The Irrational Act of Entrepreneurship Pravin R. Chaturvedi

Why Do You Want to be an Entrepreneur? Make money? Social improvement? Freedom (economic or social)? Empowerment? Novelty? Self-realization? Cannot really explain? THAT’S WHY ENTREPRENEURSHIP IS AN IRRATIONAL ACT!!!

Make money?

Social improvement?

Freedom (economic or social)?

Empowerment?

Novelty?

Self-realization?

Cannot really explain?

THAT’S WHY ENTREPRENEURSHIP IS AN IRRATIONAL ACT!!!

What Approach to Take? Traditional? Finding the ‘right opportunity’ through systematic study Evaluate the market Recognize the need Create a specific solution (product or service) Passionate? Do what you love Self-discovery and observation Reflection on ‘true interests’ Figuring out a business angle for the ‘true interest’

Traditional?

Finding the ‘right opportunity’ through systematic study

Evaluate the market

Recognize the need

Create a specific solution (product or service)

Passionate?

Do what you love

Self-discovery and observation

Reflection on ‘true interests’

Figuring out a business angle for the ‘true interest’

How Does One Recognize that “it is Time”? Inspiration Passion takes control Catalytic event occurs Eureka moment happens Meet like-minded folks – create a movement Frustration with ‘status quo’ Fill an unmet need Turn-key solution for a specific problem BUT ONE NEVER KNOWS WHEN IS THE RIGHT TIME!!

Inspiration

Passion takes control

Catalytic event occurs

Eureka moment happens

Meet like-minded folks – create a movement

Frustration with ‘status quo’

Fill an unmet need

Turn-key solution for a specific problem

BUT ONE NEVER KNOWS WHEN IS THE RIGHT TIME!!

What Is an Entrepreneur? Entrepreneurship is about Ideas Entrepreneurship is an Act of Leadership Entrepreneurs Stitch Circumstances with their Ideas Entrepreneurs Love to Own Challenges but good entrepreneurs Manage Risk Entrepreneurs are “Sales People & Deal Makers” Entrepreneurs are Not Optimists they are Realists Entrepreneurs Do Not Give Up the Vision but they revise their strategy & tactics, based on findings

Entrepreneurship is about Ideas

Entrepreneurship is an Act of Leadership

Entrepreneurs Stitch Circumstances with their Ideas

Entrepreneurs Love to Own Challenges

but good entrepreneurs Manage Risk

Entrepreneurs are “Sales People & Deal Makers”

Entrepreneurs are Not Optimists

they are Realists

Entrepreneurs Do Not Give Up the Vision

but they revise their strategy & tactics, based on findings

Entrepreneurship is an Act of Leadership Entrepreneurs “Take a Stand & Believe” but are constantly willing to learn about the problem Fearless about Doing Something and are fearful of Not Doing Anything Strong in their belief but humble in their attitude Have extraordinary Understanding & Knowledge and do not use coercion to convince Entrepreneurs accept accountability for failures but reward and recognize their team for successes

Entrepreneurs “Take a Stand & Believe”

but are constantly willing to learn about the problem

Fearless about Doing Something

and are fearful of Not Doing Anything

Strong in their belief

but humble in their attitude

Have extraordinary Understanding & Knowledge

and do not use coercion to convince

Entrepreneurs accept accountability for failures

but reward and recognize their team for successes

Entrepreneurial Qualities Vision and Motivation Positive (can-do) attitude Self realization and introspective Knowing one’s limits Seeking help without hesitation Not being an “expert of everything” Humility (coupled with hubris) Recognition of other’s abilities Interest in fulfilling the vision – rather than ego

Vision and Motivation

Positive (can-do) attitude

Self realization and introspective

Knowing one’s limits

Seeking help without hesitation

Not being an “expert of everything”

Humility (coupled with hubris)

Recognition of other’s abilities

Interest in fulfilling the vision – rather than ego

How Does One Get Started? Strong Drive is a Pre-requisite Starts with People Build a Strong Team – There is No Substitute for People!!! Complementary intellect (rather than gofers) Founder may not be the person in-charge Seek appropriate experience & knowledge Either within the organization or get it from outside Devise strategy That fits the vision and mission, but is flexible Execute to perfection And constantly re-evaluate strategy in light of your experiences Get cash!!

Strong Drive is a Pre-requisite

Starts with People

Build a Strong Team – There is No Substitute for People!!!

Complementary intellect (rather than gofers)

Founder may not be the person in-charge

Seek appropriate experience & knowledge

Either within the organization or get it from outside

Devise strategy

That fits the vision and mission, but is flexible

Execute to perfection

And constantly re-evaluate strategy in light of your experiences

Get cash!!

The Process of Creating a New Venture – Cloaking Irrationality with Rational Metrics Create and evaluate the Idea(s) critically evaluate the idea with peers/experts openly discuss pros and cons Build collaborations with people (Create the Team) and develop a cohesive & defensible strategy Describe the vision and strategy (Business plan) that provides evidence of achievable milestones Invest in the idea with other investors (your risk capital) raise adequate amount of capital and live frugally Give the Team the latitude to devise appropriate tactics execute the strategic and tactical plans Use the results from execution to revise strategy to provide sustainability to the venture and provide avenues for surviving difficult technical or market conditions

Create and evaluate the Idea(s)

critically evaluate the idea with peers/experts

openly discuss pros and cons

Build collaborations with people (Create the Team)

and develop a cohesive & defensible strategy

Describe the vision and strategy (Business plan)

that provides evidence of achievable milestones

Invest in the idea with other investors (your risk capital)

raise adequate amount of capital and live frugally

Give the Team the latitude to devise appropriate tactics

execute the strategic and tactical plans

Use the results from execution to revise strategy

to provide sustainability to the venture

and provide avenues for surviving difficult technical or market conditions

The 3 S-Phases of Entrepreneurship are Cyclical Start-Up Very hard to get going Zero to >0 mph!! Sustaining Maintaining the momentum – this is harder Managing ups & downs Surviving Reality bites – this phase is even harder Internal and external forces demand “death”

Start-Up

Very hard to get going

Zero to >0 mph!!

Sustaining

Maintaining the momentum – this is harder

Managing ups & downs

Surviving

Reality bites – this phase is even harder

Internal and external forces demand “death”