Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Different Types of Entrepreneurship

2,441 views

Published on

This lecture covers various business structures, including the difference between for-profit, non-profit, and alternative paths to entrepreneurship. Discover the right questions entrepreneurs must ask before committing to building a business. What are the requirements and resources you need to have in place to get started? What are the types of financing―and how do they work and why do they matter to different kinds of entrepreneurs?

Published in: Business

Different Types of Entrepreneurship

  1. 1. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   “ 08  October   2014 Different  Types  of  Entrepreneurship
  2. 2. Developing  talent  •  Growing  ventures    •  Opening  markets Visit  us  at  marsdd.com   Different  Types  of  Entrepreneurship Entrepreneurship  101 P R E S E N T E D   B Y   A L L Y S O N   H E W I T T,   S E N I O R   F E L L O W,   S O C I A L   I N N O V A T I O N   &   D I R E C T O R ,   S I G @ M A R S A N D   K E R R I   G O L D E N , P A R T N E R ,   J O L T   F U N D   A N D   D I R E C T O R , U R B A N   F L A T S   T O R O N T O O C T O B E R   2 0 1 4
  3. 3. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   “ What  we  will  cover  today: §  Self  Assessment §  Corporate  Structure  Opons -  Connuum  from  Charity  to  For  Profit §  Types  of  Businesses:  both  tradional  and  social  ventures -  Consulng -  Services -  Products -  The  Sharing  Economy -  Scale  and  Profiles  for    Business  Types §  Forms  of  Financing §  Sources  of  Financing
  4. 4. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SELF  ASSESSMENT pg  4 What  is  my  business  structure? -  For  profit? -  Not-­‐for-­‐profit? -  Co-­‐operave? -  Hybrid Why  do  I  want  to  start  this  business? -  What  is  my  movaon? Do  I  have  the  skills/  aptude  to  be  an  entrepreneur? -  Am  I  comfortable  taking  risks? -  Is  this  something  I  feel  I  have  to  do? What  resources  do  I  need? -  Basement  or  corporate  office? -  Shared  spaces/incubators? How  do  I  fit  into  the  rest  of  the  world? -  Is  my  product  and/or  service  unique? -  Have  others  tried  this  before?
  5. 5. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   Return  Con0nuum   Grant  Funded   Non-­‐Profit   (Charity)   RETURN Social  (Charitable)   Financial  (Commercial)   Tradi=onal   Business   Revenue             Genera=ng  NFP   (Social  Enterprise)   Social   Purpose   Business   Blended  Value  Space   Social  Ventures       Coopera=ves    
  6. 6. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   pg  6 BLURRING  OF  THE  SECTORS
  7. 7. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   September   2014 SOCIAL  ENTERPRISE
  8. 8. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   September   2014 SOCIAL  PURPOSE  BUSINESS
  9. 9. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   CONSULTING •  Key  Characteriscs –  Mulple  parcipants,  diverse  focus,   variable  size,  leverage  core  assets  to   provide  access  to  market  and  advice •  Examples –  Consulng:  McKinsey,  Bain,  Deloi9e,   IBM,  Hatch –  Aperio,  Purpose  Capital •  Benefits  &  Risks  of  Model –  Low  capital  costs  and  minimal  set-­‐up –  Leverages  specialized  knowledge/ experience   –  Liability  insurance,  can  be  difficult  to   build/scale
  10. 10. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SERVICES •  Key  Characteriscs –  Speciality  business  serving  consumers  or  other  businesses •  Examples •  Benefits  &  Risks  of  Model –  Online  sofware  as  a  service –  Infrastructure  costs  may  be  high:  inial  development,  servers,  support,  staffing
  11. 11. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SERVICES   Tradional  Courier  Services
  12. 12. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SERVICES   Social  Enterprise  Courier  Services
  13. 13. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   PRODUCTS pg  13 •  Key  Characteriscs –  Tangible  offering  (consumer  products,  pharmaceucals,  equipment  or  devices) •  Examples •  Benefits  &  Risks  of  Model –  Higher  development  costs;  markeng –  Sales  and  distribuon  model –  Producon  costs  high,  outsource? –  Potenal  for  scale  –  huge –  Trends:  collaborave  consumpon,  wearable  technology
  14. 14. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SOCIAL  ENTERPRISE  PRODUCTS pg  14
  15. 15. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SHARING  ECONOMY pg  15
  16. 16. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   EMPLOYER  BUSINESSES  –  1.1M  strong pg  16 Source:  Sta=s=cs  Canada  
  17. 17. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SCALE  AND  PROFILE  OF  BUSINESS  TYPES •  Lifestyle  business   –  Part-­‐me  Yoga  Instructor –  Ofen  a  hobby  of  the  owner •  SMEs  –  “engine  of  the  economy” –  Founded  2009,  employs  5+ –  Profitable,  Growth  10-­‐15%  per  year •  Growth  Companies  -­‐  Hootsuite –  Founded  2008,  500  employees  and  growing –  10M+  users,  including  744  of  Fortune  1000 •  VC/PE  study  esmated  13,000  high   growth  companies  in  Canada   pg  17
  18. 18. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   FORMS  OF  FINANCING •   Forms  of  Financing –  Bootstrap  -­‐  self-­‐fund  and  reinvest  all  profits  for  growth   –  Crowdfunding  –  for  product  pre-­‐orders,  films,  games,  projects -­‐  Crowdfunding  –  tailored  for  causes  and  charies –  Fundraising  -­‐  grants/  foundaons/  government  funding/  corporate  sponsorship/   members  (co-­‐ops) pg  18
  19. 19. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   September   2014 DEMONSTRATE  IMPACT
  20. 20. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   DEBT  AND  EQUITY pg  20 •  A  quick  primer  on  debt  versus  equity: q  Debt: •  gets  paid  back  first,  before  any  dividends  get  paid   •  secured  by  assets  (company,  your  personal) •  once  debt  is  repaid  (with  interest  of  course),  lender  gets  nothing  else q  Equity: •  never  has  to  be  “repaid” •  keeps  on  “paying”  forever •  you  now  have  an  investor  partner  who  is  in  this,  like  you,  for  the  long   haul
  21. 21. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   MOBILE  APP  EXAMPLE You  need  $40K  to  build/market  a  new  iOS  app   You  have  a  grant  for  $10K  so  funding  needed  is  $30K            Profit                                            Debt                                       50:50  Equity Low  on  chart            $10K                    lender  loses  $20K*                  partner  loses  $25K                                                                      you  get  $0K  &  owe  $20K                you  get  $5K   Featured  appis  $30K                              lender  is  even+                      partner  loses  $15K                                                                                                  you  make  $0K                                  you  make  $15K Top  of  Chart        $200K                              lender  is  even+                  partner  makes  $70K                                        you  make  $170K                          you  make  $100K                                                                                            Granng  agency  reports  your  success!
  22. 22. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SOURCES  OF  FINANCING pg  22 The   turkey   principle  
  23. 23. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SOURCES  OF  FINANCING •  Angels  (aka  high  net  worth  individuals) – Generally  like  to  invest  in  areas  that  they  have  worked  in  or  are  comfortable  with – Can  add  valuable  hands-­‐on  experience – h9p://www.angelinvestor.ca/ •  Accelerator  Programs – Supported  by  angels  and  VC  funds – Impact8  for  social  ventures •  Venture  Capital  Funds – Different  funds  invest  at  different  stages  in  the  growth  of  a  company – Most  funds  also  specialize  in  type  of  investment – h9p://www.cvca.ca/
  24. 24. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   pg  24 SOCIAL  FINANCE
  25. 25. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SVX  –  SOCIAL  VENTURE  CONNEXION pg  25
  26. 26. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   SOURCES  OF  FINANCING •  Proof  of  Principle  /  Idea  to  Innovaon –  www.ResearchNet.ca –  www.nserc-­‐crsng.gc.ca/index_eng.asp     –  www.cmf-­‐fmc.ca/funding-­‐programs –  www.oce-­‐ontario.org/programs –  h9p://coralcea.ca/ •  NRC  -­‐  IRAP –  h9p://irap-­‐pari.nrc-­‐cnrc.gc.ca/main_e.html •  Foundaons: –  Ontario  Trillium  Foundaon  -­‐  www.trilliumfoundaon.org   –  JW  McConnell  Family  Foundaon  -­‐  h9p://www.mcconnellfoundaon.ca/en –  Gates  Foundaon  –  www.gatesfoundaon.org   –  Imagine  Canada  -­‐  h9p://www.imaginecanada.ca/node/22 pg  26
  27. 27. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   September   2014
  28. 28. Developing  talent  •  Growing  ventures    •  Opening  markets   Our  Future  Ma9ers   HOW  TO  CONTACT  US: Allyson  Hewi9,  ahewi9@marsdd.com Twi9er:    @AllysonHewi9 Kerri  Golden,  kgolden@marsdd.com Twi9er:    @KerriGolden THANK  YOU! B E C A U S E   T H E   F U T U R E   M A T T E R S September   2014   INNOVATION

×