How The Best Entrepreneurs Think

If you just observed the actions entrepreneurs take, you would conclude there isn’t that much to be gained from studying them. Each entrepreneur’s behavior is as idiosyncratic as they are. You would have to be Larry Page and Sergey Brin to start Google GOOG +0.79%; Oprah Winfrey to found Harpo Productions.
But—and it is a huge but—if you look at how they reason, you see remarkable similarities.
The process just about all of them follows in creating their companies looks like this. They:

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1. Figure out what they really want to do; what gets them excited. In other words, what is it that they really desire.

2. Take a small step toward that goal.
3. Pause after taking that small step to see what they have learned.
4. Build off that learning and take another small step.
5. Pause after taking that step.
6. Then they build off what they learned and take another small step…
If we were to reduce it to a formula, it would be, as we have written about before, Act. Learn. Build Repeat.

In other words, they don’t spend a lot of time planning or playing “what if” games. You never truly know how the universe is going to react until you give it something to react to.
So, in the face of an unknown future, entrepreneurs act. They deal with uncertainty not by trying to analyze it, or preparing for every contingency, or predicting what the outcomes will be. Instead, they act, learn from what they find, and act again.
Three things follow, all of them good
There are three wonderful benefits of taking this approach.
–You can get started right away.  You don’t do a lot of planning and guessing about what the market might want. You go out into the marketplace and find out.
–You don’t need a lot of resources. Remember, the best entreprenuers are taking small steps toward their goals.  That means they just need sufficient resources to take the next step.
–You can quickly respond to market needs.  Because they are moving rapidly, and don’t have a lot of resources committed, they can move to satisfy customer needs almost as quickly as those needs appear.
It is a simple, straight-forward approach.
And what worked for these people should work for you.