An “Assumption” is where you believe something to be true, but it is yet unproven while a “belief” is something you are certain is true. As a small business owner, you should always challenge a belief and treat it as an assumption because your beliefs may not be facts.
Assumption vs. Belief – Why You Need To Know The Difference Read More »
Entrepreneurship has changed in recent years and why you may no longer need to write the classic version of a business plan.
Why Being Told You Need a Business Plan May Be Bad Advice Read More »
Most guides on building a business involve the same sort of rehashed content. The thing is a lot of these pieces of advice aren’t true. They’re either misinterpreted by the new entrepreneur or they’re completely wrong.
Most People are Wrong about How to Build Your Own Business, Here’s Why Read More »
One of the problems with obtaining any kind of knowledge, especially when it comes to business, is that while some kinds of knowledge can be easily codified and articulated to others (Explicit Knowledge), there are also some forms of knowledge that are much harder to pass on and must be experienced (Tacit Knowledge).
Tacit Vs Explicit Knowledge – Why You Need To Know The Difference Read More »
Many individuals with stellar academic performance go on to become wonderful scientists, engineers, and even professors but with mediocre earning potential. Entrepreneurs need to be a jack of all trades and not an academic master of one.
Success Comes From Being a “B” Student Read More »
Business owners too often confuse cause and effect and expend significant effort solving the wrong problems. A tool that can help business owners to separate cause from effect is known as a fishbone diagram.
Do You Suffer From a Cause and Effect Fallacy? Read More »
The people that reside in your inner circle of friends can profoundly influence your success in life and business. To be a successful entrepreneur, you need to evaluate the company that you keep to see if it is aiding in your success or hinder it. Are your Friends preventing your success?
Are Your Friends Preventing Your Success? Read More »
Conventional business advice is that in order to have a successful business you need to write a business plan. However, did you know that the simple act of writing a business plan can often lead your business to fail?
The Simple Truth Why Business Plans Cause Business Failures Read More »
Recently, I was speaking at a local community college about the value of an entrepreneurial mindset. While there, one student asked me, “How important do you think a college degree is to becoming a successful entrepreneur?” The question was a bit awkward since I was the guest speaker with no college education and there were
A College Degree and Entrepreneurship in the Millennial Generation Read More »
You need to shape the future rather than predict it. Why a manager entrepreneur approach is very different from a founder entrepreneurs
Exploit the Future by Shaping It – Don’t Try to Predict It Read More »
Learn how the strategic partnership principle practiced by founder entrepreneurs can help you build products for little or no cost
Strategic Partnership Principle – The Truth about Competitive Analysis Read More »
The reasoning style of the manager entrepreneur, with their predominantly causal reasoning, approaches a business startup very different from the founder-entrepreneur, who approaches a startup business primarily with effectual reasoning.
How Your Reasoning Skills Can Affect Your Business Success Read More »
Previously, we looked at how the startup landscape has changed and that you might not need a formal business plan to successfully launch your business. In this post, we will look into why we keep getting the same old business advice. What has emerged, as the funding and risk gap has widened, is a greater
Why The Business Advice You Are Getting Is One Sided Read More »
Innovations and manufacturing businesses have different planning requirements than the more common support and local service businesses.
Why The Business Planning Advice You Have Received Is Probably Stale Read More »
When a new disruptive technology is discovered, it is often marketed aggressively by the developer. The typical cycle is that it is over-hyped and people expect huge results. They invest heavily as they succumb to the madness of the crowd. Most often, V1.0 products meet with a few roadblocks that tarnish its appeal. Most dissatisfaction
The average person is told as a child to be quiet, stay out of trouble, and don’t make waves. If they go to college, they are told to set realistic goals and expectations for their lives. The worldview they adopt is that life is dangerous and scary. It is best to play it safe and
Coloring Outside The Lines Read More »
Most people think that to earn more money you have to have an advanced degree. You may think that if you have a Bachelor’s degree, but aren’t making enough money, the answer is to go back to school and get your Master’s degree. Then you’ll earn more money, right? If you already have a Master’s
The Advanced Degree Read More »
Highly educated people like to associate with other highly educated people. Physically fit people like to associate with other fit people. People with a deep-seated belief in a particular faith associate with others of the same faith. It is human nature to be attracted to like-minded people. Like attracts like. However, the savvy entrepreneur with
Like Attracts Like, But Should It? Read More »
Nothing is more dangerous than an idea when it is the only one you have. When confronted with a problem, most people think, “What is the answer?” as if there is only one right answer. As the saying goes, “There is more than one way to skin a cat.” Creative minds look for more than
What Is the Answer? Read More »
If you are at the amusement park, preparing to get on a ride, and the operator says, “It will bring the kid in you out,” a set of expectations has been created. However, if an obstetrician says the same thing to a woman in labor, it means a completely different thing. Life is full of
Change Your Context Read More »
Climate change has been blamed on our overuse of fossil fuels and pegged as the leading cause of the inevitable doom of our species. However, climate change in the form of ice ages and droughts has occurred many times during the period of mankind. Climate change has even led to some of our most important
Climate Change Spurs Innovation Read More »
Many successful entrepreneurs know that being successful is not about academic education. Instead, they know that being successful is about focus and persistence. Many successful entrepreneurs are high school and college dropouts. They quit school because they didn’t see the purpose of what they were learning. Many school curriculums are too narrow or too broad
Is Academic Education Overrated? Read More »
The general narrative is that job satisfaction is tied directly to an employee’s earnings. In fact, many studies have shown that a person’s wage is not closely tied to a person’s job satisfaction levels at all. Growth, level of autonomousness, and connection to colleagues are considered to be the top three attributes of job satisfaction.
Money Does Not Equal Job Satisfaction Read More »
Between a stimulus and our action is a period of time. Sometimes that time period is very small and an unthinking “reaction.” Other times it can be long and is a thoughtful “response.” A reaction lacks conscious intention while a response is more conscious and thoughtful. For example, if a bee stings your arm, the
Reaction vs. Response Read More »
My son just recently sold his house, which got me thinking about selling real estate and more specifically the role that having an open house plays in the sale. What do you think is the true purpose of an open house? If you said, “To sell my house,” then you might want to guess again.
Who Benefits Most From An Open House? Read More »
Business people can learn a lot from human evolution. Of all the animals in the world, humans are by no means the strongest or even the fastest. We owe our survival to being the smartest. Our brains evolved to solve problems related to surviving in an ever-changing and often hostile outdoor environment, so as to
Evolution of the Brain Read More »
If money is your hope for independence, you will never have it. The only real security that a man can have in this world is a reserve of knowledge, experience, and ability. The saying “easy come easy go” refers to the fact that having money without knowledge means that you will soon be separated from
Knowledge Trumps Money Read More »
The Civil Rights Act of 1964 was an attempt to provide equal rights for black Americans. It expressly prohibited discrimination in voting, education, and public facilities. Although fraught with lots of implementation issues, integration in schools changed many people’s mindset about other races. It is human nature to like “like-minded people”. We often erect artificial
Most people believe that when you sleep your brain sleeps too. In fact, your brain never rests. It uses periods of sleep to process and learn. Workaholics who deprive themselves of sleep to get more work done may think they are being more productive, but in reality, the opposite is true. Your brain needs periods
Nap To Be More Productive Read More »
What does personal freedom mean to you? I have often stated that most people are not really motivated by money itself. Rather, I say that money is just a means to achieve social and professional standing, also known as status. I would add to that idea that the accumulation of wealth, most often accomplished through
Money = Personal Freedom Read More »
Most people think since they were very good in school they are just not smart enough to be an entrepreneur. They associate being smart only with a high intelligence quotient or IQ. IQ is a measure of how one does on tests or more specifically how well a person can memorize and recall information. Performing
Test Smart or Street Smart Read More »
Most people think in a very linear fashion. When they discover a potentially promising investment they look at their income and expenses and say “I just can’t afford it”, and pass up many good deals. Entrepreneurs are not constrained by money and think more non-linearly. When exposed to a promising investment they look at its
Linear vs. Non-Linear Thinking Read More »
Most people believe that money is meant to be spent for articles of instant gratification as a reward for their efforts. These same people usually live beyond their means and fund their lifestyle with debt. They spend their leisure time in activities that have no real value, such as watching sports or reading novels. Entrepreneurs
Money is for Spending vs. Investing Read More »
Most people think that to create personal wealth requires hard work. These same people work hard from 9-5 and get paid for their results. Consider the construction worker or waitress who engages in hard physical labor for their wages. They believe that building wealth is a solitary effort and they crave recognition for the efforts
Solitary Hard Work vs. Leverage Read More »
Most people, when they think about money, think money is what you get when you sell your time. For example, they trade a 40 hour work week for a wage. Entrepreneurs know that money is generated by identifying problems and selling solutions. They understand that money is not earned through one’s labor but through one’s
Work for a Wage vs. Creative Thinking Read More »
Some time ago, I did some research on the role dyslexia plays in entrepreneurship. I came across findings by Sally Shaywitz of the Yale Center for Dyslexia & Creativity that indicate dyslexia is a key attribute of many successful entrepreneurs. Notable figures such as Richard Branson, William Hewlett, Henry Ford, Ted Turner, and Charles Schwab
Dyslexia and the Entrepreneur Read More »
As you might imagine I have the occasion to speak to lots of successful business people and spend much of my time trying to understand what attributes make for a successful entrepreneur. One difference I see is how non-entrepreneurs and entrepreneurs approach education. The vast majority of my friends that have successful jobs working for
An Entrepreneur’s Perspective on Education and Success Read More »
One of the goals of this blog is to help entrepreneurs think about common problems in totally new ways. To that end, I would like to introduce you to Takeru Kobayashi, who as a rookie in 2001 smashed the world hotdog eating record simply by rethinking the problem. Up to that time, the record for
Rethink The Problem Read More »
By far the most common feedback I get from would-be entrepreneurs for not starting a business is related to their fear of failure and not being able to provide for their family. The traditional concept of a person quitting their day job to start a business is no longer valid. I think this concept remains
Number One Reason For Not Starting a Business Read More »
Ignorance can casue you to see things insider cannot. It’s great to be highly familiar with the industry in which you plan to compete, but many times insiders see too many challenges and obstacles and never start a new business. Entrepreneurs with limited industry knowledge sometimes see opportunities because the industry has changed in ways
Ignorance Can Be Bliss Read More »
I recently read an article talking about the school voucher program and how it would force schools to be more competitive. While I think there is some merit to the school voucher program there is a much more important business lesson here. A school voucher program would mean that parents could send their children to
My grandparents legally immigrated to the US from Germany after WWI. With an identified sponsor and a trade, the path to legal immigration was open to them. Today this is not the case, so what is different today? The answer is robust social welfare programs paid for by citizens, who often make more than new
Illegal Immigration is Good Read More »
State lottery games take in about twice as much money if they pay out to the winners in a single lump sum vs. a series of 29 annual payments. Furthermore, the overall odds of winning are not very good: 1 in 259 million for Mega Millions, to quote their website. However, when the jackpot gets
The Lure of Big Money Read More »
Many people, and many businesses for that matter, really do not understand the difference between an asset and a liability. When asked what is your biggest asset most people will say their house. An asset is essentially something that helps put money in your pocket and a liability is something that takes the money out.
One Person’s Liability is Another Person’s Asset Read More »
More than seventy percent of Americans think we should spend more money on education to reduce class sizes. However, report after report indicates that unless a class size is very small, say, five students, there really is no difference in student achievement between a class of ten or a class of thirty. So why do
Do Your Own Analysis Read More »
Ask the average person what made the car affordable and you would hear it was the way Henry Ford used the concept of the division of labor as outlined by Adam Smith in the Wealth of Nations. Most people naturally assume that if you have a job composed of many tasks it is better to
Efficiency Myth BUSTED Read More »
Often the entrepreneur states that a primary reason for starting a business is to make more money. As the old saying goes, “Money does not buy happiness.” One reason this is true is that the simple fact that you have money has not changed anything. It is what you do with the money that can
Making Money is Not Enough Read More »
Do you remember “paint by numbers”? Would it not make more sense to paint by letters since there are 26 letters in the alphabet and only 10 numbers?
The concept of “average” is just not real, except in mathematics. When it comes to marketing, think typical or median: not average.
