by Bob Ritter, President of First Direct Corporation (www.1stdirect.com)

The entrepreneur and change relationship

Are the entrepreneur and change connected? We live in a world with so much change. George Bernard Shaw noted that “Progress is impossible without change.” Change creates opportunity. The entrepreneur seems to have a personal quality trait that enables him or her to spot change and then to capitalize on it.

So are you concerned, in general, about people stealing business ideas, and more specifically that they might steal your idea? I’ve heard it hundreds of times. After all, my book, The Balanced Entrepreneur, recommends that prior to a major product launch, entrepreneurs gather lots of initial feedback. This is a practice that theoretically makes stealing business ideas more likely.

Lifestyle entrepreneurship isn’t just about profitability, it is, as importantly, about entrepreneur satisfaction. So see what you already know about entrepreneur satisfaction by taking my Lifestyle Entrepreneurship Quiz. (Hey, I’m not just an entrepreneur, I’m a professor, what did you expect?)

Lifestyle Entrepreneurship Quiz

1. Are you more likely to achieve a better lifestyle and greater satisfaction as an entrepreneur if you...
   
   1. consider your personal satisfaction when making entrepreneurship decisions.
   2. never consider your personal satisfaction when making entrepreneurship decisions.

Before reading this post on entrepreneurial decision making errors, read Feedback on Startup Ideas. It explains how I gathered feedback on my idea to start a new Institute within my University, and identifies the single biggest mistake entrepreneurs make when assessing reactions. Below, I specify four more mistakes, all of which I made, despite being an expert on entrepreneurial decision making errors. Man, I'm just so smart about how stupid I am!

Accurately interpreting feedback for startup ideas is critical.

Entrepreneurs must gather feedback on their startup ideas. But, interpreting the feedback can be tricky. Often, entrepreneurs become absolutely convinced they have gathered accurate positive feedback about a startup idea, only to later find out nobody wants the product or service. This blog describes how, at the start of my academic career, I gathered feedback on a startup idea for a new Institute within my University, and discusses the single mistake entrepreneurs make when assessing feedback. Note, I maintain the heart of this story, but changed some details to "protect the innocent."

What is the Greatest of Entrepreneurship Obstacles?

Many people never overcome the obstacles to entrepreneurship, even though they dream of owning their own business. A lot of them have great ideas, but it's a rare few that actually take the plunge and do it. Why is that? You've heard people recite a list of entrepreneurship barriers including a lack of money, credit, time, and connections. But, I don't believe any of those represent the biggest obstacle, nor are they the most difficult part of entrepreneurship. Heaven knows entrepreneurship doesn't require great grades in school or good looks. This obstacle is far more subtle. Entrepreneurship requires that founders deal with ambiguity.

Entrepreneurs, before reading about SWOT analysis mistakes, you may wish to examine The Best Way to Perform a SWOT Analysis.

There are many acceptable ways for entrepreneurs to do a SWOT analysis, so choose the one that makes the most sense to you. But you must avoid the common SWOT analysis mistakes and errors entrepreneurs frequently make, mistakes which lead to worthless results.

A SWOT analysis helps entrepreneurs select startup strategies based on their company's internal (i.e. Strengths and Weaknesses) and external (i.e., Opportunities and Threats) conditions. Actually, though, one can use the analysis to help with any situation. In my entrepreneurship classes, for example, we use a SWOT analysis to "help" Buffy the Vampire Slayer escape from a 12 foot tall vampire. I do this to demonstrate the tool's versatility (and okay, I admit it, also because I thought the show was AWESOME!)