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ity as making something and as making something new. What Bhid is describing is creative imitation, which would be impossible if creativity required novelty. The majority of the entrepreneurs who Bhid studied replicated or modified an idea encountered through previous employment (71 percent), while many others discovered their ideas serendipitously (20 percent). Very few followed a systematic approach to identifying and evaluating opportunities (4 percent). This sounds very much like expert intuition, where you suddenly see a new combination of past achievements to suit a new situation. Yet Bhid does not quite say this. His entrepreneur carries forward someone else s idea, not someone else s achievement. Still, we infer that the idea was a good idea that had some evidence of success. Otherwise, why imitate it This does not mean that the prior achievement worked completely especially when the idea comes from a previous job, you might see a way to do it better and go off on your own to do so. Bhid then tells us that in imitating the previous idea, any innovations were incremental or easily replicated. Such was certainly the case with McDonald s, Microsoft, and Apple so much so that Jobs felt guilty. When Bhid says easily, he means conceptually easily. That is, modifications of the original idea are easy to figure out, but it still requires very hard work to make them succeed. The original coup d oeil might or might not include the eventual alterations, but in either case the resolution must follow. Bhid only hints at coup d oeil in his description of how the entrepreneurs identified and evaluated their opportunities. We see coup d oeil in the 20 percent who discovered their ideas serendipitously. Yet even the 71 percent who found their idea at a previous job benefited from a form of serendipity. When you took that previous job in the first place, you did not foresee taking a particular idea from it and going off on your own. Even if you said to yourself, I m going to learn this business and then go off on my own, you did not have a specific idea at that time. The specific idea strikes you or dawns on you while you are doing the job. It comes to you in a coup d oeil.
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50 T H E A R T O F E X P E R T I N T U I T I O N
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So Bhid s entrepreneurs follow von Clausewitz and they also reject Jomini. Bhid found that 41 percent of the entrepreneurs had no business plan at all and 26 percent had just a rudimentary plan. A mere 5 percent worked up financial projections for investors, and only 28 percent wrote up a full-blown business plan. Remember that making the Inc.-500 list requires 5 years of sustained growth. More than two-thirds of Bhid s entrepreneurs accomplished this great feat without a written plan. They did have another kind of plan, however the unwritten kind. Jomini tells you to plan on maps, while Napoleon saw a plan in his eye. You do not have to write down a plan to have a good one. The Oxford English Dictionary defines plan this way: A formulated or organized method according to which something is to be done; a scheme of action, project, design; the way in which it is proposed to carry out some proceeding. This sounds like a strategy. By that definition, Bhid s entrepreneurs certainly had a plan. What they lacked was a plan on paper. So in one sense, they were great planners: A scheme of action came to them in a coup d oeil, and they followed through with resolution. In another sense, they were poor planners: They failed to write their plans down. We will return to these two different meanings of plan a strategy versus a written document in a later chapter on strategic planning. For now, let s see what Bhid himself says about the lack of formal planning by his entrepreneurs: It s something they grow out of. Bhid tells us that entrepreneurs start out without much money, they don t make much at first either, and it s not certain that they ever will, so they can t afford the time or expense of formal planning. That s why only 4 percent do formal research before they start their business. This lack of planning plus the high uncertainty means that the entrepreneurs must adapt to unexpected problems and opportunities. Since they have little money and no long-term strategy, that adaptation is opportunistic or myopic. For Bhid , therefore, adapting to unexpected problems and opportunities is a bad thing. Formal planning can overcome it, but entrepreneurs can t afford that. As the business grows, however, they make enough money to pay for planning, and the com-
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