Leading a startup in times of political & economic uncertainty

The current global economic indicators make uncomfortable reading, even before the impact of Brexit is factored in. The UK’s Q2 GDP figures recorded the first quarterly fall since 2012, indicating the economy going into reverse. As investment and exports continued to fall, the conclusion is an economy stalling at best.

Consumer spending and government expenditure are currently keeping the economy afloat, a pattern we have seen for a while. Boris Johnson seems intent on easing the public purse strings, announcing a new commitment to spending money every day on health, education, social care and crime. However, this contradicts his tax cutting promises – you simply can’t have a high spend, low tax financial strategy. His numbers don’t add up.

So we are likely to see a growing imbalance in the UK economy, as rising consumer spending and government expenditure offset declines in investment and exports, and the risk of ‘no-deal’ and the uncertainty surrounding Brexit stalls investment. The Bank of England’s low interest rate policy is exacerbating these imbalances too, by supporting borrowing and encouraging savers to look for more risky investments because the returns on bank and building society deposits are so poor.

A Brexit-driven recession in the UK may be avoided, but there is still little clarity on whether the UK will be in or out of the EU come November, making Brexit the big story for the economy with this uncertainty. Johnson has begun to brace us for a no-deal Brexit, ramping up public spending by £2.1bn on preparations including stockpiling of medicines, and a public awareness campaign about potential disruptions.

Businesses remain largely unprepared for a disastrous cliff-edge no-deal and are in sit-and-wait mode, while the CBI continue to speak out against the ongoing economic chaos. At the same time, inflation unexpectedly rose above the Bank of England’s 2% target in July, putting renewed pressure on British households as the cost of living increased.

Also in July, the unemployment rate ticked up to 3.9% while the number of unemployed rose by 37,000. The number of vacancies – which had been on the rise since 2012 – started falling at the start of the year and continues to fall. This suggests that the UK labour market has started to turn down and that weaker economic growth and the rising risk of a no-deal Brexit could be starting to impact the job market, although the jobless rate remains at the lowest level since the mid-1970s.

The average British worker still earns less than they did in 2007. In place of rising wages, consumption is being driven by growing unsecured household debt, which is now the highest we’ve ever seen in the UK. With incomes low, savings drained and debt levels high, a turn in the business cycle will mean financial hardship for families.

Outside of UK specific issues, the global economy is slowing at the end of a ten-year-long weak recovery from the 2008 financial crash. Germany has fallen into negative growth and is heading towards recession. In the US, Trump’s confrontational strategy to a trade war with China is having a negative impact on both countries. Washington and Beijing have ratcheted up the threats of tariffs on each other, dragging down global trade volumes and economic growth.

It all adds up to fearing the worst that the first global recession since the crash of 2008 is just around the corner. Recessions usually happen every ten to fifteen years: business confidence drops, investment declines, employment stalls and demand shrinks. Eleven years on from the crisis of 2008, expectations are that the next recession is unlikely to be a repeat of the last crash, as while there are risks to financial stability, none will impact the economy in the way the collapse of Lehman Brothers did.

So, let’s draw breath on the economic analysis. As a startup entrepreneur looking for meaning in this analysis, the information has contradictions, a mix of emotion, biases and cold-eyed calculation, yet expresses something about both the mood of investors and the temper of the times. Yes a recession is so far a fear, not a reality, but it is evident firms are struggling to get to grips with uncertainty, and anxiety could turn to alarm.

Often danger signals are ignored until too late. America’s decade-long expansion is the oldest on record so whatever economists say, a downturn feels overdue. For me, the portents are evident, confidence is being eroded and the storm clouds are gathering. My fear is that we’ll have a torpid economy at best, that is prone to curtailing innovation, entrepreneurship and startup investment.

There’s just no way to completely prepare for future uncertainty facing your business, simply understand that circumstances change and unforeseeable events occur, and you can make smart choices to prepare well. Not only will this provide you some peace of mind that you’re as ready as you can be, but you’re more likely to respond quickly and more effectively when trouble strikes, so here are some practical tips designed to help your startup prepare for the unknowns.

1. Stay in the now It’s easy to get caught up in your own startup bubble, but that’s a trap to avoid. One of the best ways to combat uncertainty is to stay abreast of economic indicators, as highlighted above. By being aware of the general state of the economy, and how economic forecasts might affect your business, you can put yourself a step ahead of others.

A forward-thinking entrepreneur understands the value of analysis, and not just ‘gut instinct’ intuition. Are you consistently reviewing your business strategy assumptions, value proposition and pricing to ensure they remain valid?

2. Prepare for multiple outcomes It’s wise to stop assuming a single outcome will turn up as the conclusion of a situation. You should prepare for multiple outcomes regardless of what you expect. Foresight enables you to respond effectively. The best way to prepare is to include your team in the planning process, you’ll get fresh, unique perspectives that are more likely to result in critical and innovative thinking.

There isn’t a crystal ball to help you predict the future, and there are many factors completely out of your control. Instead of trying to guess what’s going to happen next, place as many small bets as you can on multiple outcomes that are within your control. For example, focus on product improvements, customer communications, experiment with pricing and new marketing strategies.

3. Build relationships to create opportunities to grow In times of uncertainty, is a spreadsheet going to help you regain solid footing? It’s possible, but unlikely. The best investment you can make for future stability is relationship building to help weather the rough patches.

What are the signals telling you it’s time to be different and bold? Signals to watch for regarding customers are: Are your regular customers asking you for new things? How are new product/new customer sales against forecasts? When your regulars ask for new offerings they’ve shown you the direction where you’re likely to succeed.

4. Know your numbers When you’re dealing with uncertainty, it’s essential that you have a firm grasp of key financial numbers, cashflow and KPIs so you can make the appropriate changes quickly. Also, sit down with your sales team daily. This will help you pinpoint the messages to be taken between ‘lead’ and ‘lag’ indicators.

5. Regain control of your time Evaluating how you and your team spend your time helps you stay focused on the tasks that grow your business. For example, spending time writing content means you must understand what the timing and targets are for following up leads.

What’s more, tracking your time keeps you in control. It’s like weeding your garden; if you don’t stay on top of the weeds, they’ll eventually consume your entire garden. Also you should automate and delegate as much as possible so you can focus on those aspects of the business where you can personally make a difference.

6. Ensure that your passion adds up Passionate entrepreneurs can have rose-coloured spectacles, over-estimating sales and underestimating costs, being positive on the upsides and conveniently ignoring the downsides. In times of uncertainty, to convert your passion into tangible business, emphasise a strategy that makes financial sense based on how the elements of your business will come together. It’s all about the clarity of your thinking and your assumptions. The numbers fall out from this.

7. Attach to the market, not your idea Passion is an essential ingredient, but a successful start-up is rooted outside the founder, in the market with customers. To turn your passion into revenue, always think about your business from the customer’s perspective. Why would they buy from you? What problem are you solving? What is compelling about your value proposition?

8. Develop a sense of timing Waiting for the right moment to take a decision often makes the difference between success and failure. Adopt a ‘So What?’ and ‘What if?’ mind-set, and map out alternative options. It’s a marathon not a sprint, reflection and consistency are as important as innovation in resetting a ‘business as usual’ model in turbulent times. Be alert, timing is everything. You need to say ‘no’ sometimes, and make some bets.

9. Don’t micromanage Getting deep in the weeds gives you little time to get that 10,000ft perspective, you should work ‘on’ the business not ‘in’ the business, you’ll find your greatest contributions come when you pull yourself back. Focus on your vision and North Star – each week ask yourself What have I done to move the business forward?

10. Don’t be too opportunistic, don’t be too defensive Strike a balance. Adopting a pragmatic, balanced approach is likely to maximise the chances of you surviving a period of uncertainty. Recognising that cost-cutting is necessary to survival while also understanding the role investment and innovation plays in long-term growth, is key to steering your business through choppy waters.

A balanced strategy accepts the reality of the present and reacts accordingly, while also preparing for the future. You can not only survive uncertain times, but also learn valuable lessons that will stand you in good stead for longer term success. Judicious investment, proactive innovation, increased operational efficiency, refocused propositions, honed processes and competitive advancement are all possible when it’s tough going, there are silver linings.

So, are you preparing for the potential recession into which your startup maybe heading in the next six months? Don’t ignore how much is beyond your control nor take your focus off of what is within your control. Develop the resilience, flexibility and competitive edge to ride through the rough waters and come out in good-nick, ready and aligned for when sailing becomes smooth.

Strategic readiness comes through a combination of awareness, flexibility, strong navigational leadership, resilience, collaborative working, considered learning, ongoing innovation and agility. Now is the time to act. Make the necessary adjustments to your business now to help prevent it becoming another statistic of an uncertain environment.

Taking risks is what a startup is all about, but you can research and keep your ear to the ground too – the process of planning is important – but in the end you have to work from your instinct and be fearless. When you’re feeling the apprehension about the horizon, that will help you manage the ambiguity of an unknown future and forge ahead in confidence.

For entrepreneurs, the dream of a future lies in the present moment. Great innovation comes from asking what could be. Don’t be afraid to take a risk to see your dream into reality, even if the waters are choppy. Security is mostly superstition. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing.

Greggs: an agile approach to strategy & business model thinking

John Gregg founded his bakery business in 1939, selling eggs and yeast from his bicycle in Newcastle. The business grew, and his son Ian joined his father and mother, selling pies from his van to miners’ wives. They opened their first shop in Gosforth in 1951.

When John died in 1964, the bakery was taken over by Ian, and major expansion began, including the acquisitions of other bakeries such as the Bakers Oven chain from Allied Bakeries in 1994.

Greggs grew to be the largest bakery chain in the UK, home of the bacon sandwich and a coffee for two quid special offer which, disappointingly, is now £2.10 (a friend told me, honestly), famous for pies and pasties and everything you firmly resolved on December 31 would never touch your lips again.

A couple of years ago, Greggs fell victim to adverse PR about its product range and customer base. Oh how the Prêt crowd sniggered into their avocado and crayfish salads. Yet plucky old Greggs just got its head down and kept growing. ‘It’s a northern thing’ no longer serves as an explanation. The patronising notion that Greggs’s popularity is inversely proportional to the nation’s economic fortunes also fails to explain its steady expansion.

Today Greggs generate £1m a week from sales of coffee. It has repositioned the brand from an ordinary bakery-to-take-home to a high growth food-on-the-go entity, meeting changing customer demands and evolving food culture.

A new strategy was introduced in 2013 under CEO Roger Whitehouse, formerly Head of M&S Food, which focused on four pillars: Great tasting freshly prepared food; best customer experience; competitive supply chain; first class support teams.

Whitehouse introduced a ‘restless dissatisfaction’ approach to compliment the traditional business values, ensuring the business would never stand still after recovering from a period of stagnation. He implemented some radical changes, including closing the in-store bakeries, and introducing the ‘Balanced Choice’ range of products with less than four hundred calories, healthier options to the traditional product range.

And it’s worked. Having launched the first vegan sausage roll in January, last week the company announced a 50% rise in profits to £40.6m in the first half of 2019. The business is handing shareholders a £35m special dividend after total sales rose 14.7% to £546m.

In 2016, Greggs weren’t in the takeaway breakfast market but now only McDonalds sells more takeaway breakfasts. With a Fairtrade Expresso, it has overtaken Starbucks to become the third-largest takeaway coffee seller, behind Costa and McDonalds, while only Tesco sells more sandwiches.

So what are the lessons from the success of Greggs changing its business strategy and model that we take into our startup thinking?

1.     Be agile in how you connect with customers

Greggs expects to pass 2,000 outlets this year, 65% are on high streets, with the remaining 35% located in retail and office parks and in travel locations such as railway stations and petrol forecourts. The aim is to change the emphasis of the business so that it is 60% non-high street by the time it has 2,500 shops.

Part of this is having many of its stores open earlier and close later, in order to target those going to and coming back from work, expanding its breakfast menu to suit, and with ‘Greggs à la carte’ stores to open late to 9pm to lure evening takeaway diners.

As well as its new drive-through locations, the company is trialing a click-and-collect service, as well home and office delivery by Just Eat and Deliveroo. They aim to integrate click-and-collect and delivery services with the company’s Greggs Rewards app, which offers free drinks and birthday treats.

Greggs has previously failed with new ideas such as Greggs Moment, a coffee shop-style outlet with seating, and the Greggs Delivered service, which is only available in Newcastle and Manchester city centres, three years after it launched. However, the business is now at a scale where it can experiment without too much risk.

Takeaway: Greggs route to market strategy is to based on expanding their reach to enhance customer convenience, a ‘fish where they swim’ strategy, reducing the barriers between themselves and their customers, uplifting the customer experience and making the ability to connect and purchase convenient.

2.     Build your brand to face your market

Greggs has in recent years persistently bucked the wider trend on UK high streets, where most retailers are struggling to compete as sales shift online and the cost of running stores rises.

In 2013, Greggs began to transition out of the bakery market with the reasoning that it couldn’t compete with supermarkets, switching to focusing solely on the ‘food on the go’ market after discovering that 80% of its business was with that market. They stopped selling bread in 2015.

Greggs has worked hard at getting consumers to think about it as a food-on-the-go chain, developing ideas such as online ordering for collection and home delivery, developing strategic partnerships with their supply chain to focus on the four key pillars of their strategy.

They are more in touch with where the customers are today. It has managed to cater to new markets without being overly ambitious. The builder can still come off the building site and get a hot pasty, but there are also salads. The decor is still recognisable even if it has been upgraded and the older traditional customers still feel comfortable.

Takeaway: Many businesses want profit as their objective. But if you only focus on short-term wins and results, you get distracted from doing the work required to build the skills you need to grow and scale, and it’s the ability to scale that matters. The process is more important than the outcome at early stages of a change of strategy. Focus on getting good before you worry about getting big.

3.     Look forwards, not backwards with your product offering

Greggs sells 1.5 million sausage rolls a week but created the new vegan option due to public demand after an online petition signed by 20,000 people. In recent years Greggs has been innovating within its product range to appeal to a broader range of customers. Its ‘Balanced Choice’ healthy eating range, introduced in 2014, offers options including wraps and salads, all below 400 calories. It also sells gluten-free and several vegan lines.

The company also believes it can take advantage of rising demand for food ‘customisation’, driven by allergies and ‘food avoidance’ preferences, and its stores now make sandwiches to request.

One in eight new customers have bought a vegan sausage roll in 2019, which has overtaken doughnuts and other pastries to become a bestseller. The traditional sausage rolls remain at number one – with its 96 layers of light, crisp puff pastry – but there are more vegan products in development, including a vegan doughnut. It’s worked, such that Ginsters released their own vegan product for the first time in its 52-year history.

Takeaway: Greggs has been bold in its response to the adverse publicity on its offering and changing food culture. Aligning your product strategy with a focused brand image and route to market is core to any business model.

4.     Be clear about your marketing message & tone of voice

Before the Greggs vegan sausage rolls went on sale, TV presenter Piers Morgan sent out a tweet: Nobody was waiting for a vegan bloody sausage, you PC-ravaged clowns. The tone of the company’s response: Oh hello Piers, we’ve been expecting you – friendly but with a slight edge, was perfectly attuned to the ironic, self-confident marketing Greggs has adopted, a James Bond-inspired, droll putdown that was the perfect riposte.

Their hilariously portentous launch video – part of a build-up that parodied the release of a new iPhone model with journalists sent vegan rolls in mock iPhone packaging and stores sold sausage roll phone cases – meant that for days Twitter was engulfed with people talking about a £1 bakery product.

The vegan sausage roll campaign, officially launched to support the Veganuary campaign that encouraged people to give up animal products for a month, followed other memorable promotions include a Valentine’s Day campaign offering ‘romantic’ £15 candlelit dinners in Greggs shops, and a spoof ‘Gregory and Gregory’ event, and one faux pas: a 2017 advent calendar tableau of a sausage roll in a manger. After complaints Greggs apologised and reprinted with a different scene featuring Christmas muffins.

Takeaway: Greggs found its distinctive marketing style in 2012, when it saw off then-chancellor George Osborne’s proposed ‘pasty tax’ on hot takeaway food. Since then it has been consistent in its purposeful, structured and memorable content driven communication strategy, making the brand relevant to its target audience and differentiating its offering in an increasingly competitive market to reposition the brand.

5.     Don’t let your business model become stale

Innovation can be about efficiency. Look at Ikea, and The Billy bookcase. It’s a bare-bones, functional bookshelf if that is all you want from it. The Billy isn’t innovative in the way that the iPhone is innovative. The Billy innovations are about working within the limits of production and logistics, finding tiny ways to shave more off the cost, all while producing something that does the job. It demonstrates that innovation in the modern economy is not just about snazzy new technologies, but also boringly efficient systems.

The Greggs shop environment has been improved and significant investments made in logistics and delivery systems to make them more efficient and scalable. In-store ordering moved to a centralised forecast and replenishment system rather than relying on shop teams filling in manual order forms, which resulted in order accuracy and improved availability for customers.

All shops are on a refurbishment programme (every seven years) to ensure they stay looking bright and welcoming. In-store point of sale and window displays remain key to Greggs’ marketing strategy, however, a loyalty app was also introduced.

Takeaway: innovation in Greggs is about efficiency, economy and effectiveness, searching for ways to make their products even better and affordable for their target market. A ‘back to basics’ focus on the business model reflects the culture and humility of the brand. Combined with brave decision making to implement change and execution in a consistent, simple and continuous manner has delivered the results.

6.     Ensure your folks keep clear heads

Amidst the hullaballoo and the fury of the frantic activity in the coming and going of customers at busy times, staff have to keep a clear head. In the heat of the moment, they cannot get caught up in the intensity and frenzy. Resilience in times of peak demand is needed to keep the customer experience as fresh and stimulating as the steak bakes.

When you go to a Greggs, the staff are so engaged in what they do its untrue, they are like whirling octopus serving customers, and they do it with good humour, bantering with regulars, enjoying the success of seeing returning customers, before going again.

With 10% of profits going to the Greggs Foundation to help fund Breakfast Clubs for children and over £1m raised annually for Children in Need, the vegan pastry has helped change the perception of Greggs, but fundamentally it’s a people business, about delivering service, experience and the community it operates.

Takeaway: So, focused on a simple, core value proposition – reasonable quality food at reasonable prices, consistently produced and scaled – but the fundamental premise is to make customer experience the brand differentiator.

Many takeout food companies are head-on competition to Greggs, but due to its focused marketing strategies highlighting choice, quality, nutrition & easy access, the company is able to create sustainable advantage.

Changing lifestyles, changing eating habits and increasing health awareness factors are affecting the growth of the companies in this industry. Greggs has set its strategy from a customer’s point of view and with customer-based insights, to ensure the business model is as robust as it can be.

Adopt Greggs’ agile approach to strategy and business model thinking, to focus on the horizon and hold your vision. Do something everyday to move your business forward, and that makes you stand out from the crowd. A sheep has never stood out from another sheep, so don’t follow the herd blindly. People will take notice.

Lessons in entrepreneurship from grandmaster Magnus Carlsen

The history of chess is a history of metaphors and moral lessons. Underlying a game of chess is an abstract structure of rules and relative powers, which can be quite mind-boggling. The game emerged in C5th India, but it wasn’t until the C19th, when the set was standardised into the Staunton version we play today.

To follow a professional game is to get lost in a swamp of algebraic options and notations. When the 13-year-old Bobby Fischer sacrificed his queen against Donald Byrne in the so-called ‘game of the century’ in 1956, it was considered one of the finest moves in chess history – a greatness not quite communicated by Be6

Chess is an endless pursuit, a game of longevity with logical consequences and sly entrapment. After sacrificing his queen, another 24 moves later, Fischer won – a result, he’d worked out, that was inevitable if he let his queen go. It was sacrifice that was also attack, violence that was also composure.

When a chess player looks at the board, he does not see a static mosaic, but a magnetic field of forces, charged with energy, potential and intrigue. A game of chess opens in a state of equilibrium, and if the optimal move is made with each play, a draw is all but assured. At the elite, grandmaster level, more than half of contests are drawn.

Sven Magnus Øen Carlsen is a Norwegian chess grandmaster and the current World Chess Champion. His peak Elo rating of 2882, achieved in 2014, is the highest in history. Carlsen became World Champion in 2013, retained his title the following year, and won both the World Rapid Championship and World Blitz Championship thus becoming the first player to simultaneously hold all three titles.

Magnus tries to put the accent on play, less on preparation, and is seen as combining the talents of two of the all time greats, Karpov and Fischer. He’s known for getting his positions then holding on with a bulldog bite. Exhausting for opponents, one of his most feared qualities is his ‘nettlesomeness’ – his creative moves pressurise opponents into mistakes. Carlsen’s endgame prowess has been described as among the greatest in history.

The World Chess Championship of 2018 began with a series of twelve games played under classical time controls, the traditional slow pace of play. Carlsen failed to win a single one of his contests against the challenger, American Fabiano Caruana, but fortunately for the Norwegian, Caruana never reached a checkmate or extracted a resignation either.

With each of the dozen classical games ending in a draw, the match moved to a series of faster-paced tiebreakers, starting with a series of four ‘rapid’ games, in which players are allotted less than one-quarter the thinking time of the classical format. Carlsen, the stronger competitor in speedier formats, won the first three games to clinch the tiebreaker and retain his title.

To the casual observer, three weeks of drawn games may sound excruciatingly boring, but like a football match with smart, impregnable defences, or a baseball World Series studded with scoreless pitching duels, the chess title match featured two equally matched grandmasters competing at an extremely high level.

In chess, every piece serves a purpose. You start the game with a set of pieces, from king to pawns, each with their own ability and position. Novice players push forward immediately with their back row, trying to get their most valuable pieces into win positions early. Experienced players, however, know that it is the pattern of all their pieces working in concert that creates reliable success.

Master chess players see the unfolding patterns of the board over time, thinking not in terms of one piece or one move, but in terms of the entire board over dozens of moves. This ability to analyse actions and their outcomes, combined with skilled pattern recognition, is what defines strategy.

The objective is to play the board, not just your plan. When playing chess your opponent is trying to predict and undermine you, applying their own strategy to capture more pieces, so, what do you do? One crucial skill is the importance of taking time for reflection. It’s in reflection that the brain has time to learn, to process new information, to recognise patterns, and recall previous successful moves.

I see many similarities between chess and running a startup business from the strategy, thinking and tactics behind the game. Let’s look at the lessons and learnings we can take from Carlsen and his recent Word Championship success.

The first phase in a chess game: the opening As Carlsen shows, the purpose of the opening isn’t just to get immediately ahead, rather it’s to set the stage for the type of middle game you want. This can also mean manoeuvring for the type of game your opponent doesn’t want. The openings are the only phase in which there is the possibility of unique application, you can find something that no one else has found. Be first, and be brave is the lesson for a startup, but equally don’t rush.

The second phase: the middle game What sort of middle game is our opening going to lead to? Is it one we are prepared for or have our opponents out foxed us and we’re playing catch-up? We must also play the middle game with an eye on the endgame. In a startup it’s important to have a strategy, tactics and a game plan thinking in period of three months, with objectives and key milestones.

Dream a little, don’t settle automatically for routine solutions The paradox of chess is that there is a routine set down by mathematics to make a strong move based on its objective merits. But recall Carlsen’s approach is a combination of freedom and discipline, sober evaluation and calculation mixed with outlandish ideas.

In a startup, you won’t find new ways of solving problems unless you look for them and experiment and have the nerve to try them when you find them, but ensure flair doesn’t mean or you spend your life making beautiful blunders.

The future is a result of the decisions you make in the present The strategist starts with a vision of the future and works backwards to the present. Carlsen makes the best moves because they are based on what he wants the board to look like ten or twenty moves ahead. This doesn’t require the calculation of countless twenty-move variations, but an evaluation where his fortunes lie in the position and establishes objectives. Having a vision for your startup is just as important.

Intuition & analysis Even the most honed intuition can’t entirely do without analysis. Intuition is where it all comes together – our experience, knowledge and judgement – or even hunches. But it doesn’t matter how far ahead you see if you don’t understand what you are looking at before you, so combine the two. No matter how much practice you have and how much you trust your gut instincts, analysis is essential.

Attack An attack doesn’t have to be all or nothing, or lightning quick. Sustained pressure can be very effective in chess, and creating long-term weaknesses in our opponent’s position can lead to a win in the long run. One of the qualities of a Carlsen is his ability to get the maximum out of a position without overstepping and trying to achieve more than what is possible.

In chess, the defender has to race around to cover the threats, but against constant pressure the job soon becomes impossible. Moving to cover one breach creates another until something cracks and the attack breaks through.

In chess we have the ‘principle of two weaknesses’. It’s rare to be able to win a game with only a single point of attack. Instead of becoming fixated on one spot, we must exploit our pressure to provoke more weak spots. So a large part of using the initiative is mobility, flexibility and diversion. In business, it’s a combination of product, service and price that creates a winning position.

Initiative Once you have the initiative you must exploit it. Carlsen reminds us that the player with the advantage is obliged to attack or his advantage will be lost. In business, a lead in initiative can be converted into a sustainable position. Being a step ahead means we can keep our competition off balance, shifting and moving in order to provoke weaknesses.

In business, going on the front-foot requires perfect timing as well as nerve. The window of opportunity is often very small, as with most dynamic situations. No neon sign appears to say that there is a big opportunity right around the corner, so balance opportunity with rationale – back to the combination of freedom and discipline in your game plan.

When you are winning, don’t get complacent Winning creates the illusion that everything is fine, success is seldom analysed as closely as failure and we are always quick to attribute our victories to superiority, rather than circumstance. When things are going well it is even more important to question. Over-confidence leads to mistakes, a feeling that anything is good enough. Our egos want to believe that we won brilliantly against tough competition, not that we were lucky and ‘right time, right place’, but typically, however, the winner is just the player who made the next-to-last mistake.

Carlsen shows that if we’re going to get the most out of our talent we have to be prepared to have a game plan, practice, think on the spot, analyse ourselves critically and improve our weakest points. The easiest thing is to rely on talent and focus only on what we do well. It’s true that you want to play to your strengths, but if there is too much of an imbalance growth is limited. In business, the fastest way to improve overall is to work on your total game, and all the constituent parts.

Chess is a mental game, that requires vision, tenacity, thoughtfulness, and multiple tactics. From this we can take the thought that in a startup we can look for ways to experiment and to push the boundaries of our capacity in different areas, it really is a combination of disruptive and disciplined approaches, and agile thinking that will bring success.

Time is an ingredient in all entrepreneurial endeavours

Entrepreneurship is an endeavour that often requires clear mind-space for contrarian ideas, possibilities on the edge of their time, and creation of something that has not yet been.  Every once in a while, a new technology, an old problem, and a big idea turn into an innovation.

Innovation comes out of great human ingenuity and personal passions, it’s the specific instrument of entrepreneurship. The great thing about entrepreneurship is that there are few limitations when you are equipped with the right mind-set.

So a creative mime artist and a tablet toting spreadsheet loving tech entrepreneur walk into a bar – it doesn’t have to be the start of a joke – but the meeting place for a creative teaming experience that can lead to great success and inspiration for all.

You can be a street artist, an author, a dancer, a chef – there are no boundaries on being an entrepreneur, it’s an expression of self. We don’t always associate chefs with entrepreneurship, but they are as much entrepreneurs as product inventors or app developers.

Imagine you are a chef for a moment. In front of you is a blank canvas of ingredients, sat on the kitchen worktop, awaiting your spirit to infuse them with life. Right beside you are your creative tools. It’s a simple set up, but combined with the human imagination and an ability to execute, has the makings to create a unique piece of work with the power to inspire.

What chefs do is take an idea and manifest it into reality. They take a vision that existed nowhere else but in their own mind, and actualising it into reality through their work. That’s entrepreneurial thinking.

On May 10, 2013, Dominique Ansel did just this. He started selling a croissant-doughnut hybrid, which he called the Cronut, from his bakery in New York’s Soho neighbourhood. The pastry resembles a doughnut and is made from croissant-like dough, which is filled with flavoured cream and fried in grapeseed oil.

On that night, a blogger from Grub Street, the online restaurant blog fro New York magazine, reported on the new pastry. The post resulted in much interest – 140,000 links to the blog post. The first day Ansell made 30, the next, 45. By the third day with than 100 people queuing, the line stretched back over four blocks.

It took him three months and more than ten variations to perfect the recipe he’s used ever since. Nine days later, he’d registered the pastry’s name as crowds of people were queuing around the block to try the new innovative delicacy.

With its flaky croissant and custard interior and fried, sugar-dipped exterior, it was bound to be popular, but no one could have predicted the ensuing, pastry-flecked frenzy. The not-so-secret Cronut recipe is now plastered all over the internet, but would-be imitators will need their piping bags and patience at the ready – it takes three days to make, thanks in part to the laminated dough. This is rolled together with a block of chilled butter to form layers, and needs a lengthy rest in the fridge.

Ansel takes things to the next level, however. Each batch of Cronuts takes Ansel and his team approximately three days to prepare. Day one consists of mixing the dough, then letting it ferment and rest overnight. Day two, butter is incorporated, and hundreds of sheets of dough are layered together before the dough rests again.

On day three, the dough is cut, formed into the Cronut shape, and left to ferment again. Once each has tripled in size, Cronut by Cronut is fried in grapeseed oil, filled with cream, rolled in sugar, and finished with a glaze. The secret of the Cronut has been solved. It takes three days and a lot of sugar, butter and graft.

And he’s not just a one-trick pony. There’s the DKA, his take on a Breton pastry, which is a caramelised croissant, with a soft flaky interior. There’s the frozen S’more, an ice-cream block wrapped in chocolate, then enrobed in marshmallow and frozen. There’s his soufflé inside a brioche shell and his shot glass fashioned from chocolate chip cookies. Ansel is the king of happy bakers.

The creator of Cronuts isn’t just a baker. Dominique opened his little bakery with just four employees five years ago. Flash-forward to 2018, hundreds of creations later, a sister shop in the West Village and now across the world in Tokyo and London. He’s as much an entrepreneur as any tech rock star.

Prior to starting his own business, Dominique was executive pastry chef at Daniel Boulud’s flagship French restaurant in NYC. During his six years there, he was part of the team that led the restaurant to receive its first four-star New York Times Rating and three Michelin stars. He also spent seven years at the venerable French bakery Fauchon, where he lead the charge of international expansion and helped set up shops in Russia, Egypt, Kuwait and other locations around the world.

Despite his ritzy resumé, the ‘Cronut King’ comes from humble origins. The youngest of four children, he grew up in Beauvais, about an hour north of Paris. His father was a factory worker, and the family couldn’t afford college, so Dominique began working at 16, training to be a chef and saving money.

At 19, he left home to complete a mandatory year of service in the French military, where he worked as a cook. After returning home he headed to Paris, not knowing anyone, and landed the job at Fauchon, where he quickly worked his way up from a temporary holiday season staffer to traveling the world and being in charge of international expansion.

With his unstoppable creativity, the New York Post proclaimed him the Willy Wonka of NYC, Food & Wine called him the culinary Van Gogh of our times, the most feted pastry chef in the world. With successful bakeries in London and Tokyo following New York off the back of the Cronut, he must be doing something right. a croissant-doughnut hybrid that became the most virally popular pastry of its time.

Dominique Ansel is undoubtedly one of the most celebrated and innovative pastry chefs in the world and for good reason. He combines craft, complexity, surprise, presentation, contrasting textures, and wow factor into his creations. I think his self-starter ambitions and product innovation provides some great entrepreneurial lessons we can take from his craftsmanship.

Time as an ingredient In addition to focusing on ingredient quality and freshness, original flavour and texture combinations, and fun, novel presentations – an aspect Dominique obsesses over – it takes three days for a Cronut to be prepared, then it’s vital each is served at the optimal moment of peak temperature, lightness, and flavour. It was the first time I’d heard of time described as an ingredient, but it made total sense, and it is one of his guiding themes. Timing is everything for all entrepreneurs.

Put emotion into products One of the screening criteria for what makes a product onto his menu is that the item evokes emotions, often nostalgic emotions tied to childhood, like the warm madeleines that Proust wrote about, or memories of summer camping the Frozen S’mores evoke, or the memories of milk and cookies after school his milk filled chocolate chip cookie shots evoke, or the traditional little pastries from Bordeaux, France called cannelés. Emotion engages customers is a key lesson.

Multisensory innovation Ansel’s creations have textural and temperature contrasts, like the liquid milk and soft cookies, or the S’mores with the soft honey marshmallow exterior, smooth and creamy ice cream inside and the crisp chocolate feuilletine that separate the warm marshmallow exterior from the cold, creamy ice cream inside. Capturing the customer’s imagination is vital for a startup with a new product to market.

Continuous product iteration Ansel’s is always searching for ways to make his products even better, he subscribes to the notion, and works in an environment where the products can evolve on the fly. This is a luxury other product categories can’t to the same degree, so gives him advantage. Build a culture where there is a focus on continuous development and iteration.

Be a relentless learner Ansel’s evidences the appetite for learning that is seen in many successful entrepreneurs. Given how accomplished he is, you’d think there wasn’t much room for improvement, yet he feels there is so much more to try and do and create in his field. Build an ethos to always keep moving, innovating, learning, and growing.

Use your team as a source of new ideas Ansel constantly brainstorms with his staff. The menu changes every 6-8 weeks, so the teams are always coming up with new ideas together. He schedules regular tasting with to give feedback on new menu ideas and what ultimately ends up being added. Use your team’s knowledge and experience as a source of innovation.

Combine ideas The Cronut pastries are not only a creative take on donuts and croissants, but also French and American cultures, combining a classic French pastry with America’s love for the familiar flavours of a caramel, chocolate and peanut combinations.  Keep an on open mind to serendipity.

Be authentic Ansel is an expert at the basics of pastry cooking as a foundation for innovation. If you study the early works of great contemporary painters and architects, like Picasso and Frank Ghery, they mastered the classics of their craft before they started to routinely innovate.

Dominique trained in classic French pastry, it’s an invaluable knowledge he brings to bear in deviating on traditional classics. Build your business on solid foundations before flying off at a creative tangent.

Trust yourself Dominique Ansel is always thinking broadly, about all the different ways he can innovate to make the experience of visiting his establishments special, different, memorable, and wonderful. In a recent interview, he was asked: ‘How do you know that what you’re doing is right?’. There was an awkward silence. Dominique put his hand on his heart and replied, in a serene, untroubled tone: I just know.

Ansel is dedicated to finding new ways to surprise, delight, and inspire through his desserts. With innovation and creativity at the heart of his work, he has brought a refreshing uniqueness to the world of pastry. Voted the World’s Best Pastry Chef in 2017, as well as being honoured with the prestigious Ordre du Mérite Agricole, one of the highest honours in France, he is a true entrepreneur, always thinking about how he can touch people with food in a different way to stimulate them.

His bakery restricts daily Cronut output to around 350 per day, and though the line has shortened considerably, there will still be, on average, between 60 and 100 people waiting in the Cronut line when the doors open every morning at 8am.  There is a new Cronut flavour every other month – there have been 36 since its debut on the menu.

We live in an age where you can make anything possible. If you have an idea, just go for it. Don’t wait for the perfect opportunity, because the perfect opportunity is now.

Lessons in entrepreneurship from Inspector Morse

When I read my first Enid Blyton Famous Five mystery at six years old I was hooked on crime and detective novels. By the time I was in my early teens, I was working my way through the Sherlock Holmes stories and my mum’s collection of Dick Francis books, adding to those each birthday and Christmas when I received book tokens.

On top of that, every time I visited a jumble sale I’d be stocking up my bookshelf, devouring the likes of PD James and Raymond Chandler. Latterly the Ian Rankin novels around the Inspector Rebus character are my must-reads.

To this day, I’m unable to walk past a second-hand bookshop. Crime novels put the balance back in life – the bad guys get their comeuppance and the good guys win after solving the puzzle. You know that the villain will be apprehended by the time you reach the last page, the detective will have solved the mystery, and all will be right with the world.

But it’s the excitement between the first page in the last and trying to work out who the bad guy is, or how they will be stopped, before the detective does. Crime novels puts puzzle-solving at the centre of everything, stocking up on clues but never quite giving all the answers. The reader is driven by quests for conclusive information and happy endings.

The skills of a good detective mirror some of those of an entrepreneur – active listening, critical thinking, problem solving, and good observation skills, combined with astuteness and intuition to develop insights quickly by piecing together myriad pieces of information to see a pattern or picture.

My favourite detective character is Inspector Morse, which was a popular television series based on the novels by Colin Dexter. It starred John Thaw as Chief Inspector Morse, with Kevin Whately as his assistant Sergeant Lewis.

The first of the Morse novels, Last Bus To Woodstock (1975), was written by Dexter because with his wife Dorothy and children, he was on holiday in North Wales at a time when the rain never stopped. Thoroughly miserable and bored, he read both the detective novels in their holiday accommodation, and decided that they were not much good and thought he could do better.

Over the next 18 months, he carried on writing the book in longhand, and had it typed up – as he did all his future novels. Once he found a winning character and setting, Dexter resigned from his teaching post and set about writing Morse novels for a living. There were thirteen novels in the Morse series, four of which won awards. The last was The Remorseful Day (1999), in which he killed Morse off.

Dexter gave Morse an idiosyncratic character with his own interests – a fondness for Mozart and Wagner, pleasure in cryptic crossword puzzles, real ales and single malt whisky. Morse’s first name, Endeavour, is revealed on only one occasion, when he explains to a lady friend that his father was obsessed with Captain James Cook, so he was named after HMS Endeavour.

Morse was a brilliant detective, but unlike many classic sleuths, he often struggled with his cases. Curmudgeonly but entertaining, Morse solved murders by deep thinking, often stimulated by ironic circumstances and chance remarks made by his sidekick Lewis, which gave him inspiration late in the day to bring the case to an end.

He was a highly credible detective despite ignoring forensic science and not being able to stand the sight of blood. He had a penchant for drinking while working, and subsisted on quickly downed pints of ale in pubs, usually bought by Lewis, who struggled to keep up.

Morse was all about observation and gave the utmost importance to details. His strategy was simple – observe, deduce and eliminate the impossible, whatever remains, no matter how mad it might seem, must be the truth.

Observance is a great tool for an entrepreneur to notice the detail and trends in a market, then knowing when and where to tap into an opportunity. You need the eye to see what others don’t and utilise it before everyone else does. The traits of an enquiring mind, stimulating exploration and discovery constitute significant activities for entrepreneurs, with their instinct, curiosity and search for solutions to problems.

Like detectives, entrepreneurs search for a hidden truth. Even with a breakthrough for a new product, you will need to understand what will be required to get customers to buy and pay for it. Often there are incorrect assumptions masking the path to success – it’s not the things we don’t know that get us into trouble, it’s the things we think we know that aren’t so.

Before entrepreneurs begin working on their business venture, they need to do some detective work on the market, customers, pricing, marketing etc. Entrepreneurs who do their delving before setting up a new business are more likely to succeed in the long term, rather than launching blindly.

So how can we train our entrepreneurial brains to think like Morse, with his detective behaviours and habits for investigation, deductive scrutiny and problem solving?

Be observant, and keep your mind sharp What makes Morse great is that he notices things that others miss – a key skill of entrepreneurs. Often the solution is right in front of our eyes, but some miss it. Sherlock Holmes once said It is my business to know what other people don’t know. To be valuable in startup business, you have to know what others don’t.

Morse thought useless information in his brain was like having boxes of junk in the attic, it only makes the stuff you need harder to find. Cluttering your mind with peripheral distractions can derail your focus, so keep your mind sharp and orientate simply on the matter in hand.

Remain objective Morse is impassive while on a case, he only looks at what the evidence suggests. He only speculates to create a hypothesis to test assumptions, not make decisions. Whether it’s a tight customer negotiation or a tough staffing decision, emotions can be your enemy in business. Be objective in your dealings and don’t let emotions cloud your judgment.

Always be imaginative Morse thinks outside the box, that is he pieces together seemingly ordinary and unrelated elements of a case into a cohesive story. One of the key requirements as a startup is to constantly innovate and separate your business from the pack, being distinctive requires a constant stream of good ideas and weaving them together to form your own story.

A mediocre detective, is one who fails to imagine new and different possibilities. Morse, on the other hand, has learned to look at data and recombine it in ways that will suggest new possibilities. Is my mind still open? Morse asks. Does this data somehow make me think of new ideas? In business, think of new approaches, think of things that you hadn’t thought of as possibilities and test them out.

Observe the details, pay attention to the basics When Sherlock Holmes famously quips that the solution of a case is elementary, he’s not simply dismissing the detective work as easy. Rather, he’s talking about elements, the essentials of a situation. As a physicist begins with the laws relevant to a problem, a detective begins with the framework, structure and facts of a case before adding in interpretation.

Likewise Morse, he can tell you a person’s entire story and background after the first meeting! He takes the meaning of due diligence to another level using his intuition, lateral thinking and rapidly draws conclusions from the known facts. He is mentally agile, confident in making decisions quickly.

Say it aloud Morse talks to Lewis about everything. The telling helps, it’s ‘thinking outloud’. Nothing helps clarify your thinking more than stating it to another person, it forces reflection. It mandates mindfulness. It forces you to consider each premise on its logical merits, allowing you to slow down your thinking.

Give yourself distance and quiet thinking time When Morse is dealing with a particularly thorny case, he occupies himself with another activity, for example, taking time out to deliberately listen to music. He also drinks, but that’s not a necessity! This is a way for Morse to constructively distract himself from his thinking, to sort through his thoughts, check in and reflect, packing and unpacking in a positively distractive way.

If you’re out there detecting all the time, you need to give yourself a break. It’s not just about getting some rest, the key is to allow your mind to filter the important observations from the inconsequential ones. Solitude gives you the opportunity for ‘quietness of mind’, to simply sit and think in peace and quiet.

Be actively passive when you’re talking to someone When Morse is listening to somebody, he’s not fussing with his iPhone. Morse focuses all of his faculties on the subject of observation and the conversation. He listens, as is his habit, undistracted by any other task. When he meets with someone, his total absorption in their presence is absolute.

Taking the leap into the rollercoaster ride that is entrepreneurship, it’s all too easy to do the easy things, however, if you’re serious about doing your own thing, it’s time to get comfortable being uncomfortable. The real work you should be doing is asking yourself the difficult questions, those that typically mean looking outwards for the answers, and nothing is more important than testing your idea by collecting evidence.

Great entrepreneurship is a magic formula of skills, timing, hard work, and luck.  You have to parse all the facts, just like a detective looks at a broad range of facts – some circumstantial and some deductive – to deduce who committed the crime, as to whether a venture can progress.

Looking at his character, Morse had all the ingredients for being a disaster – he drank too much and was highly irregular in his investigation methods. But what rescued him time and again was his disciplined process and intelligence-lead approach, which allowed him to spot clues where none had seemingly existed.

Like an entrepreneur, he had his idiosyncrasies and own way of doing things. One quote attributed to him captures this entrepreneurial flair underpinning his detective instincts: The secret of a happy life, Lewis, is to know when to stop and then to go that little bit further. I stumble about. That’s what I do. Sometimes I stumble in the right direction.

Entrepreneurial learning: every silver lining has a cloud

Elon Musk has been subject to a wave of self-created criticism lately. His claim that he had a deal to take electric-car maker Tesla private at $420 a share, his ongoing Twitter spat with the cave rescuer of a youth soccer team in Thailand, and his joint-smoking appearance on a radio podcast have made him look vulnerable, troubled and tarnished his reputation.

Despite the ensuing turbulence and apparent flaws in his ability to control his emotions, Musk remains one of the most vital entrepreneurial talents we have today. His ingenuity and dedication continuously bring fresh and progressive ideas to bear. Solar City, Tesla and SpaceX – all his ventures have a bright, if challenging future. He is the world’s most daring entrepreneur and a rare business leader who is interested in mankind as a whole and wants to explore how tech can change the world we live in for the better.

Musk sold online payments firm Paypal for $1.5bn ten years ago and has evolved into an iconic entrepreneur, capturing the public imagination as a crazy-mad-genius figure – part industrialist, scientist, philanthropist, superhero, known for his ability to come up with out-of-this-world ambitions and then pursue them with vigour, emotion, intelligence and self-discipline – until now, maybe.

Most take Musk’s wild ambitions and boasts about the future he will create with a pinch of salt. His companies have missed deadlines and recorded massive financial losses. However, the popularity of Tesla’s electric cars, and the launch of Falcon Heavy earlier this year capped a string of successes that make you think, maybe he can pull this off.

Musk is the epitome of entrepreneurial bravado, endeavour and ego, human folly and genius rolled into one. Musk’s adventures are vibrant and audacious, but there has never been a time when the spirit of innovation hasn’t been burning bright and yanked back, when each of his ventures facing crisis and things not going in his favour.

For Musk, every silver lining has had a cloud. His career is overflowing with setbacks. Very few people could bounce back from being ousted as CEO of their own company and getting fired while on honeymoon (Paypal), and survive a major car crash, personal bankruptcy and cerebral malaria. As much as his hits inspire, his misses offer valuable lessons to startup founders everywhere.

His passion found its calling when in 2004, Musk invested heavily in Tesla, founded a year earlier by Martin Eberhard and Marc Tarpenning. Tesla is a quixotic venture, a niche electric car company in a nation addicted to petrol. Having received hefty Government bailouts, in 2010 it became the first American car company to float on the stock market since Ford in 1956, and his focus on renewable energy solutions kicked in.

Musk is an irrepressible Howard Hughes like figure, but his timeline reveals a whopping sixteen failures since 1995 on his journey to date. That’s nearly an obstacle every eighteen months, at least one every other year – Space X had sixteen successful launches in 2017, but then Tesla recalled 123,000 cars in 2018.

Musk’s hurdles relay a documentary of epic failures, but he’s endured, so how did he turn things around? We know all about resilience – the stories of James Dyson (he spent five years working on a prototype for his bagless vacuum and built 5127 prototypes which just didn’t make the cut) and Joanne Rowling, with twelve rejections of the Harry Potter scripts.

Professor Melissa Schilling, from New York University’s Stern School of Business, has been watching Musk’s escapades and recorded her thoughts about him in Quirky: The Remarkable Story of the Traits, Foibles, and Genius of Breakthrough Innovators Who Changed the World.

Musk is one of eight innovators whose traits, foibles and genius she focused on – together with Albert Einstein, Benjamin Franklin, Dean Kamen, Nicola Tesla, Marie Curie, and Steve Jobs. What made these folk so spectacularly inventive? Schilling illustrates the following traits these innovators –

Grit They all had grit. Their successes seem to have been attained through sheer force of will, investing remarkable effort and persistence in executing their ideas, often in the face of failure and opposition. Every breakthrough innovator demonstrates extraordinary unrelenting effort and persistence.

Work ethic They pursue their projects with remarkable zeal, often working extremely long hours, sleep less and at great personal cost – Musk has been divorced three times. Most of them worked tirelessly because they found work extremely rewarding and experience the pleasure of ‘flow’ from working incredibly hard (i.e. work was autotelic, rewarding for its own sake).

Self-efficacy The eight studied all exhibited extreme faith in their ability to overcome obstacles from an early age. Steve Jobs had a ‘reality distortion field’, such great faith in his own capacity for reasoning and insight that he felt free to disregard the ‘rules’ that constrained others. This faith in themselves enabled them to think big, fearlessly tackling projects that seemed impossible to others, believing in their ability to overcome obstacles.

Almost all of these innovators exhibited what would have been considered hubris, except that once they deliver on something, it’s not considered hubris anymore, it’s considered self-efficacy. They almost all were considered quite arrogant. Even Marie Curie was considered arrogant, not in an outspoken way like Jobs or Musk, but arrogant in that she was going to persist in doing things despite the fact that, as a woman, she wasn’t particularly welcome in business or science.

Self-reinforcing effect Perseverance and self-efficacy can be self-reinforcing: those who persevere at tasks are more likely to accomplish them, reinforcing their confidence in their ability to achieve what they set out to do. Numerous studies have shown that self-efficacy can lead to greater risk-taking and entrepreneurship.

Idealist All are driven by passionate idealism, a consuming goal that was more important than their own comfort or reputation. Idealism helps focus innovators by making their long-term purpose very clear, helping them to make choices among the competing demands of their attention. It also pushes them to work with intensity even in the face of criticism or failure.

Ego defence Idealism provides a level of ego defence. It helps the innovator to persevere in the face of harsh criticism that many people would find decimating. Idealistic innovators believe that the goals they are pursuing are extremely important and intrinsically honourable and valuable, so they are better able to disregard harsh judgment or failure as merely transitory burdens to be endured.

Having the mentality of a survivor, not a victim, when dealing with any potential crisis, is essential. Avoid thinking like a victim of circumstance and instead look for ways to resolve the problem. While the situation may be unavoidable, you can still stay focused on a positive outcome. Musk is notorious for his ability to press on with ideas despite what other people tell him. Naysayers abound when innovators want to try things nobody has ever done.

Be a constant learner Musk reads the way most people watch TV. Musk is the definition of a bookworm. An avid reader from a young age, when he was in grade school he was reading ten hours a day. All those studied by Schilling’s were fuelled by intrinsic motivation, a true love of learning and invested heavily in self-education, avid and omnivorous readers.

Self-education Following on from the above, all were avid consumers of knowledge, but they followed their own rhythms rather than structured teaching. A surprisingly large portion of breakthrough innovators are autodidacts and excelled more outside the classroom than inside. That is because they do not accept the norms. Norms of consensus are dangerous to innovation and reveal the advantages of helping people to embrace their weird sides.

High level of social detachment Many exhibit a marked sense of ‘separateness’, perceiving themselves as different or disconnected from the crowd. By not belonging, they were buffered from the norms that help to bring groups of people to consensus, and thus are less exposed to conventional wisdom, and their ideas can develop less influenced by those shared by the crowd. When an individual is not well integrated into the social fabric, there is less to lose by being unconventional.

So, please make yourself uncomfortable. Becoming a successful entrepreneur is never a straight line. There are lots of ups and downs and zigzags along the way. As it turns out, how you emotionally handle the downs is key. As Thomas Edison said, I have not failed. I have just found ten thousand ways that won’t work.

But what’s the fun of living a life when you know the outcome already and it’s steady away? Ok, if you never try, you never have to deal with the pain and hurt of failure I’ll give you that. But is that a reason to not do something? Life is also not a contest of ‘my problems are worse than yours’. If it’s attention that you want, get a dog.

There have to be reasons that you get up in the morning and you want to work. Why do you want to work? What’s the point? What inspires you? What do you love about the future you are creating for yourself?

Ever silver lining has a cloud as Musk has found out, but when something is important enough, you do it even if the odds are not in your favour.

Lessons in entrepreneurial thinking from Greek philosophy

Many of the everyday fundamentals of our Western lifestyles owe a debt of gratitude to the Ancient Greeks – democracy, drama, all-action blockbuster war epics, and lying around thinking about stuff, or philosophising as it’s known. All beloved activities in the Eastern Mediterranean 2,500 years ago, and all still popular today in our house – as well as other aspects of their culture including souvlaki, retsina, lashings of taramasalata and a big, chunky feta salad.

Greek dancing and plate smashing are optional and mostly accidental at home, but my affection for all-things Greek stems from the fact that I met my future wife as a student whilst on holiday in Corfu back in the halcyon summer of 1984.

A Greek holiday romance which blossomed to the sun drenched sounds of bouzouki, fuelled by dolmades and lashings of ouzo, and survived the return flight home, as did the irrepressible deities etched on some hideous cheap pottery bought as presents. Dôs moi pâ stô, kaì tàn gân kīnā́sō.

So every time we have Greek food – yesterday Moussaka’s had an extra fluffy topping of cheese and béchamel sauce – the Greek influence on our way of life and their pioneering attitudes once again came into my thoughts.

The Greeks were thinkers, half decent too, and there is no doubt Greek philosophy can help us understand more about ourselves as entrepreneurs. Accomplished entrepreneurs like Reid Hoffman and Peter Thiel credit their philosophy backgrounds for their success, and after all, many of the qualities that make outstanding entrepreneurs are the same for philosophers – both require clear, critical thinking and strong communication skills to socialise their ideas to a wider audience.

Although today’s entrepreneurs obviously live a very different way of life than Plato did, a lot of what he had to stay still applies to what we all long for: to be happier and more content in our day-to-day living. Three quotes from his writing struck a chord with me when thinking about this blog as being very relevant to startup thinking:

Wise men talk because they have something to say, fools because they have to say something With so many opportunities to voice your opinions online and in public these days, it can be difficult to just sit with your own thoughts. Plato reminds us that we should only speak when it is of benefit, and not just to toot our own horns.

The beginning is the most important part of your work. Make a start! All to often we put off doing good work and losing opportunities left, right, and centre because we never start. Fear stands in the way for some, but Plato encourages us to just get our hands dirty and see what transpires. Even if we fail, at least we know the outcome. Never starting doesn’t teach us anything.

If a man neglects education he walks lame to the end of his life. Entrepreneurial life is full of amazing things to learn and opportunities for new experience, but you have to take them. Don’t cut yourself off from all the things that are out there just waiting to be consumed and understood by you in your search for revenue, a startup is much more about learning than money.

Philosophers have a reputation for freewheeling thinking, open minded and thoughtful, but maybe metaphysical, lost in the context of their times, so is there any relevance for today’s startup entrepreneurs? Look again, I find that, in reality, the Greek philosophers were very realistic and pragmatic. They understood that things often go the opposite of the way that we want them to go, so they’re resilient, and it’s all about thinking things through and reflecting. Doing so will make you a more successful, thoughtful and self-assured entrepreneur.

As an entrepreneur, adopting some of these philosophical approaches can transform negative emotions into a sense of perspective and prepare you to have the right state of mind. At its heart it’s about controlling things, which are in your power to control and ditching the rest. So let’s look at the traits of Plato and others, and how we can benefit from their philosophical outlook on life for our startups.

They love of debate An important trait that all philosophers have is the ability to follow an argument all the way to the end. As an entrepreneur, it’s an essential skill, for example, if you’re sitting in front of a potential customer.

Equally, healthy discussion becomes more important when your business starts to grow, debate is often the key to finding the most effective course of action from a range of options. Encouraging your team to share a different point of view is healthy. Remember, you’re not trying to win arguments (‘be right’), rather, you’re trying to find the best path forward (‘get it right), so embracing other perspectives is powerful.

They’re comfortable with the uncomfortable As an entrepreneur, you have to make decisions on issues that aren’t always conveniently shaped in black and white,  you have to get comfortable working in an environment of uncertainty and unknowns – if you want a guarantee, buy a toaster.

It’s a steep learning curve ploughing your way forward in a startup, but for philosophers, ambiguity is nothing new. Embracing it teaches you to manage uncertainty and stay calm. As an entrepreneur, you’re always, in the words of Walt Whitman, conquering, holding, daring, venturing.

You’ll likely spend a lot of your time operating in the unknown, so you’ll need to be able to tolerate ambiguity. Next time you find yourself at a fork in the road, think about making a decision with 51% confidence, simply look at the balance of outcomes and make a judgement call. While it’s not ideal, it’s far better than procrastinating and waiting for ideal or easy solutions that never present themselves.

They see the big picture in the smallest details If you can’t see the big picture, you’re lacking direction and consequently can end up going randomly anywhere, wasting time and energy. It’s easy to get sidetracked by details and suddenly find yourself struggling in the long grass.

Taking a more philosophical approach helps you envision how smaller decisions will eventually fit into bigger ones, playing back your thinking. One way to ensure that you’re always on the right track is to step back, reflect and go back to your vision and big picture, and your broader horizon, and consider how minor tweaks might affect your future expansion plans.

They keep their emotions in check Your passion makes the difference as an entrepreneur to what you do, but never confuse enthusiasm with capability. In philosophy, you learn to detach from your emotions and make decisions with sound logic. As an entrepreneur, that’s a valuable lesson, since it’s easy to fall in love with a new idea, and overlook obvious flaws.

They dissect complex problems Einstein said, If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and five minutes thinking about solutions. This thinking highlights a skill that philosophers have mastered: the ability to break down complex problems into simpler ones.

As an entrepreneur, you’ll have to solve complex problems early and often on your startup journey. You’ll have a leg up if you can break the big stuff down into digestible pieces, rather than trying to solve it all at once.

Recently the philosophical approach of Stoicism has become an influence on entrepreneurial thinking. Stoicism is a philosophical practice considered to be a complete way of life. It focuses on these four core principles:

  • Make the best use of your time
  • Be the master of your emotions
  • Walk the path of virtue
  • Develop self-mastery

In the increasingly competitive, confusing and complex digital world, the key is stripping back the nonsense and keeping things simple and straight forward, it’s vital we focus on the signals and not the noise.

Stoicism reminds us that amidst this maelstrom, we are required to be mindful, fully present and aware, and exercise self-control, rather than being lost to emotion and lost to random thought processes. It can build the resilience and state of mind required to rebound from knockbacks.

The things you think about determine the quality of your mind, so lets look at the four tenets of Stoicism and how they impact an entrepreneur.

Make the best use of time Some periods of time are snatched from us, some are stolen and some simply seep away. Yet the most shameful loss is the loss due to carelessness – Seneca

Seneca reminds us to not waste our time because time is precious. In other words, live your life with intention and be the master over your time. Be clear with your intentions for the day and be firm on getting goals complete. Design your week in a way that makes sense for you

Be the master of your emotions The Stoics teach us that unpredictable things happen in our lives that we can’t control, but we can control how we respond to events. Responding (as opposed to reacting) requires you to be in control of your emotions and thoughts, and in control of your daily habits.

Entrepreneurs often have to figure out a way to make something possible within all the things that are impossible, and can’t waste time complaining or blaming because of deadlines to meet – we have too much on our plate to worry about that.

Take time to think before responding to pressure and avoiding immediate reaction is a difficult style to develop, but invaluable. If you’re frustrated with a business situation or a chain of events that is seemingly running away from you, close your laptop and go outside, calming your emotions will help you to think more clearly.

Walk the path of virtue As a startup entrepreneur, there will be plenty of ethical dilemmas in your company, requiring you to make difficult choices. Take a moment to think through the possible ways you could respond, and consequences. Cross out the negative responses and circle the positive ones. These are your virtuous reactions.

Develop self-mastery The Greeks famously called this form of self-discipline askesis. Seneca writes It is precisely in these days that we need to discipline our spirit… for the spirit gives the strongest proof of its resolve by not being attracted or distracted by pleasures which lead to self-indulgence.

Developing self-mastery and rigorous self-discipline enables you to become a master over your time and your actions, and can result in incredible helpful outcomes. Zeno said Man conquers the world by conquering himself. The core of his philosophy consists of virtue, tolerance, and self-control.

Entrepreneurs need to be able to achieve goals within specific time periods, they want to see quick results. That’s not to say you can’t have any self indulgence, though, we are human, but taking a more thoughtful approach adopting some of the lessons from Greek philosophers has merit. Instead of the usual headlong rush into getting stuff done, take a deep breath, open your mind and speak the future into being.

As an entrepreneur, if you believe, as the Greeks did, that man is at the mercy of the gods, then you write tragedy. The end is inevitable from the start. However, if you believe that man can solve his own problems and is at nobody’s mercy, then as an entrepreneur you will probably write melodrama and romance.

Which takes me back to Corfu, August 1984. In the middle of a relentless hot sunny day, I relaxed under an awning outside of a cafe biting into a goat’s cheese and carrot marmalade sandwich, the Mediterranean sea breeze blowing gently, starting a discourse which has become a constant, lifetime conversation with a girl from Oldham. We danced outside the Vassilopoulos supermarket I recall, but that’s another blog.

Manchester entrepreneurs: Martin Hannett

Last week saw the 38th anniversary of Manchester band Joy Division finishing working with producer Martin Hannett on their second and final studio album Closer. For both the band and Hannett, it was career-defining work.

Closer was released by Factory Records on July 18, 1980, posthumously following the suicide of lead singer Ian Curtis, two months earlier. Today, Closer is widely recognised as one of the most significant albums of the early 1980s, with Hannett acknowledged as the architect of the dark, distinctive sound.

The songs on Closer were drawn from two distinct periods. The earlier guitar-driven compositions were written during the latter half of 1979, the album’s other songs were written in early 1980, including more prominent use of synthesisers, driven by Hannett’s burgeoning influence.

It’s an exercise in dark controlled passion, the music stands up on its own as the band’s epitaph. The almost suffocating, claustrophobic yet creative world of Curtis is evident in the lyrics, even more austere, haunting, and inventive than its predecessor, Unknown Pleasures. It is Joy Division’s finest work, a start-to-finish masterpiece, a flawless encapsulation of everything the group sought to achieve.

During the Closer sessions Hannett would go even further with his work refining Curtis’ vocals. Alongside working on Love Will Tear Us Apart, this took the music stylistically into something more sombre, subtle, whose lyrical content was in hindsight indicative of what was to come to pass two months later.

Young men in dark silhouettes, some darker than others, looking inwards, looking out, discovering the same horror and describing it with the same dark strokes of deeply meaningful music. The music and tonal production levels swoop up and down unpredictably, never standing still, never resting. The astonishing variety is schemed and architected by Martin Hannett, giving the music the space and the air it needs.

The album covers the Joy Division spectrum of that moment with a sense of morbid hopelessness. See it for yourself. Judge for yourself. But don’t take it too serious (we all take it too serious sometimes). Closer is breath taking music, a sharing of something. Created by Joy Division. Made by Martin Hannett.

James Martin Hannett (31 May 1948– 18 April 1991), initially credited as Martin Zero, was an English record producer and an original partner/director at Tony Wilson’s Factory Records. His distinctive production style utilised unorthodox sound recording and technology, and has been described as sparse, spatial, and cavernous.

Born in Manchester, Hannett was raised in a working class family in Miles Platting. He went to the University of Manchester Institute of Science and Technology, where he earned a degree in chemistry but chose not to pursue the profession. Hannett’s uncle was a bass player and gave his nephew a bass guitar when he was fourteen, sparking his interest in music. His production work began with home made animation film soundtracks, moving next to mixing live sound at local pub gigs.

Always a music head (he was forever rebuilding his hi-fi), Hannett found time to learn bass guitar, mix live sound, and work as a roadie. Eventually he would quit his day job to run Music Force, a musicians’ co-operative who booked gigs (including the iconic Manchester venue Band on the Wall), arranged PA hire, and also operated a lucrative fly-posting business.

Punk induced the birth of three significant record labels in Manchester: New Hormones, Rabid, and latterly Factory. Hannett was a founder of Rabid. He first attracted attention in 1977, when, as Martin Zero, he produced the first independent punk record, the Buzzcocks’ Spiral Scratch EP. Under the same moniker he produced early records by Salford punk poet John Cooper Clarke.

The rising producer first worked with Joy Division on two tracks contributed by the band to the Factory Sample EP, recorded in October 1978, then went on to do his career defining work with the band in 1979 to 1980. Thereafter, New Order, Magazine, Happy Mondays and The Stone Roses all came under his influence.

However, the death of Curtis hit him hard, and after Factory, Hannett’s career declined due to his heavy drinking and drug use, especially heroin. Hannett died 18 April, 1991 aged 42 in Manchester, as a result of heart failure. His headstone at Manchester Southern Cemetery pays him tribute as the creator of The Manchester Sound, a fitting tribute to a true musical visionary.

The truth is, without his spark of production genius, Joy Division could have ended up as just another ’80s post-punk band, and British music might have missed out on one of its defining sounds. So, what made Hannett one of the most entrepreneurial, creative and innovative Producers of his time, with a legacy and reputation that has endured almost forty years?

Be prepared to experiment.

Hannett’s production techniques incorporated new looping technology to treat musical notes with an array of filters, echoes and delays. Hannett had a collection of echo devices, which he had amassed and called his ‘bluetop echo and delay boxes’. He was ahead of the game technically.

Legend has it that he once forced Joy Division drummer Stephen Morris to take apart his drum kit during a recording session and reassemble it, with parts from a toilet. He reputedly had Morris set up his kit on a first floor flat roof outside the fire escape, and also in a cotton mill lift, seeking experimental new sounds.

He also built a device made to recreate the beats he heard in his head – which in turn came from the old air compressors in the huge empty and decaying Manchester factories.

Other favoured tricks in Zero’s sonic arsenal included reverb, phasing, compression, repeat echoes, deliberate overload, and the Marshall time modulator – anything, indeed, that created space, weirdness and sonic holograms. Hannett’s unorthodox and experimental production methods resulted in drum sounds mixed with synthesisers that were complex and highly distinctive.

Have high ambition – without compromise.

In the image of industrial Manchester, giving Joy Division that dark, empty, distinctive atmosphere, Hannett was obsessive in his attention to detail and quest for getting things right.

After making his name with Rabid Records, Hannett hit his stride with Tony Wilson’s Factory Records. The prolific partnership saw massive success, famously producing Joy Division’s classic song Love Will Tear Us Apart. Originally recorded in 1979, Hannett disliked the original version, as did frontman Ian Curtis, and it was redone in 1980. The process highlights Hannett’s search for perfection, particularly with percussion and vocals.

Drummer Stephen Morris recalls how Hannett called him back to the studio in the early hours of the morning to re-record drum sounds after spending the entire day creating the original sound. Hannett’s ambition was to be different yet worked on finishing the sound until he got it exactly as he wanted it.

Be relentless

As for Hannett’s studio regime, musicians were discouraged from entering his working area, or participating in mixing – if ever they dared.

Peter Hook, bassist of Joy Division and New Order described Hannett’s working style. Martin didn’t give a fuck about making a successful record. All he wanted to do was experiment. His attitude was that you get loads of drugs, lock the door of the studio and stay in there all night and you see what you’ve got the next morning. And you keep doing that until it’s done.

Hannett himself was unwilling – or unable – to define his trademark style: A certain disorder in the treble range? I don’t know, I can’t tell you. All I know is that I am relentless, I keep going until I find what I want to find.

Radio sessions aside, over the course of around eight separate recording sessions Hannett would produce every studio track released by Joy Division, including subsequent singles Atmosphere and Love Will Tear Us Apart.

Be a catalyst for others

Hannett felt able to adopt the sometimes confrontational role of catalyst in relation to ‘his’ bands. He just seemed to have the knack of putting everything in the right setting. He works in a totally different way to any other producer we’ve recorded with. He doesn’t even re-play the songs on the tape very much. He has it all in his head. He’s a weird bloke but we work really well with him. I had been stuck in a rut and I needed someone like that to show me some sort of light. Martin was just the right person.

Hannett’s unique blend of sound and chemistry lead to many labelling the producer a ‘musical alchemist’. It was almost alchemy. He was fascinated by chemicals and musical explosions, he was an alchemist of noise. It was his great gift and also his great curse.

This DIY approach to production was a hallmark of Hannett’s style, making a mockery of the megabucks music mogul-driven industry, reflecting the startup ethos and philosophy of Factory Records.

Hannett’s career embarked on a downward trajectory after 1982. For the rest of his time, his production work covered a disparate array of minor records, Sadly, by this time Hannett’s own drug habit was out of control, resulting in five years of narcotic exile, trapped in a chemical stupor.

As a Producer, Martin Hannett’s dazzling golden age was all too brief, lasting from the autumn of 1978 to the middle of 1981. Too leftfield and obsessive to sustain a mainstream career, and tied to his home city for long periods by drug dependence, Hannett was a musical entrepreneur and genius.

The Mancunian record Producer helped transform a defiant collective of musicians into an iconic collection of records on an iconic record label that brought the sound of Manchester to the masses. Described as petulant, moody, overbearing, a pain in the arse, he was a pioneer, he wasn’t messing about. Martin did it 100%.

Hannett rated Closer as his most complete production. Nearly forty years on, give it a listen. The untimely death of singer Ian Curtis in May 1980 hit him hard spiritually and mentally, and perhaps contributed to his subsequent decline. Be that as it may, the peerless Joy Division catalogue remains the body of work for which Martin Hannett is best remembered, a true innovator and entrepreneur of Manchester.

 

 

Put customer centric thinking at the heart of your business model

One of the great entrepreneurs of the C20th, Ingvar Kamprad, the founder of IKEA, died last month. He created a business, founded when he was just seventeen, that today has commercial reach and a cultural impact that very few consumer products could hope to attain.

Kamprad was an entrepreneurial schoolboy. He bought pencils and matches in bulk which he resold to classmates for profit, moving onto fish then Christmas cards trading. When he was seventeen, he borrowed money from his father – who was convinced that he was giving money for Ingvar’s’ studies – and opened IKEA, hatching the plan at his Uncle Ernst’s kitchen table.

Initially it was a mail-order furniture business, but facing a price war against his business, he flummoxed rivals by opening a showroom – the first IKEA furniture showroom opened in 1953 in Älmhult, Sweden, so customers could see and touch IKEA home furnishings before purchasing them.

To attract prospective customers, he also promised a free cup of coffee and a bun to everyone. Imagine his surprise when this modest event attracted more than a thousand people! Nevertheless, everyone got a cup of coffee and a bun. The idea of opening a fast food restaurant in each store was born.

Kamprad focus was customer centric, but specifically on a do-it-yourself ethic for customers – the company’s name was a do-it-yourself job, too, it stands for Ingvar Kamprad, from Elmtaryd (his family’s farm) in Agunnary, a village in the Smaland region of southern Sweden. His own motto, based on a strong work ethic, was that most things remain to be done, and he built this into the ethos of his customer offering too.

Kamprad’s impact on everyday living has rivalled that of Henry Ford and his mass-produced motor car. Furniture used to be costly, clunky and heavy, and you kept it for many years. For the cash-strapped and newly nesting, fitting out a home could cost many months’ salary. IKEA made domesticity not just affordable and functional, but fun.

Out went the hand-me-downs and junk-shop make-dos, in came the cool, tasteful, egalitarian look and feel of modern Sweden. Airy, sparse, uncluttered – a little bland maybe, but hard to dislike. The Billy bookcase is perhaps the archetypal IKEA product, dreamed up in 1978 by designer Gillis Lundgren. Now there are 60-odd million in the world, nearly one for every 100 people – not bad for a humble bookcase.

Light and bright, basic but cheerful, like the furniture, IKEA’s 400-plus outlets also run on the same central principle: customers do as much of the work as possible, in the belief they are enjoying the experience and saving money. You drive to a distant out-of-town warehouse. Inside, you enter a structured journey through a busy maze – the route is controlled, no shortcuts allowed – where every twist reveals new furniture, artfully arranged with cheerfully coloured accessories to exude a contemporary relaxed lifestyle.

The low prices make you buy, so you load up your trolley with impulse purchases that you don’t really need – a clock, a bin, plants, lampshades and more tea lights than you will ever use. You lug heavy cardboard boxes holding flat packed furniture into your car and reward yourself for your thrift and good taste with meatballs slathered with lingonberry jam. Then you drive home and assemble your prizes. You rejoice in the bargains and the variety of purchases.

There is no doubt that Kamprad reinvented the shopping experience with the product and the store, but Kamprad’s biggest innovation, and the cornerstone of his value proposition, was that consumer inconvenience was a problem worth solving. However, he approached it the opposite to most brands that build their reputations around a set of distinguishing positives and unique differences they provide for their customers.

By 1952, Ingvar already had a 100-page furniture catalogue, but had not yet hit on the idea of flat-packing. That came as he and his company’s fourth employee – designer of the Billy bookcase, Gillis Lundgren – were packing a car with furniture for a catalogue photo shoot. This table takes up too much darn space, Gillis said. We should unscrew the legs.

Kamprad realised that furniture could be flat-packed to significantly reduce the cost of delivery, which were among the product’s largest cost drivers, to make the customer self-service journey complete. Table legs are unwieldy, so why not just take them off?

Except, now every customer buying furniture has to assemble it – and there are many moving parts to some of IKEA’s complicated furniture items. From personal experience, there can easily be fifty or more steps involved in the construction of the piece, with an instruction guide that remains as confusing as ever. I’ve assembled many cupboards with nothing but an Allen key, metal bolts, baffling instructions and sweat. And swear words.

But Kamprad and his team knew that with the right price, product mix and user-centered focus, consumers would see IKEA as a destination shopping experience. Given the locations, they had to bring their cars anyway, and having self-selected their pieces, taking their purchases home made an attractive and complete transaction cycle.

They also understood that unlike a grocery store, furniture shopping is not a daily or weekly occurrence, and so people were comfortable investing significant time at the store when they finally did make the trip. That’s one of the reasons that IKEA has restaurants serving meatballs as simply, the more time consumers had in the store, the more they spent.

It seems trying to cram flat-pack furniture into your car, missing screws, and the ensuing marital tensions, haven’t been enough to put people off. IKEA has a 12% market share in the UK, outstripping rivals such as Argos, John Lewis and sofa retailer DFS.

So, Kamprad’s IKEA experiment focused on a simple, core value proposition – well designed, reasonable quality furniture at reasonable prices, supporting his vision ‘to create a better everyday life for many people’. He consistently developed and scaled, but the fundamental premise was to make customer experience the brand differentiator. Having grounded his business model around the customer, what are the other aspects of Kamprad’s entrepreneurial flair that we can learn from?

1.     Give your customers context

IKEA offered a completely new concept. It wasn’t just what they were selling that was different, but how it was selling it: You come here, you walk through this maze this way round, then you pick it up in the warehouse, and then you take it home, and you build it. It is a really prescriptive way of doing stuff where the customer has to invest time, contrarian ever more so with the advent of online shopping, but dictating a customer’s journey in this way had never been done before.

It’s this very journey of course that frustrates many of its customers, with the baffling warren of mocked-up rooms, floor arrows, and no glimpse of the outside world to help you orient yourself – is far from accidental. But the key to IKEA’s strategy is suggesting to the customer that they are in charge – they give you your own pencil, paper and trolley, there’s only a smattering of staff, and there’s no hard-sell from sales assistants.

Every IKEA store is a showroom, where not only sofas and cupboards are exhibited, but any little things of everyday life too – tablecloths, curtains, towels and candle holders. The visitor can see ten children’s rooms, and then twenty-five dining rooms or living rooms and so on.

Having imagined what a particular furniture set-up would look like in their own home, a customer can then go for it to the self-serve warehouse. The customer then transports the furniture in comfortable packages to his home and then assembles it by reading clear and sensible instructions.

As e-commerce scales, shoppers need incentive to come into stores. With its elaborate showroom and cafeteria, IKEA has become a unique destination for shoppers. While many retailers enter shopping centres hoping for traffic, IKEA is a standalone store that shoppers seek out with a specific goal in mind, as the context is made clear for them.

2. Understand the experience your customers want

Kamprad said that his vision for IKEA was a company that would make life easier for its customers. He built a furniture company, which acted like supermarket.

Most of us have gone to one of IKEA’s unmistakable giant blue and yellow stores, wandered through its carefully-designed if somewhat labyrinthine paths, tasted its Swedish meatballs and bought and assembled its modernist furniture. They attract us in the thousands. How? They understand the customers and the experience brilliantly.

IKEA designers are among the foremost anthropologists of home life. Designers create rooms for eight types of people, from four stages of childhood, through to ‘living single/starting out’, ‘living single/established’, ‘living together/starting out’ and ‘living together/established’. IKEA does endless research on each category.

IKEA also has ethnographers who conduct field research into the domestic life of different regions through home visits, interviews, and panels. While the researchers’ ‘Life at Home’ consumer insights research goes to the development of new products.

This makes the IKEA brand different. When you’re authentic about your distinctiveness, your passion will attract those who love your products and going to be a lot easier to build up your audience.

3.     Focus on getting good, not making it big

Kamprad focused on getting good at business before he tried to get big at business.  Many people want growth as their objective. The new web design agency wants to work for major companies, not work in relative obscurity while mastering his craft.

But if you only focus on short-term wins and results, then it can be very easy to get distracted from doing the work required to build the skills you need to grow and scale, and it’s the ability to scale that matters. The process is more important than the outcome at early stage startups. Focus on getting good before you worry about getting big.

Research of over seventy famous composers and revealed that not a single one of these musical geniuses produced a famous musical piece before year ten of their career. This period of little recognition and hard work – referred to as the ‘ten years of silence’ is very similar to the period that Kamprad spent selling matches before launching his IKEA vision.

4.     Don’t let your business model become stale

IKEA is beginning to respond to some of their most recognised customer frustrations. For example, you can now order some bulkier items online for home delivery, and they recently bought US start-up Task Rabbit, which helps you hire people to do flat-pack furniture assembly.

Responding to the growth in online shopping, it has also started experimenting with selling through other online retailers, and running directly counter to its original out-of-town model, also testing a smaller, city centre store format as well as order and pick-up points in town centres, as part of a wider push to become more accessible to shoppers.

Travelling to the out-of-town store, plus the long queues are, ironically, part of IKEA’s winning strategy. The experience is so time consuming that we tend to buy more to avoid having to return in the near future. However, giving the customer online options with the convenience, simplicity and control offers a different shopping experience, backed by the same product sentiment.

5.      Innovation can be about efficiency

The Billy is a bare-bones, functional bookshelf if that is all you want from it, or it is a blank canvas for creativity. It demonstrates that innovation in the modern economy is not just about snazzy new technologies, but also boringly efficient systems.

The Billy bookcase isn’t innovative in the way that the iPhone is innovative. The Billy innovations are about working within the limits of production and logistics, finding tiny ways to shave more off the cost, all while producing something that looks inoffensive and does the job.

Thrift is the core of IKEA’s corporate culture, you can trace it back to the company’s origins in Smaland, a poor region in southern Sweden whose inhabitants, like Kamprad, are “stubborn, cost-conscious and ingenious at making a living with very little”.

Innovation in IKEA is about efficiency, economy and effectiveness – recently designer Tom Dixon has joined forces with IKEA to offer a 28-piece modular furniture collection, perfect for adapting compact city homes to your needs – and all about the customer.

Kamprad’s forward-thinking customer focused strategy made IKEA the top furniture seller in the world, maintaining the customer-centric concept from its original foundations in every part of the company and its business model. It is the entrepreneurial eye for this business model innovation, and scaling the execution, that are Kamprad’s legacy for other entrepreneurs to admire.

Curiosity and innovation: the entrepreneurial mindset of Stephen Hawking

Stephen Hawking died last week aged 76, having battled motor neurone disease to become one of the most respected and best-known scientists of our age. A man of great humour, he became a popular ambassador for science and was always keen to ensure that the general public had ready access to his work.

He was a great scientist and an extraordinary man, whose work and legacy will live on for many years. His book A Brief History of Time – a layman’s guide to cosmology – became an unlikely best-seller although it is unclear how many people actually managed to get to the end of it.

Was it mere coincidence that he was born 300 years to the day after Galileo Galileo died, in Oxford on 8 January 1942? After gaining a first-class degree in physics from Oxford, he went on to Cambridge for postgrad research in cosmology. While at Cambridge, aged 21, he was diagnosed with muscle-wasting amyotrophic lateral sclerosis, a form of motor neurone disease, which was to leave him almost completely paralysed.

In 1964, his doctors gave him no more than two or three years of life, but the disease progressed more slowly than expected. However, Hawking was confined to a wheelchair for much of his life, and as his condition worsened, he had to resort to speaking through a voice synthesiser and communicating by moving his eyebrows.

He was renowned for his extraordinary capacity to visualise scientific solutions without calculation or experiment, as once he could no longer write down equations, theories had to be translated into geometry in his head. After a tracheotomy in 1985, the ocean of his thinking had to be forced through a cumbersome and narrow technological aperture. His words necessarily became fewer, and emerged in a voice that was both robotic, and curiously laden with emotion – and frequently humour.

Undeterred by his condition, from 1979 to 2009, he was Lucasian Professor of Mathematics at Cambridge – a post once held by Sir Isaac Newton. In his day job, it was Black Holes in particular that he studied. He gave his name to ‘Hawking radiation’, which was not observed in his lifetime, which was why he never won a Nobel prize, but the link it provided between the theory of relativity, quantum mechanics and thermodynamics was rich food for physicists’ imaginations.

He spent much of his career trying to find a way to reconcile Einstein’s theory with quantum physics, and produce a Theory of Everything, and it was this work that attracted most public attention and awareness through a successful film, with Eddie Redmayne taking on the role of the scientist in what was an inspiring biopic of Hawking.

He also impacted popular culture, staring in The Simpsons, The Big Bang Theory and Futurama, and became the only person to play themselves on Star Trek where he played poker with Einstein and Newton.

Those who live in the shadow of death are often those who live most. For Hawking, the early diagnosis of his terminal disease ignited a fresh sense of purpose. Although there was a cloud hanging over my future, I found, to my surprise, that I was enjoying life in the present more than before. I began to make progress with my research, he once said.

What a triumph his life has been. His name will live in the annals of science, millions have had their horizons widened by his best-selling books, and even more have been inspired by his unique example of achievement against all the odds, a manifestation of amazing willpower and determination.

Whilst we mourn the loss of one of the greatest scientists, creators and thinkers of C20th, here are a few things we could learn from this man about approaching the challenges in our startup businesses, based on some of the inspirational things he said.

Curiosity does not kill the cat Remember to look up at the stars and not down at your feet. Try to make sense of what you see and wonder about what makes the universe exist. Be curious. And however difficult life may seem, there is always something you can do and succeed at. It matters that you don’t just give up.

Why did Hawking reach such great heights? Because he never stopped asking questions. I am just a child who has never grown up. I still keep asking these ‘how’ and ‘why’ questions. Occasionally, I find an answer. Curiosity and asking questions can take you to new places, overcoming self-made barriers. Curiosity keeps you innovating, growing, and moving forward.

Time is your most precious resource I have so much that I want to do. I hate wasting time.

For someone whose life expectancy was supposed to be only 24 years, Hawking worked hard to make sure every minute of his life was used to create something great. Hawking proved time and again that life can give us great things if one is brave enough dream, believe and work hard.

In Hawking’s research about time, he remarked that it is impossible to turn back the clock. Never waste your time doing things that do not take you forward. Never waste your time doing things that do not help you grow.

Let nothing stop you from doing what you can do Intelligence is the ability to adapt to change.

Hawking’s inability to speak did not stop him at any point in his life. Adapting to the environment around you, and using it to reach your goal is the sign of intelligence. Minor hiccups should not stop you from moving ahead, adapt to the change facing you, reroute and move forwards.

My advice to other disabled people would be, concentrate on things your disability doesn’t prevent you doing well and don’t regret the things it interferes with. Don’t be disabled in spirit as well as physically.

Obstacles are inevitable and uncontrollable. What you can control is your ability to use your strengths, without focusing too much on the hurdles and roadblocks.

Have a purpose Never give up work, Work gives you meaning and purpose and life is empty without it.

Never be idle. There is always something that needs to be completed, find what you like and make it your driving force, your passion. When you enjoy doing something, it is no longer work. Don’t just keep the hands busy, keep the mind active as well.

I want my books sold on airport bookstalls, reflects Hawking’s humour, but passion for share his work. Hawking never took a day in his life, whether good or bad, for granted. He embraced life as it was and moved ahead, every single day. He advocated the mantra of living in the now and embracing the uncertainty.

Never give up It is no good getting furious if you get stuck. What I do is keep thinking about the problem but work on something else. Sometimes it is years before I see the way forward.

In the case of information loss and black holes, it was 29 years until Hawking had the answer he wanted. If there is just one take away from Stephen Hawking’s illustrious life, it is to never, ever stop trying. Give up and nothing seems possible in life. If he had given up right when he was diagnosed, then the world would have truly lost one of the greatest revolutionaries.

What a triumph his life has been. His name will live in the annals of science. Millions have had their horizons widened by his books. Many have been inspired by a unique example of achievement against all the odds — a manifestation of amazing willpower and determination.

Be an optimist There should be no boundaries to human endeavour. We are all different. However bad life may seem, there is always something you can do, and succeed at. While there’s life, there is hope. My expectations were reduced to zero when I was 21. Everything since then has been a bonus.

He had a very enviable wish to keep going and the ability to summon all his reserves, all his energy, all his mental focus and press them all into that goal of keeping going. Gone but never forgotten, Stephen Hawking’s demise will leave a vacuum in the field of science. But his research throughout the years has given physicists and cosmologists of today a path forward.

Humour is important to keep a balance The downside of my celebrity is that I cannot go anywhere in the world without being recognized. It is not enough for me to wear dark sunglasses and a wig. The wheelchair gives me away.

Hawking will forever be associated with the concept of Black Holes, a complex and intriguing mental challenge as any you can imagine. He had a searing intellect to converse with the most mentally demanding matters but communicate them to everyone:

Einstein was wrong when he said, ‘God does not play dice’. Consideration of black holes suggests, not only that God does play dice, but that he sometimes confuses us by throwing them where they can’t be seen.

Hawking tells me to think about what you’ve never thought about, but also to reflect that the most consequential ideas are often right under our noses, connected in some way to our current reality or view of the world.

Hawking constantly lived in the future. When we talk about taking time to reflect and ponder about the future and new ideas for our startup, this is exactly what we have to do. In Hawking terms, we need to work on the business, not in the business.  But don’t just sit there and daydream, think and picture the alternate realities – realities where what you are doing today is completely different tomorrow, in order to go and find the revolution before it finds you.

The world isn’t waiting for you to get inspired, you have to inspire it, and at the same time don’t let your doubts sabotage your thinking – there are far better things ahead than any we leave behind. We are all confined by the mental walls we build around ourselves, sometimes innovation starts with a critical decision to reinvent yourself and kick-start your thinking – a moment of truth, flash of brilliance or the end result of a bout of determined reflection to make a difference.

No philosophy that puts humanity anywhere near the centre of things can ignore the thinking of Hawking and its relevance to our everyday attitudes of hope, optimism and endeavour. All that remains is to huddle together in the face of the overwhelmingness of reality. Yet the sight of one huddled man in a wheelchair constantly probing, boldly and even cheekily demonstrating the infinite reach of the human mind, gave people some hope to grasp, as he always wished it would.

The message is that Black Holes ain’t as black as they are painted. They are not the eternal prisons they were once thought. Things can get out of a black hole both on the outside and possibly to another universe. So if you feel you are in a black hole, don’t give up – there’s a way out…

As a man who overcame such incredible obstacles and lived such a brave and amazing life, this advice couldn’t come from a better place.