Mike
Carruthers:
Passion - it's often described as a necessary trait of an entrepreneur.
Scott A Shane:
Having some passion will certainly help but passion doesn't make
the difference between being successful and not being successful.
I'll give you an example of this…
Scott Shane,
author of the book The
Illusions of Entrepreneurship…
The year that
Microsoft was started (it's hard to believe first of all that
Bill Gates was more passionate than everybody else who started
businesses in that year) it's really unlikely that he was many
billions of times more passionate than other people. Yet he's
many billions times wealthier than the people who started businesses
in the same year that he did.
So starting the
right business in the right industry is a lot more important
than passion, and marketing is where a lot of businesses fail.
They don't start
marketing soon enough - we have a lot of evidence that the faster
start-ups begin to market, the more they emphasize the implementation
of any marketing plan that they have, hence the better that
they perform.
And Scott says
even those entrepreneurs who have a marketing plan often are
a little naive.
For instance
most entrepreneurs actually try to compete on price - that strategy
actually leads to failure from start-up. Because companies that
have been around longer can actually better handle this price-cutting
strategy. You're much better off with a start-up. If you want
performance, what the data shows you is compete on something
else: service, quality, anything but price.
At somethingyoushouldknow.net
I'm Mike Carruthers and that's Something You Should Know.
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