Paul Cheek, the executive director at the Martin Trust Center for MIT Entrepreneurship, possesses extensive knowledge in steering successful startups. Over the past six years, he has guided countless MIT entrepreneurs in launching their own ventures.
Drawing on these experiences, Cheek, who also teaches at the MIT Sloan School of Management, has distilled the art of entrepreneurship into its core components. His new book, “Disciplined Entrepreneurship: Startup Tactics,” provides a pragmatic framework to assist entrepreneurs in transforming their ideas into thriving businesses.
Released on April 2, this book complements Trust Center Managing Director Bill Aulet’s “Disciplined Entrepreneurship,” published in 2013, which has been translated into over 20 languages and forms the foundation for three edX courses. An updated edition of Aulet’s book was also released in April.
MIT News spoke with Cheek to delve deeper into his book.
Q: Why write this book?
A: I aim to empower entrepreneurs to bring their ideas to fruition and create a meaningful impact. At MIT, we prioritize impact, and entrepreneurship is a crucial channel for translating our research, technology, and science into real-world applications that benefit society.
Entrepreneurs often struggle with executing the functional elements necessary for unlocking the resources needed for scaling their businesses. I frequently hear three main challenges from them: building a product, assembling a strong team, and securing funding. I always challenge them to consider: Why should someone choose to join your team over another startup? What makes you a compelling investment opportunity compared to other startups? What measurable progress are you making?
Achieving that progress hinges on action. It’s not merely about crafting a strategy; it’s about implementing that strategy in the real world.
The book outlines 15 vital tactics, guiding entrepreneurs to effectively reach their next milestones. The framework is drawn from the curriculum we utilize at MIT, designed to help entrepreneurs gain traction. My goal is to instill an entrepreneurial mindset and skillset that lasts a lifetime, whether in founding new companies or thriving in existing organizations across various sectors.
Q: How is the book structured?
A: At the Trust Center, we emphasize the concept of entrepreneurial math. Similar to the order of operations in mathematics, there’s a structured process in entrepreneurship, which this book follows. It starts with establishing solid foundations, where we focus primarily on goal-setting and progress tracking.
Many believe they excel at setting goals until they face the challenges of real implementation. In larger organizations, structures are already in place; entrepreneurs must create their own. They need to establish goals that align with their long-term vision while ensuring resources aren’t misallocated.
After setting those goals, we shift to market testing. Our approach begins not with product creation but with validation: Does the market actually want what you believe it does? We delve into conducting primary market research, promoting the unique value we can offer using visual tools, and understanding marketing and sales specifically for startups.
We explore how to engage a targeted audience and how to promote not just a product but an enticing value proposition. When we present this value proposition, does the market respond? We outline how to initiate the sales process effectively, and once demand is established, we leap into product development.
The old adage, “If you build it, they will come,” seldom rings true in entrepreneurship. Our emphasis is to build a customer base – individuals eager for what we offer – before the actual product is developed.
Product development involves adopting a lean methodology, testing ideas with users pre-production, and sketching out the simplest viable business product. Once a line of customers is eagerly waiting and the product is ready, we focus on resource acquisition. Thanks to the traction, we delve into the practicalities of incorporating a startup, handling equity distribution, constructing a financial model, crafting a captivating pitch deck, and navigating funding and hiring in the early stages.
This systematic approach is crucial for entrepreneurs, allowing them to use their resources efficiently and ultimately enhance their chances of securing additional time and funding.
Q: Who is this book designed for?
A: “Startup Tactics” targets individuals who aspire to create an impact through innovation-driven entrepreneurship. The focus is on building scalable businesses that can enact significant global change. While we primarily address high-tech ventures, the principles in “Startup Tactics” can guide entrepreneurs in any business arena.
We approach entrepreneurship with an engineering mindset to bolster the success rates of aspiring entrepreneurs. [Aulet’s book] “Disciplined Entrepreneurship” outlines the strategy, detailing what to do and why, while my book dives into the implementation: how to transition from an idea to a business blueprint, and how to actualize that blueprint in the real world. What specific actions should you take?
This content reflects not only my journey as an entrepreneur but also insights gathered from many others. The foundation of this book aligns with courses I instruct at MIT: 15.390/15.3901 (New Enterprises) and 15.388 (Venture Creation Tactics), shaped by iterative teaching experiences over the years.
What stands out as essential is our integrated educational approach. We now provide a comprehensive entrepreneurship education, blending theory, practice, and tactics. This holistic integration uniquely prepares entrepreneurs for success, as evidenced by my interactions with numerous students.
Photo credit & article inspired by: Massachusetts Institute of Technology
