Entrepreneur ideas

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Paul Bernal, Human Capital International and Boeing company, shares about being an entrepreneur.

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Entrepreneur ideas

  1. 1. Entrepreneur: How to Launch Your Idea Presented by: Paul N. Bernal Human Capital International Entrepreneur’s Idea Event May , 2010
  2. 2. Bio
  3. 3. Agenda <ul><li>Entrepreneur vs Intrapreneur </li></ul><ul><li>Intrapreneur’s 10 Commandments </li></ul><ul><li>How to Build Your Value Proposition </li></ul><ul><li>Concept Statement </li></ul><ul><li>Market Opportunity </li></ul><ul><li>Product or Service Description </li></ul><ul><li>Program Strategy </li></ul><ul><li>Competitive Advantage </li></ul><ul><li>Technology </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Project Timing </li></ul><ul><li>Financials </li></ul><ul><li>Team </li></ul><ul><li>Resources for the Entrepreneur </li></ul>
  4. 4. Intrapreneuring vs Entrepreneuring <ul><li>Entrepreneur – Innovative, self starter, runs their own business </li></ul><ul><li>Intrapreneur – Innovative, self starter, works in corporate environment </li></ul><ul><li>Culture Shock: </li></ul><ul><ul><li>Corporations, Small Co.’s & Startups </li></ul></ul><ul><ul><ul><li>Skill Set Requirements </li></ul></ul></ul><ul><ul><ul><li>Culture </li></ul></ul></ul><ul><ul><ul><li>Risk vs. Rewards </li></ul></ul></ul><ul><li>E ntrepreneur/Intrapreneur </li></ul><ul><ul><li>Outside vs. Inside the Corporate Box </li></ul></ul><ul><ul><li>Creating the Future vs. Pre-defined Future </li></ul></ul><ul><ul><li>Risk Taker vs. Evangelist </li></ul></ul><ul><ul><li>Cure vs. Virus </li></ul></ul>
  5. 5. INTRAPRENEUR’S TEN COMMANDMENTS <ul><li>Come to work each day willing to be fired </li></ul><ul><li>Circumvent any orders aimed at stopping your dream </li></ul><ul><li>Do any job needed to make your project work, regardless of your job description </li></ul><ul><li>Find people to help you </li></ul><ul><li>Follow your intuition about people you choose, and work only with the best </li></ul><ul><li>Work underground as long as you can, publicity triggers the corporate immune mechanism </li></ul><ul><li>Never bet on a race unless you are running in it </li></ul><ul><li>Remember it is easier to ask forgiveness than for permission </li></ul><ul><li>Be true to your goals, but be realistic about the ways you achieve them </li></ul><ul><li>Honor your sponsors </li></ul>Source: Gifford Pinchot, Intrapreneuring, Harper & Row, 1985
  6. 6. Business Concept <ul><li>Elevator Pitch </li></ul><ul><ul><li>What is the pain being solved by your concept </li></ul></ul><ul><ul><li>What product/service are you introducing </li></ul></ul><ul><ul><li>How does it alleviate the pain </li></ul></ul><ul><ul><ul><li>Higher Quality </li></ul></ul></ul><ul><ul><ul><li>Cheaper </li></ul></ul></ul><ul><ul><ul><li>Features </li></ul></ul></ul><ul><ul><ul><li>Benefits </li></ul></ul></ul>
  7. 7. Market Opportunity <ul><li>Market Assessment (Use graphs) </li></ul><ul><ul><li>Global Market Size </li></ul></ul><ul><ul><li>Market differentiation </li></ul></ul><ul><ul><li>Potential Market Capture </li></ul></ul><ul><li>Where does/can your business compete </li></ul><ul><li>What market share/size can you capture in dollars </li></ul><ul><li>What is the competitive landscape </li></ul><ul><li>Discriminators over competitors </li></ul>
  8. 8. Product or Service Description <ul><li>Describe specifically and precisely what your product/service is </li></ul><ul><li>Describe specifically who the customer is for this product or service </li></ul><ul><li>Estimate what a customer might be willing to pay for the product/service offering </li></ul>
  9. 9. Program Strategy <ul><ul><li>Strategies to enter market </li></ul></ul><ul><ul><li>What is your product entry plan </li></ul></ul><ul><ul><li>How will you make money </li></ul></ul><ul><ul><li>Business Strategy </li></ul></ul><ul><ul><ul><li>Value chain strategy </li></ul></ul></ul><ul><ul><ul><li>Rollout strategy </li></ul></ul></ul><ul><ul><ul><li>Roadmaps </li></ul></ul></ul>
  10. 10. Competitive Advantage – Why You? <ul><li>Why can your business do this better than any of its competitors? </li></ul><ul><ul><li>Who is the competition </li></ul></ul><ul><ul><li>What do they offer and why are we better </li></ul></ul><ul><li>What unique capability will be used to bring idea to market? </li></ul><ul><li>What business relationships will be used to bring this product or service to market? </li></ul>
  11. 11. Technology/Product Development <ul><li>Technology Development </li></ul><ul><ul><li>Prototype Development </li></ul></ul><ul><ul><li>Demonstrations </li></ul></ul><ul><ul><ul><li>Performance test (Verification of requirements) </li></ul></ul></ul><ul><ul><ul><li>Functional tests (verification of functions) </li></ul></ul></ul><ul><ul><ul><li>Manufacturing or production tests (price point verification) </li></ul></ul></ul><ul><li>Product/Service </li></ul><ul><ul><li>Engineering Requirements and Design </li></ul></ul><ul><ul><li>Performance Analysis </li></ul></ul><ul><ul><li>Product Plan/design (# of, types, features, size, …) </li></ul></ul><ul><ul><li>Sample Product/Assembly </li></ul></ul><ul><li>Operations Concept </li></ul><ul><ul><li>Facilities </li></ul></ul><ul><ul><li>Operational Plan </li></ul></ul><ul><ul><li>Rollout- Startup </li></ul></ul>
  12. 12. Intellectual Property (IP) <ul><li>List any Patents, Trademarks, or copyrights which form the Basis of the Opportunity. </li></ul><ul><li>Include rights, strength and weakness in IP. </li></ul><ul><li>Discuss any like or external patents, rights which would impact on this business? </li></ul><ul><li>What IP is needed to get concept to Market? </li></ul><ul><ul><li>What is needed to buy, develop, or license for success? </li></ul></ul><ul><li>NDAs </li></ul><ul><li>Patent Status </li></ul><ul><ul><li>Issues </li></ul></ul><ul><li>IP Issue </li></ul><ul><ul><li>Resolution </li></ul></ul><ul><li>IP Acquisition </li></ul><ul><ul><li>Plan </li></ul></ul><ul><ul><li>Statues </li></ul></ul><ul><li>IP Manifest </li></ul><ul><ul><li>Detail list of ALL IP </li></ul></ul><ul><ul><ul><li>Disclosures </li></ul></ul></ul><ul><ul><ul><li>Trade Secrets </li></ul></ul></ul><ul><ul><ul><li>Patents </li></ul></ul></ul>
  13. 13. Business Timeline <ul><li>How long until the technology is mature and the prototype fully developed? </li></ul><ul><li>Business Plan and Model Developed </li></ul><ul><ul><li>Who is the 1 st customer? </li></ul></ul><ul><ul><li>When will they buy? </li></ul></ul><ul><ul><li>When will Boeing realize 1 st dollar received? </li></ul></ul><ul><ul><li>Business Readiness RoadMap </li></ul></ul><ul><ul><ul><li>How will the Business progress alongside the technology advancements? </li></ul></ul></ul><ul><li>When will the product or service be ready for market? </li></ul><ul><li>What are the risks to this timeline? </li></ul>
  14. 14. Financial Model <ul><li>Financial/Cost Analysis/Model </li></ul><ul><ul><li>Revenue model </li></ul></ul><ul><ul><li>Cost model </li></ul></ul><ul><ul><ul><li>Financial Returns </li></ul></ul></ul><ul><li>Investment requirements </li></ul>
  15. 15. Financial Hurdles <ul><li>&quot;What questions are you likely to be asked...&quot; </li></ul><ul><ul><li>What problem will you solve? </li></ul></ul><ul><ul><li>Who currently has the problem? </li></ul></ul><ul><ul><li>How will you solve it? </li></ul></ul><ul><ul><li>How big is the market potential? </li></ul></ul><ul><ul><li>What is your distinct advantage? </li></ul></ul><ul><ul><li>How does the competitive landscape look? </li></ul></ul><ul><ul><li>What are the financial implications? </li></ul></ul><ul><ul><li>How much capital will you need to develop the solution (and the company supporting it)? </li></ul></ul><ul><ul><li>What kinds of volumes and margins are reasonable to expect? </li></ul></ul><ul><ul><li>What are you team’s qualifications? How strong and proven is Management? </li></ul></ul>
  16. 16. Funding Sources <ul><li>Funding Sources </li></ul><ul><ul><li>Friends, Family, and Angels (Private-Party Agreement) </li></ul></ul><ul><ul><ul><li>Investment secured through private party </li></ul></ul></ul><ul><ul><li>Banks (Secured short to medium-term loans) </li></ul></ul><ul><ul><ul><li>Secure short to medium-term loans </li></ul></ul></ul><ul><ul><ul><li>What they finance </li></ul></ul></ul><ul><ul><ul><ul><li>Working Capital </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Equity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lines of Credit </li></ul></ul></ul></ul><ul><ul><ul><li>What they look for </li></ul></ul></ul><ul><ul><ul><ul><li>Personal Guarantees/backers (i.e. Boeing/Innovator) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Accounts Receivable </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Plant & Property </li></ul></ul></ul></ul><ul><ul><li>Commercial Finance Companies (Asset-based lenders, aggressive banks) </li></ul></ul><ul><ul><ul><li>Vendor contract is secured and “proof of concept” (either prototype or demo) contract could be financed </li></ul></ul></ul><ul><ul><ul><li>What are they? Assets based lenders, more aggressive than banks </li></ul></ul></ul><ul><ul><ul><li>How do they differ from banks? Quicker processing, higher rates </li></ul></ul></ul><ul><ul><ul><li>What do they finance? Receivables (they buy your invoices), sometimes inventory </li></ul></ul></ul>
  17. 17. Funding Sources Cont… <ul><ul><li>Corporate Venture Funds </li></ul></ul><ul><ul><ul><li>The proposal must fit within their core competency and corporate strategic objectives </li></ul></ul></ul><ul><ul><ul><li>Tend to be risk adverse </li></ul></ul></ul><ul><ul><ul><li>May seek to own the IP </li></ul></ul></ul><ul><ul><ul><li>Probable exit strategy: acquisition </li></ul></ul></ul><ul><ul><ul><li>Will seek to control process </li></ul></ul></ul><ul><ul><li>Venture Capital </li></ul></ul><ul><ul><ul><li>Will negotiate valuation </li></ul></ul></ul><ul><ul><ul><li>May seek to significantly control IP equity </li></ul></ul></ul><ul><ul><ul><li>Will institute/demand fiscal disciplines and milestones </li></ul></ul></ul><ul><ul><ul><li>Will want to syndicate the risk </li></ul></ul></ul><ul><ul><ul><li>VC may have very stringent requirements for speedy profitability and very rapid growth (Minimum zero to $20M in 4-5 years) </li></ul></ul></ul><ul><ul><ul><li>Top management team required </li></ul></ul></ul><ul><ul><ul><li>Large Market Potential ($50-$100M plus revenues) Vertical market integration </li></ul></ul></ul><ul><ul><ul><li>Tough Due-diligence </li></ul></ul></ul>
  18. 18. Team <ul><li>Who are the key team members that will make this project successful? </li></ul><ul><ul><li>Include a brief bio with relevant experience and a description of roles and responsibilities </li></ul></ul><ul><ul><li>Angels. Banks, and Venture Capitalist Investors are more interested in the Team than they are in the Concept </li></ul></ul><ul><ul><ul><li>Invest in “A” Team with “B-” Concept over a “A” Concept with a “B-” Team </li></ul></ul></ul>
  19. 19. Resources <ul><ul><li>Resource Book List </li></ul></ul><ul><ul><li>Resource Web Sites </li></ul></ul><ul><ul><li>Angel Resources </li></ul></ul><ul><ul><li>Business Plan Checklist </li></ul></ul>
  20. 20. Resource Books <ul><li>A sample list of learning materials on starting a business: </li></ul><ul><li>The Art of The Start – Guy Kawasaki </li></ul><ul><ul><li>The time-tested, battle-hardened guide to starting anything </li></ul></ul><ul><li>Smartups – Rob Ryan </li></ul><ul><ul><li>Lessons from Rob Ryan's Entrepreneur America Boot Camp for Start-Ups </li></ul></ul><ul><li>Intrapreneuring in Action – Gifford Pinchot </li></ul><ul><ul><li>Gifford Pinchot introduced one of the most liberating concepts to emerge in business, a way empower employees to create new products, services or processes in a fraction of the normal time and cost. </li></ul></ul><ul><li>Crossing the Chasm – Geoffrey Moore </li></ul><ul><ul><li>Here is the bestselling guide that created a new game plan for marketing in high-tech industries. Crossing the Chasm has become the bible for bringing cutting-edge products to progressively larger markets. </li></ul></ul>
  21. 21. Resource Books Cont... <ul><li>Business Plans for Dummies – Paul Tiffany </li></ul><ul><ul><li>A reference guide to find quick and easy solutions to creating dynamic business plans </li></ul></ul><ul><li>The Entrepreneur’s Guide to Business Law – Constance Bagley </li></ul><ul><ul><li>Provides a masterful treatment of the legal issues associated with starting a business. It walks the entrepreneur through the choice of business entity, structuring the ownership among the founders, raising money, forming an effective board of directors, and going public. </li></ul></ul><ul><li>Fueling Innovation – Courtney Price </li></ul><ul><ul><li>A reference guide to walking an entrepreneur through critical steps of an opportunity assessment and market validation. </li></ul></ul><ul><li>The Innovator’s Dilemma – Clayton Christensen </li></ul><ul><ul><li>Presents a set of rules for capitalizing on the phenomenon of disruptive innovation. </li></ul></ul>
  22. 22. Web Links <ul><li>Business Education </li></ul><ul><ul><li>Main web page for the University of Washington </li></ul></ul><ul><ul><ul><li>http://www.washington.edu/ </li></ul></ul></ul><ul><li>Funding Resources </li></ul><ul><ul><li>Directory of venture capital firms and more than 3,000 VC tradeshows. </li></ul></ul><ul><ul><ul><li>http:// www.vfinance.com / </li></ul></ul></ul><ul><ul><li>Garage.com is a venture capital investment bank that provides funding services for high technology and life sciences startups. </li></ul></ul><ul><ul><ul><li>http:// www.garage.com / </li></ul></ul></ul><ul><ul><li>Small Business Administration </li></ul></ul><ul><ul><ul><li>http:// www.sbaonline.sba.gov / </li></ul></ul></ul><ul><ul><li>Emerging Technologies </li></ul></ul><ul><ul><ul><li>http:// www.emergingtech.org </li></ul></ul></ul><ul><li>Competitor Research </li></ul><ul><ul><li>In-depth information about specific companies. Information about Sales Leads, Direct Mail Advertising, Telemarketing, Qualifying Prospects, Making Credit Decisions, Locating suppliers, and Research. </li></ul></ul><ul><ul><ul><li>http:// www.dnb.com /us/ </li></ul></ul></ul><ul><ul><li>Short company profiles - Some of the information is free. </li></ul></ul><ul><ul><ul><li>http:// www.hoovers.com /free/ </li></ul></ul></ul><ul><ul><li>Company websites and Security and Exchange Commission (SEC) filings for public companies </li></ul></ul><ul><ul><ul><li>http://www.sec.gov/edgar/searchedgar/companysearch.html </li></ul></ul></ul>
  23. 23. Angel Resources <ul><li>A sampling of local Angel Groups: </li></ul>
  24. 24. Business Plan Checklist

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