Mental Model Posts ‘Phase Change’

Three Mental Models of Successful Entrepreneurs

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Photo by Stuck in Customs

Almost every aspect of business would be considered a soft science.  This means there are no strict rules for starting, managing, or growing a business.  It also means business is more art than science.

Without the predictive ability to determine success, it’s better to develop a system of thought.  And the best system of thought is a latticework of mental models.  Induction, or the prediction of unobserved events from knowledge of observed (similar) ones, is the result of a well constructed latticework.  And induction is the ability to go from specific concepts to a multidisciplinary understanding of the world.  This ability is critical in entrepreneurship.

There are three mental models that should constantly be on the forefront of every entrepreneur’s mind.  Read More »

An Accelerated Master’s Degree: Marketing in One Book

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Topics: Marketing
Marketing

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There have been plenty of books recently published on the concept of Deliberate Practice, which essentially says that it takes 10,000 hours of a certain kind of practice (called ‘deliberate’) to gain expertise in something.   It makes sense that the majority of what you want to learn in any discipline is going to be experiential (or gained through practice).  But in order to better understand your experiences, you want to have some kind of framework of what to expect.  You want to develop a theory structure.

Books are what give you this theory structure, and certainly the quality of the theory structure you begin with impacts the amount of deliberate practice you need to become an ‘expert.’  So it’s important to choose the right books, as they will provide the base infrastructure upon which you will layer your experiences.  You’re looking for books that concisely capture the overriding concepts of a particular discipline.

And in any discipline, at least one fairly well defined, there doesn’t need to be that many books to accomplish this.  I would generally say that 3 books or fewer, for each discipline, will give you a proper theory structure.

With that in mind, let’s look at Marketing…  Read More »

There’s No Best Age to Start a Business: The Story of Sam Walton and Wal-Mart

Walton

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After graduating from the University of Missouri in 1940, Sam Walton took a job with J.C. Penney.  He was 22 years old.  He spent five years with J.C. Penney learning the retail industry.  In 1945, Walton became an entrepreneur and bought a Ben Franklin variety store in Arkansas for $25,000.  He was 27 years old.  Walton spent five years growing his Ben Franklin store.  But in 1950, after Walton’s landlord refused to renew the five year lease he had on the Ben Franklin store location, Walton had no choice but to sell the franchise.  He sold it for a fair price, and then had to start all over again.  Walton was now 32, and it was at this age when he opened his first Walton’s Five and Dime (again in Arkansas).  But it wasn’t until he was 44 years old that he opened the first Wal-Mart.  It was a very gradual progression.  So, does age really matter when starting a business?  I doubt it.  There is no best age to start a business, no perfect time – none of that.  And Sam Walton is the perfect example of this.  Read More »