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Showing posts with label entrepreneurs. Show all posts
Showing posts with label entrepreneurs. Show all posts

14.4.14

Are Entrepreneurs' Brains Wired Differently?

Many practitioners have long claimed that entrepreneurs think more creatively than the rest of us because they are “wired” differently. Recently, academic researchers have begun to take this notion seriously.


A research team of neuroscientists and business-school scholars from Italy and Switzerland recently used an fMRI to capture images of the brains of entrepreneurs and managers who undertook a task that involved searching for alternative approaches to solving a problem – something academics call “exploration.” The researchers found that when the entrepreneurs sought out novel courses of action, they were more likely than the managers to use the right side of the prefrontal cortex, which is associated with creativity. The managers tended to use only the left side, which is related to logical thinking.


Why did the entrepreneurs’ and managers’ brains approach the problem differently? As one of the authors writes, the different experiences of entrepreneurs and managers might lead them to think differently. The types of situations that entrepreneurs routinely confront might condition their brains to approach problem-solving differently from managers, who regularly face different experiences. After all, much research shows that the human brain is highly “plastic” – it changes in response to skills and experiences.


The Swiss-Italian research team found some evidence to support this explanation. Managers whose jobs were less routinized tended to approach the tasks more similarly to the entrepreneurs than those whose jobs were more routinized.


But the entrepreneurs might approach the problem differently because they are “hard-wired” to use creativity. As the study’s authors’ acknowledge, people who are born with a tendency to be creative may be more attracted to entrepreneurship than management.


Genetics might be responsible for that “hard-wiring.” Research I conducted with a colleague from the University of Cyprus on more than 3,000 British twins showed the same genetic factors that account for having a “creative personality” also make people more likely to identify new business opportunities and to start companies. Our earlier research showed that the same genetic predispositions that make some people more likely than others to seek novelty also affect their odds of being in business for themselves. Furthermore, in research we undertook with a group of molecular geneticists, we found that a version of one of the genes that governs the level of dopamine in the brain, and which is associated with the tendency to search out novelty, was more common among entrepreneurs than non-entrepreneurs.


Hormones might be another pathway through which genetics influence how entrepreneurs think. A 2006 study showed that men with higher base testosterone levels were more tolerant of risk and more likely to be entrepreneurs than men with lower base testosterone levels. A 2011 study showed that entrepreneurs who had been exposed to more testosterone when in utero had faster growing firms than those who were exposed to less of the hormone.


As academics explore these questions, we will learn more about the role that nature and nurture play in accounting for differences between entrepreneurs and the rest of us. While future research will no doubt show that nurture plays a significant role, my hunch is that it will also reveal that the intuition of many practitioners is right. Entrepreneurs are “wired differently” from the rest of us.

The author is an Entrepreneur contributor. The opinions expressed are those of the writer.

Scott Shane

Scott Shane is the A. Malachi Mixon III professor of entrepreneurial studies at Case Western Reserve University. His books include Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live by (Yale University Press, 2008) and Finding Fertile Ground: Identifying Extraordinary Opportunities for New Businesses (Pearson Prentice Hall, 2005).

2.12.12

5 Ways to Cope With Working From Home

5 Ways to Cope With Working From Home

With millions of people still unable to make it to their offices in the aftermath of Hurricane Sandy, many entrepreneurs are likely spending this week working from home. While working from home is a reality for many, it can be a difficult adjustment for those who are used to the collaborative environment of an office. Toronto-based psychologist Amanda Beaman, who specializes in anxiety disorders, says natural disasters and events that are out of our control tend to heighten uncertainty, causing us to feel anxious and can negatively affect our productivity.

Use these tips to ensure your workday at home remains productive:

1. Be conscious of unproductive worry. During times of stress, you may find yourself forecasting into the future and worrying about hypothetical situations. Beaman says focusing on "what if" situations is unproductive worry. "It’s unproductive because there’s no real problem yet that can actually be solved," she says.

Be conscious of your thoughts and focus only on the concerns that are within your control. "When you notice yourself engaging in that pattern of thinking where it’s really unproductive, say to yourself: 'this is not a problem I can solve right now, so I’m going to delay thinking about this for now and return to what I was doing',"says Beaman.

2. Make a plan. "Human beings respond well to structure," says Beaman, who argues most anxiety issues are caused by interruptions in routines. Making a plan for your day can help you to regain structure. "Break up your day into small chunks and set some specific goals for yourself," says Beaman.

Goals not only help to provide structure to your day, they also help assess your accomplishments. Take care when setting your goals that they’re attainable, especially if you’re dealing with technology shortages. "Recognize that you may not be able to accomplish what you normally would when you’re in your office," says Beaman, and set realistic goals accordingly.

3. Reward yourself. "Having things to look forward to at various points of the day can be helpful [in combating feelings of uncertainty]," says Beaman. Schedule rewards into your day. Whether that means enjoying a cup of tea or watching a television program you normally don’t get to watch during the workday, these rewards can help you feel calm about the situation.

4. Communicate with your family. Working from home changes the family dynamic, especially if children are home from school. Create a plan for your family and discuss it together at the beginning of the day. "Be assertive enough to communicate what your needs are," says Beaman. Plan how you can get your quiet work time and offer kids rewards for being good participants.

Offering a pizza night or a family game night if kids play quietly, allowing mom and dad to work, not only gives them something to look forward to but can help calm their own anxiety about the situation.

5. Fight feelings of isolation through relaxation techniques. In addition to the change in your routine, you may also be feeling cooped up and anxious about not being able to leave your home. Make use of relaxation and meditation techniques such as yoga and deep breathing exercises to calm your nerves during times of heightened insecurity.

BY LISA EVANS

1.12.12

Entrepreneurs Need New Growth Models To Scale Up

Entrepreneurs Need New Growth Models To Scale Up

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Non-organic growth would include OEM relationships, finding strategic partners, “coopetition,” as well as acquisitions.

This initial focus is usually driven by limited financial and people resources, as well as the bandwidth of the executive team. Yet a creative and skilled team will often find that non-organic growth techniques can better leverage these limited resources.

An example of a startup which used non-organic growth early and effectively was Microsoft. Bill Gates started producing software solutions, like his Basic Interpreter and MS DOS, but quickly focused on adding thousands of small partners for applications, and major partners like IBM and other hardware manufacturers. Even mergers and acquisitions (M&A) came early.

Some people feel that organic growth is “better” because it requires real innovation and sustained effort to create long-term competitive advantage through differentiation and efficiency. They might agree that it cannot compensate for the speed and scale of growth of the non-organic approach, but has lower risks of failure.

Despite the risks, there are many advantages of non-organic growth, even in startup environments:
  • New product or service lines. Organic growth assumes innovation in the product or service, but non-organic growth through white labeling and strategic partners may add totally new brands and services to your revenue stream.
  • Fresh customer base. Teaming with another company, or buying another company, can add new geographical locations and new customer segments to the business. These relationships need not require cash investments; often they are done with exchanges of equity or assets.
  • Economies of scale. In many cases business opportunities with competitors (coopetition) will open up a new marketing channel, and definitely give you the cost advantages of scale. Economies of scale also apply to marketing, distribution, and sales.
  • New management skills. New business relationships mean new perspectives and new executives working on the opportunity. This can be a significant competitive advantage over major competitors, and overall reduces competition in the market place.
I’m certainly not proposing that one mode should be used to the exclusion of the other. Rather, I recommend that you pursue both concurrently, per the advantages of each. For example, if you are in an industry which is fragmented or has a slowing growth rate, with too many competitors, non-organic growth may be required for survival.

Use organic growth options for things which you do best, where there is plenty of room for growth by selling your products in new geographic areas, or using new sales channels, such as through a wholesaler or website. Organic growth is typically safer because you’re using a tried-and-tested business model, and you can reinvest profits back into the business.

Certainly non-organic growth has its pitfalls. Entrepreneurs, while partnering with or acquiring a new business, must check for compatibility and strategic fit. Yet startups looking for investors need to evaluate all the growth alternatives from the very beginning. “No growth” or even slow-growth companies waiting for an Angel may have a long wait.

Marty Zwilling

24.11.12

The Future of Jobs

The Future of Jobs

We need jobs in America, which means we need to unleash our entrepreneurs. Companies less than five years old have accounted for all of the net job growth in our country between 1980 and 2005. Our job creators aren't corporations, or government, or even small businesses. They are the founders of high growth startups. Creating millions of jobs means having thousands and thousands of new entrepreneurs taking risks and persevering past obstacles to create many more successful startups.

The formula seems simple. And yet there's a paradox. The jobs these startups are creating aren't like the jobs they're replacing. The single greatest challenge facing startups across America today is that they cannot find enough talent fast enough to grow to their potential. We have tens of millions of Americans unemployed and underemployed and yet the most vibrant businesses in our economy are starving for people to hire. What is going on?

The entrepreneurs building our high growth startups aren't looking to hire workers. Instead, these entrepreneurs want to build their companies with more entrepreneurs. They need team members who are motivated more by upside than salary, who are continuously learning new skills without being sent to training, who have sophisticated knowledge of the latest technologies, and who identify fuzzy, unstructured problems on their own and then solve them without being told what to do. In short, they need people who can get shit done.

The paradox is this. We need entrepreneurs to create the jobs our country needs. And yet the faster this occurs, the faster we shift from industrial economy jobs to these new entrepreneurial jobs, which many American are unprepared to fill. Whether we like it or not, in some elemental way, we're all going to have to become entrepreneurs.

Or perhaps I should say we're all going to have to become entrepreneurs again. Our revolutionary founding fathers built the greatest startup in the world. The pioneers who conquered the land set out, took risks, and wagered their prosperity and lives on their ability to produce. Entrepreneurship is central to the arc of American history.

For the last six or seven decades though, we've lived through this historical anomaly, where we were all told that we could simply be workers. If we developed a specific expertise, followed the rules, and did what we were told, then corporations and government would insulate us from risk and ensure our prosperity.

Being a country of workers isn't working anymore. I don't believe in that compact and I think more and more Americans are becoming disillusioned as well.

Change is scary, but regardless of what any politician or pundit tells you, we can't go back. The industrial economy is gone, we've already blasted through the knowledge economy, and we're building the networked economy as we speak. And yet we have an education system structured around an agrarian calendar that's teaching industrial era skills. Our children are taught to memorize facts and rewarded for their ability to fill in bubbles on a numbing array of multiple choice exams. What do standardized tests have to do with the skills that our startups are desperately looking for?

Startups need people who are constantly figuring things out on their own, learning from their peers, and reaching out to mentors for guidance rather than rote instruction. It's not about whatthey know, it's how they learn, think, and communicate. And despite what many pundits say, it's not simply about STEM skills. Someone who has learned to code but cannot think is less useful to a startup than an English major who can hustle and make things happen.

As I've shared in this blog, I had a unique education, getting expelled from two public schools before high school, graduating from the Thomas Jefferson High School for Science and Technology with remarkably bad grades, and then passing up college to build two startups before I was 25. The final element of my formal education as an entrepreneur, however, didn't occur in some super cool technology hub. It occurred at an 800-year-old institution.

After leaving my startup in 2001, then watching America go through 9/11, I had something of a quarter life crisis. I had a deep sense that our country was moving in dangerous directions, but I lacked the tools to explain and defend those positions. I began studying the big ideas of prior generations. While I was surfing the web at 3 a.m. one night, I wandered to the Oxford University website. In September 2002, I packed up and headed to England to study philosophy, politics, and economics at St. Catherine's College, Oxford.

Oxford was an intellectual revelation. There were no classes. Lectures were more a suggestion than a requirement. Each week for the next three years, I'd receive a paradoxical question and a list of books longer than I could ever read in a month. I'd absorb as much as I could and sit around in the pub debating the ideas with my friends. Then I'd show up for a one on one meeting with my tutor with a 2,000 word essay in answer to the question. My tutor would beat the snot out of my argument for an hour and send me off with another question and another list of books.

At Oxford, my tutors were upfront about the fact that they considered it irrelevant what facts I knew when I left. Rather, their job was to teach me how to learn rapidly, how to think critically, and how to communicate effectively -- and then leave me to spend the rest of my life filling my mind with knowledge. I had no meaningful exams until the end of my three years. At that point, I sat with a paper and pencil for eight three-hour essay exams that tested my ability to think in the areas I studied. The irony of Oxford is that by spending less time in the classroom with less exams, I rounded out the skills necessary to excel in the emerging economy. Several weeks after I put my pencil down on my last exam I found out that I finished with a First Class degree.

The Thomas Jefferson High School for Science and Technology gave me a tremendous foundation in technology, but delivered through a numbing array of standardized tests that were the antithesis of critical thinking. Rowing taught me discipline, the endurance of discomfort, and how to lead a team, but it was only a sport. Raising $1 million at 19 and building a startup taught me how to hustle and get shit done, but not how to really impact the world.

It was Oxford, though, which brought it all together and taught me to synthesize, analyze, think in a structured manner, and share the results with others in a compelling way. Of course, there's a reason that Oxford produces more academics than startup founders. The fact that exams still occur with paper and pencil is an indication of how much innovation has pervaded the culture.

To really build a strong foundation for America, it's not about jobs per se. As we unleash our entrepreneurs, we can create plenty of awesome jobs. The real challenge is to educate our children for these jobs. A strong America requires teaching children to challenge authority. It requires making technology central to everything they do. It requires emphasizing the ability to learn, to think, and to communicate rather than regurgitating facts and algorithms on standardized exams. It requires STEM and liberal arts and social sciences and fine arts taught holistically rather than forcing our children into industrial era silos. We need to borrow the best ideas from around the world--from ancient universities to modern charter schools to Khan Academy -- mix them together with strong emphasis on letting students learn by doing and then experiment until we find the models that work for our emerging economy.

We have no time to waste reinventing how we educate our children, but we also have to help those already in the workforce, who are struggling to adapt to the rapid changes in our economy.

Luckily you can already see what the future looks like. The really interesting institutions preparing people for the jobs of the networked economy aren't schools or universities or even community colleges. Instead, entrepreneurs themselves are stepping into the void. If you want to see the future of learning, go to 500 Startups, TechStars, Udemy, General Assembly, Code Academy,Hungry Academy, or the Boston Startup School. None of these existed a few years ago. None of them require you to rack up tens of thousands of dollars in debt. And all of them teach you not only skills, but more importantly how to get shit done.

20.11.12

Three Traits of Successful Entrepreneurs

Three Traits of Successful Entrepreneurs

Sometimes when you're wondering what to do next in life, good advice can come when you least expect it — like when you're getting your hair cut.

Joan*, the hairstylist giving me a trim, mused aloud about what she was planning to do with her career. Cutting hair was just one part of her livelihood; she was also a professional caregiver as well as the owner of a rig that her husband operated. But her husband was about to retire from the road, and now they were wondering, "What next?"

Over the course of our brief conversation, in no more than the time it took Joan to cut my hair, I picked up on three attributes of her success that are helpful for any entrepreneur:

Practical. Listening to her brainstorm reminded me that successful entrepreneurs know how to keep their feet on the ground. First, they get inspired through personal observation, developing ideas from needs they see in the world around them. Second, they develop a concrete plan. They may work the plan, changing it as they go, but always with an eye towards getting a good return.

Purposeful. People with a practical outlook seek opportunities that add value, as opposed to opportunities that just seem "cool." (It's easy to forget this distinction, especially in well-established organizations.) Their focus is offering products and services that customers need and will pay for. For instance, Joan's second job as a caregiver: that's a service for which there is always a need.

Impatient. Sure, patience is a virtue in some cases. But for an entrepreneur, so is impatience. Joan is eager to make things happen so that she can continue to earn a good living. When it comes time for her husband to leave the trucking business, she will be ready with another venture. Her gumption and ambition make her impatient for success, and that drive increases her chances of getting there.
by John Baldoni

9.11.12

13 Tips for Starting Up in a New Industry

13 Tips for Starting Up in a New Industry

Don't be afraid to explore foreign territory. We asked successful young entrepreneurs for their most poignant pieces of advice for founders starting up in an unfamiliar industry.


The Young Entrepreneur Council asked 13 successful young entrepreneurs for their best tips for starting a new business in an unfamiliar industry. Here are their best answers.

1. Don't Be Afraid to Ask Questions

If you're new to an industry, don't cower at networking events or do the "smile-and-nod" when you're speaking to someone with deep industry expertise. Instead, use every interaction as an opportunity to learn. People will be excited to answer your questions--while you may worry that your queries will come off as ignorant, most likely, the other person will interpret them as engaged interest! --Doreen Bloch, Poshly

2. Study Top Direct Response Advertisers

Find the top direct response advertisers--the companies spending money every month--in your industry and study their ad copy. Respond to the ads and document their entire sales process. The top advertisers have already figured out the best method(s) to generate leads and sales and maximize lifetime value, so start with what's working for them.
--Phil Frost, Main Street ROI

3. Find a Mentor

A mentor is pretty much your most powerful asset in any new industry. By finding a mentor willing to work with you, you can learn from their mistakes, accelerate your growth using their knowledge, insight and strategies, and get pre-qualified introductions to big players in your space.
--Travis Steffen, WorkoutBOX

4. Leverage your Fresh Perspective

Get rid of all preconceived notions and fully immerse yourself in every aspect of the industry to gain a true understanding of the market and opportunities. Take advantage of the fact that you're not biased and that you bring a fresh perspective and viewpoint, potentially providing you with a strong competitive advantage. --John Berkowitz, Yodle

5. Talk to Customers and Partners Every day

In any start-up, you don't know what you don't know. This is especially true when you're entering an unfamiliar industry. Get started through research, studying the compeition and talking to mentors. But in order to refine your business and make sure that you are providing great value, you must chat with your customers every day. Figure out their greatest pain points and deliver against them. --Aaron Schwartz, Modify Watches

6. Presume Ignorance

If you're starting up in an unfamiliar industry, do not presume that you know the answers. In fact, assume the opposite and open yourself up to learning. Talk to as many people in the industry as possible, ask lots of questions, get to know key players and connectors, and marinate in this new knowledge.
--David Ehrenberg, Early Growth Financial Services

7. Reconsider Whether It's the Right Industry

There are pros to tackling an industry you're unfamiliar with (fresh perspective, for example), but mostly, it's cons. Without an understanding of how an industry works, who matters in the space, and what competition already exists, succeeding in entrepreneurship just becomes more impossible (though, hey, don't let that stop you!). --Derek Flanzraich, Greatist

8. Attend a Trade Show...

There is usually a national or international trade show or conference in every industry, where the "who's who" all gather in one place. This is an event that you should be at. You'll have the chance to learn the lay of the land, meet hundreds of people in person and learn about what's new in your industry. It's also a great place to form new partnerships. Bring lots of business cards! --Luke Burgis, ActivPrayer

9...And Meet Your Match There!

Go to a trade show or networking event of the industry and notice who seems to have a strong presence, who knows everyone, and who is everyone talking about. Become friendly and close with that person, if they will let you. You can cut off a lot of trial and error time with the expert guidance!
--Andrew Bachman, Scambook.com

10. Hire a Trustworthy Lawyer

A few years ago I started my first business after over 10 years of working for non-profits. I found myself so lost. I was signing documents and agreeing to things left and right. Because I didn't have my own personal lawyer or legal team advising me, I agreed to some of the dumbest terms in the history of the world and it eventually came back to bite me in the ass. I'll never do that again. --Shaun King, HopeMob

11. The Devil Is in the Details

Make sure that you try and plan as much as you can, but don't let it get you so bogged down that you don't actually do something. Know that there will be something you miss, accept that, and move forward.
--Jordan Guernsey, Molding Box

12. Learn Why Others Have Failed

People naturally want to emulate success by analyzing successful business models, but I think it's more important to learn from companies that failed. There can be thousands of factors that contribute to business success, but when a business fails, it's often easy to pinpoint the the reasons...and avoid making the same mistakes yourself.
--Nick Reese, Elite Health Blends

13. Accept Help from the Experienced

Reach out to your advisors. They want to help you in your new adventure, and it is your responsibility to let them.
--Caroline Ghosn, The Levo League

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