Understanding An Entrepreneur


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Understanding An Entrepreneur

  1. 1. Amit Goyal - Experiential Trainer<br />amitgoyal@tkws.co.in <br />+91 9810533760<br />TKWs - The Knowledge Workers<br />Entrepreneurship & Small Business Management<br />
  2. 2. Course Objectives<br />TKWs - The Knowledge Workers<br />By end of this program, you should be able to,<br />Identify new venture opportunities (versus ideas)<br />Understand necessary skills for successful ventures<br />Evaluate viability of new ventures<br />Financing, starting and operating the business<br />Experiential Outcome<br />You should be able to create <br />a REAL business plan by the end<br />of the course.<br />
  3. 3. Learning Resources<br />TKWs - The Knowledge Workers<br />LinkedIn – Amitgoyal_IS<br />amitgoyal@tkws.co.in<br />Reference Books<br />KURATKO & HODGETTE: Entrepreneurship<br />RAJEEV ROY: Entrepreneurship<br />BUSINESS WORLD: The SME White Book – 2009<br />Do not expect HANDOUTS – Make your own<br />
  4. 4. Evaluation<br />TKWs - The Knowledge Workers<br />4 Credits<br />Written Assessment – 70%<br />Internal Assessment – 30%<br />Weighted Average<br />Business Plan – 50%<br />Group Can have 4-6 members<br /> Make REAL TEAMS<br />Case Study – 30%<br />Individual<br />Class Quizzes – 20%<br /> Surprise<br />
  5. 5. Why Take The Plunge?<br />TKWs - The Knowledge Workers<br />Desire to Create Value – The Alchemist<br />Desire to be your own Boss<br />For Additional Income <br />For Employment<br />Inheritance<br />
  6. 6. Why Take The Plunge?<br />TKWs - The Knowledge Workers<br />Desire to Create Value – The Alchemist<br />Desire to be your own Boss<br />For Additional Income <br />For Employment<br />Inheritance<br />
  7. 7. Do NOT chase PROFITS<br /> # ENTREPRENEUR FACT 1<br />When you run after profits they run away, <br />but you run away and the profits chases you.<br />TKWs - The Knowledge Workers<br />
  8. 8. TKWs - The Knowledge Workers<br />Do You Have<br />Can you change lifestyles<br />Can you correct the wrongs<br />Can you reduce a social vice<br />
  9. 9. Scrap the projections and plan the CASH FLOW<br /> # ENTREPRENEUR FACT 2<br />Most startups do not survive beyond 3 Years<br />TKWs - The Knowledge Workers<br />
  10. 10. Plan to FAIL with grace & style<br /> # ENTREPRENEUR FACT 3<br />Entrepreneurs fail more often than they succeed,<br />But soon recognize that failure is only a resting place.<br />TKWs - The Knowledge Workers<br />
  11. 11. Who is an Entrepreneur?<br />TKWs - The Knowledge Workers<br />
  12. 12. What is Entrepreneurship?<br />TKWs - The Knowledge Workers<br />Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.<br />
  13. 13. Types of Startups<br />TKWs - The Knowledge Workers<br />Lifestyle Business<br />High Potential Venture<br />Gazelles<br />Innovative Business<br />Foundation Business<br />Franchise Business<br />Small Startups<br />Capital Intensive Startups<br />Hi Tech Startup<br />
  14. 14. Importance of Entrepreneurs<br />TKWs - The Knowledge Workers<br />Degeneration of Capital<br />Fosters Innovation<br />Job Creation<br />Economic Growth<br />Improves Lifestyle<br />
  15. 15. Abandon the business VISION<br /> # ENTREPRENEUR FACT 4<br />Most entrepreneurs have a vision of what they want to make,<br />but successful ventures today are fundamentally different <br />than what they started out as.<br />TKWs - The Knowledge Workers<br />
  16. 16. Corporate Entrepreneurship<br />TKWs - The Knowledge Workers<br />Retain the InnovatorsBeat the PLC<br />
  17. 17. What is Intrapreneurship<br />TKWs - The Knowledge Workers<br />Creating new businesses in established companies<br />Product and Process Innovations in established companies<br />Developing new markets for existing products<br />Create a culture & climate to encourage and rewards <br />Intrapreneurship<br />
  18. 18. Whirlpool<br />TKWs - The Knowledge Workers<br />A KitchenAid division employee came with the idea of cooking classes from branded chefs. “Inspired Chefs” was launched and funded by whirlpool and expanded to 33 states<br />20% of Capital Budget is reserved for new ideas which can be increased upto 35%<br />The pay of executive level employees is linked to revenue derived from new products & services<br />35 “innovation consultants” and 177 “innovation mentors” are available to assist the employees with the next great idea.<br />Every idea which is approved is given 100 days and $100,000 to develop prototypes and conduct consumer research.<br />
  19. 19. 3M<br />TKWs - The Knowledge Workers<br />Don’t kill a project – 15% time to prove it is workable, $50k awarded as Genesis grants to 90 people every year.<br />Tolerate failure – Divisions must generate 20% of sales from products introduced in past 5 years.<br />Keep divisions small – Division managers must know each staffer’s name.<br />Motivate the champions – Recruit an action team and salary, promotion depends on products progress.<br />Stay close to customers – Every one visits the customers and invites them to attend brainstorming sessions.<br />
  20. 20. Bell Atlantic Champion Program<br />TKWs - The Knowledge Workers<br />Early business opportunity exploration<br />Full business planning and trials<br />Commercial Roleout<br />5 Hours of company time per week allowed<br />An expense budget of $1000 per project<br />A reward of $1000 whether approved or not<br />Bring your own idea or choose one from company backlog<br />If approved intrapreneurs allowed to invest upto 10% of their salary plus their incentive. In return they get 5% of profit upto a cap of 10 times their investment<br />
  21. 21. IBM – EBO Program<br />TKWs - The Knowledge Workers<br />Emerging business opportunity program has recorded successes like $2Bn Linux consulting, $1.7Bn Digital Media, $4.8Bn Life Science, etc<br />Think big… Immerse into customer sector and examine what their needs and wishes are. The opportunity must have a potential of becoming a billion dollar business in 5 to 7 years<br />Bring in the A-team – Search for star performers in the core areas<br />Start small – Use pilot programs, gain clarity before ramping up<br />Establish unique measurement techniques<br />
  22. 22. How to be an Intrapreneur<br />TKWs - The Knowledge Workers<br />Come to work each day willing to be fired<br />Circumvent any orders aimed at stopping your dreams<br />Do any job needed to make your project work, regardless or your job description<br />Network with good people to assist you<br />Build a spirited team: choose and work with only the best<br />Work underground as long as you can<br />Be loyal and truthful to your sponsors<br />Remember it is easy to ask for forgiveness than for permission<br />Be truth to your goals, but be realistic about the ways to achieve them<br />Keep the vision strong<br />
  23. 23. Core: PASSION<br />TKWs - The Knowledge Workers<br />The Entrepreneurial Mindset<br />
  24. 24. Pay Yourself the first<br /> # ENTREPRENEUR FACT 5<br />Entrepreneurs pay their expenses with the pre-tax earnings however salaried pay their bills from what is left after paying taxes.<br />TKWs - The Knowledge Workers<br />
  25. 25. Characteristics of Entrepreneurs <br />TKWs - The Knowledge Workers<br />Total Commitment, determination and perseverance<br />Drive to achieve and grow<br />Opportunity and goal orientation<br />Taking initiative and personal responsibility<br />Persistent problem solving<br />Realis and sense of humor<br />Seeking and using feedback<br />Internal locus of control<br />Calculated risk taking and risk seeking<br />
  26. 26. Characteristics of Entrepreneurs…<br />TKWs - The Knowledge Workers<br />Integrity and reliability<br />Tolerance for ambiguity<br />Tolerance for failure<br />High Energy level<br />Creativity and Innovativeness<br />Self confidence & Optimism<br />Independence<br />Team Building<br />
  27. 27. Pay upto50% less for your car<br /> # ENTREPRENEUR FACT 6<br />Entrepreneurs enjoy the benefits of Depreciation & Tax Savings on interest payments<br />TKWs - The Knowledge Workers<br />
  28. 28. Entrepreneurialist Culture Quotient<br />TKWs - The Knowledge Workers<br /> < 50 You should realize that not everyone will find happiness being an entrepreneur. You may prefer stability and peace of mind, and you might view work as a means to an end. Is it possible that you are better suited to a large company environment?<br /> 50 – 59 You are caught between getting a J.O.B. and the world of entrepreneurship. Perhaps you need a partner.<br /> 60 – 69 You could give it a whirl. You will need to 'perfect' your business plan and business model so that the harder you work, the more money you'll make. If you get it wrong by just a few degrees, you may end up like Tom Hanks in Castaway, i.e., using stone age tools just trying to stay alive.<br /> 70 – 79 You are likely suited to the world of entrepreneurship but you will need a lot of work, effort, discipline, focus and some luck to make a go of it.<br /> >80 You have a high ECQ(ns). Congratulations or commiseration; you may be on your way to the exciting, demanding and ever challenging world of entrepreneurship where your years will be 'hockey years'- you will age two years for every one that your friends age in their J.O.B.s.<br />
  29. 29. Entrepreneurs use Government’s money to Build Assets<br /> # ENTREPRENEUR FACT 6<br />Entrepreneurs use the deferring power of Long Term Capital Gain to keep building Bigger Assets<br />TKWs - The Knowledge Workers<br />
  30. 30. Chaos Breeds<br />TKWs - The Knowledge Workers<br />Creativity & Business Idea<br />
  31. 31. Write 1, 2 or 3 Functions For<br />A Computer “Whiz Kid”<br />
  32. 32. Problem: Employee Pilferage<br />TKWs - The Knowledge Workers<br />Your solution should be <br />Rational<br />& <br />Logical<br />Your solution should be Creative<br />& <br />Imaginative<br />
  33. 33. Problem: Employee Pilferage<br />TKWs - The Knowledge Workers<br />Your solution should be <br />Rational<br />& <br />Logical<br />Your solution should be Creative<br />& <br />Imaginative<br />
  34. 34. TKWs - The Knowledge Workers<br />