How Successful Entrepreneurs Think

Summary

The video script explores the mindset of successful entrepreneurs, highlighting their unique approach to responsibility and value creation. Unlike others, entrepreneurs take full charge of their financial success and understand the importance of creating value before receiving payment. The script differentiates between ordinary and 'superstar' entrepreneurs, emphasizing the latter's focus on creating new capabilities rather than solving existing problems. Using Steve Jobs as a prime example, it illustrates how great entrepreneurs develop personal desires into groundbreaking capabilities and build enduring formulas around them, ensuring lasting success.

Takeaways

• 💡 Entrepreneurs think differently by taking full responsibility for their financial success, unlike others who rely on employers or the government.
• 💰 Successful entrepreneurs understand that they only get paid if they create value first, and this value must be recognized by the consumer.
• 🔍 Great entrepreneurs focus not on solving existing problems but on creating new capabilities that they personally desire.
• 🚀 Steve Jobs is highlighted as a role model for great entrepreneurship, known for his focus on creating new capabilities rather than addressing customer-defined problems.
• 🖥️ The graphic user interface (GUI) and the iPhone were born out of Jobs' desire for capabilities he personally wanted, leading to revolutionary products.
• 📱 Jobs' innovation with the iPhone included connecting it to the internet and enabling the download of applications, fundamentally changing mobile technology.
• 🏗️ Great entrepreneurs develop a formula around their capabilities, ensuring consistency and longevity in their approach.
• 🎨 Apple's formula, "We make beautiful technology that people love using," is credited with the company's long-term success potential.
• 🔄 The key difference between general entrepreneurs and great ones is that the latter create capabilities they want for themselves and maintain a consistent strategy.
• 🌟 By adopting these principles, even moderately successful entrepreneurs can rapidly elevate their success to the level of truly great entrepreneurship.

Q & A

What is the primary difference between entrepreneurs and non-entrepreneurs according to the transcript?

Entrepreneurs take total responsibility for their own financial success and security, whereas many non-entrepreneurs look for an employer, government, or other institutions to be responsible for their financial welfare.

Why do entrepreneurs focus on creating value before getting paid, as mentioned in the transcript?

Entrepreneurs understand that they must create value to receive payment, as they are not compensated unless they offer something of value that consumers are willing to pay for.

What is the key distinction between ordinary entrepreneurs and 'superstar' entrepreneurs?

While most entrepreneurs focus on solving existing problems in the market, superstar entrepreneurs are more interested in creating new capabilities and innovations that were not previously known or requested by the market.

How did Steve Jobs at Apple exemplify the approach of a 'superstar' entrepreneur?

Steve Jobs did not conduct focus groups to find out what customers wanted. Instead, he focused on creating new capabilities that he personally desired, such as the graphic user interface and the concept of the iPhone as a multifunctional device with internet connectivity.

What was Steve Jobs' approach to developing new technology at Apple?

Steve Jobs developed new technologies based on his own desires and needs, believing that if a product or capability was beneficial for him, it would likely be desired by many others.

What is the significance of having a 'formula' for a company like Apple, as discussed in the transcript?

A 'formula' provides a consistent strategy that a company can follow regardless of changes in technology, the world, or the marketplace. For Apple, this formula is to create beautiful technology that people love to use.

Why is it important for entrepreneurs to focus on creating capabilities rather than just solving problems?

Focusing on creating capabilities allows entrepreneurs to innovate and lead the market with new offerings, rather than following market demands and merely addressing existing issues.

How does the concept of creating new capabilities differ from solving known problems in the entrepreneurial world?

Creating new capabilities involves inventing solutions or products that the market has not yet considered or requested, potentially revolutionizing industries or consumer behaviors. Solving known problems, on the other hand, involves addressing existing needs or issues that customers have already identified.

What role does personal desire play in the innovation process as described by the transcript?

Personal desire is a driving force for innovation. Entrepreneurs who create products or services based on their own needs or wants can often develop groundbreaking capabilities that resonate with a broader audience.

Why is it advantageous for entrepreneurs to have a long-term strategy or 'formula' as mentioned in the transcript?

A long-term strategy or 'formula' allows entrepreneurs to maintain a consistent brand identity and approach to their work, which can lead to sustained success and adaptability in the face of changing market conditions.

Outlines

00:00

💼 Entrepreneurial Mindset and Value Creation

The first paragraph discusses the distinct thinking patterns of successful entrepreneurs. It emphasizes two key differences: their complete responsibility for their financial success and security, contrasting with those who rely on employers or institutions, and their understanding that payment is contingent upon creating value. Entrepreneurs must prove their worth to consumers, irrespective of their personal belief in the value of their work. The paragraph also differentiates between ordinary entrepreneurs and 'superstars,' highlighting the latter's focus on creating new capabilities rather than solving existing problems, using Steve Jobs and Apple as an example of this innovative approach.

05:00

🚀 The Formula for Lasting Entrepreneurial Success

The second paragraph delves into the strategies of great entrepreneurs, who, unlike the majority, are not focused on solving problems but on developing new capabilities that they desire themselves. It uses Steve Jobs' vision for Apple as an illustration, detailing his interest in creating user-friendly technologies like the graphical user interface and the iPhone, which introduced internet connectivity and app downloads to mobile phones. The paragraph underscores the importance of a consistent formula that can adapt to changing technologies and market conditions, ensuring enduring success. Apple's formula is presented as an example: creating beautiful technology that people love to use, a strategy that could sustain the company for centuries.

Keywords

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. In the context of the video, entrepreneurs are differentiated by their unique way of thinking, particularly their sense of personal responsibility for financial success and their focus on creating value. The script mentions that entrepreneurs think differently by taking 'total responsibility for their own financial success' and understanding that they 'don't get paid until they create value.'

💡Value Creation

Value creation refers to the process by which an entrepreneur produces something of worth that others are willing to pay for. It is central to the video's theme as it highlights the entrepreneur's role in generating income only after adding value to the marketplace. The script illustrates this with the phrase 'they don't get paid if they don't create value,' emphasizing the direct link between value creation and financial reward.

💡Financial Success

Financial success is a measure of the wealth or prosperity one attains, often through business endeavors. The video discusses how entrepreneurs are unique in their approach to achieving financial success by taking full responsibility for it, as opposed to relying on others or institutions. The script states that entrepreneurs 'take total responsibility for their own financial success and security,' setting them apart from others who may seek external support.

💡Consumer

A consumer is an individual who purchases goods and services for personal use. The video emphasizes the importance of being useful in the eyes of the consumer, as entrepreneurs must create value that consumers are willing to pay for. The script mentions that entrepreneurs must always be 'useful in the eyes of a consumer,' indicating that consumer demand is a key driver of entrepreneurial success.

💡Superstar Entrepreneurs

Superstar entrepreneurs are those who excel significantly beyond the norm in the entrepreneurial world. The video differentiates between regular entrepreneurs and these high-performing individuals, who are characterized by their unique approach to creating new capabilities rather than solving existing problems. The script uses the term 'Superstar' to describe entrepreneurs who 'operate in a way that is just dramatically different, dramatically better, and dramatically bigger than ordinary entrepreneurs.'

💡New Capabilities

New capabilities refer to innovative features or functions that did not previously exist and are introduced by entrepreneurs. The video contrasts the focus of great entrepreneurs on creating new capabilities with the more common approach of solving known problems. The script explains that 'the really great entrepreneurs are only interested in creating new capabilities,' using Steve Jobs and Apple as an example of pioneering new technology capabilities.

💡Steve Jobs

Steve Jobs was an American entrepreneur and the co-founder of Apple Inc. The video holds him up as a role model for entrepreneurs, particularly for his approach to innovation and creating new capabilities. The script mentions Jobs multiple times, citing his focus on creating technologies like the graphic user interface and the iPhone, which introduced 'a new capability where this could connect to the internet and... have all sorts of different functions on the internet.'

💡Graphic User Interface

A graphic user interface (GUI) is a type of user interface that allows users to interact with electronic devices through graphical icons and visual indicators instead of text-based commands. The video uses the GUI as an example of a new capability created by Steve Jobs, making computers more accessible to non-technical users. The script describes how Jobs 'wanted to operate a computer without knowing code,' leading to the development of the GUI.

💡Apple Store

The Apple Store refers to the digital marketplace developed by Apple for the distribution of mobile applications for its iOS operating system. The video mentions the Apple Store as an example of a new capability created by Steve Jobs, allowing users to download various applications to their phones. The script states that this capability 'created the Apple Store,' demonstrating Jobs' vision for integrating the internet with mobile devices.

💡Formula

In the context of the video, a formula refers to a consistent strategy or approach that entrepreneurs develop around their capabilities to ensure long-term success. The video suggests that great entrepreneurs not only create new capabilities but also build a formula that can be sustained over time. The script uses Apple as an example, stating that their formula is 'we make beautiful technology that people love using,' which can adapt to changing technologies while maintaining a consistent brand experience.

💡Beautiful Technology

Beautiful technology, as discussed in the video, is technology that is not only functional but also aesthetically pleasing and provides a satisfying user experience. The video suggests that great entrepreneurs, like those at Apple, focus on creating technology that is 'beautifully packaged' and offers a 'beautiful experience.' The script describes Apple's strategy as making 'beautiful technology that people love using,' highlighting the importance of design and user experience in their products.

Highlights

Entrepreneurs think differently because they take total responsibility for their financial success and security.

Unlike many people who rely on employers or government for financial security, entrepreneurs take personal responsibility.

Entrepreneurs understand that they must create value to get paid; no value creation means no payment.

Successful entrepreneurs always focus on being useful in the eyes of the consumer.

What entrepreneurs believe to be valuable is irrelevant unless someone is willing to pay for it.

A general difference between entrepreneurs and non-entrepreneurs is the mindset towards creating value and taking responsibility.

Really successful entrepreneurs think differently by creating new capabilities rather than solving existing problems.

Steve Jobs exemplified a successful entrepreneur by not focusing on customer-defined problems but creating capabilities he desired.

Jobs’ focus on personal needs led to innovations like the graphical user interface and the concept of app stores.

Great entrepreneurs develop new capabilities for themselves and build a sustainable formula around these capabilities.

Apple’s formula, 'We make beautiful technology that people love using,' exemplifies a timeless strategy.

A lasting formula allows companies like Apple to adapt to technological changes and market shifts while maintaining core values.

Successful entrepreneurs do not need to worry about specific customer needs but rather focus on their desires, which often resonate with others.

Understanding and applying the concept of creating new capabilities and a sustainable formula can help entrepreneurs make rapid progress.

The shift from solving problems to creating new capabilities and having a consistent formula is key to transitioning from being a good entrepreneur to a great one.

Transcripts

[Music]

I'm often asked because I've coached a

lot of them Dan how is it that

successful entrepreneurs think

differently from other people and my

first answer is that well first of all

that entrepreneurs period think

differently than other people uh for two

reasons number one is that they uh take

total responsibility for their own

financial success and Security in the

world where a lot of people are looking

for an employer to actually do that for

them to take responsibility or the

government or you know some other

institution who's going to actually be

responsible for their you know their

financial welfare and so that's the

first way that entrepreneurs are

different and the second way that

entrepreneurs are different is that they

understand that they don't get paid

until they first of all create value so

uh they don't get they don't get paid if

they don't create value and they don't

get paid first if they don't create

value so there's this sense that they

have to always be be uh they always have

to be useful in the eyes of a consumer

and uh and they may it doesn't matter

how important or how valuable or how

useful uh what you do in is in your own

mind you know that you think that what

you do is really superb and really

wonderful but unless there's someone who

wants to write a check for that it's

it's not really worth anything at all

and that's that's a hard thing for a lot

of people to uh to to succeed at so

that's the general difference between

entrepreneurs and non-entrepreneurs and

that's not to say that there aren't uh

lots of people who aren't entrepreneurs

who don't take responsibility for the

themselves and don't realize they have

to create value but um they're the

exceptions in their world where just to

be an entrepreneur and to survive as an

entrepreneur you have to have this now

the second question is what's the

difference between entrepreneurs period

and really successful entrepreneurs

because I think that's what every

entrepreneur wants to know where is the

uh the useful differences that I can

focus on

in my own Performance Based on the

performance of the best performing

entrepreneurs we're always looking for

you know how do the superstars do it

that's in any area of life but

especially in the entrepreneurial world

and so I'll use the term Superstar

because um they they operate in a way

that is just dramatically different uh

dramatically better and dramatically

bigger than ordinary entrepreneurs and

uh my uh my sense is that this is what

I'm going to describe here has probably

always been true but it's being

magnified and multiplied more in the

21st century than it was in the previous

centuries and that is that instead of um

trying to solve problems in the

marketplace known problems in the

marketplace the really great

entrepreneurs are only interested in

creating new capabilities so if I were

to use a percentage I would say that

probably 95% of all

entrepreneurs are trying to solve an

existing problem so it's it's uh the

clients and customers need something

solved but in many ways it's the client

or customers who are defining the

activity of the entrepreneur but the

really great entrepreneurs really aren't

interested in solving a problem they're

very fascinated and motivated to create

a new capability and one of my real Role

Models here and he may be one of the

greatest role models in the history of

Entrepreneurship is Steve Jobs at Apple

because Steve Jobs during the entire

time that he uh had the he was at Apple

both the first time he was there and

then when he came back never did focus

groups he would never bring in customers

and clients

and ask them what they needed what what

were their problems What did the what

did they want to solve but instead what

he focused on he said if there was a

really great new capability I wanted for

myself in the world what would it be and

uh you know one of the answers was I

would like to be able to operate a

computer without knowing code and a lot

of people don't know this but Steve Jobs

wasn't a great technology guy and so he

saidou know it'd just be a lot easier

for me if I could just have um click I

could just click so the the he didn't

invent this but he was the one who made

it famous was called the you know the

graphic user interface where instead of

learning code and punching in code you

all you did with the mouse uh is that

you clicked you know you clicked uh the

cursor you clicked on and you got the

program things switch for everything so

everybody in everybody in the computer

world now uses graphic user interface

but the reason why Apple was the first

to use graphic user interface faster

than anyone else is because Steve Jobs

wanted this capability for himself the

other thing is he said um uh with um you

know cell phones which have been around

for you know many years before Steve

Jobs was there and he said uh why don't

uh I I would like to have a capability

where this could connect to the internet

and uh I could have all sorts of

different functions on the internet uh

all sorts of uh what got to be called

applications where if there was any kind

of new electronic capability I would

just be able to download it to my phone

and that created the uh the Apple Store

you know and uh you had iTunes where you

could download things and you had the

iPhone and so what his rule was was that

where all projects get started is that I

want a particular new capability for

myself and if it really works for me

probably a lot of other people will want

to have it and I don't have to worry

about what their needs are I don't have

to worry about their problems I'm just

going to take things that uh I need

personally for my life and then he

wrapped a formula around this and this

is the second part of first of all the

great entrepreneurs develop new

capabilities for themselves and the

second part of it is the great

entrepreneurs uh build a formula around

their capabilities that are always the

same so for Apple the formula is we make

beautiful technology that people love

using and this is a Formula when you

think about it that could last for a

hundred years so uh I saw an article

once and they said that apple is most

likely of the great technology companies

today uh to be still in operation 100

years from now and the reason is they

have a formula so it doesn't really

matter what kind of

Technology uh is being made and so they

can adjust to any kind of Technology but

the one thing is that it has to be

beautiful technology it has to be

beautiful beautifully packaged it has to

be the experience of using it has to be

sort of a Beau full experience and the

individuals the customers and clients

who are using the technology love the

experience so what they have so I would

say going back to the question what is

the difference

between entrepreneurs in general and

great entrepreneurs is that great

entrepreneurs don't try to solve

problems they try to create capabilities

they try to create capabilities that

they themselves want to have and then

they have a formula so that no matter

how technology changes how the world

changes how the marketplace the economy

changes they have a single strategy that

they can stay with forever and uh I

found that when you give these to

differentiating points to most

entrepreneurs they can make very very

rapid progress and identifying the

capabilities uh that don't exist now

that they would like to have for

themselves and also that they can create

a formula that they can stay with

forever and all of a sudden what might

have been just sort of a reasonably

successful entrepreneur they immediately

make the shift to being a truly great

[Music]

entrepreneur