The takeaway from Qualcomm’s story is that Jacobs and the rest of the founding team started a company knowing what they wanted to do and how they wanted to change the world. They did this knowing that they had a well of technical knowledge and a firm belief in their vision.
Opportunities Come from Change
External changes can create opportunities in two ways:
Change that makes it possible to do things that haven’t been done before
Change that makes it possible to do something in a more valuable way
An external change that makes it possible to do something in a more valuable way could be the catalyst that makes an idea that otherwise would not have been actionable into an opportunity that has the potential to provide value.
Opportunities Come from the Process of Effectuation
Effectuation is essentially the opposite of causation. It is a process used to identify entrepreneurial opportunity when the future is unknown or unpredictable. We often think of new ventures as starting with a goal, then gathering the resources needed to achieve that goal. Effectuation, on the other hand, starts with the resources at hand and then assembles them to build the goal.
The difference between causation and effectuation may seem subtle, but it is important. A great example of the difference is your approach to making dinner. If you were to take a causal approach, you would carefully plan out a menu in advance, then check your kitchen to see what you have, then go to the store to buy any missing items. In an effectual approach, you would look in your refrigerator and pantry, see what you have, and plan your menu accordingly.
Causation versus effectuation—which is the “right” method to use when developing an idea into an opportunity? The answer is both. When it comes to making dinner on an average weekday night, you probably use the latter. If you’re planning a dinner party, the former is probably best. The moral of the story is that sometimes the best opportunities are found by just looking around and seeing what skills and resources are available to you.
What’s in a Thumbprint?
An entrepreneurial thumbprint—like an actual fingerprint—is unique to each person. Fingerprints all look similar at a glance, but upon closer inspection we see that no two are alike. Unlike our fingerprints, however, we are not born with entrepreneurial thumbprints. Furthermore, unlike fingerprints, an entrepreneurial thumbprint evolves over time. It is a blend of our skills, talents, connections, and experience.
In exactly the same way that an opportunity cannot exist independently of an entrepreneur, your entrepreneurial thumbprint cannot exist independently of you. In fact, it is you! To uncover the ridges and whorls of your own entrepreneurial thumbprint, ask yourself the following questions:
What are you passionate about?The topic of passion comes up frequently in this book and in any conversation involving entrepreneurship and the act of starting a business. If you’re not passionate about an idea, it will stay an idea. It may be a good idea, it may be an interesting idea, but if you aren’t inspired to make it a reality or passionate about its execution, then it will never manifest into an opportunity. Conversely, where you may lack passion for an idea or a business concept, another would-be entrepreneur may be excited about bringing it to fruition. Your personality, interests, inspirations, and passions contribute to forming your entrepreneurial thumbprint.
What do you know well?It’s okay not to have an advanced understanding of business concepts at first. In fact, many successful entrepreneurs are not MBA holders. Starting a business isn’t as simple as monetizing your passion, but that underlying passion and knowledge forms the solid core of your entrepreneurial thumbprint. Someone who travels avidly and has a lot of experience navigating the world of rental cars, air travel, and hotel bookings is better suited to starting a travel agency than someone who has never left the country.
Who do you know?Having a huge social network isn’t a prerequisite to success, but a long contact list can certainly help. A portion of your unique entrepreneurial thumbprint is composed of your network—both personal and professional. These people may be the first ones you reach out to when it’s time to start funding your venture, but when it comes to distinguishing the difference between an idea and an opportunity, you’ll find that your network is worth more than a round of financing. Who do you know that has skills or knowledge that complement your own? Better yet, who do you know that has skills or knowledge that fills in gaps in your own experience? Do you know anyone who could act as a mentor or provide other forms of guidance on your entrepreneurial journey? Are there members of your network who can get the word out about your new venture, or lend a hand getting you off the ground?Ultimately, your personal/professional network plays a large role in defining your entrepreneurial thumbprint.
Is there a particular problem you want to solve?If you are familiar with a particular field or industry, it is more than likely that aspects of it that frustrate you also frustrate others. Inconveniences, limitations, and frustrations—collectively referred to as pain points—are tremendous drivers of entrepreneurial opportunity. This is true even if you don’t know exactly how to fix the problem right now. As you explore the idea, discuss the issue with others, and gain a greater understanding of the how and why of the problem, it will become clear whether the other aspects of your entrepreneurial thumbprint can help you transform this into a real opportunity.
If the elements of an entrepreneurial thumbprint seem circumstantial and subject to change, that’s because they are. Nothing is set in stone. Entrepreneurs aren’t born to start new ventures. Entrepreneurs are people, and as we learn and grow, our entrepreneurial thumbprints become better defined along the way.
A final note on the topic of entrepreneurial thumbprints: keep in mind that at the end of the day, starting a business is a creative act. As with any act that stimulates us creatively, inspiration can come from anywhere, even places that surprise us. As you will see in the next chapter, the idea that entrepreneurs are born, not made, is not only erroneous, but self-limiting. The sheer number of ideas matched with the sheer diversity of entrepreneurial thumbprints completely turns this idea on its head.
What Makes a Great Opportunity?
We know that opportunities start as ideas and that they can be cultivated though several different processes, but the critical question is “What makes a great opportunity?” After all the thinking, searching, and analysis, how do you separate opportunities that have real, actionable value from those that simply don’t make the cut?
A great opportunity:
Solves a problem for a customer
Exists in a strategic space that isn’t too crowded
Can be executed in a strategic space where you can maintain a competitive advantage
Has a reasonable potential to help you achieve your goals
Fills a critical customer need that may or may not be obvious to them
Is not obvious to others who don’t have