Kawasaki's Five Key Concepts And Principles Of Entrepreneurship

Key Concepts and Principles of Entrepreneurship In The Art of the Start, Guy Kawasaki recommends several key principles that are important for “anyone starting anything” as suggested by the sub-title of the book. Kawasaki’s main focus in this book is entrepreneurship and the process by which a successful business can be created and maintained. Kawasaki suggests five core concepts of successful entrepreneurship: causation, articulation, activation, proliferation, and obligation, along with many key principles for each concept. The first key concept is causation; the art of starting a business. One must possess a reason or a true desire in order to become an entrepreneur. Along with this desire, one question should be asked before starting

Bootstrapping is when an entrepreneur starts a business with little capital. Kawasaki says, “Entrepreneurs can bootstrap almost any business” (80). This business model has low up-front capital requirements, short (under a month) sales cycles, short (under a month) payment terms, recurring revenue, and word-of-mouth advertising which could beneficial to a beginning entrepreneur. The art of recruiting is employing those that are better than you; those that have more to offer the business, including their weaknesses. Don’t underestimate what they could possibly do for the future of the business. The last principle of activation is the art of raising capital. Pitching plays an important role in this principle; however, offering your investors a real picture of what your company is about is most important. Disclose everything about your business. Don’t leave anything in the closet for the investors to find out later, which could damage credibility. Kawasaki also suggest that an entrepreneur’s beginning investors could include venture capitalists, foundations, friends and family

The art of partnering can be a challenging part of a business. Good partnering can increase cash flow, accelerate revenue and reduce costs; however, a bad partnership could mean the opposite. Kawasaki states that, “a partnership is simply a matter of implementation” (151); finding someone who can help get the business going. An important part of this principle is putting an “out” clause in the partnership deal. Allowing a way out helps the partners not feel stuck in a deal that is not working. This can actually encourage longevity with the partnership. The next principle of proliferation is the art of branding. Kawasaki suggests that applying the art of branding comes from the classic Ps of marketing: product, place, price, and promotion. Additionally, prayer could be added to this list. Kawasski refers to this last P as “proselytization,” which is process of converting others to your beliefs or doctrines, instead of prayer (167). The art of branding “requires creating something contagious that infects people with enthusiasm” (167). An entrepreneur needs to get their customers excited and zealous about their product. This will promote free advertising as customers spread the word to those around them. The last principle of proliferation is the art of rainmaking. A rainmaker is someone who generates a large amount of business. The first step of rainmaking is to get