[MUSIC] We study mindset because as we have discussed, in order to better insure our chances for access, we need to change our mindset, in order to change our desired behaviors. In prior models you learned the characteristics of an entrepreneurial mindset and this module, we provide a series of lessons that will show you how to apply your new found entrepreneurial mindset with those tasks and behaviors associated with starting or acquiring a business. At the end of this first lesson, you'll be able to execute the steps in a business startup or acquisition process, with the new way of thinking, ushered in by this decade's entrepreneurial revolution. You'll be able to place what you have learned with the respect to an entrepreneurial mindset in the context of what we call a new business startup paradigm. You'll become aware and be able to articulate this new business startup or acquisition paradigm. And finally you'll be able to articulate the core principles that underlie the successful execution of this new paradigm. Our goal is always been to understand a business oriented or entrepreneurial mindset impossible avenue's to acquire one, if you don't already have it. We define a mindset as a philosophy of life or set of belief that frame and guide one's thinking. So what is this new way of thinking with respect to business? Well, our answer to this question is based on two observations from the emerging trends and research highlighted by two researchers. First we have Bianca Rothschild's observation from her extensive research on entrepreneurs that they tend to be motivated, first and foremost by a passion and some purpose. And second, Steve Blank's advocacy for bringing systematic discipline experimentation to the startup process. Thus, the new business paradigm no longer approaches a startup or newly acquired business as something that can be preplanned are something that's based on the discovery of some so called profitable opportunity. Rather, it is a temporary organization used to search for a repeatable and scalable business model for a business that's first motivated by a passion to make meaning, to make some purpose. To make something better in the world. This new approach are way of thinking about a startup or newly acquired business changes what the business owner is trying to accomplish in the startup process. And changes how he or she might define failure, which in turn changes what tasks are executed and how resources and what resources are allocated. In short, this new paradigm changes everything. We will discuss four specific principles, if you will, ways of thinking that underlie this new paradigm. As we have said, the business is motivated by some passion, some purpose. This is not to ignore those instances where at least the idea to initiate the business was the result of a lost job or some personal crisis. But rather, even in those instances, the motivation that drove the person through all the obstacles and trials and tribulations to achieve success was based on a desire to make a difference to change their lives or the lives of their family, or to better the lives of those in the community or even the world. Next, with respect to the business itself, it's a prototype, not a finished entity. By this we mean it has to still be tinkered with. We will expect it to perform in perhaps very undesirable ways. We would expect as with any prototype to have to redesign and go back to the drawing board, so to speak, several time. This suggests that business owners only objective in the startup process is to learn. As one would expect, in one's college stage, the objective wouldn't be to gain financial prosperity. That would wait until one actually entered their career. But at the stage they're selecting their major, they're going through their classes, the main intent at that point is simply to learn. And the same which could be said for the business startup. The startup becomes a laboratory or the context for engaging the market place for the purpose of learning and refining the prototype. Refining the operational procedures that will lead the company to success. This new paradigm changes everything. Based on these changes we can categorize the attitudes and approaches that business owners or perceptive entrepreneurs should take, in terms of their startup process into four areas or, we'll call them principles. Process principles actually dictate what steps are involved in the startup process, and what order they're executed. Next we have opportunity principles. These define what an opportunity is, and how it can be identified, evaluated and potentially exploited. Design principles guide the incorporation of meaning and purpose into the business development process. And finally, lean principles determine the learning process. And the search for a repeatable and scalable business model. So you've committed to starting your business, and have begun the process to acquire the mindset, to enhance your chances for success. Now you can begin to think about the actual execution process. You're going to begin with the attitude that you're not starting the business of your dream. What you're starting is a temporary organization that you're using to learn, that you're using to search for repeatable, scalable business. And this business first and foremost is being motivated out of your passions, out of your desire to bring meaning and purpose to the world. Given this, your objectives are to make a difference to go from the idea stage to a prototype of the ultimate envision business. And to engage the market in a way that allows you to learn. These objectives would be achieved through the implementation of process principles, opportunity principles, design principles and lean principles. [MUSIC]