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November 16, 2018
Bill Aulet
Managing Director,
Martin Trust Center
for MIT Entrepreneurship
Workshop on Disciplined Entrepreneurship:
Why be an entrepreneur? What does it take?
Why scale?
DISCIPLINED ENTREPRENEURSHIP
Purpose of this Workshop
1. Yes It Can
2. Yes We Can
3. Here is How
2
3
Being an entrepreneur
is the new “cool” thing.
As a result,
demand for
entrepreneurship
is blowing up!
4
But is there sufficient
understanding of the topic?
Hmmm….
DISCIPLINED ENTREPRENEURSHIP
What is Entrepreneurship?
5
The formation of a new venture that produces a
product (which includes in my definition an offering as
well) that creates some value for which your new
venture can capture some value to make it
economically sustainable.
DISCIPLINED ENTREPRENEURSHIP
Entrepreneurship
SME (Small Medium Enterprise)
Local Market Focus
Restaurants, Dry Cleaners, Services
IDE (Innovation-Driven Enterprise)
Global Market Focus
Products w/ Innovation at Core
• Δt is short
• Linear growth (capped)
• Less investment required
• Δt is long
• Exponential growth (uncapped)
• A lot of investment required
Further Refinement of this Definition
DISCIPLINED ENTREPRENEURSHIP
Innovation = Invention*Commercialization
Definition of Innovation
DISCIPLINED ENTREPRENEURSHIP
What Is Entrepreneurship?
Innovation
* Technology
essentials
* Knowledge of
science &
engineering
* Skills to develop
* Skills to build
Entrepreneurship
* Business
essentials
* Venture
engineering
* Knowledge to
frame decisions
* Skills to start
* Skills to grow
8
DISCIPLINED ENTREPRENEURSHIP
Misperceptions
9
10
7 Whopping Lies
Told About
Entrepreneurs Which
are Actually Damaging
to All Parties Involved
DISCIPLINED ENTREPRENEURSHIP
#1 -
“Entrepreneurs are
mercurial individualists”
11
DISCIPLINED ENTREPRENEURSHIP
#2 -
“Entrepreneurs are the smartest & most high
achieving people in the room”
12
DISCIPLINED ENTREPRENEURSHIP
#3 -
“Entrepreneurs are born,
not made”
13
DISCIPLINED ENTREPRENEURSHIP
#4 -
“Entrepreneurs love risk”
14
DISCIPLINED ENTREPRENEURSHIP
#5 -
“Entrepreneurs are successful
because they are charismatic”
15
DISCIPLINED ENTREPRENEURSHIP
#6 -
“Entrepreneurs are lucky”
16
DISCIPLINED ENTREPRENEURSHIP
#7 -
“Entrepreneurs are undisciplined”
17
DISCIPLINED ENTREPRENEURSHIP
One Other Misperceptions …
DISCIPLINED ENTREPRENEURSHIP
The Truth
• Relevant elements of a craft:
 Accessible
 Builders
 Unique Products
 Learnable
 First Principles Exist But Don’t Assure Success
 Apprenticeship
DISCIPLINED ENTREPRENEURSHIP
Purpose of this Summer School
1. Yes It Can
2. Yes We Can
3. Here is How
20



DISCIPLINED ENTREPRENEURSHIP
Program Pillars
21
1. Heart: Mindset
2. Head: Knowledge
3. Hands: Capability
4. Home: Community
DISCIPLINED ENTREPRENEURSHIP
Importance of Spirit
22
Willingness and even joy in being
different …
DISCIPLINED ENTREPRENEURSHIP
Importance of Spirit
23
24
Spirit + Skills
Successful Entrepreneurship
Successful Entrepreneurship
=
Spirit
of a pirate
Skills
of a Navy Seal
25
+
DISCIPLINED ENTREPRENEURSHIP
Program Pillars
26
1. Heart: Mindset
2. Head: Knowledge
3. Hands: Capability
4. Home: Community
DISCIPLINED ENTREPRENEURSHIP
Specifically Knowledge of the
Process – First Principles
• Domain expertise is required as well but there are some
general first principles
27
28
Crisis in
Entrepreneurial Education
Demand
Supply of
quality
Time
Storytelling
DISCIPLINED ENTREPRENEURSHIP
How 24 Steps Was Put Together 29
DISCIPLINED ENTREPRENEURSHIP
Entrepreneurship Essentials* 30
Defining & Refining
Product  Market
Fit
Ideation
Team
Building 1
Career
Choice
Soft
Skills
Primary Market
Research
Key Founders’
Decisions
Sales
Basics of
Finance
Communications
Sector Deep
Dives
Customer
Acquisition
Strategy
Product
Design
Product
Development
Leadership &
Culture
Negotiations
Scaling -
Manufacturing
Work-Life
Balance
Financing
HR
Project
Management
Dealing with
Adversity
Core Entrepreneurship Specific Skills :
Corporate
Entreprnrship
Corporate
Strategy
“Nucleation”
(Phase 1)
“Product Definition”
(Phase 2)
“Venture Development”
(Phase 3)
Product
Management
Legal
Business Model
& Pricing
Scaling: Process
& Infrastructure
General Skills Valuable to Entrepreneurs:
Essential Skills for Entrepreneurs (Semi-Customized):
Building
Eship Systems
* - An open framework built for constant refinement
DISCIPLINED ENTREPRENEURSHIP
31
DISCIPLINED ENTREPRENEURSHIP
32
DISCIPLINED ENTREPRENEURSHIP
33
DISCIPLINED ENTREPRENEURSHIP
34
DISCIPLINED ENTREPRENEURSHIP
35
DISCIPLINED ENTREPRENEURSHIP
36
DISCIPLINED ENTREPRENEURSHIP
37
DISCIPLINED ENTREPRENEURSHIP
Benefits of Approach
 Open
 Comprehensive yet Practical
 Integrated
 Proven & Tested – To Stand the Test of Time
 Sequential/Prescriptive
 Creates Common Language for Knowledge Transfer and
Accumulation
38
DISCIPLINED ENTREPRENEURSHIP
Program Pillars
39
1. Heart: Mindset
2. Head: Knowledge
3. Hands: Capability
4. Home: Community
DISCIPLINED ENTREPRENEURSHIP
Program Pillars
40
1. Heart: Mindset
2. Head: Knowledge
3. Hands: Capability
4. Home: Community
DISCIPLINED ENTREPRENEURSHIP
Purpose of this Summer School
1. Yes It Can
2. Yes We Can
3. Here is How
41



DISCIPLINED ENTREPRENEURSHIP
Why Focus on IDE? What is So
Important about Scaling?
42
To take a small venture and make it a big one – in
impact.
DISCIPLINED ENTREPRENEURSHIP
Sense of Urgency
43
DISCIPLINED ENTREPRENEURSHIP
Other Examples
44
DISCIPLINED ENTREPRENEURSHIP
End
Questions?
45
aulet@mit.edu

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