Entrepreneurship

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Entrepreneurship

  1. 1. Entrepreneurship
  2. 2. <ul><li>Prepared By: </li></ul><ul><li>Samir Saxena </li></ul><ul><li>T.Y.Bcom </li></ul><ul><li>Symbiosis College of Arts and Commerce </li></ul>
  3. 3. The Mindset <ul><li>Let’s begin with “why”: </li></ul><ul><ul><li>To get rich? </li></ul></ul><ul><ul><li>Follow a passion? </li></ul></ul><ul><ul><li>Scratch an itch? </li></ul></ul><ul><ul><li>Just got laid off? </li></ul></ul><ul><ul><li>To manage your own destiny? </li></ul></ul><ul><li>There are lots of valid reasons to become an entrepreneur, but you’d better know your reason. </li></ul>
  4. 4. What it Takes <ul><li>Courage </li></ul><ul><li>Fortitude </li></ul><ul><li>Focus </li></ul><ul><li>Determination </li></ul><ul><li>Passion </li></ul><ul><li>Competitiveness </li></ul><ul><li>Common Sense </li></ul><ul><li>Strong Stomach </li></ul><ul><li>CONFIDENCE </li></ul>And these are just the genetic factors you need to get started!
  5. 5. This is Hard Stuff <ul><li>It takes a lot of hard work, good timing, and luck to make a successful company. </li></ul><ul><ul><li>You don’t control all these factors. </li></ul></ul><ul><ul><li>The buck stops with you. </li></ul></ul><ul><ul><li>There are many forces conspiring against you. </li></ul></ul><ul><li>Learn to follow your strengths and mitigate your weaknesses. </li></ul><ul><ul><li>Find a partner. </li></ul></ul><ul><ul><li>Ask for help. </li></ul></ul><ul><ul><li>It’s ok to screw up, but learn . </li></ul></ul>
  6. 6. The Business <ul><li>What are you doing? </li></ul><ul><ul><li>Articulate it in 30 seconds. </li></ul></ul><ul><ul><li>Make it clear to the layperson. </li></ul></ul><ul><li>Is it better, faster, or cheaper? </li></ul><ul><ul><li>It better be. </li></ul></ul><ul><ul><li>And it better be 10x. </li></ul></ul><ul><li>How do you know there’s a market? </li></ul><ul><li>What’s the total opportunity? </li></ul><ul><li>What will it take to win? </li></ul><ul><li>Ok, what will it really take to win? </li></ul>
  7. 7. Optimism <ul><li>MBA students: Do you know the startup formula? </li></ul>3 x (expected capital) + 3 x (expected effort) + 3 x (expected time) -------------------------------- = ¼ x (expected result)
  8. 8. Pessimism <ul><li>Entrepreneurs are genetically optimistic. </li></ul><ul><ul><li>Plan for it. </li></ul></ul><ul><ul><li>Take your most absurdly conservative projections and apply a factor of three on the downside. </li></ul></ul><ul><li>Dream of success, plan for struggle. </li></ul>
  9. 9. Objectives <ul><li>Ok, you have the genes. </li></ul><ul><li>You have the idea. </li></ul><ul><li>You’ve got realistic expectations. </li></ul><ul><li>What are your objectives? </li></ul><ul><ul><li>Lifestyle business? </li></ul></ul><ul><ul><li>World domination? </li></ul></ul><ul><li>Do some waterfall projections. </li></ul>
  10. 10. The Waterfall <ul><li>Make a five-year plan with top-line revenue goals… </li></ul><ul><ul><li>The walk back and figure out the drivers: </li></ul></ul><ul><ul><li>How many customers added per month? </li></ul></ul><ul><ul><li>How many employees? </li></ul></ul><ul><ul><li>Rent? Other expenses? </li></ul></ul><ul><ul><li>Do the ratios! </li></ul></ul><ul><ul><ul><li>Revenue/Employee </li></ul></ul></ul><ul><ul><ul><li>Profit Margin </li></ul></ul></ul><ul><ul><ul><li>Market share (…) </li></ul></ul></ul><ul><li>Is your growth realistic? </li></ul>
  11. 11. The Waterfall <ul><li>The idea is to demonstrate what you have to do each month. </li></ul><ul><ul><li>Is it realistic? </li></ul></ul><ul><ul><li>Are you growing faster than any company in history? </li></ul></ul><ul><ul><li>Is your revenue/employee higher than Google? </li></ul></ul><ul><ul><li>Maybe you should be more realistic? </li></ul></ul><ul><ul><li>How does that affect your plans? </li></ul></ul>
  12. 12. The Customer <ul><li>It’s amazing how many people start a business without talking to a customer. </li></ul><ul><li>It’s not hard. </li></ul><ul><li>They usually want to help and validate (or invalidate). </li></ul><ul><li>This can save you a lot of time. </li></ul><ul><li>Not just “will they buy?”, but </li></ul><ul><ul><li>How they buy. </li></ul></ul><ul><ul><li>What are the nuances? </li></ul></ul><ul><ul><li>Other opportunities? </li></ul></ul>
  13. 13. Spouse & Family <ul><li>If you are young and single </li></ul><ul><ul><li>It will never be easier… just do it. </li></ul></ul><ul><li>If you are not </li></ul><ul><ul><li>Have a supportive spouse. </li></ul></ul><ul><ul><li>They will sacrifice for you – sacrifice for them. </li></ul></ul><ul><ul><li>Involve them… but not too much. </li></ul></ul>
  14. 14. The Buck <ul><li>If all goes well, you’ll make a lot of them. </li></ul><ul><li>But it stops with you. </li></ul><ul><ul><li>Don’t expect it to be easy. </li></ul></ul><ul><ul><li>It can be tough when you’re all alone. </li></ul></ul><ul><ul><li>The world is unfriendly towards entrepreneurs. </li></ul></ul><ul><ul><li>You must be prepared for times that will test you. </li></ul></ul><ul><ul><li>Learn the difference between setback and deadend. </li></ul></ul><ul><li>Trust yourself. </li></ul><ul><li>Act! Adapt! </li></ul>
  15. 15. The Team <ul><li>Don’t do anything – don’t quit your job, don’t form a company, don’t think about Ferraris… </li></ul><ul><ul><li>Until you know your respective roles. </li></ul></ul><ul><li>Equal partnership? </li></ul><ul><li>Responsibilities? </li></ul><ul><li>Boundaries? </li></ul><ul><li>Are you going solo? </li></ul><ul><li>Responsibilities and boundaries had better be crystal clear. </li></ul>
  16. 16. The Help <ul><li>Meet with a variety of lawyers, accountants, and bankers. </li></ul><ul><ul><li>They’re worth the money (usually). </li></ul></ul><ul><ul><li>They’ll save you time and headaches. </li></ul></ul><ul><li>Assemble a supportive cast. </li></ul><ul><ul><li>Favor those who offer flexibility to entrepreneurs </li></ul></ul><ul><ul><li>Deferred payments </li></ul></ul><ul><li>Support Groups </li></ul><ul><ul><li>CED, etc. – network, network, network </li></ul></ul>
  17. 17. The Corporation <ul><li>Type of entity depends on your needs: </li></ul><ul><ul><li>Consultant: sole proprietorship </li></ul></ul><ul><ul><li>Liability protection: LLC </li></ul></ul><ul><ul><li>Tax-friendly: S-Corp </li></ul></ul><ul><ul><li>Need investors: C-Corp (Delaware) </li></ul></ul><ul><ul><li>Ask your lawyer. </li></ul></ul>
  18. 18. The Money <ul><li>Rare is the business that grows from $0. </li></ul><ul><ul><li>How will you fund early operations? </li></ul></ul><ul><ul><li>Family? Friends? Credit Cards? </li></ul></ul><ul><ul><li>Angel funding: popular source for entrepreneurs. </li></ul></ul><ul><ul><li>Venture capital: professional money, but need certain criteria </li></ul></ul><ul><ul><li>Debt: Avoid like the plague, early on. </li></ul></ul>
  19. 19. The Intangible Assets <ul><li>Many startups are high-tech in nature. </li></ul><ul><li>Primary assets are knowledge-based. </li></ul><ul><li>Learn the intellectual property landscape. </li></ul><ul><ul><li>Up-front patent searches may seem expensive, but so to is ignorance! (Ask me, I know). </li></ul></ul><ul><li>Consider protecting yourself. </li></ul><ul><ul><li>File patent applications? </li></ul></ul><ul><ul><li>Worth your time and expense? </li></ul></ul><ul><li>Today, patents are more important than ever: RIM, eBay, Blockbuster, … </li></ul><ul><li>Build a defensible position. </li></ul>
  20. 20. The Competition <ul><li>Know your competition inside and out. </li></ul><ul><ul><li>Strengths? </li></ul></ul><ul><ul><li>Weaknesses? </li></ul></ul><ul><li>Begin to formulate a plan to crush them. </li></ul><ul><li>Be paranoid. </li></ul><ul><li>Fly under the radar as long as possible. </li></ul>
  21. 21. Do <ul><li>Get cheap, short-term office space </li></ul><ul><li>Use a real attorney and accountant. </li></ul><ul><li>Be extraordinarily cheap. </li></ul><ul><li>Did I mention be cheap? </li></ul><ul><li>Focus on what matters: </li></ul><ul><ul><li>Prove your product attracts customers </li></ul></ul><ul><ul><li>Build a defensible position </li></ul></ul><ul><ul><li>Create value </li></ul></ul><ul><li>Act with imperfect information. </li></ul><ul><li>Adapt. </li></ul>
  22. 22. Don’t <ul><li>Assume that if you build it, they will come. </li></ul><ul><li>Forget that the best technology rarely wins. </li></ul><ul><li>Equate funding with success. </li></ul><ul><li>Focus on perfection. </li></ul><ul><li>Fail to act. </li></ul>
  23. 23. In Closing <ul><li>Entrepreneurship: One of the hardest yet most rewarding personal journeys you can take. </li></ul><ul><ul><li>You can legitimately claim “I made this.” </li></ul></ul><ul><ul><li>You control your destiny. </li></ul></ul><ul><ul><li>You answer to yourself. </li></ul></ul><ul><ul><li>Be prepared for challenges you can’t imagine. </li></ul></ul><ul><ul><li>Stay true to yourself, trust your instinct. </li></ul></ul><ul><li>Be scrupulously honest and ethical, and never lose your head. </li></ul>
  24. 24. Thank You

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