Explaining Step by Step for Entrepreneurs
Reminder of the full picture: or return to overview.
The Entrepreneurial Tension
An entrepreneur must focus intensely on achievement. That means a readiness to use any and all means to ensure the successful launch of a new business. The dynamic duality to be embraced by an entrepreneur is:
● demands of the business (D)
versus
● personal principles in doing business (P)
In the diagrams below, formulae use D, P, and B (for balanced) to designate the required Centres.
Choices of Entrepreneurs
Speed and Energy in Pragmatic Mode (CL1)
Entrepreneurs must not only do what is , but also must move because time and money pressures are invariably intense. The high energy and prompt handling of issues and obstacles demands a dynamism far beyond what can be expected from the average employee.
Egocentric Focus in Structuralist Mode (CL2)
Entrepreneurs do not get hung up on roles and structures, whether or not they are defined. Success and failure is felt to be in their own hands, so it becomes essential to accept at any point in time.
Ruthlessness in Dialectic Mode (CL3):
Entrepreneurs repeatedly clash with others, within and without the start-up, as part of their headlong drive to succeed. Investors, often on the Board, frequently make demands in association with capital raising that are frustrating and feel excessive or unfair to the entrepreneur.
Two poles are recognizable. Some clashes flow from the demands of the business. In these, the entrepreneur drives hard for —or simply and quickly walks away if the desired terms are not met and seeks some other solution or group to work with. This appears as ruthlessness.
But ruthlessness is applied inwardly as well. Entrepreneurs naturally apply their own principles (e.g. relating to fairness, or money management). Any adaptation in regard to these is experienced as a that must be accepted.
Dominance: The entrepreneur, though dependent on others, sees their own business principles as intrinsic to their past and future success. So these are given the higher priority. However, mutual influence between wins and defeats is necessary for balance.
Commerciality in Rationalist Mode (CL4)
The entrepreneur must be driven by , and he requires that all in the group are driven by the importance of making money. The for the start-up's survival and success.
Relevant Knowing in Empiricist Mode (CL5)
Use of information applies and again shows up in two distinct Centres.
Entrepreneurs operate in industries and sectors that they from personal experience. Their familiarity with key people, relevant competitors, legal requirements, business services and more is intrinsic to their shrewd appraisal of risks and effective handling of negotiations.
There is also that is generally available, and this is sought out and used in a fashion.
Dominance: Market information relevant to the business dominates because without engagement with the market, customers will not be found and cash will not be generated.
Personal Passion in Imaginist Mode (CL6)
Application of imaginative qualities shows up again in two distinct Centres.
The entrepreneur must possess and foster a deep commitment to the business based on , and a passion to realize their vision of what the start-up can become.
Entrepreneurs also pay close attention to the of the diverse members of the start-up, including the investors and advisors. All involved must release energy and be willing to give of their best.
Note: Venture capitalists who are relatively ignorant handle risk by taking a portfolio approach to their start-ups, a perspective that is counter-productive from the entrepreneur's perspective.
Dominance: Shared aspirations must still be given more weight than the entrepreneur's personal aspirations, although it would be surprising if these were not rather similar. If a serious divergence develops, then the entrepreneur may leave or be dismissed by the Board.
Seizing Opportunities in Systemicist Mode (CL7)
The entrepreneur is at the forefront of evolutionary and revolutionary changes that sprout . Entrepreneurs seek to harness the waves of change, currently technological and socio-political, and to driving their business sector or society.
The Full Picture
The framework is provided at the top and visible here with all channels labeled. It naturally resembles the , but the Centres are all different because entrepreneurs have a different view of . Although the channels remain applicable, they will also function differently and perhaps deserve different names.
Originally posted: 29-Sep-2011