The New Venture Team M3


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  • The New Venture Team M3

    1. 1. Module 3 Graham Royce October 2008 The New Venture Team & The entrepreneur as Manager
    2. 2. The TEAM a single most important success factor to your business <ul><li>Venture </li></ul><ul><li>Team </li></ul><ul><li>Opportunity </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Manager </li></ul>Review the following
    3. 3. <ul><li>Entrepreneurship  is what the entrepreneur does </li></ul><ul><li>Entrepreneurial  an adjective describing how the entrepreneur undertakes what he or she does </li></ul><ul><li>Entrepreneurial Venture  the means which new value is created as a result of the project </li></ul>A number of concepts have been derived from the idea of the entrepreneur such as entrepreneurship, entrepreneurial and entrepreneurial venture
    4. 4. <ul><li>The team that will execute your business plan </li></ul><ul><li>Single most important factor in the success of your business </li></ul><ul><li>The team needs a mix - passion commitment & vision </li></ul><ul><li>Investors look heavily at the team you have assembled </li></ul>The New Venture Team
    5. 5. <ul><li>Agreements need to be in place with stakeholders and team members </li></ul><ul><li>Details of Ownership, Intellectual property rights are clearly spelt out before you begin any discussion </li></ul><ul><li>Everybody must align with the goals and work that will be involved </li></ul><ul><li>Every body agree with the commercialization path chosen </li></ul><ul><li>Test your team ! </li></ul>Team DNA
    6. 6. <ul><li>Test the team </li></ul><ul><ul><ul><li>Vision </li></ul></ul></ul><ul><ul><ul><li>Skills </li></ul></ul></ul><ul><ul><ul><li>Commitment </li></ul></ul></ul><ul><ul><ul><li>Synergy </li></ul></ul></ul>Vision Clear vision of your company Clear vision of team What is the teams understanding of success What’s the teams vision of the future What will it look like in 12 months What role will each founding team member play How many what skills are required Skills Investors will want to see the team skills The team will need to juggle roles The team will to do everything from sales to evangelist Who is best qualified to lead the team Commitment Track record to asses the staying power Sweat equity Late night long hours travelling Accountability Responsibility Support Encouragement to Motivate Synergy Mutually advantageous compatibility Results greater than the team Fit together like piece of a puzzle It will feel comfortable Ask the team how it feels
    7. 7. <ul><li>Team DNA Test Outcome </li></ul><ul><li>Should be a team formal written agreement </li></ul><ul><li>Agreement between members - outlines expectations - accountability </li></ul><ul><li>Team members should enforce the agreement </li></ul><ul><li>It must clarify those little but big details that are often dismissed </li></ul>Can the team deliver (track record) Have they done it before (Passion to complete) If so say so! Network!
    8. 8. <ul><li>Team testing should be completed at the start </li></ul><ul><li>Evaluate the Venture </li></ul><ul><li>Evaluate the Team </li></ul><ul><li>Evaluate the Opportunity </li></ul>To Make it Work
    9. 9. The Entrepreneurial Team <ul><li>The final part of the puzzle </li></ul><ul><li>Pattern Recognition </li></ul><ul><li>Being First </li></ul><ul><li>Having Best Idea </li></ul><ul><li>Enhancing Creativity </li></ul><ul><li>Experience factor </li></ul><ul><li>Do they Fit </li></ul><ul><li>Right Timing </li></ul><ul><li>Correct Action </li></ul><ul><li>Left Brian versus Right Brian </li></ul>Investors often bet on the jockey not the horse
    10. 10. Entrepreneurial Assessment (Recap) <ul><li>Identify your idea for a business. </li></ul><ul><li>Analyze your motives for wanting to start a new business. </li></ul><ul><li>Identify your personal characteristics/traits. </li></ul><ul><li>Evaluate the market for your product or service. </li></ul><ul><li>Determine your financial needs. </li></ul><ul><li>Prepare a business plan. </li></ul><ul><li>Assemble a team of experts to assist you. </li></ul><ul><li>Implement the business plan. </li></ul><ul><li>Never stop learning and asking questions. </li></ul>
    11. 11. Tricycle Ltd - LEAP 2007/8 <ul><li>Macdara Butler needed a team of people with differing skills </li></ul><ul><li>So he built the team 6 people to date. </li></ul><ul><ul><ul><ul><ul><li> / </li></ul></ul></ul></ul></ul>
    12. 12. A Successful Entrepreneur Should Be Three People in One --From THE E-MYTH REVISITED by Michael E. Gerber Thrives on change Lives in future Craves control The visionary, the dreamer Entrepreneur Clings to status quo Lives in past <ul><ul><li>Sees problems </li></ul></ul>in events <ul><ul><li>The planner, </li></ul></ul><ul><ul><li>organizer </li></ul></ul>Manager <ul><ul><li>Interested in how </li></ul></ul><ul><ul><li>to do things </li></ul></ul>Lives in present Likes to be in <ul><ul><li>charge of work flow </li></ul></ul>The doer Technician
    13. 13. Typical Small Business Owner From THE E-MYTH REVISITED by Michael Gerber
    14. 14. <ul><li>Its origin lies in 17 th France – as an individual commissioned to undertake a particular commercial project by someone with money to invest – The “Undertaker” </li></ul><ul><li>In its earlier stages this usually meant an overseas trading project </li></ul><ul><li>Such projects were risky, both for the </li></ul><ul><ul><li>investor </li></ul></ul><ul><ul><li>( who could lose money ) </li></ul></ul><ul><ul><li>and for the entrepreneur </li></ul></ul><ul><ul><li>( who could lose a lot more ) </li></ul></ul>Remember what is the Definition of Entrepreneur
    15. 15. Remember the definition of Entrepreneur <ul><li>It is the process of recognizing, seizing, pursuing and exploiting </li></ul><ul><li>opportunities without regard to the resources you currently control. </li></ul>Historical Diagram of Entrepreneurial Progress
    16. 16. Compelling Interest <ul><li>“ Choose a job you love, and you will never have to work a day in your life.” </li></ul><ul><ul><li>Confucius </li></ul></ul>
    17. 17. New Venture Team Opportunity Recognition <ul><li>What is a Venture? </li></ul><ul><li>What is an opportunity? </li></ul><ul><li>How do you recognize opportunities? </li></ul><ul><li>How do you screen opportunities? </li></ul><ul><li>Definitions in next slides </li></ul>
    18. 18. New Venture <ul><li>To know whether an idea will support a &quot;business,&quot; you should ask the questions: </li></ul><ul><li>        A.  Is it Innovative? </li></ul><ul><li>        B.  Is it Valuable? </li></ul><ul><li>        C.  Is it Persistent over time? </li></ul><ul><li>To determine whether you can &quot;keep&quot; the fruits of your labours, you should ask the questions: </li></ul><ul><li>        D.  Is it Scarce? </li></ul><ul><li>        E.  Is it Non-appropriable (protectable)? </li></ul><ul><li>        F.  Is it Flexible? </li></ul><ul><li>In a perfect world these fundamentals of a well-built venture would be in place at the outs </li></ul>
    19. 19. Recap from Module 1 Opportunity <ul><li>How many opportunities ? </li></ul><ul><li>What type opportunities ? </li></ul><ul><li>Does the diagram work ? </li></ul>Can you answer these
    20. 20. Opportunity Recognition V = Vision
    21. 21. Venture Team <ul><li>A dreamer is one who can only find his way by moonlight, and his punishment is that he sees the dawn before the rest of the world. </li></ul><ul><ul><li>Oscar Wilde </li></ul></ul>Oscar Fingal O'Flahertie Wills Wilde (16 October 1854 – 30 November 1900) was an Irish playwright , poet , and author of numerous short stories and one novel .
    22. 22. An Opportunity is External <ul><li>It is not a solution hunting for a problem </li></ul><ul><li>It is in the environment </li></ul><ul><li>It is a need to be fulfilled </li></ul><ul><li>It is a want to be addressed </li></ul><ul><li>It is a fear to be relieved </li></ul><ul><li>It is time limited </li></ul>
    23. 23. Divergent or imaginative thinkers tend to note opportunities or problems. Curiosity and attention are essential for noticing what’s wrong or what is an opportunity. Awareness of Opportunity
    24. 24. <ul><li>Opportunities are also situational </li></ul><ul><ul><li>The Window of Opportunity </li></ul></ul><ul><li>Opportunities take form in real world conditions </li></ul><ul><ul><li>Changing conditions </li></ul></ul><ul><ul><li>Leads and Tags </li></ul></ul><ul><ul><li>Knowledge gaps </li></ul></ul><ul><ul><li>Chaos and/or confusion </li></ul></ul><ul><ul><li>Inconsistencies </li></ul></ul><ul><ul><li>Uncertainties </li></ul></ul>
    25. 25. More Principles of Innovative Opportunity Seeking <ul><li>Don’t: </li></ul><ul><ul><li>Be clever </li></ul></ul><ul><ul><li>Do too much at once </li></ul></ul><ul><ul><li>Innovate for the future </li></ul></ul><ul><li>Focus on opportunity, not risk </li></ul>
    26. 26. Principles of Innovative Opportunity Seeking <ul><li>Systematically analyze all sources </li></ul><ul><li>Go out: look, ask, & listen </li></ul><ul><li>Keep it simple, stay focused </li></ul><ul><li>Start small (specific) BUT </li></ul><ul><li>Aim for leadership </li></ul><ul><li>Be market focused, be market driven </li></ul>
    27. 27. Customer Opportunity <ul><li>A wise man will make more </li></ul><ul><li>opportunities </li></ul><ul><li>than he finds. </li></ul>
    28. 28. Heuristic Model for Opportunity Identification etc. Market Demands Environmental Forces Cultural Forces Personal Experiences Technology Social Forces Personal Attributes Elaborate Evaluate Eureka! Go ahead or Quit VISION PREVISION Modify DEVELOPMENT DECISION This is the text book model
    29. 29. Basic Opportunities <ul><li>Your own Idea </li></ul><ul><li>Franchise </li></ul><ul><li>Spin off from current business </li></ul><ul><li>College or University project </li></ul><ul><li>The team needs to understand </li></ul>
    30. 30. Fahy Analytical Ltd - LEAP 2007/8 <ul><li>Took used grit from Stryker Orthopaedics in Limerick </li></ul><ul><li>Filtered the grit and returned good grit to Stryker </li></ul>Reused the filtered grit and sold it to grave stone masons who carve the grave stones with it rather than silica sand
    31. 31. New Business Road Test <ul><li>Great Opportunities where do they come from </li></ul><ul><ul><li>Opportunities created by macro trend </li></ul></ul><ul><ul><li>Found by living and experiencing the customer problem </li></ul></ul><ul><ul><li>Created by scientific research </li></ul></ul><ul><ul><li>Proven else where that you can pursue where you hope to do business </li></ul></ul>The New Business Road Test John W Mullins ISBN 0-273-70805-8
    32. 32. Opportunity Lost
    33. 33. Final Words About Venture Team & Opportunities <ul><li>Marriage is popular because it combines the maximum of temptation with the maximum of opportunity. </li></ul><ul><li>Bernard Shaw </li></ul>
    34. 34. <ul><li>The Entrepreneur as Manager </li></ul>Definition:- A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career Entrepreneur slide 16 (Undertaker)
    35. 35. <ul><li>Undertaking an activity </li></ul><ul><ul><ul><li>i.e. in terms of the particular tasks they perform and the way they undertake them </li></ul></ul></ul><ul><li>Dealing with economic change economic change </li></ul><ul><ul><ul><li>i.e. in terms of the effects they have on economic systems and the changes they drive </li></ul></ul></ul><ul><li>A manager of there destiny </li></ul><ul><ul><ul><li>i.e. in terms of their psychology, personality and personal characteristics </li></ul></ul></ul>The Entrepreneur can also be considered as: Entrepreneurs are not characterised by every action they take, but by a particular set of actions aimed at the creation of new wealth with there ventures
    36. 36. <ul><li>If you know your vision you'll find a way to get there </li></ul><ul><li>Biggest issue is not growing your business but </li></ul><ul><li>containing the team, systems and processes to manage that team Relationships are key to entrepreneurship </li></ul><ul><li>Entrepreneurs are not good at taking risk but assessing risk </li></ul><ul><li>Run your business like a corporate from the beginning </li></ul><ul><li>Entrepreneurs are poor managers; it is critically important to be aware of this </li></ul><ul><li>There has to be a gap between you and your business&quot;. </li></ul>Quotes from Padraig O'Ceidigh – Chairman, Aer Arann Entrepreneur as Manager
    37. 37. Goals for Entrepreneurs <ul><li>Financial </li></ul><ul><li>Social </li></ul><ul><li>Personal </li></ul><ul><li>Political </li></ul><ul><li>Shift with Life Cycle </li></ul><ul><ul><li>Of Firm </li></ul></ul><ul><ul><li>Of Entrepreneur </li></ul></ul>
    38. 38. <ul><li>Look after the running business </li></ul><ul><li>Meet daily weekly yearly targets </li></ul><ul><li>Meet set and or agreed budgets </li></ul><ul><li>Organize </li></ul><ul><li>Delegate </li></ul>Goals for Entrepreneur as Manager
    39. 39. <ul><li>Ability to sustain a continuing venture </li></ul><ul><li>Existing endowments of resources </li></ul><ul><li>Marginal and non-marginal decisions about resource use and growth </li></ul>Goals for Entrepreneur as Manager
    40. 40. <ul><ul><ul><li>Team, Founder (s) (Example A+A) </li></ul></ul></ul><ul><ul><ul><li>Fit with Opportunity </li></ul></ul></ul><ul><ul><ul><li>Track Record </li></ul></ul></ul><ul><ul><ul><li>Gaps in Capabilities & Competencies </li></ul></ul></ul><ul><ul><ul><li>Values and Ethics </li></ul></ul></ul><ul><ul><ul><li>Personal Goals and Objectives </li></ul></ul></ul>Team Management Issues
    41. 41. The Myth of First to Market It is really the first to market acceptance in a specific market niche. Discipline Check Record Evaluate Partner PLAN
    42. 42. Check & Understand Team Entrepreneur & Manager <ul><li>Test the team </li></ul><ul><li>Understand the opportunity </li></ul><ul><li>Make sure the team understand the opportunity </li></ul><ul><li>Define the roles for everybody </li></ul><ul><li>Makes sure everybody knows who is in charge </li></ul><ul><li>Keep your network up to date </li></ul>
    43. 43. Customers Important!!!!!! <ul><li>A customer is someone who makes use of the paid products of an individual or organization. </li></ul><ul><li>The word historically derives from &quot;custom,&quot; meaning &quot;habit&quot;; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her &quot;custom,&quot; meaning expected purchases in the future. The shopkeeper remembered the sizes and preferences of his or her customers, for example. The word did not refer to those who purchased things at a fair or bazaar, or from a street vendor. </li></ul>
    44. 44. Financial Resources <ul><li>The funds used to acquire the natural and human resources needed to provide products; also called capital </li></ul>
    45. 45. Reality Check
    46. 46. Success
    47. 47. Success Criteria as Well as Money!!! <ul><ul><ul><li>Personal Goals (Health Wealth) </li></ul></ul></ul><ul><ul><ul><li>Growth </li></ul></ul></ul><ul><ul><ul><li>Profitability </li></ul></ul></ul><ul><ul><ul><li>Technological Innovation </li></ul></ul></ul><ul><ul><ul><li>Market Impact </li></ul></ul></ul><ul><ul><ul><li>Institutionalization of Success </li></ul></ul></ul>
    48. 48. Conclusion’s When you have time study the slides you will see a common theme they all link
    49. 49. <ul><li>Any questions </li></ul><ul><li>Please contact me on </li></ul><ul><li>[email_address] </li></ul>