Summary
Highlights
John Mullins introduces his concept of "counterconventional mindsets of entrepreneurs" using the example of Lynda Weinman and Lynda.com. Lynda Weinman, a graphic design teacher, started Lynda.com in 1995 as a platform to explore new digital design tools and showcase student work. The business grew significantly, evolved into an online teaching platform, and was eventually sold to LinkedIn for $1.5 billion, demonstrating an entrepreneurial approach that deviated from conventional wisdom.
The first mindset, 'Yes, we can,' challenges the traditional business school advice of 'sticking to your knitting' and focusing only on core competencies. Mullins illustrates this with Arnold Correia, founder of Atmo Digital. Correia repeatedly reinvented his event management business by saying 'yes' to customer requests that fell outside his company's established expertise, such as building a satellite uplink for broadcasting training or installing digital advertising screens in retail stores. This willingness to explore new areas, even without prior experience, led to significant growth and reinvention.
Mullins explains that entrepreneurs focus on solving problems rather than pushing products, contrasting this with big companies that often innovate by making minor product changes (e.g., different detergent speckles or various Coca-Cola flavors). He uses the example of Jonathan Thorne, who developed a silver-nickel alloy to prevent surgical forceps from sticking to human tissue. Thorne initially targeted plastic surgeons but found greater success and impact by focusing on neurosurgeons, whose need for non-stick forceps while operating on brains and spines was more critical. His problem-first approach led to the successful sale of his business to Stryker.
This mindset advocates for targeting a narrow market segment, contrary to the big-company belief in needing large target markets to 'move the needle.' Mullins highlights the founding of Nike by Phil Knight and Bill Bowerman. They identified a specific problem for elite long-distance runners – unsuitable shoes – and created specialized footwear with better stability, cushioning, and lighter weight. By focusing on this narrow, yet deeply felt, problem for a dedicated group, Nike built the foundation for its eventual global dominance in athletic footwear.
Mullins discusses how entrepreneurs prioritize securing cash early, unlike large corporations which may have abundant but often underutilized cash reserves. He uses Tesla and Elon Musk as an example. When introducing the Roadster, Tesla pre-sold 100 cars for $100,000 each, securing $10 million in cash before manufacturing began. Similarly, for the Model 3, nearly half a million consumers placed $1,000 deposits, providing Tesla with $500 million to fund development and production, effectively 'riding the float' of customer commitment.
This mindset emphasizes leveraging existing assets and resources, rather than making large upfront investments as typically taught in B-school finance. Tristram and Rebecca Mayhew, founders of Go Ape, a treetop adventure business in the UK, exemplify this. They 'borrowed' essential assets – trees, parking lots, and facilities – from the UK Forestry Commission, which was keen to increase visitor numbers. By securing an exclusive deal to build their courses on commission land, they avoided significant capital expenditure and rapidly expanded their business across the UK and into the US.
Mullins asserts that entrepreneurs often bypass seeking permission, especially when regulations are ambiguous or haven't caught up with new possibilities. This contrasts with large companies, which are often bogged down by legal clearances. He cites Uber founders Travis Kalanick and Garrett Camp. Had they asked San Francisco regulators for permission to start a taxi company without owning taxis, they likely would have been denied due to threatening the existing industry. Instead, they 'got on with it,' illustrating an entrepreneurial willingness to operate in regulatory gray areas to innovate. Mullins acknowledges that Uber's journey had controversial aspects but highlights the principle of acting decisively.