By Yolanda Lau
We live in a world where change is the only constant. For today’s entrepreneurs (and really, everyone), adaptability is crucial for survival and growth. To guide their journey, entrepreneurs can choose from a number of established frameworks. But entrepreneurship is more than following a single methodology. Entrepreneurship is a mindset. It’s a way of thinking and a set of skills that help individuals succeed in any career and create value in a world of uncertainty and accelerating change.
Entrepreneurship Frameworks
I love frameworks (see my frameworks for thinking about AI). But the other day, I saw this Deloitte image shared by Dominic Price on LinkedIn and I laughed out loud. Agile, Design Thinking, Waterfall, Human-Centered Design, and many more frameworks all laid out to look like a subway map:
Others have posted about the flaws in the diagram, so I won’t dwell on that. But I laughed because there are so many different startup frameworks that I wouldn’t be able to name them all — let alone put them all in one coherent diagram.
Still, let’s quickly go over some of the most popular startup frameworks: Design Thinking, Disciplined Entrepreneurship, Lean Startup, Agile, Sprint, Business Model Canvas, Blue Ocean Strategy, Hooked, and OKRs.
This is by no means a comprehensive list of the frameworks used in startups.
These methods have developed as responses to different challenges in the business world, each offering different perspectives and tools. No single framework provides a complete solution. But understanding their principles can give entrepreneurs and leaders a range of tools for tackling challenges.
Design Thinking
Design Thinking is a well-known human-centered approach to innovation developed at the Stanford d.school in partnership with IDEO. It uses designer methods to combine the needs of people, the possibilities of technology, and the requirements for business success. It focuses on empathy, idea generation, prototyping, and testing.
Disciplined Entrepreneurship
MIT’s Bill Aulet developed Disciplined Entrepreneurship, which offers a 24-step framework for creating new, successful products. It blends creativity with a structured approach to building businesses.
Lean Startup
Eric Ries’s Lean Startup method promotes quick prototyping and customer feedback. It introduces ideas like the Minimum Viable Product (MVP) and pivot, encouraging entrepreneurs to test their assumptions quickly and at low cost.
Agile Methodology
Though originally created for software development, Agile principles are now used widely in entrepreneurship. It emphasizes step-by-step progress, flexibility, and working with customers.
Sprint
Jake Knapp at Google Ventures created Sprint, a five-day process for answering key business questions through design, prototyping, and testing ideas with customers. It combines elements of business strategy, innovation, and behavioral science.
Business Model Canvas
Alexander Osterwalder developed the Business Model Canvas, a strategic management tool for developing new or documenting existing business models. It provides a visual chart describing a company’s value proposition, infrastructure, customers, and finances.
Blue Ocean Strategy
Developed by W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy is an approach that challenges companies to break out of crowded marketplaces (red oceans) and create uncontested market space (blue oceans). This strategy focuses on value innovation — creating a leap in value for both the company and its customers.
Hooked Model
Developed by Nir Eyal, the Hooked Model is a four-step process designed to build habit-forming products. This framework is particularly relevant for tech startups aiming to create products with high user engagement and retention.
OKRs (Objectives and Key Results)
Developed by Andy Grove at Intel and popularized by John Doerr, OKRs is a goal-setting framework used by many startups and tech giants to set and achieve ambitious targets. With OKRs, the focus is on outcomes instead of tasks.
Common Elements
While each framework offers specific insights and tools, they share some common themes:
- Customer focus: All stress understanding and addressing real customer needs.
- Continuous improvement: They advocate for ongoing refinement and adaptation.
- Quick testing: Fast, low-cost experiments are preferred over long development cycles.
- Adaptability: The ability to change direction based on feedback and results is key.
Beyond Frameworks: The Entrepreneurial Mindset
While these frameworks provide useful structure, entrepreneurship isn’t quite that neat and tidy. It takes more than just following a set of steps.
While these frameworks provide useful structure, true entrepreneurship involves more than following a set of steps. It’s about developing a mindset that includes:
- Comfort with uncertainty: Viewing ambiguity as an opportunity rather than a threat.
- Lifelong learning: Always challenging yourself to learn new skills and knowledge.
- Problem-solving: Finding new ways to look at problems to invent new solutions to complex challenges.
- Resilience: Recovering from setbacks and learning from failures.
Key Entrepreneurial Skills
Along with this mindset, certain skills are important for every entrepreneur:
- Finding opportunities: The ability to see problems and challenges as opportunities and develop out-of-the-box solutions.
- Managing risk: Taking calculated, data-driven risks that are appropriate to the potential reward. Usually, taking small risks to validate an idea before taking a bigger risk.
- Building relationships: Making authentic connections based on trust and mutual support, collaborating, and leveraging those relationships to achieve more.
- Understanding finances: Knowing the numbers that drive business success.
- Leading: Guiding and inspiring teams towards a shared goal.
- Communications: Effectively conveying ideas, vision, and plans to team members, investors, customers, and other stakeholders. This includes:
- Clear and persuasive verbal and written communication;
- Active listening;
- Presentation skills;
- Negotiation abilities;
- Adapting communication style to different audiences; and
- Giving and receiving feedback.
- Emotional intelligence and mindfulness: Developing self-awareness, managing emotions effectively, and maintaining focus.
Combining Frameworks and Mindset
Most entrepreneurs don’t stick to one framework. Instead, they understand the principles behind various methods and apply them as needed. For example, an entrepreneur might use Design Thinking to understand customer needs, apply Lean Startup ideas to test solutions quickly, use the Business Model Canvas to outline their overall strategy, use OKRs for meetings, and use Agile methods for coding and product development—all while maintaining the flexibility and resilience that characterize the entrepreneurial mindset.
Importantly, entrepreneurship must go hand-in-hand with ethical responsibility. Entrepreneurs are not just innovators; they are also stewards of the societies they operate in. Their decisions can have far-reaching impacts, and maintaining ethical standards ensures that value creation benefits more than just the bottom line.
Preparing Entrepreneurs for the Future
In a world that’s changing faster than ever, entrepreneurship takes more than following a series of steps laid out in an established framework. Yes, methods like Design Thinking, Lean Startup, and others provide useful tools and structures. But at its core, entrepreneurship is the ability to adapt, learn, and create value in any situation.
New entrepreneurs should study these frameworks as tools they can use — not as fixed rules. As an example, learning and practicing Design Thinking isn’t the same as cultivating an entrepreneurial mindset, nor is it enough to prepare students for the future. Tomorrow’s leaders and entrepreneurs need to develop the mindset and skills that allow them to handle uncertainty, find opportunities, and create new solutions to make a difference in the world.
In the end, entrepreneurship is about embracing change, always learning, and having the determination to bring ideas to life. It’s this mix of mindset, skills, and flexible use of frameworks that will lead to success – especially in this age of AI.
Yolanda Lau is an experienced entrepreneurship consultant, advisor, and Forbes Contributor. She is also an educator, speaker, writer, and non-profit fundraiser.
Since 2010, she has been focused on preparing knowledge workers, educators, and students for the future of work.
Learn more about Yolanda here.