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Lesson 3

LESSON 3

REASONS WHY AN ENTREPRENEURIAL MINDSET IS ESSENTIAL FOR BUSINESS

Five Reasons Why an Entrepreneurial Mindset Is Essential for Business

If you’re starting out in the business world, you might feel a little overwhelmed with all of the
information out there. You’ve probably been doing plenty of research, and you might’ve come across
the idea of an entrepreneurial mindset, which is, above all, a mindset that will help you to succeed in
the world of business. The essentials of an entrepreneurial mindset are, among other characteristics,
the lack of fear when it comes to innovation and taking risks, and the ability to take failures into stride.
If you consider yourself an entrepreneur, it’s important to know why entrepreneurial mindset is
important for business.

1. Thinking like an entrepreneur will help you right from the beginning
You have a plan for your business, you’ve figured out all the details, and you’re ready to start
making money, but it’s normal to feel worried or anxious about your new venture. Here’s where you
should begin to channel your inner entrepreneur! Creating that entrepreneurial mindset will help you
to think about what you’re doing and why. It will help you to know where you would like your business
to lead you, and what risks you’re willing to take to succeed. If you know the answers to these
questions, you’ll be ready to tackle all the challenges your new business throws at you.

2. An entrepreneurial mindset will help you in other areas of your life

Being willing to take risks and accept failure is a unique skill that isn’t relevant solely in the
business world. Incorporating an entrepreneurial mindset into your everyday life will help you to
minimize the importance of failure and rejection in your life. It will also help you to keep moving
forward even when things are difficult. Additionally, being able to plan ahead and foresee potential
problems (a key part of an entrepreneurial mindset) will help you to live a more organized, less
stressful life. In turn, this will help you to better run your business.

3. Having an entrepreneurial mindset will encourage creativity

If you’re open to innovation and willing to take risks, you’ll be more likely to think outside the
box. If something isn’t working well, there may be more than one fix, and you shouldn’t always fall
back on the simplest or safest method. Critical thinking is the key to a successful business, and being
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willing to find creative solutions even if it might mean more work will help your business greatly in the
long run.

4. People trust others who seem to know what they’re doing

The old saying “fake it ‘til you make it” is especially true in business. If you do your best to
think, feel, and act like an entrepreneur, people will treat you like one. By channeling an
entrepreneurial mindset, you’ll be able to make new contacts with ease.

5. Thinking like an entrepreneur will enable you to take healthy breaks

Don’t overextend yourself as rest and relaxation are important. Successful entrepreneurs know
that focusing entirely on business is a sure-fire way to burn out. Go on an international trip. Relax and
visit new destinations. You might be surprised by the ideas and inspiration you can get by
experiencing new cultures. If you are thinking like an entrepreneur, you will know that taking regular
breaks will actually benefit your business in the long run and that you need not feel guilty for indulging
once in a while.
If you’re wondering how to develop your entrepreneurial mindset, rest assured that there are
plenty of resources out there! To get started, you might like to jot down the names of your favorite
successful business people, and research how they came to success, and any advice they might
have.

The Entrepreneur Mindset of 10 Successful Entrepreneurs

Entrepreneurs are all different. They all have a different entrepreneur mindset that
contributes to their success. Their entrepreneur mindset might have to do with their personality or
even the field in which they have chosen to work. When figuring out your own approach to the
challenges of entrepreneurship, it can help to learn from the experiences of others.
The experiences and entrepreneur mindset of 10 well-known entrepreneurs from a variety of different
fields were selected. Each of their stories will help you in your own entrepreneurial adventures.

1. Reach Out to Customers First

Though it may seem to many like product development should come first, master boot
strapper Greg Gianforte insists that’s the wrong approach. After moving to Montana with his wife
and children after selling a previous company, Gianforte grew restless and decided to start again.
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He focused on the tech sector where his experience was strongest. But instead of starting with
a prototype for a product or service and then seeking funding, he started by getting on the phone with
potential customers. That led to conversations about what kind of product they would buy. After a
month of phone calls, Gianforte spent about 60 days coding the product his customers said they
wanted. He claims his company, RightNow Technologies, was cash positive from the beginning.
The business makes cloud-based software for large consumer businesses and was sold to Oracle in
2011.

2. Find a New Market for an Existing Product

Sam Phillips, founder of Sun Records, did not invent Rock ‘n Roll, but his small Memphis
label will forever be linked to its beginnings.
Phillips established his recording studio and eventually his record label as a way to capture the
interaction of country and blues music he was already familiar with as a DJ. There was a wealth of
talent he believed most of the country was unfamiliar with and had never heard. He created a relaxed
studio environment with unique acoustics to capture and immortalize that talent.
Phillips would eventually discover stars like Elvis, Jerry Lee Lewis, Carl Perkins and Johnny
Cash and he became an icon and a wealthy entrepreneur as a result.

3. Use Networking to Build Your Business

Many entrepreneurs talk about the importance of networking, but few are as specific about
how and why networking is important as Jason Nazar, co-founder and CEO of Docstock.com.
In an interview on the MyTreat Blog, Nazar says he owes his success — particularly the
founding and growth of his current company — to his networking efforts. He says he used networking
to raise $4 million in startup funds. He says he also used it to locate a co-founder and build the
majority of his organization.
Nazar gives some important advice to other entrepeneurs when using networking in business.
First, measure the return on investment you are getting from your networking efforts.
Second, make sure you give something of value first when making connections instead of beginning
by asking for something.
4. Give Without Expecting a Return
This may seem like a contradiction to our last point. But author, former hedge fund manager
and tech entrepreneur James Altucher stands by the belief that great opportunities come your way
when you offer something without looking for payback.
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Altucher says he regularly sends out ideas to people with whom he would like to do business
or those he admires and would like to meet and asks for nothing in return. Often he does not receive
so much as a response, he says, but sometimes the results are magical. In one instance, Altucher
sent investment expert Jim Cramer, co-founder of TheStreet.com, a list of suggested article topics. As
a result, Altucher received an invitation to become a contributing writer. TheStreet.com would later
invest in one of his websites, Stockpickr.com – then buy it from him.

5. Keep Control of Your Vision

Jack Ma, also known as Ma Yun, is the founder and guiding hand behind Alibaba, a giant
Hong Kong-based wholesale eCommerce site. Despite its popularity and financial success, Alibaba’s
road to acceptance outside China has not been easy. Complaints about counterfeit or fake items sold
on the site as name brands abound. And, of course, the problem is exacerbated as Alibaba attempts
to position itself as a site other businesses use as a source of wholesale merchandise.
As Alibaba considers going public with an IPO, another challenge looms. Ma wants
to keep tight control of his company and of the team of executives he already has in place. This can
be hard to do once investors enter the picture. Many want to have a say in how the company is run
after investing their hard earned money. But Ma believes in his vision for his company and in the
culture he has created to get the job done.

6. Understand the Power of Brand

When the first series of Star Wars movies was released in the late 70’s and early 80’s, most
people saw only a pop culture phenomenon. The string of successful films created a whole new
market for science fiction and fantasy. But creator and filmmaker George Lucas saw so much more.
To him, the first trilogy of films and the three additional movies that followed became a powerful
brand. That brand became a spring board to lucrative licensing deals for everything from toys, to
video games, to memorabilia and live attractions. In 2012, Lucas sold Lucasfilm and the Star Wars
franchise that went with it to Disney for $4.05 billion. In the meantime, Lucas clearly hasn’t lost his
interest in powerful and profitable brands. He recently invested $10 million in the successful
Starbucks cafe chain.

7. Focus Your Energy on What’s Good for Your Business

From best selling albums to a nightclub, a clothing line, a sports franchise and more, rapper
Jay Z is known not just for his music but also for his business acumen. His success is based in part
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on his focus. It includes a refusal to spend his time on anything that does not expand his
entrepreneurial ventures. Forbes staff writer Zack O’Malley Greenburg says this focus caused Jay Z
to decline involvement in a book Greenburg was writing about him. Instead, Jay Z decided to put out
his own book and profit directly from his own story and image. While some might consider this outlook
shortsighted, the question remains. How often have we allowed someone else to drag our focus and
energy away from our businesses – and what has it cost us?

8. Always Maintain Quality Control

From the age of fourteen when he began his apprenticeship in his family bakery until his death
in 2002, Lionel Puoilâne was obsessed. And that obsession was with the quality of bread that bore
his family’s name. Puoilâne became world famous for artisan crafted bread baked in wood fired
ovens. As international demand for his bread grew, he still refused to mass produce his product.
Instead, he insisted that each loaf still be hand crafted by a baker personally trained in his techniques.
Even as he experimented with more modern techniques and expanded his bakery operations,
Puoilâne’s interest in maintaining quality control in his business never wavered. His daughter,
Apollonia, continues that tradition to this day.

9. Set Your Product Apart

The desire to create a product that stands alone is nothing new. Way back in 1783, the
Primrose brothers (George and William) promised to produce crystal as fine as any in Europe –
and the Waterford brand was born. The brothers’ secret technique of combining glass and minerals to
produce crystal that actually “sings” when tapped with the finger became renowned. The crystal is
also known for the deep and ornate carvings created by skilled artisans that give it a distinctive
appearance. So beloved and valued was the Waterford brand that even when the factory closed in
the 1850’s due to economic hard times, the unrivaled quality of Waterford Crystal was never
forgotten. Almost a century later, the Waterford Crystal tradition was revived, returning the crystal and
the town in Ireland for which it was named, to their former glory.

10. Take Ownership

Oprah Winfrey had experienced plenty of success as a broadcaster and even in the
entertainment industry before ever launching the Oprah Winfrey Show in 1986. After some initial radio
and TV jobs, she would host a successful chat show in Baltimore and later a show in Chicago that
beat Phil Donahue in local ratings. She would even star in a movie, “The Color Purple” with Whoopi
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Goldberg, directed by Steven Spielberg. But it wasn’t until after taking ownership of her syndicated
talk show from ABC that Winfrey’s entrepreneurial skills began coming into focus. Her production
company would eventually produce other TV and film projects. Winfrey’s entrepreneur mindset
eventually led her to launch a magazine and even her own TV network.

HERMELITA M. ANTIVOLE, Ph.D.

Faculty