I was recently speaking on "Myths & Facts of Entrepreneurship" in Entrepreneurship Summit 2007 at IIT Kharagpur (KGP) on behalf of NEN. Overall, the event was nice, but it made me think over few points.

1. Can we really teach entrepreneurship?

Entrepreneurship, as I see is,

• An instinct,
• An attitude to create something new,
• An activity which creates value in the entire social eco-system, 
• A creative expression of interest in solving problems around us 

Till date, I am yet to meet an entrepreneur who has been taught about this subject in a formal setting, and that he has actually gone out and done it, and made it successful. It is a state of mind, which develops naturally, based on his surrounding and experiences, which makes him think about life and career in a given way.

Such events (like Entrepreneurship Summit) can inspire someone to be an entrepreneur, make a person desire to start a venture, but I am not sure if it can create the state of mind.

2. In many cases, I have seen that entrepreneurship is not be plan. It is by destiny. There are hundreds of people who were pushed to the wall and were left with no choice to take on the world all by themselves. They rose up to the occasion and did what it takes to survive. Today we call them successful entrepreneurs. This again emphasize that entrepreneurship is a state of mind that is there or emerges under given circumstances - mostly adverse situations.

3. Most wanna-be entrepreneurs start off with a business plan which predicts his revenues, profits, break-even point and growth trajectory. If you see most successful entrepreneurs, they never planned, they dreamt. They created value and chased their dream. The dream was not the riches that entrepreneurship can bring, but a dream to dominate / be successful in a given domain and create value that can change the world. They want to lead. 

For example, Bill Gates never planned to become the "richest person on the planet" through Microsoft. He dreamt of a PC on every desktop in the world! He worked hard to make his dream come true and reaped the rewards in form of the riches that he got in the process as a result.

Wealth is a by-product of entrepreneurship, not the destination.

So, the question again comes - Can you teach someone to lead, dream, continuously innovate, rough-it-out and fight back. I think - NO. You can only motivate someone to do so.

Your comments are welcome to debate my point of view!

Business organizations can never be in equilibrium or achieve stable position. Either they are moving up or they are moving down, depending upon their innovation quotient. 

If you are trying to keep things stable, they won’t remain so. You will slowly slide down simply because:

• there is no exclusivity,
• competition will catch up on the technology front and -
  • either cut price - if they too are not innovating (resulting in your margins to shrink)
  • or innovate and better the product - if they want to add value to the product and move up the value chain (resulting in your market share to shrink)

And if you continuously innovate and apply new ideas (refer to my post on manufacturing ideas), you will continue to move up.

It is unfortunate that in some cases, the entire industry decides to stabilize their position and take customer wants for granted. For example, consider:

• radio manufacturers,
• alarm clock manufacturers,
• camera manufacturers (there are some really big names out there)

They decided to stay at their position and were swept away by mobile companies like Nokia (who is the largest digital camera manufacturer in the world today). They decided to experiment and give more to their customers by integrating digital camera in mobile phones (possibly the thought process was that mobile, camera, clock, alarm are all things that need to be handy). It took some time to gather market acceptance which was created by the initial hype, but later on sustained due to the instant-in-the-hand value of the additional gadgets.

Seth Godin has highlighted how alarm clock manufacturers can still make a small change in their product and make it stand out. These are simple improvements which can make a product stand out and desirable!

Are you moving up or moving down?

Blogs have fueled the growth of peer-to-peer information flow in form of news, knowledge packets, ideas and individual point-of-views. However it has also resulted in "Information overload" which drives a normal person nut as he is at risk to wasting too much time reading the flesh before he reaches the crust.

Learning becomes more difficult as we face a situation where we have less time and most if it is wasted while absorbing the excess information and then an equal amount of effort (if not more) is required to skim the real message out of it.

A hot debate is going on at - http://guydz.com/moneypowerwisdom/?p=19

I personally think:

A summary can solve all the problem. There are people who understand the concept in few words. They hate to read through long articles to get that “dosage” of knowledge.

However, there are lots of people who might have difficulty in understanding the concept. There may be several people who might not accept a point of view unless backed with examples from real life.

Therefore both formats are required in my opinion.

Now the question is - On a media like blog, do we have enough time to summarize the ideas that we put together?

 What do you think?

I have often seen people struggling with their business plan. I have a bit unconventional take on the subject. May be, because it has worked well for me till now. So here is what I sugget:

How many times have you heard?

• He is successful because he has the first mover advantage.
• I have a bright idea. I will seek venture funding and make it BIG!
• There are so many simmilar businesses around? There will be a lot of competition for my new business.

I bet, you must have come across a variant of one of these statements.

They all signify the general perception that a unique idea (or a first mover advantage, or an invention) is the core of a business. Actually this is not true.

Ideas are important. In fact, a business to keep its edge in the industry need to keep re-inventing itself and come up with new ideas, variance, reasons-to-do-business-with and disruptive trends to gain a leading position or maintain his leadership.

Ideas are the fundamental inputs for running a business. They are nothing special. If you cannot think out of the box, or come up with something unique on an ongoing basis, forget about succeeding in this cut-throat competitive economy. It is not for the light hearted ones.

But hold on. The process is execution! There cannot be an output without the process. The output will remain equal to the input if there is no process! It is a pity to see so many people burn midnight oil and hundreds of hours in defining, refining and protecting their idea, but they hardly take the first step forward to execute the same.

History is full of examples where visionary companies have emerged from innovation and smart execution of ideas which were conceived by someone else or invented by someone else.

• Microsoft didnt invented operating systems
• Apple didnt invented GUI
• Google was not the first search engine
• Dell was not the first desktop manufacturer
• Infosys was not the first outsourcing company
• Dhirubhai Ambani didnt set up the first polyster manufacturing unit in the world

The list is endless..

What these guys did and what is important is: See the Gap!

Nothing is perfect. Things happen in a given way which is good, may be better, but never the best. You can always better the effort by finding the gap what makes it imperfect. For a moment think of an "ideal scenario" and how it differs from what you are seeing today in a given context. Are you happy with everything? You cannot be. Its a utopian scenario.

If you see with a consumers’ point of view, you will be able to see a gap almost everywhere, everytime and with everything! So if you want to really make the next big search engine - find the gap - find the pain - find the imperfection. And hey - you have an idea! It’s so easy.

Now whats next!

• Validate your idea. See if it offers value to its stakeholders and create win-win synergy?
• Plan for the execution of the idea, but keep yourself flexible about its implementation and nitty-grittys.
• Plan for the risks. Risks can never be avoided. They can be managed.
• Set achievable targets and take youir first step.

All this really means - Take action!

So, when you can create idea at random (like an idea factory), you can always differenciate. And when you can differenciate and make things better - go ahead and do it. Take action.

Take baby steps. But try to walk. And soon you will be able to run.

Microsoft was a visionary company. It saw the potential in the business of operating systems. It harnessed its power and made it available for masses in form of DOS. They marketed it well and went on from becoming an innovator (mind you - not an inventor) to a world class company.

Google found that people are not getting the right results and they feel frustrated while searching for what they want on internet. They deviced algorithm which solved the problem. I bet when they started off, it was not a code as complex as you will have in spaceships! But they kept innovating, removing gaps as they saw them.

Social networking concept was initially mastered by a site called Friendster. However there are many more websites who have followed the same fundamental principle and improvised on that to achieve more fame and hiher valuation.

I am like a friend to most of my clients. When I speak to them, I always have this advice at the back of my mind. I advise them to do things differently to make it better in small increments based on those small ideas that you can generate at your will. To start taking the first steps towards a better web-application or a better business model. I am a strong advocate of compunding of small improvements done over a period of time to result in a considerable net effect.

So, its all about seeing the gap. Building small bridges and walking over them to leave your competition behind.

I look forward to see you all at the top at the game - ahead of the guys who invented the same.

Best of luck!