Entrepreneurship in theory and practice
Entrepreneurship in theory and practice

The Simplest concept behind the entrepreneurship in theory and practice

On the other day I was walking with one of my students of startup mentor ship class. He said I just like the way entrepreneurs make money and become rich, Just like Elon Musk. I asked what do you know more about entrepreneurial lifestyle. He just stated the “money way” again. Here comes the main point what is the difference between entrepreneurship in theory and practice? Was the student not clear about it?

Yes and no.

Obliviously, the student was passionate about the entrepreneurial lifestyle and was at initial level. But we are not.

There is a difference between desiring and deserving.

What do you think about it?

Elon Musk, as the student stated, is an entrepreneur, and has became a fresh role model of many.

But do we know the real struggle behind his success? Have you heard about his passion and the way he works and, even today, he can sleep on couch of Tesla factory ? Read his biography and you will know about the difference between money making and serving people or humanity.

Entrepreneurship in theory and practice, are two different lines, and at the intersection of both of them, success happens. An entrepreneur knowingly or unknowingly works hard to meet this intersection point.

This demands extremely smoking hot passion, patience and hard work.

Entrepreneurship in theory and practice : The need of the study

Entrepreneurial community is a rare air community. We, the entrepreneurs, work hard to make our dreams real.

An entrepreneur has no past experience of any business activity and starts everything from scratch. This becomes fatal for any dream.

Do you know 9 out of every 10 startups of every entrepreneur fail eventually. Doesn’t matter what goes wrong? But it just happens.

For instance, there are certain psychological traits and myths that influence an entrepreneur to do things in a wrong way. Like motivation just for money (A sign of Pure Greed ).

Therefore, books, lessons or these kinds of studies might help mend an entrepreneur’s way at an initial level.

I hope you have got the idea. Right?

So Let’s dive in.

1. Entrepreneurship is a tool of new age for making a tons of money

Reality : Yes and no.

Yes when you are successful and traveled this journey a while by gaining some experience.

No, when you are looking for a short cut or overnight success.

Everyone wants a better lifestyle. Right? And, So do you.

For that,people pay. Ultimately it is quality of service or product.

If your product or service not fulfilling their requirement and not changing their life styles why would they choose it? I hope you get the idea.

So it is not money, especially in the beginning, but yes in the end.

keep your customer’s life elavated and they will do the same with you. So Money is the by product.

Chances are, when you are chasing the money, you are not focusing on quality or service. So just focus on product not on pockets of your clients.

2. The Rich lifestyle : Ferrari and Mansions alongside a beach

That is the bright side and, if you are working for it, by thinking that you can achieve all that in a couple of years, just forget.

You need to grind for a few years, it may be three to ten years or even whole life like KFC’s owner.

We are talking about the long term business thing, right? Not instagram influencing, or part time YouTubing. Yes you can make a lot of here too, but don’t they ask for hard work?

If we consider the money in seen, it may help you to gain a few subscriber or followers in such kind of business. But initially most entrepreneurs are broke.

You can read the book by Shark Tank’s Daymond John’s book the power of broke to learn about starting and managing business without money.

Finally the reality is, you can not own all those glittering things overnight. You need to work hard and even in the weekends, while others are partying.

But Believe me, friend, as I believe you, your hard work will pay you off soon. Just keep walking.

Remember one thing, Even the darkest hour has sixty minutes in it.

3. A perfect business plan

No business plan can be a perfect business plan from get go. You need to keep it altering time to time while brainstorming with your team.

You might need to change operations, location, fund managements and others things.

Vision and goals cannot be changed as they are the core values of your business, you raise funding around them, and you run your empire on the basis of them.

So, do not try to keep a perfect business plan in hand. Just have a few things written clearly on it:

  1. Kind of business, goals and vision
  2. Who is your potential customer or target audience?
  3. How are you going to do it or implement it?
  4. What kind of resources would you need, and how will you use them. A rough idea

That’s all. Start working and find flaws, correct and then keep going.

4. First Product Is The Final Product

This is the most important point while discussing the aspects of entrepreneurship in theory and practice, as most entrepreneurs either try to make it a perfect product or they try to keep it final.

In first case, as I said in one of my posts, perfection is the enemy of profitability ( Originally said by Mark Cuban). So just launch when it is ready up to 70 to 80 percent of what you have imagined.

In second case, When you consider it as final, may be market would reject it, you try to avoid feed-backs, and this can kill your business as nip in the bud.

Here comes the concept of Minimum Viable Product or MVP. MVP is the initial product which is a low bet to fish out the market.

Simply, MVP saves your life by cutting costs of huge production or investments. It is just for testing the segment whether you are right or not or partially one of them.

Idea is clear. Right? Let’s discuss another aspect of entrepreneurship in theory and practice.

5. You Are The “In Control” Of Everything.

You can not be a one man army. Most entrepreneurs try multitasking in such a way that either they interfere others’ work or try to do all tasks at their own.

No, just don’t do that. Outsource your work to others, even if you can not afford to have a team on board.

You can use fiverr or freelancer like websites to hire some people on project basis

You just need to focus on business and on in which you are expert.

The negative point about this thing is that, it will choke your brain and thinking capacity. Initially it might look great but this habit might kill your dream.

6. Ideas Are Top secret, And Should Not Be Discussed.

Think in this way, you do not have a big budget to test the market. You do not have any experience of creating audience on facebook or similar advertising platforms.

What is the option left to you now?

Obviously brainstorming and think tank things work here and will keep working a few more centennials.

Here comes the myth, you are afraid of losing your idea. But this is the only option to validate the idea at a very initial stage.

There are two options by which you can disclose your idea to someone

  1. Share or discuss with whom you trust
  2. Ask your companion to sign a NDA ( Non- Disclosure Agreement), in which he/she will state that he/she will not disclose your idea.

And validate idea by asking a few more heads. You will have a rough but directive idea about your main business idea. Now you can alter the idea if required or can go ahead with a confidence.

so don’t think ideas are secret.

Ideas are cheap and available everywhere at the cost of a song.

Investors invest in people not in ideas. For example see the shark tank episode of QuikFlip Guy, and have a look over his energy and potential.

7. Funding Can Help You Make A Fortune, (at earliest)

They may look like an angle, but may not be angles in real.

Okay, Don’t get afraid. Consider selling out your business at initial level by diluting equity stake.

You might loose control over managing and can be asked multiple times to show the investments patterns plus accounts.

Of course, an investor wants to make his investments the best returns at earliest. You opted in for funding thinking that it will open the gates of heaven, instead the investor can put you through hell.

It is money that can make or ruin the game. So try to take it from personal circle like family and friends. Also, apply for personal loan if you need.

Still if you need funding then go for crowd funding. You can use kickstarter kind of website for this.

So try to avoid funding at initial level. I am not saying it will ruin you, but it may.

8. Launching At a Mass Level

We can see the bigger difference scenario for Entrepreneurship in theory and practice, and I think this is the first dream of every entrepreneur of launching their product. And as soon as they want to lauch it they become addicted to the dream of becoming the next unicorn.

But there is a challenge, consider the following points

  • If there is a slight chance of failure, and it may happen, no big deal. Then your mass level launching may become your mass failure.
  • Second thing, You may create a headache for the big players of the very same industry. Disruption Alert!
  • Mass level testing and launching are the obvious sign of a big team and management. A little bit mistake can ruin the startup from root to top.

So what is the solution?

Simple, Think big but start small. Make a grip over local area. Just like paypal.

Paypal just launched its services for ebay users. As they used to transact using check payment method. This caused them a late payment problem.

Paypal saw this opportunity and introduced its service to only ebay users. As it was not a big move at that time so no big boy was interested. They dominated it and then disrupted the whole market slowly.

Same case is in Amazon. Amazon listed only books, and then dominated the book market. Further it moved to next level and presented itself as the biggest eCommerce marketplace on the planet.

So just don’t jump and get killed. Staying in game is much important then trying to win on the behalf of a few shots.

9. Your CEO Position is Secure

Even the post of CEO was not secure for Steve Jobs in apple. The very same company, like apple was Steve and Steve was apple. Still Steve jobs was fired from Apple.

Company is a living entity and it needs continuous growth. As it grows larger it becomes a larger ecosystem. Many lives count on it and many other needs much things from it then you think.

It simply means, that as long as you are willing to work, you have to be working like your first day. Same zeal, same enthusiasm and same passion.

So considering that your CEO post will belong to only and only you is a stupidity. That post is valuable and it needs deserving and outperforming candidate.

Even no one’s job is secure now a days, doesn’t matter who is what.

So be fair to your role. And your company will love you like TATAs like Ratan Tata and Infosys loves Narayanmurthi.

10. Invention and Uniqueness

Most of the entrepreneurs think they need some kind of innovation in order to become successful.

Remember your school days. Everyone would prepare for the top rank. But could everyone get that rank? Nope, some would get second, some third and so on.

Some would fail too.

In the very same way, innovation and uniqueness give you an advantage to move faster and a competitive edge over the industry.

But this doesn’t mean that if you do not have the unique idea, you will not succeed. You can still become successful provided you have the power of bouncing back from failure and taking actions.

There are innovations in processes like MacD and Apache helicopter assembly.

There are innovations in car and battery industry like Tesla.

Remember a few years back, distribution and dealership channels used to be the kings for the product supply chain management but now direct to the customer method reduced the costs of warehousing and dependency on those kings.

You can observe an existing industry, list out the patches and faults that can be improved.

Prepare initial list of feed backs, start implementing them, it can be an innovation too.

You can go from zero to one if you have the innovation and zero to n if you have a derivative business ideas, as Peter Thiel described in Zero To One book.

Wrapping up : Its time to start working on that billion dollar dream

Entrepreneurship in theory and practice is a vast topic to discuss. I have discussed a list of ten different and vital points. Will try to keep it updated as and when it becomes possible.

We discussed different aspects of entrepreneurship in theory and practice, as most entrepreneurs got stuck in these problems or say myths.

First, and most important, do not keep the money as a target. Second, do not over think over business plan. Avoid early angel investing, go for crowd funding, this will validate your idea too. Share and discuss your ideas in your circle, don’t be afraid doing it.

Do not rush over things to do it all alone as it may cause you a mental fatigue along with exhaustiveness. Launching at mass level can invite big troubles and lastly, you can create a business without an invention.

Innovation is just an edge over competitiveness in the market.

Innovations, Uniqueness, excessive investments, intellectual rights, like patents, Trade Marks can create a barrier for your competitors. This gives you a significant amount to make your business successful.

Tell me, which one of all above was liked by you the most. Suggest some more, I will happily include them too.

I wish you a good fortune ahead. Keep visiting.

Jai Hind.