How Entrepreneurs Craft Strategies That Work

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How Entrepreneurs Craft
Strategies That Work
By
Amar Bhide
Entrepreneurial approach to planning
• Survey result: successful entrepreneurs spent
little time researching and analyzing.
• Longevity of new venture not correlated with
planning.
• More attuned to seize opportunity
• Speed and partial analysis highlights of such
process.
2
Guidelines for aspiring founders
• Ability to quickly screen promising
opportunities.
• Parsimonious analysis of ideas.
• Integration of action and analysis:
midcourse correction even with partial
information
3
Screening Out Losers
• By Judgment and reflection and not by new data.
• Prior familiarity with facts comes handy.
– Survey results: 69% - prior familiarity, 4%- systematic
research.
• Combining idea with execution. Creates entry
barrier.
– Doing it quickly and doing it right is more important than
brilliant strategy.
– Successful startups don’t need edge on every front.
4
Factors to assess venture viability
• Goals
– Decide resource requirements. Revolutionary vs. niche.
• Leverage provided by External Change
– Grab opportunities thrown by changes in environment.
Mature vs. emerging industries
• Basis of competition
– Avoid high investment in proprietary asset
• Gauging attractiveness
–
–
–
–
Low capital requirement
High margin of error
Easy exit options
Fits with interest/passion
5
Parsimonious Planning and Analysis
• Need based planning and analysis backed by subjective
judgment.
• Comprehensiveness is not the aim.
• Oriented towards customer’s buying habits and methods of
products use.
• Turbulent conditions calls for quick response with partial
information.
6
Integrated Action and Analysis
• Action and analysis go hand-in- hand.
• Advantages of early action
– Sets example for others: leading from the front
– Provides useful insights for mid course correction as
events unfold.
– Allows time for innovative problem solving.
• “Analysis is an exercise in what to do next more
than what not to do”
7
Inferences
• Personality is a variable.
• Process description prescriptive in nature. Can
prescription work?
• Corporate entrepreneurship is distinct from private
entrepreneurship.
• What should be mantra? Think small, act small or
Think big and act small.
8
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