This is another guest post by Jim Beach, Author of McGraw-Hill’s School for Startups, which contends that entrepreneurship is not about risk, creativity or passion. It is a follow-up post to his article two weeks ago on passion and his article last week on risk.
In the last two weeks, I was honored to post two articles on this blog, one about passion and one about risk. Today, I am excited to share my views on creativity, and the role it plays in entrepreneurship. Previous readers will know I believe that entrepreneurship is not about creativity, risk, or passion. If the average entrepreneur-want-to-be changed their definition of entrepreneurship, they would be more likely to act and succeed.
I want to start by making one thing clear. Creativity can play a huge role in any startup or Fortune 500 company. Certainly, those people at Apple know a thing or two about creativity. But as I grant you that, please grant me that entrepreneurship is possible without any creativity. And in fact, that is the type of entrepreneurship that most of us should strive for. Good old fashioned non-creative entrepreneurship, you know, copying!
The Global Entrepreneurship Monitor, published by Babson College and the London School of Economics, reported that 93% of businesses world-wide are copies of other businesses. Hyatt and Hilton. Nike and Adidas. McDonalds and Burger King. Coke and Pepsi. If you look around, there are many thousands of restaurants and day cares for kids and bookstores. Is it illegal to open another? Is it creative? Does your bank account care as the money starts to role in?
When I lecture about this, there are two scenarios I love to paint. Imagine sitting around with your friends at a bar and announcing you are going to start a business. They are impressed, jealous, and curious. You describe the idea in detail and how you plan to succeed. Soon, you sense they want in. Eventually, one asks, “How did you get this idea?” You say, “Saw it online on a cool biz website.” Do they lose interest? No, they still want in. Do you lose your street cred because you went online, researched “new business ideas” and found a cool one? No, they still want in.
Or, you go to your bank to deposit your first million in sales. The teller pulls up your account and announces, “Oh, I see you got your idea from a magazine, saw some guy was successful across the country in a business, so you decided to start that business here in our town. Yeah, sorry, I have to take 15% off the top for lack of creativity.” No, that doesn’t happen.
People want to be entrepreneurs and sit waiting for a lightning bolt of creativity to hit them. It may happen, or they may die unfulfilled. Instead, remove creativity from your definition and start an organized, methodic study of a business to start. Allow a certain amount of time, create a list of criteria, and start researching business models. Make a list of a hundred, yes, ONE HUNDRED. Please do not tell me that this is impossible until you have tried for a month. Google “new business ideas” before you call me crazy!
The origin of your business is not important. No one cares! Has any satisfied customer ever said the words, “I was really happy with your price and service, would recommend you to my friends, UNTIL I learned you got your idea 7 years ago from a search online”? I believe these words have never been spoken or written until right now.
I think you get my point. The takeaway of this is profound. If risk can be reduced as much as possible (to under $5,000), and if passion is not important, and if creativity can be replaced with a Google search, than anyone can do it. Anyone. All the barriers are removed. What is your excuse for not acting now?
Entrepreneurship is about solving problems with limited resources. Do you have a problem? Know someone with a problem? You qualify!
Allow me two final thoughts. First, of course I am not advocating stealing. That is different. Copying is okay. Borrowing is okay. Stealing is not. Second, creativity and innovation are different. While it is okay to copy an idea, you must make it better. If you start a bookstore, make a list of everything that affects the customer experience, the parking, signage, name, smell, coffee shop, amount of books, ease of checkout, music, etc. And then figure out how to do each one in a way the makes your customer say, “I saw a place like this across the country, but you do it lots better.”
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What are your thoughts about entrepreneurship? Do you agree with Jim’s points or do you feel differently? Why not comment and share your thoughts with the world?
Posted by: Mike Clough