Conventional wisdom has them looking for a painful problem, a very large opportunity, and minimal competitive barriers to entry. In reality, most great entrepreneurs find these necessary, but not sufficient for the big win.
They think outside the box, with a sometimes surprising set of strategies, as outlined in a new book, "Think Bigger," by Michael Sonnenfeldt. He has collected in-the-trenches intelligence and lessons from his TIGER 21 group of over 500 entrepreneurs and executives around the world.
Each has amassed $10 million or more in personal assets, and is willing to share their insights with others.
Sonnenfeldt presents a rich array of strategies in his forty lessons from the trenches, including the following paraphrased insights that I find often overlooked or even rejected, based on my years of experience mentoring entrepreneurs:
1. Experience at a first-rate company is really valuable.
Good big companies provide the training, mentoring, and experience managing teams that entrepreneurs need, but can't afford.
In addition, you can learn much about business principles, and your own capabilities, from being surrounded by many intense, ambitious, and super-smart peers.
2. Entrepreneurship is rarely about just making money.
The best entrepreneurs are committed to fixing a problem, or advancing a purpose, and making money is only used as a validation of their insight.
Any money made is typically poured back into the cause, rather than relished for a high-class lifestyle or extravagances by the entrepreneur.
3. Self-control beats passion for long term satisfaction.
Passion often leads to a need for instant gratification. Most successful entrepreneurs either learn or are born with the capacity to delay gratification for critical periods in their lives.
Even after success, they use self-control to continue to live modestly, and plow their profits back into business.
4. Think twice before investing with friends and family.
Some are so self-centered that they see family and friends as an easy source of capital. Smarter entrepreneurs know that nothing can bring more embarrassment, resentment, and peril to relationships with people you love and respect than losing their money.
Don't jeopardize key relationships.
5. You are never to smart or too old for a mentor.
In case you think mentors are only for "wimps," you should know that Bill Gates always revered the guidance he received from Warren Buffet on many corporate matters.
Most successful business people, whether retired or still active, love to share the wisdom they gained from their own experience.
6. Entrepreneurial skills can limit investing success.
Entrepreneurs and investors are different kinds of people, inside and out. Smart investors diversify their exposure across multiple assets; if any one of these fails, they are still in the game. A true entrepreneur makes one big bet on a new and untested asset, normally against conventional wisdom.
7. Apply business skills to solve social problems.
Social entrepreneurship is on the rise, with the advent of Millennials and a total world view. Companies that pursue socially relevant goals as part of their mission have the potential to generate double-bottom-line results - a financial return as well as a social benefit.
One plus one can now equal three.
8. Skip conservative - be optimistic, even delusional.
The best entrepreneurs just believe they can make it happen - even though conventional logic would peg the risk as being off the charts.
Professional investors dismiss founders who give "conservative" financial projections, and usually make less. Shoot for the moon - you may hit it.
9. Surround yourself with people who are smarter than you.
Too many entrepreneurs have a tendency to overrate their personal skills and wisdom, and seek out people who won't challenge them.
The smartest ones acknowledge their weaknesses, and find people who complement their skills, from whom they can learn and delegate authority.
10. Resilience and determination generally beat IQ.
We all know of successful businesses started by entrepreneurs who dropped out of school, while MBAs get no premium with investors.
According to most experts, "street smarts" (experience) trump "book smarts" (intelligence) every time, especially if accompanied with a large dose of grit.
Whether you are already a seasoned entrepreneur, or just starting out, I recommend that you regularly strive to think bigger and outside the box, starting with the lessons from others who have been there and done that, and emerged successfully.
We need you then to contribute to the next set of winning strategies for the next generation of entrepreneurs.