What will I learn about: the true definition of an entrepreneur as a fearless explorer who steps outside the bounds of established knowledge to solve new problems, rather than simply copying existing business models?

Understand the true definition of an entrepreneur as a fearless explorer who steps outside the bounds of established knowledge to solve new problems, rather than simply copying existing business models.

What will I learn about: the concept of the 'perfect problem'—an unsolved issue, whether massive or trivial, that you personally possess the relentless drive to fix?

Discover the concept of the 'perfect problem'—an unsolved issue, whether massive or trivial, that you personally possess the relentless drive to fix.

What will I learn about: Learn how investigating personal frustrations and industry unfairness, such as the exorbitant credit card fees for small businesses, can spark a revolutionary company?

Learn how investigating personal frustrations and industry unfairness, such as the exorbitant credit card fees for small businesses, can spark a revolutionary company.

What will I learn about: how innovating your investor pitch, like Square did by swiping venture capitalists' actual credit cards, provides undeniable proof of concept and captures immediate attention?

Find out how innovating your investor pitch, like Square did by swiping venture capitalists' actual credit cards, provides undeniable proof of concept and captures immediate attention.

What will I learn about: the art of transparency by highlighting your company's risks upfront; acknowledging potential failures can paradoxically build massive trust and secure crucial funding?

Master the art of transparency by highlighting your company's risks upfront; acknowledging potential failures can paradoxically build massive trust and secure crucial funding.

The Innovation Stack

Building an Unbeatable Business One Crazy Idea at a Time

Jim McKelvey

★ 4.6 / 5(151 ratings)

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Categories:

Biography & Memoir Entrepreneurship

If You're Curious About These Questions...

You should listen to this audiobook

💡What's the secret to identifying a problem that no one else has solved, and turning it into a billion-dollar opportunity?
💡Are you curious about how two friends built a financial-services empire from scratch, using nothing but courage, ingenuity, and humor?
💡What if you could turn your biggest frustration into a game-changing innovation, and create a business that truly makes a difference?

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Key Takeaways from The Innovation Stack

✓Understand the true definition of an entrepreneur as a fearless explorer who steps outside the bounds of established knowledge to solve new problems, rather than simply copying existing business models.
✓Discover the concept of the 'perfect problem'—an unsolved issue, whether massive or trivial, that you personally possess the relentless drive to fix.
✓Learn how investigating personal frustrations and industry unfairness, such as the exorbitant credit card fees for small businesses, can spark a revolutionary company.
✓Find out how innovating your investor pitch, like Square did by swiping venture capitalists' actual credit cards, provides undeniable proof of concept and captures immediate attention.
✓Master the art of transparency by highlighting your company's risks upfront; acknowledging potential failures can paradoxically build massive trust and secure crucial funding.

Learning Tools

Reinforce what you learned from The Innovation Stack

Mind Map

The Innovation Stack

True Entrepreneurship+

The Perfect Problem+

Innovating the Pitch+

The Innovation Stack Concept+

Defeating Competitors+

Historical Precedents+

Expertise is Overrated+

Actionable Advice+

Quiz — Test Your Understanding

Question 1 of 8

According to Jim McKelvey, what distinguishes a 'true entrepreneur' from a standard business owner?

A. They refine and perfect existing business models to maximize profits.
B. They step into uncharted territory to solve a problem no one else has solved.
C. They rely heavily on formal education and industry expertise.
D. They secure venture capital funding before building a prototype.

Question 2 of 8

What was the 'perfect problem' that inspired the creation of Square?

A. The lack of secure encryption for online purchases.
B. The high failure rate of venture-backed tech startups.
C. A lost sale because McKelvey's glassblowing studio couldn't accept American Express.
D. The confusing and archaic software used by major commercial banks.

Question 3 of 8

How did Square's founders change the traditional dynamic when pitching to venture capitalists?

A. They promised a guaranteed return on investment within the first year.
B. They refused to show a working prototype until funding was secured.
C. They highlighted all the possible ways their company could fail to show transparency.
D. They hired a famous actor to deliver the pitch to stand out.

Question 4 of 8

How does the book define an 'innovation stack'?

A. A pre-planned blueprint of technological upgrades for a software platform.
B. A hierarchy of management designed to foster creative thinking.
C. A series of interlocking inventions created by a problem-solution-problem chain.
D. A portfolio of diverse startup companies owned by a single venture capitalist.

Question 5 of 8

Why did Square develop its incredibly cheap, 97-cent card reader?

A. It was a necessary invention to achieve the massive volume needed to offset their low, flat-rate pricing.
B. They wanted to sell the hardware at a high markup to fund their software development.
C. Amazon forced them to lower their manufacturing costs to stay competitive.
D. Investors demanded a product that could be manufactured cheaply overseas.

Question 6 of 8

How did Square respond when Amazon launched a competing, cheaper card reader?

A. They redesigned their reader to match Amazon's improved functionality.
B. They lowered their transaction fees to undercut Amazon's prices.
C. They launched a massive marketing campaign attacking Amazon's customer service.
D. They did nothing and stuck to their core principles, like beautiful design.

Question 7 of 8

Who does McKelvey consider a historical example of a true entrepreneur who built a powerful innovation stack?

A. The Wright brothers, for inventing the commercial airline industry.
B. A.P. Giannini, for making banking accessible to small businesses and women.
C. Jeff Bezos, for dominating the e-commerce and payment processing markets.
D. The founder of Shake Shack, for mastering operational expertise.

Question 8 of 8

What is the author's view on formal qualifications and industry expertise for entrepreneurs?

A. They are essential for securing venture capital funding.
B. They are useful for copying existing ideas, but overrated for true entrepreneurship.
C. They are the primary reason companies like Square survive against giants like Amazon.
D. They prevent founders from making naive financial mistakes.