Introduction to Entrepreneurship 101 / Finding and Validating Your Idea - Entrepreneurship 101 (2012/13)
This introductory lecture gives you a sense of the scope of the course and how it can help you build a business. Focused on why entrepreneurship matters so much in today's world, what makes entrepreneurs different (and successful), and how you can come up with your next big idea (or test the one you have).
Memory at Work ! I. Why entrepreneurship matters! II. Who we are: MaRS and MaRS Education! III. What is entrepreneurship?! IV. Do you have what it takes?! V. Course Overview! VI. Up-Start! Competition! VII. Entrepreneurʼs Toolkit! VIII. Finding and validating your idea! IX. Stamp Cards! MaRS is a member of! Pg 3!
Dennis Whittle on Why Entrepreneurship Matters ! ! ! ! ! ! ! ! Pg 4!
-Innovation and entrepreneurship driveproductivity and global competitiveness!!-The majority of new jobs in modern economiesare created by ﬁrms that are less than 5 years old!!-4-10% of startups become high growth ﬁrms –they create most new jobs, and they create themfaster! Pg 5
Young high growth firms create the majority of new jobs in modern economies.
Memory at Work – MaRS is focused on building the next generation of Canadian companies. ! – We help entrepreneurs start and grow successful new companies, creating the jobs of tomorrow.! ! – MaRS connects science, business and capital to improve the efﬁciency and output of the commercialization process.! ! – MaRS is connected to regional innovation centres that are part of the Ontario Network of Excellence (ONE).! MaRS is a member of! Pg 7!
MaRS: Urban innovation hub Linking creative and business assets of Toronto! Discovery District Financial District Creative & Arts District Gardiner Museum of Ceramic ArtRoyal Conservatory of Music Royal Ontario Museum Women’s College University of Toronto The MaRS Centre UHN Toronto General UHN Princess Margaret Hospital for Sick children Mount Sinai Ryerson Toronto Rehab University Art Gallery of Ontario TIFF & OCAD Four Seasons Centre Financial District Entertainment District Pg 9
Acceleration programs for high growth ﬁrms! Netw orks | Talen t | Cus tome rs |P artne rs Entrepreneurship Market Business Access to Capital Education Research Advice & Mentorship Par tners tom ers | nt | Cus | Tale orks Netw High Growth Firms! Pg 13!
MaRS Business Advisory Services! Health | ICE | CleanTech | Social Intellectual Property Strategic Partnerships Marketing & Sales Financing Due Diligence Strategy and Business Planning Market/Competitive Intelligence Human Resources and Talent Management Product Development and Marketing Legal Corporate Governance Operations and Process Customer Relationship Management Financial Management, Accounting, Tax MaRS Advisors | EIRs | Volunteers Pg 14
Memory at Work Clients by Sector! ! Information Technology, Communication and Entertainment 46%! Materials and Advanced Manufacturing 5%! • 1,200+ active clients receiving Advisory Services ! Life Sciences • ~65% in GTA! and Healthcare 17%! Social Purpose 14%! Cleantech 18%! Pg 15!
Memory at Work Objective: To develop a suite of integrated, high quality educational programs to support Ontario entrepreneurs through the different stages of growing their businesses.! ! MaRS is a member of! Pg 16!
Event Series! 139 Number of entrepreneurship educational events programmed & delivered in 2011 10,429 Number of MaRS entrepreneurship education attendees in 2011 16,281 Hours of live education provided to entrepreneurs in 2011 Entrepreneurship 101 | MaRS Best Practices | MaRS Market Insights "MaRS Global Leadership | MaRS Capital Series | Entrepreneur’s Toolkit Workshops ! Pg 17!
Entrepreneurʼs Toolkit! 410,000 Number of views of articles " and workbooks 175,000 Number of videos viewed www.marsdd.com/toolkit! Since Launch in Q4, 2009Articles | Videos | How-to Guides | Workbooks | Funding Database! Pg 18!
Memory at Work " Entrepreneurship: individuals identify opportunities, allocate resources, and create value through the identiﬁcation of unmet needs or opportunities.! Social entrepreneurship is identifying a social problem and using entrepreneurial principles to organize, create, and manage a venture to make social change. ! ! !" “The purpose of a business is to ﬁnd and serve customers proﬁtably.” " " " " " " "-Peter Drucker! MaRS is a member of! ! Pg 19!
Memory at Work Entrepreneursʼ capabilities (Five Minds for the Entrepreneurial Future):! ! 1. Opportunity recognizing mind ! 2. Designing mind ! 3. Risk managing mind ! 4. Resilient mind ! 5. Effectuating mind! MaRS is a member of! Pg 20!
Memory at Work Money 5%!Impact Money is rarely the68%! Experience chief motivator for 27%! tech entrepreneurs.!Source: The Startup Genome Report, May 28th, 2011! Pg 21!
Memory at Work ! !! Most of what you hear about entrepreneurship is all wrong. Itʼs not magic; it is not mysterious; and it has nothing to do with genes. Itʼs a discipline and, like any discipline, it can be learned. ! ! ! !! ! ! !-Peter Drucker! ! MaRS is a member of! Pg 22!
Memory at Work ! ! Those startups with a mentor raise signiﬁcantly more money.! $4,000,000! Average Funding Raised by Stage! $3,500,000! $3,000,000! $2,500,000! $2,000,000! Have Helpful Mentors! Dont Have Helpful Mentors! $1,500,000! $1,000,000! $500,000! $0! Discovery" Validation" Efﬁciency" Scale"Source: The Startup Genome Report, May 28th, 2011! Pg 23!
Memory at Work – We canʼt create entrepreneurial drive – that desire has to come from you! ! – What we can do is help you accelerate your ideas and build your company by providing you with tools, advice, and networks to help! ! MaRS is a member of! Pg 24!
Memory at Work – Course aimed at two groups:! !1. science/engineering/medical researchers and ! !others building technology companies in a ! !university or hospital lab or in the private sector! !2. social entrepreneurs" ! – Business topics will also help others looking to start a business in other sectors! – The course will be of greater value if you have a business/social innovation idea in mind! MaRS is a member of! Pg 25!
Memory at Work Ent 101 is a 30-session weekly lecture series with:! ! – 23 lectures on key topics related to starting and growing a business! – 2 ʻLived It Lecturesʼ with celebrated entrepreneurs! – 4 ʻMeet the Entrepreneursʼ events: sector-speciﬁc panel session with start-up entrepreneurs! – the ʻUp-Start! Competitionʼ: business pitch competition to recognize and reward promising participants! ! MaRS is a member of! Pg 26!
Memory at Work " – The Journey Begins ! ! – Model: How youʼll make money" ! – Market: Targeting your market! – Management: Building your team! – Money: Funding your business! MaRS is a member of! Pg 28!
Memory at Work ! – Finding/validating your idea! – Different types of entrepreneurship! – Entrepreneurial ecosystem and legal fundamentals! – Intro to entrepreneurial management! – Value proposition! – Product development! MaRS is a member of! Pg 29!
Memory at Work ! – IP management! ! – Business model! ! – Business plan and other communication tools! MaRS is a member of! Pg 30!
Memory at Work ! – Market analysis! ! – Marketing communications! ! – Go-to-market strategy! ! – Sales! ! – Negotiations! ! – Distribution! MaRS is a member of! Pg 31!
Memory at Work ! – Board/Governance! ! – Financial planning! ! – Recruiting! – Building and managing a team! ! MaRS is a member of! Pg 32!
Memory at Work ! – Bootstrapping! ! – Terms of investments! ! – Raising money from VCs! ! – The pitch! MaRS is a member of! Pg 33!
Memory at Work 1. Attend the live events (get stamps for certiﬁcate)! ! 2. Watch the live webcasts: www.marsdd.com/ent101-webcasts! ! 3. View past videos and other resources online: www.marsdd.com/ent101-online! ! 4. Join the Entrepreneurship 101 LinkedIn Group for related resources and conversations.! ! 5. Weekly e-newsletters are sent to registrants of the live course.! MaRS is a member of! Pg 34!
Memory at Work Business pitch competition open to Ent 101 participants:! ! – Stage 1: Those interested in the competition will be invited to attend three Entrepreneurʼs Toolkit Workshops to help them prepare their application.! – Stage 2: Apply for the competition in early February. Ten individuals (or teams) will be selected by end of February ! ! – Stage 3: Selected participants work with MaRS Advisors on their pitch in March and April! ! – Stage 4: Competition in May (10-minute pitch to panel of investors) for $10,000 ﬁrst prize.! MaRS is a member of! Pg 35!
Memory at Work -2012: LifeBike -lightweight electric bike! ! -2011: Eve Medical (medical device to test for STDs at home) and The Hot Plate (multimedia platform for quick, simple, affordable cooking)! ! -2010: Shape Collage – automatic photo collage maker! ! -2009: Dreamcube – working with Apple on developing the hardware portion of their UiRemote (turns iPhone into universal remote)! ! -2008 (2nd): CognoVision – Acquired by Intel in 2010, their interactive digital signage changes screen content in real time based on face detection and tracking technology! ! MaRS is a member of! ! Pg 36!
Memory at Work -Participants must be registered in Ent 101 and have attended at least 20 sessions (20 stamps or watched 20 live webcasts or combination thereof)! ! -Can be a business you wish to start or have already started! ! -Since inception, entrants must have received no more than $100K investment money and earned no more than $100K in cumulative revenue! ! -Eligible ventures must fall into one of four categories: ICT (ICE), cleantech, social ventures, or life sciences and be located in the Greater Toronto Area" ! MaRS is a member of! ! Pg 37!
Memory at Work Steven Johnsonʼs ʻWhere Good Ideas Come Fromʼ! ! ! MaRS is a member of! Pg 47!
Memory at Work - Scratch your own itch: Use your own experience to identify and solve problems; create products you would use" ! - Iterate: Ideas are not always ﬂashes of insight, they are often developed and reﬁned over time! ! - Reassemble: Creativity is often the act of reassembling many known elements in new ways! ! - Collaborate: Talk and listen to those around you! ! - Ask questions: Find the customer problem and then develop the solution! ! MaRS is a member of! Pg 48!
Memory at Work ! - Validation is testing your value proposition in your market.! ! - “There is only one boss. The customer. And they can ﬁre everybody in the company from the chairman on down, simply by spending their money somewhere else.” - Sam Walton! ! - The number one reason start-ups die is because they didnʼt have enough customers.! MaRS is a member of! Pg 49!
Memory at Work Talk to your customer/s: ! ! - Are you solving a problem they have?! - Is the problem a ʻbleeding neck woundʼ meaning a real problem that they are they willing to pay to solve?! - Can you build it economically?! - Can you sell it proﬁtably?! " The goal is to achieve product/market ﬁt via trial and error early on in the development of your product. ! ! MaRS is a member of! ! Pg 50!
Memory at Work ! Pick up your attendance card on the way out. To register it, send your name and card number to: ! firstname.lastname@example.org. " " Attendance to 20 out of 30 lectures (or watching live webcasts) required for certiﬁcate and/or participation in! Up-Start! Competition. ! ! MaRS is a member of! Pg 51!
Memory at Work ! ! ! ! Contact us at! email@example.com." ! ! MaRS is a member of! Pg 52!