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- 3. 3 10. He Xiangjian – Net Worth $7.5 billion He Xiangjian started it all with the production of lids and bottles in 1968 with a handful of fellow villagers. In 1980 he moved to producing electric fans and adopted the name Midea for his operations. As the years passed by Midea produced different kinds of electrical appliances that are popular in Chinese homes like microwave ovens, washing machines, and air-conditioners. 2007 saw the expansion of Midea in Vietnam and eventually it made joint ventures with foreign companies like Carrier and Horizont. He Xiangjian retired from his duties as chairman in 2012 and appointed Hong Bo Fang as his successor. His son He Jianfeng is a board member of the Midea.
- 4. 4 9. Ding Lei – Net Worth $8.1 billion At a young age Ding Lei exhibited a talent for electronics. After obtaining an engineering degree in college Ding Lei worked at different jobs such as a telecommunications officer for the government and as an engineer for software company Sybase. Two years after quitting Sybase Ding and a pair of friends founded NetEase, a company that offered online services like a bilingual e-mail and search engine. NetEase would later produce its own online games and partner with Blizzard Entertainment Inc. in publishing games like World of Warcraft and StarCraft II for Chinese players. Other services NetEase offers include a virtual mall, online bulletin board, video services, online payment system, and many others. It is believed that Ding Lei’s company helped usher the growth of the internet in China, and for his efforts Ding Lei was awarded with the Wharton Infosys Business Transformation Award in 2004.
- 5. 5 8. Xu Jiayin – Net Worth $8.4 billion Despite living in poverty Xu Jiayin did his best to finish college and worked at a steel company where he climbed up the ranks in a decade. Even though it was an “iron rice bowl” job (lifetime employment with good benefits) Xu Jiayin resigned in 1992 and ventured in the realm of real estate. In 1996 he founded the Evergrande Group in Guangzhou and it quickly became among the largest property developers in the city. Xu Jiayin’s train of success had no brakes as he pursued other businesses aside from real estate like baby formula, mineral water, agriculture, and a football club to name a few. Among Evergrande’s massive projects is the artificial archipelago Ocean Flower Island which is slated for a 2020 completion year.
- 6. 6 7. Zong Qinghou – Net Worth $10.2 billion Zong Qinghou initially worked at a farm commune during the Cultural Revolution of Mao Zedong in the 60’s. Later he became a salesman for companies that produced consumer goods like television sets and meat. One of these companies is a store near a school that sold soda and popsicles to children. With the help of two retired teachers Zong Qinghou bought the store and worked on producing and distributing his own beverages whose niche targeted youngsters. Zong Qinghou spent decades expanding the business which was named Wahaha (meaning “laughing baby”) and has around 60 factories throughout China. A joint venture with French food product corporation Danone helped grow the business even more until it ended in 2009. Some of the products of Wahaha include baby formula, bottled water, and children’s clothes. Zong Qinghou has received multiple awards for his work and has appeared multiple times in the China Rich List. His daughter Kelly Zong is currently Wahaha’s purchasing manager and is being groomed to be the successor once her father retires.
- 7. 7 6. Liu Yongxing – Net Worth $10.3 billion Liu Yongxing first worked as a teacher until he and his brothers decided to quit their jobs to sell bicycles and watches. The trio pooled their earnings as start-up capital for their poultry business. Eventually their undertaking became successful and they expanded to animal feeds as well. They named their venture Hope Group and it became recognized as among the giants in the animal feed business in the entire country. In 1995 the brothers went to their own separate ways with their shares of Hope Group. Liu Yongxing renamed his share to East Hope and continued to be a big name in China’s agricultural industry while also expanding in the supplying of industrial materials.
- 8. 8 5. Li Yanhong – Net Worth $13.5 billion Upon the encouragement of his mother Li Yanhong did his best to finish his studies. He obtained an information management degree at Peking University and a computer science graduate degree at Buffalo’s State University of New York. He worked for many years at Dow Jones and Company while laboring on a link analysis algorithm that helped rank online search listings. Afterwards he was hired by search engine Infoseek where he met billionaire and Yahoo! Inc. co-founder Jerry Yang. Inspired by Yang’s success Li Yanhong came up with an idea of a search engine for China and received seed funding from various investors. In 2000 he founded Baidu and quickly became China’s largest search engine. It even received takeover bids from the titans like Google and Microsoft. Li Yanhong later expanded his business by tackling other Asian languages and working on mobile services.
- 9. 9 4. Lei Jun – Net Worth $14.4 billion After finishing college with a degree in computer science, Lei Jun worked at software company Kingsoft first as an engineer until he climbed up to become CEO until his resignation in 2007. Three years later he founded electronics company Xiaomi which focused on making mobile apps and affordable smartphones. Lei Jun would later return to Kingsoft to become a non-executive director while holding positions at video social network YY Inc. and mobile Internet company Cheetah Mobile Inc. as a chairman. Lei Jun has made investments in many startups and he has stated that Xiaomi plans to make more investments in the future to support the budding technological industry. He has received recognitions from many Top 10 lists in media and Xiaomi is considered as the “Apple” of China.
- 10. 10 3. Ma Huateng – Net Worth $19.4 billion “Pony Ma” first developed software for pagers in the company China Motion Development, Ltd. after finishing college. He then jumped ship to the research and development area of Shenzhen Runxun Communications Co., Ltd. Ma Huateng realized the importance of the Internet in China and that the country could use having its very own instant messaging service. He collaborated with four other friends and started the company Tencent using money earned from the stock market. Its first few years were rocky and the lack of staff forced Ma Huateng to work diverse roles ranging from website designer to janitor. As the company grew Tencent developed the QQ instant messaging service which was a hit especially to the younger generation. Unfortunately the massive demand was too much for the limited servers of Tencent but lucky for Ma Huateng he received support from venture capitalists to keep his company from drowning. Later on Tencent offered other services aside from instant messaging like online games, radio broadcasts, and electronic commerce. In 2007 the market value of Tencent skyrocketed and landed on the $10 billion mark. He joined forces with fellow billionaires Robin Li and Wang Jianlin in the hopes of establishing an online shopping endeavor.
- 11. 11 2. Wang Jianlin – Net Worth $32.7 billion Wang Jianlin spent more than a decade fighting for the People’s Liberation Army. After being honorably discharged he worked as a clerk in Dailan before voluntarily working for a residential developer that was in debt. After six years Wang Jianlin became general manager and he renamed the company to Dalian Wanda. He aggressively sought to expand his business towards ventures that do not belong in the property market like cinemas, department stores, and tourism. Wang Jianlin owned the Dalian Wanda Football Club during the 90’s until he sold the club in 2000. As the years went by the billionaire initiated billion-dollar projects in foreign territories like India and New York, along with acquisitions such as Spain’s Edificio España and British luxury yacht manufacturer Sunseeker. In 2012 his Wanda Cinema Line Corporation acquired struggling cinema chain AMC Theatres and all of its 347 theatres throughout North America for $2.6 billion. Three years later it acquired the Hoyts Group, an Australian cinema chain. More recently media company Legendary Entertainment was also acquired for $3.5 billion. These bold moves in the realm of cinema was for the billionaire’s project of building up a “mini Hollywood” in the city of Qingdao. Because of his impressive wealth Wang Jianlin was hailed as the richest man on Asia twice in a row and is always a present name on Asian rich lists. He aims to turn Dalian Wanda into an entertainment juggernaut that can topple Disney and become globally known.
- 12. 12 1. Jack Ma – Net Worth $33.3 billion Hangzhou was a tourist hotspot during the 70’s with its collection of ancient relics and a spectacle of environmental beauty. Jack Ma self-studied English and offered to act as a tour guide to American visitors for free. He did this for almost a decade as a way to improve his secondary language. He obtained a degree in English at Hangzhou Teacher’s College but was plagued by rejections from all the jobs he applied. Frustration led him to work as a school teacher and a translator, and through the latter he was able to visit the United States in 1995. There he had his first time in using the Internet and was shocked to see that China virtually had no online presence. Upon his return to China Jack Ma started China Pages, a site that helped small businesses have their own websites. A failed partnership with a government entity for funding led him to apply for a job at the ministry of foreign trade to build connections and learn how to handle businesses away from the government’s shadow. Jack Ma resigned to take another shot and established the online marketplace for businesses Alibaba. Eventually he established Taobao which was a retail site, an online payment platform named Alipay, and dozens of other online services that formed the Alibaba Group. Jack Ma resigned as CEO in 2013 and stayed as a chairman with hopes of pursuing teaching in the future.
- 16. Entrepreneur • A person who destroys the existing economic order by introducing new products and services, by creating new forms of organizations and by exploiting new raw materials (Joseph Schumpeter) • Someone who perceives an opportunity and creates an organization to pursue it • A person who organizes and manages a business undertaking • A creator of a new company
- 18. • An entrepreneur is a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business. • Differ from many small-business owners in their strong desire to make their business grow. • Differ from managers through their overriding responsibility to use the resources of the organization to accomplish their goals. • Willing to take risks. What is Entrepreneurship?
- 20. 20 What is Entrepreneurship? Ø Entrepreneurs are … – Founders of businesses that become large-scale enterprises. – People who: • Buy a local franchise outlet • Open a small retail shop • Operate a self-employed service business – People who introduce a new product or operational change in an existing organization.
- 21. 21 What is Entrepreneurship? Typical characteristics of entrepreneurs: – Internal locus of control – High energy level – High need for achievement – Tolerance for ambiguity – Self-confidence – Passion and action-orientation – Self-reliance and desire for independence – Flexibility
- 22. What Does it Take to Be Successful? “In entrepreneurship, luck is where preparation and opportunity meet.” Source: The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
- 23. “The idea is not what is important. In entrepreneurship; ideas are a dime a dozen. Developing the idea, implementing it, and building a successful business are the important things.” Source: The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997. What Does It Take to Be Successful?
- 24. What Does It Take to Be Successful? “Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need.” Source: The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
- 27. Entrepreneurial Characteristics The following are distinctive traits and qualities entrepreneurs need to run and operate a successful business: • Persistent • Creative • Responsible • Inquisitive • Goal-Oriented • Independent • Self-Demanding • Self-Confident • Risk-Taking • Restless • Action-Oriented • Enthusiastic
- 28. Entrepreneurial Skills The following are foundational skills entrepreneurs need to run and operate a successful business: • Communication Skills – Writing, Speaking & Listening • Human Relations Skills • Math Skills • Problem Solving & Decision Making Skills • Technical Skills • Basic Business Skills
- 30. Do You Have the Potential to be a Successful Entrepreneur? Everyone has the potential to become an entrepreneur. But, if you do not feel you have the potential, and you have the desire, you can strengthen your characteristics and skills if you: • Read articles and books about entrepreneurs • Write about individuals who overcame obstacles to achieve success • Watch films about business people, athletes, or others who are achievement-oriented • Practice case studies that involve goal-oriented behavior, creativity, and moderate risk-taking
- 34. Value is delivered to your customers when you do something for them • Better • Cheaper • Faster • Cooler • Different However, it is likely that none of these will work for long, so continuous improvement and innovation are essential. The Importance of Value Creation
- 35. Value is created for the owners when: – You do more with their money than they could do with it themselves – You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital. – The present value of future cash flows exceeds the startup costs. The Importance of Value Creation
- 36. Value is created by: – Exploiting proprietary physical resources – Possessing proprietary knowledge or expertise – Creating a new or improved product, process, or service – Staying ahead of the competition through constant improvement and innovation The Importance of Value Creation
- 38. Planning for Success Don’t plan a business for today – Plan it for at least a year from now. – Moore’s Law: Computing power will roughly double every 18 months. – Bandwidth will continue to increase for most users almost ad infinitum. – People will live longer and maintain active lifestyles far after retirement. – Energy sources and consumption patterns will change drastically. – The world will continue to be a very dangerous place.
- 39. Planning for Success Think about the next paradigm shift that will change business and life: – Fire – Agriculture – Horsepower – Writing – Masonry – Sailpower – Metallurgy – Waterpower – Steam – ….. – Nuclear – Internet – Wireless …
- 40. How To Not Get Funded • Have a half-baked idea • Have a meatless business plan • Can’t articulate your value proposition • Can’t identify your market potential • Can’t justify your sales projections • Can’t show your investors an exit • Can’t show your investors a reasonable expectation of a reasonable return on investment • Don’t think about risk • Take no risk yourself • Don’t take time to do your homework • Try to fund a “lifestyle” venture
- 41. A Lifestyle Venture • 5-year revenue projections under $5 million • Started by people with life-style motives (live your hobby) • 90% of all startups • Zero interest to venture capitalists
- 42. Funding Your Venture • The hardest funding to raise is the first funding. You are probably on your own. • Later funding gets progressively easier depending on the results you can show to investors and what you need to fund. • BANKS are probably not going to help. • The best funding is INTERNAL funding (reinvested earnings). • PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
- 45. Capital • The buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items. • Businesses can have cash flow problems if they start off with too little capital • If your cash flow is inadequate, you may want to obtain more capital for your business
- 47. Return on Investment X BIG # % Little # The best way to calculate ROI–or profit– is to use circle formulas. Remember these simple rules: Division line: Divide numbers below the line into the top number Multiplication line: Multiply bottom numbers
- 48. Return on Investment X Investment (Big #) Expected Return (%) $ Profit (Little #) $50,000 x 20% = $10,000 profit If you have $50,000 to invest and want to make a 20% return on your money, how much will you profit?
- 49. Return on Investment X Investment Expected Return (%) $ Profit (ROI) $10,000 $75,000 = 13.33% If you want to make $10,000 in profit from a $75,000 investment, what % return must you get?
- 50. Return on Investment X Investment Expected Return (%) $ Profit (ROI) $5,000 25% = $20,000 If you made a 25% return on your investment for a $5,000 profit, what was your original investment?
- 51. As an entrepreneur, you accept the risks and responsibilities of business ownership. entrepreneur an individual who undertakes the creation, organization, and ownership of a business Small Business and Entrepreneurship
- 53. Starting a home-based business calls for entrepreneurship on the part of the owner. About one in three households is involved in an entrepreneurial enterprise. entrepreneurship acting like an entrepreneur or having an entrepreneurial mind-set entrepreneurial the process of recognizing an opportunity, testing it in the market, and gathering the resources necessary to go into business Small Business and Entrepreneurship
- 54. Knowledge of economics contributes to an understanding of how entrepreneurs and customers interact. economics the study of how people allocate scarce resources to fulfill their unlimited wants Small Business and Entrepreneurship
- 56. Goods and services are the products of our economic system. Goods and Services goods tangible (or physical) products of our economic system that satisfy consumers’ wants and needs services intangible (nonphysical) products that satisfy consumers’ wants and needs
- 57. Entrepreneurs respond to consumers’ wants and needs with goods and services. want something that you do not have to have for survival, but would like to have need a basic requirement for survival Goods and Services
- 58. A good opportunity can be turned into a business. An idea plus a market equals an opportunity. The Opportunity opportunity an idea that has commercial value
- 59. When entrepreneurs are ready to start up a new business, they must use creative talent to put together the necessary start- up resources. Start-Up Resources start-up resources the capital, skilled labor, management expertise, legal and financial advice, facilities, equipment, and customers needed to start a business
- 62. Entrepreneurial Characteristics • Vision - entrepreneurs begin with an overall idea for how to make their business idea a success • High Energy Level - a willingness to work hard • Need to Achieve - entrepreneurs work hard because they want to excel • Self-Confidence - fearlessness in the face of difficult odds • Tolerance for Failure - entrepreneurs are not easily discouraged • Creativity - entrepreneurs devise innovative ways to overcome difficult problems and situations • Tolerance for Ambiguity - entrepreneurs take in stride uncertainties. • Internal Locus of Control - entrepreneurs believe they can control their own fate
- 63. Entrepreneurial Characteristics • Desire for responsibility • Preference for moderate risk – risk eliminators • Confidence in their ability to succeed • Desire for immediate feedback • High level of energy • Future orientation – serial entrepreneurs • Skilled at organizing • Value achievement over money 63
- 65. Categories of Entrepreneurs • Classic Entrepreneurs • Serial Entrepreneurs • Social Entrepreneurs
- 66. The World of the Entrepreneur • Globally 9.4 percent of adults are actively engaged in trying to start a business. • Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however). • Nearly one-third of global entrepreneurs are between the ages of 25 and 44. 66
- 67. What Makes An Entrepreneur? The Ten D’s (1) • Dream – Entrepreneurs have a vision of what the future could be like for them and their business. And, more importantly, they have the ability to implement their dreams. • Decisiveness – They don't procrastinate. They make decisions swiftly. Their swiftness is a key factor in their success. • Doers – Once they decide on a course of action, they implement it as quickly as possible. • Determination – They implement their ventures with total commitment. They seldom give up, even when confronted by obstacles that seem insurmountable.
- 68. What Makes An Entrepreneur? The Ten D’s (2) • Dedication – They are totally dedicated to their business, sometimes at considerable cost to their relationships with their friends and families. They work tirelessly. Twelve-hour days, and seven-day work weeks are not uncommon when an entrepreneur is striving to get a business off the ground. • Devotion – Entrepreneurs love what they do. It is that love that sustains them when the going gets tough. And it is love of their product or service that makes them so effective at selling it. 68
- 69. What Makes An Entrepreneur? The Ten D’s (3) • Details – It is said that the devil resides in the details. That is never more true than in starting and growing a business. The entrepreneur must be on top of the critical details. • Destiny – They want to be in charge of their own destiny rather than dependent on an employer. • D-Marks – Getting rich is not the prime motivator of entrepreneurs. Money is more a measure of their success. They assume that if they are successful they will be rewarded. • Distribute – Entrepreneurs distribute the ownership of their business with key employees who are critical to the success of the business.
- 71. Idea • The idea per se is not most important. In entrepreneurship, ideas really are a dime a dozen. Developing the idea implementing it, and building a successful business are the important things. • Perhaps the biggest misconception about an idea for a new business is that it must be unique, obsessed with the thought that the idea might be stolen. • "Always invest in a grade A man with a grade B idea. Never invest in a grade B man with a grade A idea.“ ü Georges Doriat
- 73. Source of New Ideas (Being Creative) Grace Ideas come from nowhere Accident Ideas arise by chance Personality Ideas a human trait of some Association Apply knowledge to new areas Cognition Action stimulates creativity
- 78. 78 What is Entrepreneurship? Typical entrepreneurial backgrounds and experiences: – Parents were entrepreneurs or self-employed. – Families encouraged responsibility, initiative, and independence. – Have tried more than one business venture. – Have relevant personal or career experience. – Become entrepreneurs between 22 and 45 years of age. – Have strong interests in creative production and enterprise control. – Seek independence and sense of mastery.
- 81. 81 What is special about small businesses? Small businesses … – Ones with 100 or fewer employees. – Independently owned and operated. – 50 percent of the private labour force works in small businesses. – Are established by: • Starting a new business. • Buying an existing business. • Buying and running a franchise.
- 85. Benefits of Entrepreneurship The opportunity to: • Create your own destiny • Make a difference • Reach your full potential • Reap impressive profits • Contribute to society and to be recognized for your efforts • Do what you enjoy and to have fun at it 85
- 86. Drawbacks of Entrepreneurship • Uncertainty of income • Risk of losing your entire investment • Long hours and hard work 86
- 87. Source: Adapted from Dun & Bradstreet 21st Annual Small Business Survey Summary Report, 2002, p. 35.
- 88. Drawbacks of Entrepreneurship • Uncertainty of income • Risk of losing your entire investment • Long hours and hard work 88 n Lower quality of life until the business gets established
- 90. Drawbacks of Entrepreneurship • Uncertainty of income • Risk of losing your entire investment • Long hours and hard work • Lower quality of life until the business gets established 90 n High levels of stress n Complete responsibility n Discouragement
- 91. Feeding the Entrepreneurial Fire • Demographic and economic factors • Shift to a service economy • Technological advancements • Independent lifestyle • E-commerce and the World Wide Web 91 n International opportunities
- 94. Starting A New Venture • Selecting a Business Idea – Find something you love to do and are good at doing – Can your idea satisfy a need in the marketplace? • Entrepreneurs must be sure that the idea they choose has interest in the marketplace Business Plan
- 95. New Industry Formation • New industries are born when technological change produces a new opportunity that an enterprising entrepreneur seizes. • Disruptive or metamorphic technologies that destroy previous technologies and create new industries and display a different pattern of behavior. • The pattern of growth, shakeout, stabilization, and decline of industry can be interrupted at any time by the entry of another disruptive technology.
- 96. Fast Growing Areas Specific Topics Electronic commerce / virtual stores: buying online and picking up physically problem (3 c’s: community, content and commerce). · Auctions, flea market, e.g., used books (www.ebay.com) · Auctions for B2B competitions · Email to media (letter, book, photo, poster, CD, DVD) gateway city net including delivery, e-commerce infrastructure, logistics Security · Biometrics · Cyber cash · Firewalls · Encryption · Operating system extensions & tools Telecommunication, mobile computing, communication networks, wireless communication · Wireless Internet access (www.sandner.net) Remote control, observation, diagnostics · Intelligent building · Remote housekeeping/controlling · Video control Audio/video streaming, protocols, visualization, 3D, entertainment, games, leisure, education · Internet video/TV (broadcast) · Video distribution (music: www.mp3.com) , · Online photo- and copy center · Online training center · Games over (wireless) networks Hot Topics (1)
- 97. Hot Topics (2) Healthcare, medical applications, bio informatics, remote patient care • Online expert locating and consulting • Online drugstores www.drugstore.com • “Virtual experiments” by processing the Human Genome database Transportation, aerospace, defense, airlines, aviation, automotive, travel, package delivery • Collision avoidance • Logistics • Packing chip, tracking systems Robotics, intelligent control, micro mechanics, embedded systems · Autonomous coordination · Remote control Financial services, banking, insurance, trust center · Online stock markets · Venture Capital: Capital network for startups und business angels (www.garage.com) Billing/charging systems · Micro payment systems · Internet payment systems Smart cards & wearable computers · Payment systems, e-purse · Security · New applications (www.microsoft.com/smartcard) Fast Growing Areas Specific Topics
- 98. Hot Topics (3) Matchmaking: people matching · “Competition server” matchmaking between people engaging in any kind of on- or offline games/sports · “Reverse” auctions for services (painter, carpeter, IT experts, etc.), taking care of information asymmetries. Agency for self-employed IT experts: www.career-central.com Matchmaking: product matching · Price broker (books, CDs, DVDs) www.powershopping.de · Specific search engines (music, photos: www.ditto.com, videos) Work over net, market research, customer feedback · Remote secretary · Internet call center: redirect incoming calls to home offices via Internet · www.epinions.com Fast Growing Areas Specific Topics
- 99. 99 How does one start a new venture? Important issues in new venture creation: – Does the entrepreneur have good ideas and the courage to give them a chance? – Is the entrepreneur prepared to meet and master the test of strategy and competitive advantage? – Can the entrepreneur identify a market niche that is being missed by other established firms? – Can the entrepreneur identify a new market that has not yet been discovered by existing firms? – Can the entrepreneur generate first-mover advantage by exploiting a niche or entering a market before competitors?
- 100. 100 How does one start a new venture? Questions that keep a new venture focused on its customers … – Who is your customer? – How will you reach key customer market segments? – What determines customer choices to buy or not buy your product/ service? – Why is your product/service a compelling choice for the customer? – How will you price your product/service for the customer? – How much does it cost to make and deliver your product/service? – How much does it cost to attract a customer? – How much does it cost to support and retain a customer?
- 103. 103 How does one start a new venture? Basic items that should be included in a business plan: – Executive summary – Industry analysis – Company description – Customer profile – Product and services description – Market description – Marketing strategy – Operations description – Staffing description – Financial projection – Capital needs – Milestones
- 104. 104 How does one start a new venture? Forms of legal ownership – Sole proprietorship – Partnership • General partnership • Limited partnership • Limited liability partnership – Corporation – Limited liability corporation (LLC)
- 107. Twelve Deadly Mistakes of Entrepreneurship 1. Management mistakes 2. Lack of experience / expertise 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan and strategic leadership 6. Insufficient commitment 107
- 108. Twelve Deadly Mistakes of Entrepreneurship 7. Uncontrolled growth 8. Poor location 9. Improper inventory control 10. Incorrect pricing 11. Inability to make the “entrepreneurial transition” 12. Ethical failure 108
- 109. Putting Failure into Perspective • Entrepreneurs are not paralyzed by the prospect of failure. • Failure – a natural part of the creative process. • Successful entrepreneurs learn to fail intelligently. 109
- 110. Avoiding the Pitfalls of Small Business Failure • Know your business in depth • Develop a solid business plan • Manage financial resources • Understand financial statements • Learn to manage people effectively • Keep in tune with yourself 110
- 111. How Entrepreneurs Can Succeed? 111 4. Plan and manage effectively 1. Recognize opportunity 2. Test the opportunity in the marketplace 3. Assemble an expert team to execute the business concept
- 112. Closing Thoughts “I find that the harder I work, the more luck I seem to have.” Thomas Jefferson
- 113. Closing Thoughts “Whether you think you can, or that you can’t, you are usually right.” Henry Ford