Introducing The 5 Dynamics of Entrepreneurship Model
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©2004-09 Po Chung
Product/Service
A successful startup depends on its distinctive and compelling proposition. This is how products or services stand out from the competition and are compelling to the young company’s customers.
The product or service will succeed most if it either eliminates an existing pain or adds significant tangible benefits. It is easier to sell a new product or service that eliminates a well known existing pain, as opposed to sell an item or service that doesn’t clearly solve a potential client’s pain.
There also seems to be a popular myth that anyone can be successful by simply working on any given idea or opportunity. This isn’t true. You can’t. Most entrepreneurs are very knowledgeable about the product before they start, since even experienced operators will run into unexpected troubles when they start their new business. Novices generally introduce more problems than they can deal with, which only undercuts their ability to be lean, fast or effective.
Management Tools
Although the ability to sell is undoubtedly the most critical tool for an entrepreneur, most business schools have tended to limit this from their classes. Not only that, but most corporate executives hate selling, which reinforces the idea that sales is a low priority.
The point to remember, however, is that for the first 10 yards, sales is the missing toolkit.
All the major stakeholders and targets of a startup — customers, suppliers, staff, investors — are naturally skeptical about a new business. Salesmanship, then, is the ability to quickly convince potential partners to support the startup.
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© 2007 Po Chung and Saimond Ip
