Wouldn't you love to wake up thinking like some of the world's richest entrepreneurs? How entrepreneurs think differently from the rest of us is something we’d all like to have insight on. Entrepreneurs like Bill Gates, Warren Buffet, and Jeff Bezos have amassed astronomical fortunes, so what is their secret to their success?
How Entrepreneurs Think
Bill Gates, currently worth around $88.8 billion, believes that procrastination is the key to failure. Making a decision, sticking to it and seeing it through is important because it instils faith in oneself and avoids second guessing. Warren Buffet is one of the world’s largest investors and also launched many companies in his youth. He’s currently worth over $80 billion and his best advice to new start-ups is to have fun. If you feel a passion for what you do, you’ll be “tap dancing” to work like Warren at 85! One of the youngest top earners is Amazon founder Jeff Bezos. His insights on how entrepreneurs think include the sound advice to love your clients, understand them intimately and build a product base from there. So how does the entrepreneurial mindset deal with the problem-solving process?
7 Entrepreneurial Problem-Solving Skills
Problem-solving techniques are the cornerstone of entrepreneurial business. Identifying a problem that exists and filling that gap successfully results in long-term rewards. One of the best examples of this type of approach is Facebook's Mark Zuckerberg. He amassed nearly $72 billion in just over a decade, launching and developing his popular social media platform. He advises to start any new business by trying to passionately solve a problem, rather than building a new company as the consequence of solving a problem.
How entrepreneurs solve problems isn't magically different from the rest of us, they simply have a positive mindset and follow a set of problem-solving principles:
1. Say no to defeat
There are plenty of failures along the way, but defeat isn’t in an entrepreneur’s mindset. Hence, it is even more crucial to learn from a mistake. When it comes to learning from business mistakes, there are several strategies that can be employed. First and foremost, it is important to acknowledge the incident and accept responsibility. This will help in avoiding the same mistake to be made again in the future. It is equally important to analyze the mistake and to understand it. This will help identify the root cause so that strategies could be developed to counteract the effects. Finally, use it as a learning opportunity. Identify what you could have done differently and seek feedback from your peers in order to gain additional perspective to the issue at hand. This can help you identify areas for improvement and develop new strategies for success.
- Nokia - One real-world example of learning from business mistakes is the case of Nokia, the Finnish mobile phone giant. In the early 2000s, Nokia was the world's largest mobile phone manufacturer, but the company failed to adapt to the rise of smartphones and lost its market share to rivals such as Apple and Samsung. However, instead of accepting defeat, Nokia learned from its mistakes and reinvented itself as a telecommunications equipment provider. Today, Nokia remains a major player in the telecommunications industry, providing networking solutions and other services to companies around the world.
2. Be bold
Being bold in a business environment can be challenging, but it is an essential trait for success. At times, being bold translates to taking calculated risks, making tough decisions, and charting new courses for the company. This can be achieved by inspire confidence and trust in employees, customers, and other categories stakeholders. This will instill courage to take risks and experiment, which can lead to greater innovation and creativity. The ability to take risks and learn from mistakes is crucial for business success. In addition, it is essential to be adaptable and pivot quickly in presence of new opportunities that ma lead to further grow and improvements.
- Netflix: This could be seen in the story of Netflix. When the company started as a DVD-by-mail service, they saw an opportunity to disrupt the traditional rental industry by offering a streaming service. Despite initial skepticism from investors and industry experts, Netflix took a bold step and invested heavily in streaming technology. This decision paid off, and today Netflix is a leader in the entertainment industry, with millions of subscribers worldwide. By being bold, Netflix was able to pivot quickly, adapt to changing market conditions, and stay ahead of the competition.
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3. Be flexible
Knowing how to evaluate a situation and look at it from all angles is important and being able to pivot when necessary is critical to any fast-moving business. If you’re not seeing success with one idea, being bold and trying something new might just pay off. When trying to solve a problem, understand that there might not always be a solution. Identifying a gap in the market and quickly changing direction to fill it makes good business sense.
- Zara: Amancio Ortega, owner of Zara and currently worth $78.5 billion advises that “that speed is everything”. The ability to recognise new ideas and execute them faster than any competitor has been crucial to Ortega’s success.
- Kodak: Kodak, a company that had been a leader in the photography industry for decades. However, with the advent of digital photography, Kodak's business model became outdated and the company struggled to keep up. Despite some efforts to transition to digital cameras and other digital products, Kodak ultimately filed for bankruptcy in 2012.
- Canon and Nikon: On the other hand, companies like Canon and Nikon recognized the shift to digital early on and were able to adapt their business models quickly. They invested heavily in R&D and created new products that were more in line with the changing market. As a result, they were able to maintain their positions as industry leaders and continue to thrive to this day.
These examples show how being flexible and willing to pivot when necessary can be the difference between success and failure in a fast-moving industry. It's important to recognize when your current approach isn't working and be willing to try something new in order to stay competitive.
4. Delegate
Employing a great team is essential to any successful business and entrepreneurs understand that, when it comes to problem-solving, relying on staff expertise wins. Delegation is a crucial management skill and can result in various benefits when done effectively. First and foremost, the identification of what to delegate is an essential first step. Next, it is equally important to clarify priorities and provide guidance to employees by communicating the importance of each task in order to pave the road to success.
As a manager at a busy restaurant, you may delegate tasks to team members to increase efficiency. Identify tasks that can be delegated, prioritize them based on importance, communicate guidelines to team members, provide guidance and support, and offer feedback. This results in successful task completion, increased efficiency, and job satisfaction among team members, leading to improved customer service and increased revenue.
5. Foster creative thinking
In the 1970s, a scientist at 3M named Spencer Silver was trying to create a strong adhesive, but instead, he ended up creating a weak adhesive that could be removed easily without damaging surfaces. Despite being a failure in achieving the original goal, Spencer didn't give up. Later on, another 3M employee, Art Fry, realized that the weak adhesive could be used to create bookmarks that would stick to paper without falling off. This idea eventually evolved into the creation of Post-it notes, which have become a ubiquitous office supply worldwide.
- 3M: Entrepreneurs know that it's not just about solving problems but also about considering the bigger picture and looking at the impact of decisions on the bottom-line. 3M's Post-it notes are a great example of fostering creative thinking in a business environment, which is an essential trait for long-term and sustainable success. It's all about being willing to challenge our assumptions, think outside the box, and embrace change as a path to growth and success. In essence, creative thinking is the ability to explore different possibilities in resolving a business problem. By encouraging creative thinking, businesses can foster a culture of innovation, which can lead to breakthrough ideas and a competitive advantage in the market.
6. Map out a vision
Entrepreneurs map the vision of their lives and how they can achieve those dreams. They aren't winging it or flying by the seat of their pants! They have a vision and execute that to make dreams a reality. The mapping out of a vision for your business is an essential step in defining your company’s purpose for different categories of stakeholders. The mapping out of a vision also helps project into the future in a manner that aligns with a business’ core values and business objectives.
- remote work: The COVID-19 pandemic has led to a rise in remote work, resulting in an increased demand for flexible office spaces. These spaces offer amenities like high-speed internet and meeting rooms, making them a productive and convenient option for employees. For companies, offering flexible office space can attract and retain talent while providing cost savings and flexibility. The emergence of coworking spaces and other flexible office solutions means there are now a wide variety of options available. The rise of flexible office space benefits both employees and employers, offering a convenient, affordable, and flexible solution. The arise of remote work and flexible office space illustrates how modifying perspectives and finding new opportunities can lead to mutually beneficial outcomes for businesses and employees alike.
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7. Dig deeper
Entrepreneurs are known for their ability to think structurally. This means that they are able to get to the heart of the matter and understand how things work. They ask structural questions and methodically break down problems into smaller, more manageable parts. This allows them to identify and address the root cause of a problem, rather than just treating the symptoms.
- Amazon: Jeff Bezos is a great example of an entrepreneur who thinks structurally. When he first saw the internet explode in popularity, he didn't just jump into the fray and start a random business. Instead, he asked himself a structural question:
"What kind of business plan might make sense in the context of that growth?"
(Source: Fundable)
He knew that books were a low-cost item that could be shipped easily and were universal. This insight led him to start Amazon, which initially sold only books but eventually grew to become one of the largest retailers in the world. By focusing on this one product and building a business model around it, Bezos was able to create a solid foundation for future growth and success.
Entrepreneurial Mindset
While the decision-making process of entrepreneurs may be unconventional, they possess a unique ability to take calculated risks and turn challenges into opportunities. With dedication, perseverance, and a well-defined mission, entrepreneurs can pave the way for success in their ventures.