Intelligent entrepreneurs by Bill Murphy Jr

http://WhatILearnFromReading.com

The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship

by Bill Murphy Jr.

Teerawat Issariyakul

Friday, February 1, 2013




Outline

Entrepreneurs

The Rules

Summary





Entrepreneurs

What is an entrepreneur?

Why would you like to be one of them

Can you train to be one of them?

What do you need to do to be one of them?





Entrepreneurs

Business owners

“If you’re reading this book, it’s probably because you hope to become a truly successful

entrepreneur. You want to build something dynamic, useful, and great, and may be even get

rich in the process.”





Why Entrepreneurs?Entrepreneurs

Change/Rule the world

Money for survival

Tired of bureaucracy

Focus on idea

Employers

Moving up the corporate ladder

Money for my family

It’s not bureaucracy; It’s the control mechanism

Focus on Management





The Problem with Tech Startups

Begins with tech. founders

Grows too fast

The founders do not learn management skill fast enough.

Fired by the investor!

Sean Parker





Mindset Matters

It’s my idea! It’s mine!

Why should I be kicked out from my own company?

What do you care more? The company or yourself?

Do you have management skills?

Ideas are a dime a dozen. Execution is what is

important.”

-- Professor William A. Sahlman, HBS





Why does most venture fails?

Commitment

Wrong Business Idea

Understanding Market

Hiring: Right people, right offer

Money/Capital

Communications

New opportunities

Bad luck/Blame bad luck for not understanding the true reason





Jobs of Entrepreneurs

Evaluate opportunities

Access require resource

Acquire the resource

Manage the venture

Harvest the value





Entrepreneurship can be learned

Entrepreneurship is NOT an innate ability

Like an athlete ➠ The more you train the better you are!

A process of believing and commitment rather than skill.

Skill are commodity; You can always hire skillful people.




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10 Rules!

1.Make the Commitment

2.Find a Problem, Then Solve It

3.Think Big, Think New, Think Again

4.You Can’t Do It Alone

5.You Must Do It Alone

6.Manage Risk

7.Learn to Lead

8.Learn to Sell

9.Persist, Persevere, Prevail

10.Play the Game for Life





Rule#1: Make the Commitment





What do you want?

How badly do you want it?

Follow the trend?

Want to get rich?

Disappointed from day jobs?

Either way, you have to be committed!





Assess Yourself

Obligation: Family?

Support: Environment, emotional support?

Opportunity cost: Quit your jobs?

Capability/Track record?

“Opportunity is personal, not universal. It grows out

of your talents, experiences, interests, and the problems that

you’re uniquely positioned to perceive in the world."





Rule#2: Find a Problem, then Solve It





Problem ➠ Solution

DO NOT Begin with Solution!

Problem

Who care?

Pain v.s. pleasure business

Forget about your strength!

Start with what interest you!

If you fail, you’ll fail for what’s valuable to you

“A real opportunity consists of both the problem and the

proposed solution.”





A Recipe for Success

Finish the school

People like Zuckerberg, Jobs, Gates are rare

Learn about finance, incorporation, etc.

Work for others and gain experience!





Rule#3: Think Big, Think New, Think Again





Think Big

Life is short! Make it worth your time, your customers’ time, your investors’ time.





Think New

Think Different!

“The people who are crazy enough to think that they can change the world are

the one who do!”

-- Steve Jobs

--Apple Think Different Campaign, 1997




http://WhatILearnFromReading.comFriday, February 1, 2013




Think New

Your customer needs to think new too! ➠ Educate them

Protect your innovation

Large organization may undercut you

Do something radical; They have more legacy, i.e., more to lose than you do.

“Innovation usually comes from either bringing a new technology to an industry or coming up with a new

business model.”





Think again

No great innovator get things right by the first time!

Apple

Not good at inventing things

Good at making existing things perfect

“If coming up with innovative ideas is difficult, doing so again and again

is much harder.”





Rule#4: You Can’t Do It Alone





Teamwork

It’s hard to do it alone.

There are always the second person

Steve Jobs

Steve Wozniak

Bill Gates

Paul Allen

MarkZuckerberg

Eduardo Saverin





Teamwork

Business plan matters but founders are even more important

2-3 founders

Complementary skills

Too many founders ➠ Disagreement!





Finding your team

Be passionate

Go to the right place

Be sociable

Use all networks you have

Use Technology

“people are drawn to the excitement of somebody who is really alive, really on fire about something”





Rule#5: You Must Do It Alone





A Lonely Life

It’s hard to do it alone.

But, it’s your dream. You must do it alone!

No one in this world can make you truly satisfied!

You parent can be your worst enemy

You are leaving high-paying jobs! What do you expect them to say.

Bottom-line: Be prepare for loneliness“To be a champ you have

to believe in yourself when nobody else will.”

-- Sugar Ray Robinson





A Lonely Life

You will have to face disappointment

Look at and talk to other entrepreneurs

Inventorize your success and build up confidence

Be proud: At least you are trying to do something others’re afraid to do.





Rule#6: Manage Risk





Risk: Take v.s. Manage

What is risk?

Is not taking risk risky?

We don’t take risk. We manage risk, i.e., collect, assess, minimize

Different people different risk

Always have a plan B.

Maintain liquidity: DROOM

“One of the great myths about entrepreneurs is that they are risk seekers. All sane people want to

avoid risk.”

– Professor William Sahlman, HBS





Rule#6: Manage Risk





Risk: Take v.s. Manage

What is risk?

Is not taking risk risky?

We don’t take risk. We manage risk, i.e., collect, assess, minimize

Different people different risk

Always have a plan B.

Maintain liquidity: DROOM

“One of the great myths about entrepreneurs is that they are risk seekers. All sane people want to

avoid risk.”

– Professor William Sahlman, HBS





Rule#7: Learn to Lead





Roles of Leaders

Not to be more intelligent

But to

Inspire/motivate/connect to your people

Hire/Fire

Run a meeting

Moderate conflicts

Lead them towards a common goal

“Leadership is getting someone to do what they don’t want to do, to achieve that they want to achieve”

-- Coach Tom Landry





What Leaders Need to Do

Be passionate

Communicate: Listen!

Make you destination clear

Put aside your ego

Arrange PARTY!





Rule#8: Learn to Sell





Selling in IMPORTANT!

Leading = selling your ideas = convincing people

For a good sales person

Prepare to take “No”

“No” = Undecided

Don’t Lie! Lying is good only for a short-term

“People want to believe. They want to believe in you. They want to

believe in your company. And, your job is simply to give them the

opportunity to believe.”





Rule#9: Persist, Persevere, Prevail





Persist!

It’s normal to encounter 100 “no” before a “yes”

Do not give up!

Old saying: What doesn’t kill you will make you stronger!

“Never give in. Never give in. Never, never, never, never – in nothing, great or

small, large or petty – never give in, except to convictions of honor and

good sense.”

– Winston Churchill





Correlation of Attempts

Success leads to more success

Failure may not lead to success

Not getting things right from the beginning

Success is a better lesson

People don’t usually admit and correct their failure!





Keep Trying

If you’d like to reach the top: - Don’t be afraid of hardness and exhaustion - If you fail, at least you die trying. - Start now!





To Be Successful

Keep the record of what you did well

Read as much as you can

When you can’t move forward, look for other solution

“The idea just gets you started. Once you get in the game, you’ve got to work at it until you figure it out. And no matter

what we do, no matter how much success we have in a given year, the game is always about survival. Nothing stays the same for ten years. We’ve had to change our strategy year after year after year. If you can survive through all the tough times, you’ll be that much stronger when the good

times finally come.”

-- Marla Malcolm Beck





It’s time to sell your company

Nothing is good forever.

Find the right moment.

Sell your company

The investors might even hire you to run your company





Rule#10: Play the Game for Life





Life and Success

Define your success:

Money,

Make impact,

Exploit your full potential

What exactly do you want?





Your Life: Balancing or Juggling?

Important things in life

Happiness

AchievementSignificance

Legacy





If you are an entrepreneur,...

“Entrepreneurship isn’t just about solving a problem, building a venture, managing risk, or

making money. It’s about having a positive impact on the world, making the most of the

gifts you’ve been given, and realizing your full potential as a human being. An intelligent

entrepreneur, in short, plays this game for life.”





Summary

We can learn to be an entrepreneur

There are few things you need to be successful➠ Start with passion and commitment➠ End with patience and persistence

But most of all, DEFINE your own “SUCCESS”






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Opening date: 12/12/2012

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