I love watching videos made by Great Big Story. I like it because they create extremely viral videos of objects and people we did not even know existed. They are viral because the stories are unique and entertaining. One I can’t forget is a video about an instrument used for horror movies and the man behind the game solitaire. Great Big Story reminds me of an entrepreneur who sees the 1% everyone misses and turns it into a cultural phenomenon.

It will be valuable for a company to have someone or a department who sees that 1%. Imagine if you have one, you will always have that innovative idea that can bring competitive advantage to your business.

Almost all who ate at Jollibee would buy another rice but it was Mang Inasal who was culture sensitive and offered unli-rice to Filipinos who are big rice eaters. After that, almost every business copied the unli-rice concept. In 1920’s Japan, Matsushita created a battery powered bike lamp that lasted 10x longer out of frustration with what was currently available then. To be able to see that 1% everyone misses, one must have a keen sense of how a culture is, its flaws, wants and needs, technology and information available at hand.

Can this keen sense of seeing potential be acquired? The answer is yes. I have college students who never saw themselves as entrepreneurs but were able to start a business of their own. I have another student who did not come from a family of entrepreneurs; this is relevant because almost everyone who chose entrepreneurship as a course comes from an entrepreneurial family. This student of mine really saw himself as a successful entrepreneur, he studied the lives of entrepreneurs and read a lot of books. In short, he worked to become one. He is one of my students who became a serial entrepreneur.

To be able to start training to sense potentials, one must think that entrepreneurial opportunities are made out of things put together (not necessarily add or take away. Jobs did not add anything with the first iphone or take away something, instead, he put touch screen and phone technology to come up with a minimalist phone) for the purpose of solving a problem. It may be a style of doing something applied to another discipline. I have a student who is into arts and she sells personalized portraits based on her own style of drawing, so that is putting her style into art. Jeff Bezos put together books and ecommerce. This was after he saw a data of a big growth of internet users. Going back to Mang Inasal, they put together culture and dining. This question maybe asked: what can I put together that will make sense to my target.

To think like an entrepreneur is to see opportunities as ideas put together to come up with a solution.

Value proposition is what you are offering to your prospective customers. I can be convenience, lower cost or service. It is also what differentiates you from your competitors.

How do you find your VP?

The VP mainly comes from what the competitor can’t offer or what their current customers do not get from them. By turning their weakness into a solution you can offer, then you come up with your VP or differentiation.

There are ways of finding their weakness: It can come from your personal experience or by asking their customers, through research. There are also those unspoken dissatisfaction, those things that dissatisfiers that customers are not aware off but can be sensed by the sensitive entrepreneur. This unspoken or unknown dissatisfaction are those that create the greatest value. Who would have thought that unlinrice from Mang Inasal will make them successful or the first Apple PC. Those behavior-changing products are beyond the current framework of innovation and academic entrepreneurship, which is only known to those who are sensitive enough to find and exploit them.

A Value proposition can be derived from a customer or one’s dissatisfaction as well as that unspoken dissatisfaction known only through the eyes of the sensitive entrepreneur.

Basketball used to be my sport in my teenage years. I learned by dribbling and shooting and playing with friends; practice. Others I know, learned by joining scientific basketball camps, where basketball is taught using principles based on theories. I did join a camp, too, but only for a few sessions. This story reminds me of an event where I invited entrepreneur to talk in my class.

I once invited a friend to speak and share his experiences to my freshmen Entrepreneurial Management students. He talked about how he started his business, his challenges and how he was able to overcome them. In his last statement, he said that students need not study entrepreneurship to be able to start and operate their own business. I claim he is suggesting they can throw away theories and just learn along the way. In short, practice trial and error, just like how he and other entrepreneurs started and operated their business.

I understand his point of view that anyone can start and run a business without having to go to school. However, not all people operate that way, specially those who come from non-entrepreneurial families, who grew without a model in a business venture. It is true that there have been many founders who have successfully started and grew their business without going to business school, but it does not take away the fact that there is value in learning theories. Theories are as important as practice and they work as a unit.

Today, entrepreneurship has evolved from being defined as a form of trading business into a business that involves science, innovation, technology, data and investments. As such, the world of business has become complex and engaging in trial and error can deplete the resources fast that may lead to the demise of business. So learning business theories are important for the following reasons:

A good theory is a starting point. Imagine faced with a business concern and you do not know which decision to make. You may either choose any direction and proceed without thought, or base the actions on some theories related to the concern. Of course, success is not guaranteed but at least the action was based on something studied and experienced.

Explanation of the world from ones observation. Theory is an observation that has been tested and applied. It explains situations, events and possible outcomes from actions taken. Making decisions based on theories can help you predict the possible outcome.

Foundation of action. I read a magician whose foundation is philosophy. In one of his essays, he said that right theories precede right actions. In business, clarity of action is important and a good foundation of understanding theories can help in making quick actions.

Appreciation of business theories help create a foundation for intelligent decision making and action. Remember that one is not important than the other and theory and practice work best together.

Yesterday, a former student (transferred to another school) sent me a message to seek advice on her business. She has been into retail business for a few years now.

Her problem is that her sales in low even if she is present in Facebook, TikTok and Instagram, and she needs advice on how to grow her sales.

I asked her the following:

1. Target audience
2. How her social media looks

She gave me an age range that ranges from mid teens to late 20s. Her socmed photos have clothes (sports and casual) and food.

This is a common mistake made my most entrepreneurs, specially the new ones: targets everyone and offers everything.

It goes against the marketing maxim, you can’t be everything to everyone. To apply this maxim means choosing a specific market and offering them their needs. If the customers are office workers and the business is in office fashion, then the product needs to be office clothes/accessories.

Offering everything to everyone only confuses the market and does not create brand recall. If I ask you what is the Filipino fastfood you go to, I am quite sure that almost a hundred percent will say Jollibee, that is because they are clear about their offering: fastfood items that fit the Filipino taste.

I gave her the following advice:

1. Clearly define the market you want to serve
2. Focus on 1 social media where your target market goes to frequently
3. Do not clutter your social media by posting photos not related to the brand identity you want to build. If you are into office fashion, you can post fashion accessories for office wear but not food because food and fashion are 2 different categories.

It all boils down to clarity. The clearer you are, the easier for your customers to remember you and think of you.

The ability to sense potential opportunities is key to the identity of entrepreneurs. Entrepreneurs are wired in a way that they can sense the surroundings and identify a need immediately. This entrepreneurial ability can be reached by anyone through understanding what change and dissatisfaction mean to entrepreneurs.

Change

Before the pandemic, people were free to move and go on with their usual life. Buying clothes is done in malls, people eat in restaurants and watch movies in theaters. As the numbers started to rise, the government mandated to stop economic activities and put people inside their homes until hospitals are well equipped to handle infected people. Change happened, which affected people’s way of doing things.

The change in people’s behavior because of the quarantine created a need. People can no longer go out to buy their wants or watch movies in theaters. Students had to stop school. People can no longer exercise. The working force had to work from home. All these changes created a void and manifested as needs. 

Online became the default go-to place. As people searched for solutions, they went online to get and share information. People met online, transacted online, watched movies online, studied online, and made money online. Everything became online. 

As a result, the old and new gained traction. Zoom, practically an unknown company before the pandemic, earned millions because it became the most used platform for meetings. Google classroom became one of the most learned platforms for online learning. PPEs became highly in demand. New businesses sprouted as well. Viber groups became a selling platform where people looked for their essentials. New food products were noticed, such as the Sushi Bake and Ube Pandesal.

Change signals the formation of needs as shown in how people’s behavior changed as a result of the mandate to put people in quarantine.

Here are the changes people need to be sensitive about:

1. Changes in Political factors include policies, tax, state of peace and order, labor law, corruption, etc.
2. Changes in Economic factors such as inflation rate, interest rates, exchange rates, policies, growth patterns.
3. Changes in Social factors such as demographics, urbanization and population
4. Changes in Technological factors involve innovation in technology. What is being developed and what is available.
5. Changes in Environment includes changes in climate, supply restrictions and availability based on environmental policies.

To illustrate how change was recognized as a source of opportunity, here is a short story on Jeff Bezos and Amazon.

Back in the 90s, Bezos was working for a financial firm. He was doing well and good in the company. He has a good career ahead of him. One day, he saw data on the change and  growth of internet users in the coming years. Being entrepreneurial, he interpreted the data as an opening to an opportunity. He grabbed the opportunity and founded Amazon. 

Changes can also be taken advantage of by small businesses too. An extreme example would be the vendors along EDSA. There was a time when EDSA’s traffic was not as bad as today. Back then in the 90’s, motorists would not see vendors along the highway. But today, as soon as the traffic starts, vendors will be offering their products. Change in volume of the cars, urbanization, and population growth are some factors that triggered the change and eventually attracted vendors. 

Exercise:

What are the changes you sense that is happening around you? You may use sources such as newspapers or data from the internet.

Dissatisfaction

People want. They want better, they aspire for something more superior and that is the case for the majority of people on earth and people I know. I have yet to meet someone who does not need or want anything. As long as people feel they want and need, there will always be new customers and products.

When we are dissatisfied, it is because the experience is not as we expected or not as what is expected. There is a feeling that something is MISSING, ANNOYING, IRRITATING & DISAPPOINTING and knowing WHY gives the entrepreneurial an insight to the solution that can be provided.

The entrepreneurial, an aspirant for better things, can use dissatisfaction as a source of business opportunity. There are 2 types of dissatisfaction: Dissatisfaction as a user & Dissatisfaction as observer. As a user you have a personal experience with the brand. As an observer, someone else was the user. 

Konsuke Matsushita is an example who personally experienced dissatisfaction and had knowledge about how Japanese were dissatisfied with the bike lamp. As a response to dissatisfaction he made a better bike lamp.

Exercise:

1. When was the last time you were dissatisfied with a product?
2. Identify what is MISSING, ANNOYING, IRRITATING & DISAPPOINTING with the experience.

To entrepreneurs, changes and dissatisfaction are anomalies that create needs and problems and those needs and problems trigger the entrepreneur’s capability to insight.