My Goals designing this PRESENTATION Understanding the basic universal concepts on Entrepreneurship History, Theory and Practice; get into the lives, processes and key decisions for relevant entrepreneurs; Build on ideas that you have learned in other classes (e.g. teams, leadership, networks etc.); serve as the foundation for other courses on entrepreneurship; Provide “action-relevant” knowledge & skills to go into a firm and diagnose its and your challenges & to organize your own innovative projects; To help students, THINKERS AND ENTREPRENEURS create a framework for their entrepreneurial energy; Nice to have - Analyze the key elements that together make entrepreneurial organizations more effective at technological innovation; 2
Whynotter vs Yesbutters 3 Why never becoming an entrepreneur (more relevant in certain societies) Failure fear Sales oligopolies Capital crisis and shortages Consumption competitivity Entrepreneur social representation Lack of sales skills Judicial system
Whynotter vs Yesbutters 4 Why never becoming an entrepreneur (more relevant in certain societies) Start-up costs Technical soft skills World distance Corporate solitude Myths – internet, software, biotech Fiscal, treasure Associative miopia
Yes, what happens when you do not consider options? We tend to follow-up mainstream! 5
6 Introduction – Flying over a Syllabus Nest; Becoming an Entrepreneur? On the generation of Ideas; On choosing and evaluating ideas; (Case 1, “Student to Entrepreneur”) Elevator Pitch and Business Planning The business Plan (cont.) Marketing, Sales – Defining Products and Services Marketing, Sales – Cont. Finantial, capital, teams, leadership The Business Plan (final) Growth, Expansion, Internationalization Managing Innovation and Entrepreneurship in the Corporate World; Legal, Administrative, Planning your Entrepreneurial Life; Wrap-up!
Me You Trends, The Future Planning your future – Options, Careers Meanings and Substances of Entrepreneurship Readings “A Bela, Belmiro e Empreendedores”, Manuel Forjaz “Life Entrepreneurs: Ordinary People Creating Extraordinary Lives” , Christopher Gergen “Leaving Microsoft to Change the World”, John Wood “25 Common Characteristics of Successful Entrepreneurs” – Online text in www.entrepreneur.com “Five Bad Reasons To Become An Entrepreneur” – Online text in www.forbes.com “Schumpeter’s Plea: Rediscovering History and Relevance in the Study of Entrepreneurship” HBS Online Paper Watchings ”The Social Network”, David Fincher “The Pursuit of happyness”, Gabriele Muccino “Forrest Gump”, Robert Zemeckis “Do What you love! (no excuses!)”, Gary Vaynerchuk, TED TALK “How to start a movement” Derek Sivers, TED TALK 7
Designing outcomes clears entrepreneurial drives Always think the future... Older; more urban; more natural; more philosophical/spiritual; more available time; slower; new family formats; smaller houses; more connected; more confortable, convenient; more packaged; more confrontational; 8
the future provides context; focus you on relevant data; creates entrepreneurial purpose; makes choices clearer; builds hope! 10
This Is A Good World: A journey into the homes and hearts of people across the globe TIAGW 11 2011 Manuel Forjaz
TIAGW– inspired by the traveling Saint Tiago I asked myself, “what will I contribute to the world?” And so, I will travel around the world by motorcycle with no money, staying in people’s homes for food, shelter, and conversations about life. For six months I will seek to reveal common threads of goodness across cultures and continents and broadcast my experience to the world. 12
The value of ideas! We can buy ideas http://www.newideatrade.com/ http://www.creativitypool.com/ http://www.ideabounty.com http://www.innocentive.com http://www.springwidse.com http://ideabounty.com http://www.marketingprofs.com/ (subs.) http://creativeideasforyou.com/ www.ideiateca.com A lot of businesses are born with observation and chance, not work and a creative process. Because ideas are critical for the beginning of new businesses, not for its development. Because behind any idea one entrepreneur is needed! Because there are businesses on request. Because would you need them, there are several ideas suppliers….
Business ideaspresented for the first time in November, 1997, during the Entrepreneur Fair – ANJE. So far 4 were tested and did not work and 14 are being implemented. 14
Edward de Bono, Lateral Thinking : Creativity Step by Step, Harper & Row, 1973, trade paperback, 300 pages, ISBN 0-06-090325-2.
Lurie, Neal. "From Student to Entrepreneur," 27 pg's including exercises, MBA independent study project, Leeds School of Business;
Razeghi, Andrew. "Why Didn’t I Think Of That? Seven Symptoms of Incremental Thinking and How to Treat Them" 47 pgs, Managing Director of StrategyLab®, Inc.;
Booze Allen Hamilton, "Global Innovation Report" ...aligning innovation strategy to corporate strategy and listening to customers...18 pg's;
Miller, William F. "The "Habitat" for Entrepreneurship" 16 pg's , Stanford. This paper focuses on the business environment—or “habitat,” as I call it—for high tech entrepreneurship. In particular, it describes a habitat for the creation of new companies and new industries.
A different way to think about creative genius - Elizabeth Gilbert (2009) (video) http://www.ted.com/talks/podtv/id/453
On selecting Ideas First Blood Finger SmichardsonEntrepreneurial Driven Concept Screening: Comparing options against a baseline benchmark. Delphi Method: Explore ideas or gain consensus with remote group. Force-field Analysis: Exploring forces for and against an idea. The Hundred Dollar Test: How will you spend $100 on your ideas? The Kipling method (5W1H): Ask simple questions for great answers. Negative Selection: Sort out the 'definitely nots' first. NUF Test: Check idea is New, Useful and Feasible. Pause: Reflect for a minute before deciding. PINC Filter: Evaluate pros and cons of ideas. Six Thinking Hats: Look at ideas from different viewpoints. Swap sort: Sorting a short list by priority swapping. Voting: Democratic casting of votes for the best idea.
On the selection of Business Ideas 1. Does it satisfy or create a market need? 2. Will the product maintain market appeal? 3. How unique is your product? 4. How useful is your product? 5. How much competition exists? 6. Have you priced your product competitively? 7. What is the level of difficulty in the creation or implementation of the product? 8. What are the growth possibilities? 9. Can I get backend sales? 10. Is the product safe. 11. Can my product be promoted with strong advertising copy? 12. Will you be left with an inventory? 24
We all have an unlimited capacity to generate business ideas (Renoir);
There are several creative methods to foster creativity (Edward Bono – 6 hats);
Ideas/business opportunities can be created in laboratory, simply observed, derive from an accident, result of a surprising response to the absurd,…;
There are several scientific/managerial methodologies to select and rank ideas;
The resulting rank is always entrepreneur’s biased;
There is a hard to find link between the quality of an idea and the potential for a business development;
Snapshot on Entrepreneur Concepts “Can capitalism survive? No. I do not think it can." Thus opens Schumpeter's prologue to a section of his 1942 book, “Capitalism, Socialism and Democracy”. One might think, on the basis of the quote, that Schumpeter was a Marxist. But the analysis that led Schumpeter to his conclusion differed totally from Karl Marx's. Marx believed that capitalism would be destroyed by its enemies (the proletariat), whom capitalism had purportedly exploited. Marx relished the prospect. Schumpeter believed that capitalism would be destroyed by its successes. Capitalism would spawn, he believed, a large intellectual class that made its living by attacking the very bourgeois system of private property and freedom so necessary for the intellectual class's existence. And unlike Marx, Schumpeter did not relish the destruction of capitalism. He wrote: "If a doctor predicts that his patient will die presently, this does not mean that he desires it.“ Capitalism, Socialism, andDemocracywasmuch more than a prognosisofcapitalism'sfuture. Itwasalso a sparkling defense ofcapitalismonthegroundsthatcapitalismsparkedentrepreneurship. Indeed, Schumpeterwasamongthefirst to layout a clearconceptofentrepreneurship. Hedistinguishedinventionsfromtheentrepreneur'sinnovations. Hepointedoutthatentrepreneursinnovate, notjustbyfiguringouthow to use inventions, butalsobyintroducingnewmeansofproduction, newproducts, andnewformsoforganization. Theseinnovations, heargued, takejust as muchskillanddaring as does theprocessofinvention. Innovationbytheentrepreneur, arguedSchumpeter, led to gales of "creativedestruction" as innovationscausedoldinventories, ideas, technologies, skills, andequipment to becomeobsolete. Thequestion, as hesawit, wasnot "howcapitalismadministersexistingstructures,... [but] howitcreatesanddestroysthem." Thiscreativedestruction, hebelieved, causedcontinuousprogressandimproved standards ofliving for everyone. 26
Snapshot on EntrepreneurConcepts One of the first academic theorists to investigate the work of the entrepreneur was Joseph Schumpeter. He argued that the defining characteristic of entrepreneurial ventures was innovation. By finding a new "production function" in an existing resource, a previously unknown means through which a resource could produce value, the entrepreneur was innovating. Innovation was broadly conceived; an innovation could take place in product design, organization of the firm, marketing devices, or process design. Nevertheless, innovation was what separated the entrepreneur from others who undertook closely related endeavors; Arthur Cole, defined entrepreneurship as purposeful activity to initiate, maintain, and develop a profit-oriented business. The important part of this definition is that creating a new business organization is considered entrepreneurial. Cole's entrepreneur was a builder of profit-minded organizations and sought financial gain.' Whereas Cole's definition was concerned primarily with the monetary profits of the business world, Schumpeter made room for all organizational activities by broadly defining profits. That is, according to Schumpeter, profits do not have to come in dollars and cents; Shapero and Sokol (1982) argued that all organizations and individuals have the potential to be entrepreneurial. They are at odds with those who try to describe entrepreneurship in terms of what makes an entrepreneurial organization different than others. Rather than focusing on the nature of an entrepreneurial organization, the object of Shapero and Sokol's study was the range of entrepreneurial activities themselves. They focused on what happens when an individual or an organization acts like an entrepreneur. Shapero and Sokol contend entrepreneurship is characterized by an individual or group's initiative taking, resource gathering, autonomy, and risk taking. Their definition could theoretically include all types and sizes of organizations with a wide variety of functions and goals. By defining an "entrepreneurial event" instead of entrepreneurship itself, Shapero and Sokol avoid the pitfalls inherent in trying to delineate what types of organizations can or cannot be entrepreneurial; In Innovation and Entrepreneurship, Peter F. Drucker took the ideas set forth by Schumpeter one step further. He argued that Schumpeter's type of innovation can be systematically undertaken by managers to revitalize business as well as nonbusiness organizations. By combining managerial practices with the acts of innovation, Drucker argued, business can create a methodology of entrepreneurship that will institutionalize entrepreneurial values and practice. Drucker's definition of entrepreneurship—a systematic, professional discipline available to anyone in an organization—brings our understanding of the topic to a new level. He demystified the topic, contending that entrepreneurship is something that can be strategically employed by any organization at any point in its existence, whether it be a startup or a 200-year-old business. Drucker understood entrepreneurship as a tool to be implemented by managers and organizational leaders as a means of growing a business. 27
Entrepreneurs MindSet The link between my experience as an entrepreneur and that of a politician is all in one word: freedom, Sílvio Berlusconi. A real entrepreneurissomebodywhohasno safetynetunderneaththem, Henry Kravis. Mostnewjobswon’t come fromourbiggestemployers. Theywill come fromoursmallest. We’ve got to do everything we can to make entrepreneurialdreams a reality, Ross Perot. Nobody talks of entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking, Anita Roddick. My son is now an "entrepreneur." That's what you're called when you don't have a job, Ted Turner. I didsomethingthatchallengedthebankingworld. Conventionalbankslook for therich; welook for theabsolutelypoor. Allpeople are entrepreneurs, butmanydon'thavetheopportunity to findthatout, Muhammad Yunus. 28
EntrepreneursMindSet 29 I wantedto bean editor or a journalist, I wasn'treallyinterestedinbeinganentrepreneur, but I soonfound I had to becomeanentrepreneurinorder to keepmy magazine going, RichardBranson. Theentrepreneurinusseesopportunitieseverywherewelook, butmanypeopleseeonlyproblemseverywheretheylook. Theentrepreneurinusis more concernedwithdiscriminatingbetweenopportunitiesthanheorsheiswithfailing to seetheopportunities, Michael Gerber. I'mnotsure I knewwhatanentrepreneurwaswhen I wasten, but I knewthatstartinglittlebusinessesandtrying to sellgreetingcardsor newspapersdoor-to-doororjustvendingmachinekindofthingis.. there'sjustsomethingveryintriguing to me aboutthat, Steve Case.
A Complaint Free World: How to Stop Complaining and Start Enjoying the Life You Always Wanted, Will Bowen; Harvard Business Review on Entrepreneurship (Harvard Business Review Paperback Series) The McGraw-Hill Guide to Starting Your Own Business : A Step-By-Step Blueprint for the First-Time Entrepreneur, Stephen C. Harper You, Inc.: The Art of Selling Yourself, Harry Beckwith, Christine Clifford Beckwith Entrepreneur's Notebook: Practical Advice for Starting a New Business Venture, Steven K.Gold Thinkertoys: A Handbook of Creative-Thinking Techniques. Michael Michalko The Thinker's Toolkit: 14 Powerful Techniques for Problem Solving, Morgan D. Jone The Power of Failure: 27 Ways to Turn Life's Setbacks into Success, Charles C. Manz http://www.ted.com/talks/lang/eng/cameron_herold_let_s_raise_kids_to_be_entrepreneurs.html 30
The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World, Randall E. Stross Losing My Virginity: How I've Survived, Had Fun, and Made a Fortune Doing Business My Way, Richard Branson Sam Walton: Made In America, Sam Walton e John Huey Softwar: An Intimate Portrait of Larry Ellison and Oracle, Matthew Symonds e Larry Ellison It's Not About the Bike: My Journey Back to Life, Lance Armstrong e Sally Jenkins Titan: The Life of John D. Rockefeller, Sr., Ron Chernow Direct from Dell: Strategies that Revolutionized an Industry (Collins Business Essentials) by Michael Dell e Catherine Fredman Amancio Ortega: de Cero a Zara, Xavier Blanco e Jesus Salgado 31
Thinking the future- www.ted.com What to do with my life http://www.fastcompany.com/magazine/66/mylife.html ; Tbecoming an Entrepreneur – www.entrepreneur.com; www.zeromillion.com ; Learning to be an entrepreneur - http://entrepreneurship.mit.edu/ Local (Portuguese) support in bulding a business plan http://audax.iscte.pt/ ; www.gesventure.pt ; Understanding and managing failure - http://www.businessweek.com/magazine/content/06_28/b3992001.htm The Dumbest Moments in Business History: Useless Products, Ruinous Deals, Clueless Bosses, and Other Signs of Unintelligent Life in the Workplace, Adam Horowitz 32
Ideas Selection Finantials ROI, DCF; Scale Growth Potential; National vs International; Fit Is this what you want to do? Will you like going to this everyday?; Democracy Get large scale opinion; Expert Get experts opinion; Experience Ask other entrepreneurs advise; read their stories; Knowledge Ask research groups or universities their opinion; Start Speed Can I start right now?; 33
How to summarize a business concept; From flower store to “selling nature” Why do you need an Elevator Speech/Pitch?; How to win a groups voting process; thinking on concept’s marketing From selling 2 Euros bracelet to sell 200 Euros unique ethnic jewelry; - consider form! Pitching Rules; presentation Skills; From The EP to a Business Plan; 34
Pitch Rules Read your pitcher who is he; whar does he want; what drives his attention; Read the environment; do you have his attention; does he care; his he listening; is he alone? Set-up a bridge; Set-up a sexy value; Set-up global project projection; Define outcomes and needs; http://vimeo.com/album/1472221/video/16717051 some good and bad pitches at Babson U.! Why him; Why you; Define next step. 35
Investor’s mindset He has a lot of options; Larger investments are more fruitful; (scope and scale) He does not need you; He does not have a memory; He listens to business proposals all the time; He is tired and depressed; He is waiting to be surprised and find the lost billions; 36
What is a Business Plan It is a document To be read by several audiences; quick and extensively; Describing what is your business product or service; Explaning how your business will be launched; what are the needed resources; Why it will suceed; why you are the right person to lead it; How it will grow and be profitable; What are the risks associated; 37
Gladwell, Malcolm. "Smaller: The Disposable Diaper and the Meaning of Progress." The New Yorker, November 16, 2001 Christensen, Clayton. and Scott D. Anthony. "What's the Big Idea?" Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-602-105, September 26, 2005. Bennis, Warren G., and Patricia Biederman. "The End of the Great Man." Chapter 1 in Organizing Genius. New York, NY: Perseus Books, 1997. ISBN: 9780201570519 Thomke, S. and Ashok Nimgade. "Innovation at 3M Corp." Harvard Business School Case. Boston, MA: Harvard Business School Elevator pitch Essentials http://www.businessweek.com/careers/content/jun2007/ca20070618_134959.htm 38
Can the ideas that we have generated be exploited to make money? Three big questions Technology lens–What are the proposed features of the technology, advantages compared to other approaches or to substitutes? Market lens –What group of customers want this –are lead users representative of larger markets? Competitive lens- Recall that inventor & entrepreneur don’t always capture the value from ideas: Do I control my ideas? Do I control other assets in the value chain? If not, who does, what are the dynamics? Defining your business; setting your market size 39
Business Plan Index – Several, thousand planning tools Executive Summary – to be written in the end Documents Purpose Business definition, Associates Relations, Legal Environment, Societal trends, Opportunity Id. Sales, Competition, Growth Suppliers, Costs, Partnerships Marketing and Promotion; Finantial and Cash PL & Investment Plan 40 1 Executive Summary 2 Company Analysis 3 Industry Analysis 4 Customer Analysis 5 Competitive Analysis 6 Marketing Plan 7 Operations Plan 8 Management Team 9 Financial Plan 10 Appendix
•The Business Plan is a result of a PLANNING PROCESS •People don’t Plan to Fail; they Fail to Plan Who are your customers? Why will the buy your service or product? What will they pay? How will you make and deliver the service/product What resources (people, money, technology) will you need? Can you make money/create value?
How can we build and exploit a valuable brand?
How can we create and sustain a motivated group of employees?
Who should we hire or promote to manage this effort?
44 What Should Be In A Business Plan? –Elements of a Plan –Executive Summary –The Opportunity and the Company and its Services/Products –Market Research/Analysis –Economics of the Business –Marketing Plan –Design and Development Plan –Manufacturing and Operations Plan –Management Team –Schedule –Critical Risks, Problems and Assumptions –The Financial Plan –Appendices Never forget – The Business Plan is an object you have to own;
45 BP Bloops 1. Don't put off writing a plan; 2. Never confuse cash with profits; 3. Don't dilute your priorities; 4. Don't overvalue the business idea; 5. Don't confuse a plan with the act of planning; 6. Don't fudge the details in the first 12 months; 7. Don't sweat the details for the later years; 8. Don't create absurdly optimistic "hockey stick projections" of sales taking off in the near future; 9. Don't write too much; 10. Don't sweat the formatting details;
=> The Art of Start Anything, Guy Kavasaki=> Hundreds of BP templates at http://www.bplans.com/sample_business_plans.cfm=> Business Plan Preparation at http://leeds-faculty.colorado.edu/moyes/bplan/html/templates.html=> The entrepreneurial venture, Harvard Business School, W.A. Stevenson, H.H. Roberts, M.J. Bhidé;=> Bhidé, A. Developing start-up strategies=> How to write a winning business plan, Rich, S. and Gumpert, D.New venture Creation, M-Hill IE, Timmons, Jeffry A. 46
47 Defining Services and products Marketing and Sales Case Sports Platform
Opportunity driven; driven by lead entrepreneur and entrepreneurial team; resource constrained and creative; fit and balance among forces; integrated and holistic;
Focus on these forces to increase success potential
48 Defining Services and products Case Sports Platform
Starts with underlying ópportunity; then entrepreneur takes charge; remakes opportunity; looks at needs and resources; decides who is needed (team); sets plan (bp) and defines leadership (his role) The Entrepreneur
49 Defining Services and products – Case Sports Platform => less is more; => always consider planning and timings => blend sales with wow effect; => wow brings media, investors, consumer attention, speed of development; => Be extensive in listings, very narrow on priorities; => cautious on sales, pessimistic on costs/margins
Definining the Product MixHow to Define Initial Production?=> Initial Sales Potential – Cash to easy investment needs (Upstairs);=> Sales growth; International?;=> Gross Margins and margin evolution (mystery shopping)=> Competition Attractiveness; (cafeinated water)=> Initial capital needs; (nature selling)=> Technical Sophistication; (Via Verde)=> Patents/Brands/Advertising protection?;=> Product Extension;=> Access to market influence (advertising, promotion))– final customers or intermediate b2b buyers?;=> Credibility/reputation (the case for medical software) 50
Marketing Environment => Consumers are getting much more information! => Information is much easier to get! => Information is better! => Abundant classification of information (crowd-sourcing)! => Diversified marketing offer! => More media offer! => Media tranfer from TV Radio Press Outdoor to Internet/Mobile/Event/Flash... => Higher Peer influence! => Rational to Information and Cost => Rational => Irrational/Emotional! => Start-up marketing budgets are very low => Above and below the line are melting; 52
Key Marketing Issues => Who do want to buy your product? => Who is first going to buy/use your product? => Where are they? What do they do? How do they decide? => Where are they buying your product? => What other factors might influence potential buyers decision? => Who has an influence on your buyers? => How can I control that influence? => How much money do I have? => How fast do I need to create awareness?/impulse to buy? 53
Marketing Investments => 1 million TV viewers, 20 seconds 5.000 Euros => 1 million press viewers 7.500 Euros => 1 million online print viewers 2.500 Euros => 10 thousand flash mob 1.500 Euros => 1 million youtube viewers 250 Euros => 10 thousand flyers in hand 1.000 EurosEach option creates different impacts and responses for different sized audiences; 54
Marketing Specifics => Zara No Advertising => Google, Facebook Own support => Snock Sandwiches Distributors Pampering => Red Bull Little Advertising, Lots of Sponsoring => Vitaminas e Cia No marketing support => Sagres and Superbock Heavy advertising => Harry Potter No support 55
Start-up Sales Approach => Understand the buyer, buyers incentive; and the buyers company; => Define the field of sales – timing, materials, tone; => Define post-sales – service, quality; => Use non-sales – next step; => Define best and non-sale price – rank yourself; => Think on multiple buyer layers . Cold vs hot leads; 57
Personal Marketing => Understand the buyer, buyers incentive; and the buyers company; => Define the field of sales – timing, materials, tone; => Define post-sales – service, quality; => Use non-sales – next step; => Define best and non-sale price – rank yourself; => Think on multiple buyer layers - Cold vs hot leads; 58
Personal Marketing – And you are? In most situations in your entrepreneurial (and professional) life people will not read you as you think you are; and weather you want to sell something (credibility); ask for some credit (trust), hire talent (honest, transparent) it is important you master your own brand; 59 2011 Manuel Forjaz
Personal Marketing Others have mentioned it, but it was Tom Peters the 31st August 87 in Fast Company who first turned this theme into a marketing issue http://www.fastcompany.com/magazine/10/brandyou.html 60 2011 Manuel Forjaz
Personal Marketing Later this concept adopted traditional marketing principles (Kotler) and Personal Mix swas set-up; a set of instruments that can be used by every individual when creating their own brand; particularly important in sales and PR; Before building own brands one need to know where he stands: in 2008, MF creates the Essence => Projection => Perception framework; 61 2011 Manuel Forjaz
Class VI – Sales, MarketingReadingsAndersson, P. and Soderlund, M. (1988), ``The network approach to marketing’’, Irish Marketing Review, Vol. 1, pp. 63-8.Brockhaus, R.H. Sr (1987), ``Entrepreneurial research: are we playing the correct game?’’, American Journal of Small Business, Vol. 11, No. 3, pp. 43-9.Donckels, R. and Lambrecht, J. (1997), ``The network position of small businesses: an exploratory model’’, Journal of Small Business Management, Vol. 35 No. 2, pp. 13-25.Gordon, W. and Langmaid, R. (1988), Qualitative Market Research: A Practitioner’s and Buyer’s Guide, Gower, Aldershot.Piercy, N.F. and Cravens, D.W. (1995), ``The network paradigm and the marketing organisation. Developing a new management agenda’’, European Journal of Marketing, Vol. 29 No. 3, pp. 7-34.Scase, R. and Goffee, R. (1980), The Real World of the Business Owner, Croom Helm, London.Storey, D.J. and Johnson, S. (1986), Are Small Firms the Answer to Unemployment?, The Employment Institute, London.Tull, D.S. and Hawkins, D.I. (1990), Marketing Research, Measurement, and Method, Macmillan, New York, NY.Brand New : How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell, Nancy F. Koehn Marketing for Entrepreneurs: Concepts and Applications for New Ventures, Frederick G. CraneInnovation and Entrepreneurship, Peter F. Drucker 66
What are the needed competences; Build on individual motivations Do not neglect long term life planning, personal backgrounds; Incentive Schemes to keep structure stable; Organization, legal structure – have everything possible thing defined; Roles, Hierarchies to be formally accepted and permanently discusses; Get visible, project your success; Develop diferent individual conections (public, corporations, universities); Exit Scenarios (people and company);
Can You Pay?Pimary ratio a lender uses to determine whether you can afford a loan is the "cash coverage ratio." It's calculated by taking your net income and adding back depreciation and amortization, which aren't cash expenses. Will You Pay?How you've handled debt in the past is considered a good indicator of how you'll handle it in the future. Your personal and business credit score (likely from Dun & Bradstreet) will play a big role in answering this question. What If You Don't Pay?If the worst happens, a lender wants to know there are tangible assets that can be liquidated to pay off the loan. The following rules of thumb will give you an estimate of the value a bank assigns to various types of collateral: Accounts receivable: 20 percent to 85 percent Inventory: 10 percent to 80 percent Furniture and equipment: 10 percent to 80 percent Real estate (business or personal): 50 percent to 90 percent Cash/investments: 50 percent to 90 percent
Cash from savings; Borrowing against assets, such as your home; The careful use of selected credit cards; Keeping your day job, while starting the business in off-hours; Living off your spouse's wages while starting the company; Doing consulting work to provide start-up cash for the business and for living expenses; Rushing an early product to market to provide for early revenues and earnings; Running extremely frugal operations, allowing the company to grow on internally generated cash earned on the sales of products; Run for prizes; Check for available funds;
http://www.kickstarter.com/projects/danprovost/glif-iphone-4-tripod-mount-and-stand http://www.youtube.com/watch?v=10z6w6iANs8 Classic Banks, Individuals, Venture Capitals, Awards Frequent Financing Alternatives (ffa) Borrow with or without collateral, sell part of company, sell the whole company, sell very little parts to a lot of people, ...
Bergemann, D., and Hege, U. 1998. Venture capital financing, moral hazard, and learning. Journal of Banking and Finance 22, 703-35; Hsu, D. 2004. What do entrepreneurs pay for venture capital affiliation? Journal of Finance 59, 1805–44; Kaplan, S., Sensoy, B., and Strömberg, P. 2009. Should investors bet on the jockey or the horse? evidence from the evolution of firms from early business plans to public companies. Journal of Finance 64, 75–115; Kortum, S., and Lerner, J. 2000. Assessing the contribution of venture capital to innovation. RAND Journal of Economics 31, 674–92; Lamoreaux, N., Levenstein, M., and Sokoloff, K. 2004. Financing invention during the second industrial revolution: Cleveland, Ohio, 1870-1920. Working paper no. 10923, National Bureau of Economic Research. Sorensen, M. 2007. How smart is the smart money? a two-sided matching model of venture capital. Journal of Finance 62, 2725–62. 74
Planning your SME marketing effort1 – Consider your prime consumer benefit;2 – Carefully estimate your initial market size;3 – Consider their life style, set of consumer choices, distribution channels, influences;4 - Design different methods of impact; calculate possible consumer responses – interested, funny, want to buy, rush to buy, need right now, i will see it later....5 – Trial and error approach; finetune contact experiences;6 - Start with groups you can “see”; avoid mass media initially;7 – Value individual impact (sampling) vs target coverage (TV);8 - Think on freee media 76
=> There are several models of businesses plans;=> Amongst several purposes, its most common use is financing; => The BP has one owner; tipically the entrepreneur;=> It helps organizing ideas and relationships amongts associates;=> It changes in extension, updatability, level of detail and time span;=> It should be regularly reviewed and expert analised; zero mistakes policy; sources and information should be originated;=> It should be concise, clear and with simple wording;=> Must have a summary;=> In any stage the owner should be able to describe its content in a few seconds; 85
=> Organic=> Partnerships=> Acquisitions=> New Businesses=> Business Developers=> Integration=> Internationalization=> Growth strategies depend firstly on corporate life cycle (new vs old company)=> Type of product (replicable, patented!, easy to copy and manufacture...service?!)=> Current profitability, new market cash flow potential; 86
Acs, Z.J. 1995, Small Firms and Economic Growth, Edward Elgar Publishing, Cheltenham, England.Birley, S. & Westhead, P. 1990, ‘Growth and performance contrasts between “types” of small firms’, Strategic Management Journal, vol. 11, no. 7, pp. 535-557.Churchill, N.C. & Lewis, V.L. 1983, ‘The five stages of small business growth’, Harvard Business Review, vol. 61, no. 3, pp. 30-50.Collins, O.F., Moore, D.G. & Unwalla, D. 1964, ‘The enterprising man and the business executive’, MSU Business Topics, vol. 12, no. 1, pp. 19-34.Davidsson, P. 1989, ‘Entrepreneurship – and after? A study of growth willingness in small firms’, Journal of Business Venturing, vol. 4, no. 3, pp. 211-226.Flamholtz, E.G. 1986, How to Make the Transition from an Entrepreneurship to a Professionally Managed Firm, Jossey-Bass, San Francisco, California.Galbraith, J. 1982, ‘The stages of growth’, Journal of Business Strategy, vol. 3, no. 4, pp. 70-79.Gibb, A.A. & Scott, M. 1986, ‘Understanding small firms growth’, in M. Scott, A. Gibb, J. Lewis & T. Faulkner edsSmall Firms: Growth and Development, Gower Publishing, Aldershot, England, pp. 81-104.Greiner, L.E. 1972, ‘Evolution and revolution as organizations grow’, Harvard Business Review, vol. 50, no. 4, pp. 37-46.Hay, M. & Kamshad, K. 1994, ‘Small firm growth: intentions, implementation and impediments’, Business Strategy Review, vol. 5, no. 3, pp. 49-68.Holmes, S. & Zimmer, I. 1994, ‘The nature of the small firm: understanding the motivations of growth and non-growth oriented owners’, Australian Journal of Management, vol. 19, no. 1, pp. 97-120.Kazanjian, R.K. & Drazin, R. 1989, ‘An empirical test of stage of growth progression model’, Management Science, vol. 35, no. 12, pp. 1489-1503.Keasey, K. & Watson, R. 1993, Small Firm Management: Ownership, Finance and Performance, Blackwell Business, Oxford, England. 89
Kimberly, J.R. 1979, ‘Issues in the creation of organizations: initiation, innovation, and institutionalization’, Academy of Management Journal, vol. 22, no. 3, pp. 437-457.Merz, G.R., Weber, P.B. & Laetz, V.B. 1994, ‘Linking small business management with entrepreneurial growth’, Journal of Small Business Management, vol. 32, no. 4, pp. 48-60.Penrose, E.T. 1952, ‘Biological analogies in the theory of the firm’, American Economic Review, vol. 42, no. 5, pp. 804-819.Penrose, E.T. 1959, The Theory of the Growth of the Firm, John Wiley & Son, New York, New York.Perry, C., Meredith, G.G. & Cunnington, H.J. 1988, ‘Relationship between small business growth and personal characteristics of owner-managers in Australia’, Journal of Small Business Management, vol. 26, no. 2, pp. 76-79.Petty, J.W. & Bygrave, W.D. 1993, ‘What does finance have to say to the entrepreneur?’, The Journal of Small Business Finance, vol. 2, no. 2, pp. 125-137.Reid, G.C. 1993, Small Business Enterprise: An Economic Analysis, Routledge, London, England.Rostow, W.W. 1960, The Stages of Economic Growth, Cambridge University Press, Cambridge, England.Scott, B.R. 1971, Stages of Corporate Development – Part 1, Case No. 9-371-294, Intercollegiate Case Clearing House, Boston, Massachusetts.Smith, K.G., Mitchell, T.R. & Summer, C.E. 1985, ‘Top level management priorities in different stages of the organizational life cycle’, Academy of Management Journal, vol. 28, no. 4, pp. 799-820.Steinmetz, L.L. 1969, ‘Critical stages of small business growth: when they occur and how to survive them’, Business Horizons, vol. 12, no. 1, pp. 29-34.Terpstra, D.E. & Olson, P.D. 1993, ‘Entrepreneurial start-up and growth: a classification of problems’, Entrepreneurship Theory and Practice, vol. 17, no. 3, pp. 5-20.Turok, I. 1991, ‘Which small firms grow?’, in L.G. Davies & A.A. Gibb edsRecent Research in Entrepreneurship, Avebury, Aldershot, England, pp. 29-44. 90
Innovation and Intrapreneurship to Downlod Miguel Muñoz I-Presentationhttps://www.yousendit.com/dl?phi_action=app/orchestrateDownload&rurl=https%253A%252F%252Fwww.yousendit.com%252Ftransfer.php%253Faction%253Dbatch_download%2526send_id%253D1007200593%2526email%253Ded2b277c9f8775b09898a6a9a36a050blink expires the 19th Dec.check alsohttp://www.slideshare.net/philmckinney/introduction-to-the-killer-innovation-approach-ver-5?src=related_normal&rel=9881http://www.ted.com/talks/lang/eng/cat_laine_engineering_a_better_life_for_all.htmlhttp://www.youtube.com/watch?v=2GtgSkmDnbQhttp://www.youtube.com/watch?v=DaKgMcFP4Mohttp://www.swinburne.edu.au/lib/ir/onlineconferences/agse2009/000173.pdfhttp://www.economist.com/node/16374404 93