Entreprenuer

 External changes can provide great leverage for creative and nimble entrepreneurs.

External changes, such as colapses in the price of real estate or energy, also create opportunities for entrepreneurs who speculate in out-of-favor assets. Sam Zell, the self-described “grave dancer,” and his now deceased partner, Robert Lurie,

built a multi billion-dollar real estate and industrial empire through such opportunities. Their first big success followed the collapse of the real estate investment trusts in the early 1970s. Later they picked up millions of square feet of office space and shopping centers and tens of thousands of apartments and trailer-park spaces for mobile homes. During the early 1980s, the partners sold a number of buildings in the booming Southwest and invested in Rust Belt cities like Buffalo and Chicago.

the entrepreneur merely anticipates that the confusion or panic that has depressed prices will pass. Nor does successful execution require much managerial capacity. Organizational development, engineering, or marketing abilities add little value when an entrepreneur buys assets at a low price, expecting to sell them at a high price. Rather, good execution requires the ability to move quickly, negotiate astutely, and raise funds under favorable terms. 

Entrepreneurs should also screen potential ventures for their attractiveness – their risks and rewards – compared to other opportunities. 

avoid research that he or she can’t act on. For example, understanding broad market trends and the strategies of the industry leaders is unlikely to affect what a start-up in a hustle business like advertising does and therefore isn’t worth bothering with. Entrepreneurs should concentrate instead on issues that they can reasonably expect to resolve through analysis and that determine whether and how they will proceed. 

Doing something concrete builds confidence in oneself and in others. Key employees and investors will often follow the individual who has committed to action, for instance, by quitting a job, incorporating, or signing a lease. By taking a personal risk, the entrepreneur convinces other people that the venture will proceed, and they may believe that if they don’t sign up, they could be left behind.

Plugging Holes Quickly. As soon as any problems or risks show up, the entrepreneur begins looking for solutions. For example, suppose that an entrepreneur sees it will be difficult to raise capital. Rather than kill the idea, he or she thinks creatively about solving the problem

the purpose of analysis is not to find fault with new ventures or find reasons for abandoning them. Analysis is an exercise in what to do next more than what not to do

Entrepreneurs treat everyone whom they talk to as a potential customer, investor, employee, or supplier. Simultaneously 
listening and selling approach. 

1. Screen opportunities quickly to weed out unpromising ventures.
2. Analyze ideas parsimoniously. Focus on a few important issues.
3. Integrate action and analysis. Don’t wait for all the answers, and be ready to change course. 


Entrepreneurship is a calling that chooses us it is inescapable, 2) Time is our most valuable asset and 3) Entrepreneurs create the most value by doing the same thing for a very long time.

The Three AreAs of Knowledge
There are three areas of knowledge that are critical for starting a successful business:
1 In-depth knowledge of the competitive structure of an industry and a network of contacts within that industry;
2 skills to run the daily operations of a small, rapidly growing company;
3 ability to raise money.

 structure of the industry and personal contacts with trusted experts.
 Understanding the industry’s competitive structure means knowing the history and current status of customers, suppliers, competitors, product substitutes and barriers to entry. You must understand why people buy your product and what alternatives they have. You should understand the production process and the cost, value and

volume trades within it. You should be familiar with the history of the competitive rivalry and how competitors are likely to respond to your moves. You should understand the barriers to entry and determine if you have skills that give you an edge. You must have a keen sense of the key industry trends and how they will a ect your position. Studying an industry for several months is never enough preparation. Almost without exception, you must be immersed in an industry for years to pick up the nuances.

build a network of personal relationships within the industry. Without these contacts, gathering accurate information is too costly and time consuming. You must know the good people from the bad — whom you can trust and whom to avoid at all costs. Industry contacts make vendor selection, marketing and employee recruitment much easier. In addition, a good reputation in an industry is one of the most important competitive advantages.

If the company culture is flawed, almost any strategy is in jeopardy. 


Day to day operations

From accounting, production, organizational and administrative dilemmas to general business philosophy. All of these must be woven into a consistent set of principles and procedures. If the company culture is awed, almost any strategy is in jeopardy. A disorganized accounting system or poor physical surroundings can likewise take a heavy toll on profits.

Ability to Raise Money

Money is the fuel for a start-up business. Fail to raise it or run out before the venture turns cash flow positive, and your business will die.



Industry knowledge 

People with deep industry knowledge and sharp analytical skills ultimately will discover unique opportunities. 

how do I geT The Knowledge I need? 
there are two ways to acquire the skills above: learn them yourself or and a partner who already has them. every successful entrepreneur generally does both. Accumulating each type of knowledge requires a slightly different approach.

IndusTry Knowledge

the quickest way to gain industry knowledge is to a “ owing deal stream” and wade into it. The more projects you review in a particular industry, the more strategies you can compare and the more contacts you make.

Deal streams exist close to investors with money. The most obvious position is with a venture capitalist, but 
these jobs are rare and often not industry-specific. Banks, insurance companies or acquisitive corporations are alternative choices.

Second choice consulting company. Consulting is an excellent way to hone analytical and presentation 
skills. Unfortunately, because consulting engagements often last six months or longer, many consultants participate in only a few projects. Time spent prospecting for new clients may also reduce the time available for industry analysis. It is better to sh alongside a buyer than a middleman or service provider.

If all else fails, pick an industry and jump into a position in sales or operations. If you are inquisitive enough, over time, any job will provide specific industry knowledge. Continue to observe, ask questions and make new friends, and the knowledge will come.

Small vs. Big company Smaller businesses generally give younger people more responsibility, while larger companies expose them to a wider array of experiences. Which is best depends largely on the company and position, but smaller

businesses normally provide a heightened sense of entrepreneurial reality.
People who can run a business have more readily transferable skills than those with industry knowledge. As a rule, they will have more opportunities to do something entrepreneurial.  The difficulty is that
without industry knowledge, a would-be entrepreneur has trouble diferentiating between extraordinary opportunities and average ones.


 In all phases of entrepreneurship, and especially in fundraising, reputation is everything. A good money raiser is part salesman, but that salesmanship is built brick by brick on a foundation of competence and honesty.

Your Partner
Few people have all three types of knowledge, so while you are developing your skill set, catalog people whose strengths supplement yours. This will give you a source of complementary partners when you are ready to go on your own. Two partners with complementary skills, contacts and chemistry are far more powerful than the sum of their parts.

choose a position in which you can develop industry, operational and fundraising skills. If you keep your final goal in mind, work step by step to gain knowledge and take notice of people who might be complementary partners, eventually an irresistible opportunity will appear and you will be prepared for the challenge.

successful entrepreneurs don’t take risks blindly. Rather, they use a quick, cheap approach that represents a middle ground between planning paralysis and no planning at all.  

entrepreneurs must reflect on the adequacy of their ideas and their capacities to execute them.