive past the fifth day. One reason that can be attributed to this is failure to think outside the box. Most entrepreneurs tend to be obsessed with creating a perfect business plan for implementing the start-up. Whereas a business plan is important, all the questions may not be answered without actually getting into the business. It is imperative for entrepreneurs to get in touch with reality. The ludic fallacy, as put in The Black Swan, reiterates the danger of relying too much on statistics and probabilities to model real-world situations (Taleb, 2010). It may be more beneficial to develop the business plan based on a practical, validated business model.

M5 - Discussion 2

An important ingredient of entrepreneurial success is a supportive culture and environment. Many ideas fail not because they are bad, but because of lack of access to the right pool of skills, talent, and, most importantly, atmosphere. Case Study Five details the history of Google, one of the most successful technology firms worldwide (Allen, 2015). A major decision that the founders of the company made during its early days was to move it from Menlo Park, California to Palo Alto, California, which is home to the renowned Silicon Valley. Having provided an ideal climate for most technology start-ups, Silicon Valley would provide access to a culture of innovation, capital, legal infrastructure, as well as human capital. These factors have been integral to the success of Google.

M6 - Discussion 1

Businesses operate in a complex world, indeed much more complex that often thought. Even with meticulous planning and forecasting, unforeseen situations may strike, catching most entrepreneurs completely unaware. Disruptions in the supply chain may occur, regulations may change, recessions may emerge, partners may betray fellow partners, and so forth. Accordingly, the entrepreneur must effectively negotiate risk if they are to survive in an increasingly complex world. Negotiating risk requires the entrepreneur to be constantly aware of the possibility of unexpected events hitting the business. Beyond the typical risk management plan, the entrepreneur must recognise the fact that the future is not entirely predictable. This understanding is vital for dealing with unforeseen circumstances when they occur.

M6 - Discussion 2

Case Study 6 ideally demonstrates how the future in the business world can be quite unpredictable (Allen, 2015). Shortly after its establishment in 2008, Groupon had become a force to reckon with in the discount group-buying industry. Nonetheless, the promising company erred in declining a $6 billion purchase offer from Google. With lack of profitability, the business lacked adequate financial muscle to fight both local and foreign rivals. This challenge was further compounded by its poor business model. When Groupon rejected Google's offer, Google embarked on introducing a similar service as Groupon's business model was readily replicable. Google would later turn out to be one of Groupon's major competitors. Had Mason and Groupon accepted Google's offer, the company most likely would not have experienced the problems it did.

M7 - Discussion 1

Ethics and social responsibility is an important topic in today's business world. Whereas businesses exist primarily to make money, they have an obligation to the society. It is particularly important for entrepreneurs to think about social responsibility when developing their marketing plans. Based on the concepts of the bell curve, randomness, and extremistan, two important aspects that should be considered when developing a socially responsible marketing plan include fairness and equity. It is vital for the entrepreneur to consider not only how his or her business will make money, but also how it will affect employees, customers, and the society at large. Is the product or service harmful to customers and the public? Do employees work under acceptable conditions? The entrepreneur must carefully consider these aspects.

M7 - Discussion 2

Entering a saturated market can be a challenge for entrepreneurs. With several, equally competitive options to choose from, consumers may not readily notice a new entrant. Nonetheless, a new entrant can achieve success in a saturated market by focusing on differentiation. Though a market may be saturated, there could often be gap a left by incumbents. An entrepreneur can capitalise on this gap to enter a saturated market. Indeed, the ability to be different is one thing that cannot be taken for granted as far as entering a saturated market is concerned. As evident in Case Study 7 (Allen, 2015), the entrepreneur must understand what consumers want and their unmet needs.

M8 - Discussion 1

Overall, the course has been a valuable learning experience for me. It has broadened my view of entrepreneurship, demystified common misconceptions about entrepreneurship, and furnished me with precious knowledge about the challenging journey of entrepreneurship. I now appreciate that entrepreneurship is not an easy undertaking as one may think. It is an endeavour characterised by risks, uncertainties, and complexities. Indeed, the entrepreneur is constantly involved in negotiating risk and addressing unexpected events. The course has made me better at negotiating risk. In my future entrepreneurial aspirations, this knowledge will be important for thinking outside the box. It will be vital for looking beyond the numbers. The entrepreneurial world requires such individuals.

M8 - Discussion 2

As detailed in Case Study 8, Vision To Learn (VTL) is facing major challenges in spite of its involvement in a noble social entrepreneurship cause -- providing glasses to school kids with vision problems (Allen, 2015). The organisation particularly faces challenges relating to growth, operational capacity, funding, as well as lack of support from schools. Though there could be other underlying problems, the major source of these challenges appears to be the organisation's incorporation status. As a non-profit entity, the organisation may not be able to grow as fast as it may wish. It may be important for Austin Beutner to consider a new form of incorporation, particularly a profit organisation, which may be a sole proprietorship, a partnership, or a limited liability company. As a profit-oriented entity, the organisation may be better placed to secure funding for growth.

Part 2: Research Project

Business Plan

With increased prevalence of lifestyle diseases, commonly caused by unhealthy eating habits, consumers have increasingly become concerned about their food choices. Consumers now more than ever desire healthier choices on the menu when they visit restaurants and other establishments that serve food. They want healthy food and quick service at the same time. Nonetheless, finding healthy fast food remains a major challenge for most consumers. Majority of traditional fast food chains have done little or nothing to respond to the changing dietary habits of consumers. They still serve foods prepared using ingredients raised through inorganic methods, and with high amounts of fats and calories. Indeed, very few of the existing fast food chains demonstrate concern for consumer health. The inadequacy of healthy fast food restaurants presents an ideal business opportunity. Working adults and other consumers of fast foods need healthier food choices without removing the notion of quick service. As the consumption of fast food in the U.S. is here to stay, a fast food restaurant that serves meals prepared using organically raised ingredients can successfully capture the increasing demand for healthier food choices.

A city like Chicago, Illinois, presents a suitable location for the establishment of a healthy fast food restaurant. The city provides a significant population and is a major centre for economic activity, therefore providing proximity to the target market. At the beginning, obviously due to financial constraints and the need to test the business model, it would be important to establish a single store. Depending on the success of the first store, the business can be expanded to other locations within and beyond Chicago. By relying more on modern marketing techniques, notably internet and social media marketing, as well as offline techniques such as guerrilla marketing and outdoor advertising, the business can successfully reach its target market.

Communication and Structure

Structure is an important aspect of any organisation. It defines communication processes, the allocation of tasks and responsibilities, supervision and coordination, lines of authority, as well as chain of command. Organisational structure also dictates the nature of relationships between the management and employees. Indeed, structure is a vital driver of organisational efficiency and effectiveness. The author's organisation is a medium-sized company involved in the provision of investment services. The company's organisational structure can be described as flat. Also, referred to as a horizontal organisational structure, a flat organisational structure is a structure characterised by few or no middle management levels. Specifically, the company has the chief executive officer as the overall authority and two managers directly supervising all the employees. This is a crucial aspect of a flat structure -- a manager directly oversees a large number of employees and assumes more responsibility compared to a tall or vertical organisational structure.

A major benefit of a flat organisational structure is that it minimises the distance between managers and employees. In most organisations, it can be difficult for employees in lower levels to access managers as they often have to cross several lines of authority before getting to the manager. This is not the case at the author's organisation. The flat structure enables the CEO and the two managers to regularly and directly interact with employees. A closer gap between managers and employees has been a vital source of empowerment, motivation, and morale for employees. Employees view managers as more of colleagues as opposed to superiors. They can readily discuss issues with managers and articulate their concerns. This has been crucial for building strong relationships between managers and employees as well as easing communication. Another important benefit of a flat structure is that employees are allowed a significant degree of autonomy. Dissimilar to hierarchical structures where employees are closely supervised by several layers of managers, a flat structure permits employees to perform their duties without excessive supervision or micromanagement. This is particularly true at the author's organisation.

Since a flat organisational structure permits a more relaxed organisational atmosphere, it encourages the involvement of employees in decision-making. With a reduced distance between managers and employees, employees are viewed as valuable sources of input as far as decision-making is concerned. During meetings, for instance, managers do not just discharge instructions on employees. They give employees an opportunity to offer their perspectives, which has in most times resulted in creative ways of doing things, ways that would perhaps remain untapped if all decisions were made by managers alone. Also, the organisation regularly conducts employee surveys aimed at giving employees a chance to suggest areas the organisation can improve on. These surveys have been a crucial driver of employee satisfaction at the organisation. While involving employees in decision-making has been beneficial to the organisation, sometimes there are downsides. At times, for instance, it may be quite difficult to reach consensus as diverse perspectives have to be considered. Indeed, this occasionally slows decision-making.

On the whole, the company has a structure that ideally befits its size. The structure has had positive impacts on workflow, communication processes, individual and group productivity, as well as employee motivation. Nonetheless, the organisation has been growing at a rapid rate in the last few years, which may make a flat structure quite effective in the near future. With the company targeting to expand even more nationally, organisational and management processes will become more complex, rendering the flat structure somewhat inefficient. The organisation may soon find itself adding more levels of middle management, which may in the long run necessitate a less flat structure.