ECOM 5368 Dr. Hatem Elaydi Islamic University of Gaza Dec 6, 2017 The Entrepreneurial Mindset Pitfalls
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
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KEEP THE “SURVIVORSHIP BIAS” IN MIND
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Pitfall: Entrepreneurial Overconfidence
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Pitfall: Need for Ego Boost
Why Do You Want to Start A Business?
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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.”
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The fire that fuels innovation, persistence &
ultimate success”
LEARNINGS & HOW TO MITIGATE
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Correct Idea Evaluation
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Pitfall I: Real Problem
Try to understand the others and to see the problem
out of their perspective: Is there really a problem
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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
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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!
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PITFALL I: EXAMPLE “Nobody
inherently
needed a
Segway.
Everyone
was
getting
around by
foot,
bicycle,
motorcycl
e and car
just fine.”
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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.”
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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!
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Pitfall I: Anxiety for Mistakes
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Pitfall II: No Capturing of Learning
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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.”
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Learning & How to Mitigate
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
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Pitfall I: Only Hiring People You Like
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Pitfall II: No Active Managing of Conflicts
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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.”
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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.”
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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
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Pitfall I: Failing to Bring MVP to Market
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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.”
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Learning & How to Mitigate
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
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Learning & How to Mitigate
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Thank You