There are some traits inherent to great entrepreneurs like creativity, tolerance for risk and the desire for achievement that can, unfortunately, not be taught. However, when Saras Sarasvathy, still a Carnegie Mellon graduate student at the time, sought to discover how the minds of accomplished entrepreneurs worked, she uncovered some tips that less experienced entrepreneurs can use to thrive.
In her study, Sarasvathy interviewed 45 entrepreneurs with at least 15 years of experience who have started multiple companies – both successes and failures – and have taken at least one company public. She also interviewed successful businesspeople from corporate backgrounds as control subjects. Below are some of Sarasvathy’s findings.
1.) Entrepreneurs are flexible
Sarasvathy discovered that entrepreneurs are far more flexible in their goals than their corporate counterparts. Entrepreneurs have flexible goals and constantly reassess how to use their personal strengths and resources to reach them, while corporate types start out with firm goals and use the most efficient means to achieve them. Not surprisingly, entrepreneurs showed more impatience with extensive planning. An Inc. study found that only 60% of successful entrepreneurs wrote out their business plan and only 12% did market research.
2.) Entrepreneurs know the power of networking
Sarasvathy says that entrepreneurs understand the power of early-on networking. The entrepreneurs that she interviewed reported talking to “anyone and everyone” about their ventures, gathering advice, success stories and warnings from their peers and mentors. One suggested, “Pick your partners and package yourself early on before you have to put a lot of capital out.” Sarasvathy also found that many entrepreneurs viewed their customers as their greatest and first investors, saying, “Entrepreneurs know that their customers are their best salesmen”.
3.) Entrepreneurs don’t sweat the competition
Saravathy’s corporate subjects focused much more on their competitors than entrepreneurs did. Entrepreneurs reportedly cared less about potential competitors because they see themselves as on the fringe of the market rather than in the thick of it.
There are a ton of interesting excerpts from Sarasvathy’s study, which you can check out here. If you’re interested in Sarasvathy’s insight, you have the opportunity to hear it first-hand! She will be holding seminars next week in San Francisco on July 10, 11 and 12 – find out more here.