The document discusses several key points about entrepreneurship and new venture formation: 1) Entrepreneurship and new ventures are the primary drivers of economic growth, not small or large existing companies. High-growth startups create the most jobs. 2) Starting a new venture can be a rewarding career path that allows one to create something from nothing, take control of their career, and potentially make a big impact. 3) Successful new ventures focus on proving their business model and solutions before attempting large-scale growth ("Nail it, then scale it"). Having the right founding team and understanding customers are also important success factors. 4) While starting a venture involves significant risks and effort

2. Let’s talk about …
1. Entrepreneurship and new venture formation as the
primary driver of economic growth.
2. Why entrepreneurship should be considered as a
career path
3. Aspects of a successful new venture
4. Success factors for entrepreneurs and their teams
5. The value of community

3. Company Size
# of US Companies …
Small Companies:
Represent ~99% of all employer firms
The size of this box
represents the total #
of US Companies …

4. Small Business “Drives the
Economy !!!!”

5. Where do we all work?
# of current jobs in the US …
~ ½ of all jobs are with a large company
But … What matters is whether the company is
growing or shrinking …
~ ½ of all jobs are with a small company

6. Growth Companies Matter
# of US Companies …
Small Companies:
Represent ~99% of all employer firms
# of US High-
Growth
Companies

7. Growth Companies Matter
Net New Jobs Created by
High-growth companies !!!
They start small, but are
designed to get big!
Net New Net New
Jobs, Big Jobs, Small
company company

8. “New” beats small and large
every time …
• Kaufmann Foundation: “… it is clear that new and young
companies, and the entrepreneurs that create them, are the
engines of job creation and eventual economic recovery.“
“… 1980-2005, nearly all net job creation in the United States
occurred in firms less than five years old.”
• Kaufmann makes a clear case that it is a firm’s age, not its size,
that is the driver of job creation – this has many implications,
particularly for policymakers who are focusing on small business
as the answer to a dire employment situation.

9. Small Business “Drives the
Economy!!!!”

10. NEW Businesses “Drive
the Economy!!!!”

12. SOME REASONS TO START UP A STARTUP …

13. You will have the time of your life
• Starting anything new is
difficult, but if it was easy
everyone would do it!
• It’s something you will
remember for the rest of your
life whether things go very
well or things go poorly.
• “Everyone should try to be a
rockstar at least once in their
lifetime.”
• It will test your abilities and
teach you more about
yourself than anything else
you’ll ever do.

14. You will make friends and
connections that will last a lifetime.
• There is no substitute
for being with people
with whom you’ve
accomplished great
things (or failed
miserably at something
worth trying …)

15. It is a rare chance to create something
from nothing
• Very few professions put you in position to create
something of value where nothing was before.
• Your idea probably isn’t
unique ... But by
applying your time,
passion, and energy to
the venture you have a
chance to do something
no one has ever done …

16. It is easier than it
used to be …
• Clouds, frameworks,
apps, Oh My!
In the olden days … product
development took years,
required large teams and
massive investments in
equipment and infrastructure.

17. You can do it from (almost) anywhere!
Silly-con Valley is no longer the
be-all-and-end-all location. If you
have skill and passion, you can
make your location into whatever
you want it to be.

18. It’s easier to find customers than
it used to be …
• Google changed the
world forever …
• Big data and deep
analytics are changing
it again …
• And social media gets
customers engaged in
ways we old guys
could only dream of ...

19. A traditional job isn’t as secure as
it used to be …
• Big, global companies
are vulnerable in ways
they’ve never been.
• Global competition
affects every industry.
• You control your
career and “personal
brand” in ways
previous generations
couldn’t.

20. The “worst that could happen”
ain’t so bad
I can accept failure, everyone fails at
something. But I can't accept not trying.”
-- Michael Jordan

21. SO YOU DECIDED TO START SOMETHING
… NOW WHAT?

22. We (mostly) know what works.*
• Stick with something you know.
• 96% of founders ranked prior work experience or hobbies as an extremely important or
important success factor.
• It’s the learning; not success or failure, that makes the difference.
• Successful founders try and try again. 88% attributed their success to prior successes; 78%
attributed success to prior failures.
• The management team is critical.
• 82% of the founders attributed their success to strength of the management team (not the
idea, business plan, or money).
• A little luck never hurts.
• 73% said that good fortune was an important factor in their success
• 22% even ranked this as extremely important.
• There is nothing like being in the right place at the right time.
*Ewing Marion Kauffman Foundation for Entrepreneurship, titled “Making of a Successful Entrepreneur.”

23. We (mostly) know what works.*
• Use your network.
• Professional networks were deemed important in the success of 73% of the founders.
• 62% of the respondents felt the same way about their personal networks.
• Dropping out of school is not recommended.
• 95% of these founders had earned Bachelor’s degrees and 47% had more advanced
degrees.
• 70% said their university education was important
• College helps with knowledge, discipline, and networks
• First-timers usually fund their own venture.
• Venture capital and private/angel investments play a small role in the startups of first-time
entrepreneurs.
• 70% said they had to use personal savings as a main source for their first business.
*Ewing Marion Kauffman Foundation for Entrepreneurship, titled “Making of a Successful Entrepreneur.”

24. We (mostly) know what works.*
• Willingness to take a big risk.
• When asked what may prevent others from starting their own business, the highest ranked
factor by 98% was lack of willingness or ability to take risks.
• Founders clearly found entrepreneurship to be a risky endeavor.
• Huge time and effort commitment.
• 93% felt that the work and time challenges were a major barrier
*Ewing Marion Kauffman Foundation for Entrepreneurship, titled “Making of a Successful Entrepreneur.”

25. We also (mostly) know what fails.
• Hero myth: Believing in your product is important … to a point.
• Founders too-often fall in love with their products or technology, ignore
negative feedback from customers, and spend years building a product
based on a vision that no one else shares.
• Process myth: There is no direct path to success …
• Conventional wisdom is: have a great idea, raise money, build a product,
then go sell the product…
• This doesn’t work when attacking unknown problems with untested
solutions.
• Money myth: Too much money is (almost) as bad as too little!
• Too much money, too soon, allows a flawed business model to hide
behind the perception of progress.
• Better to stay lean, focused on the market, and adapt as necessary.

26. Money will ultimately be
necessary …

27. The Valley of Death

29. Money is not always the problem

30. The single biggest risk any new
venture faces is …
… trying to
grow the
venture
before the
model is fully
proven.

31. One way to think about it
(from “Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation,”
Nathan Furr and Paul Ahlstrom)
• Nail the pain: Begin with a real problem • Nail the go-to-market strategy: There’s
that has a big and monetizable pain no substitute for a deep understanding of
points. the target customer:
• Pick a big problem to solve! • What’s their buying process?
• Pick something with a lot of • What are they trying to accomplish?
potential customers. • What are they really willing to pay?.
• Nail the solution. Neither breakthrough • Nail the business model: All aspects of
technology nor maximum features will operating the business!
assure that “if we build it, they will • Distribution channels
come.” • Revenue streams
• Start with a minimal focused set of • “Relationship” with the customer
features that someone will pay for • Cost of materials and customer
• Test the solution early and quickly in acquisition
the market, and iterate to get it • Partnerships, suppliers, etc.
right. • Key activities.

32. One way to think about it
(from “Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation,”
Nathan Furr and Paul Ahlstrom)
• Scale it. Don’t attempt to scale it until you
have a proven repeatable business model
that predictably generates revenue.
• Conserve cash
• Build the team
• Repeat the customer acquisition,
product delivery & support processes
until they are bullet-proof.

33. Building the team starts at the top
"Observe all men; thyself most.“
— Benjamin Franklin
“No man is the worse for knowing the
worst of himself.“
— Thomas Fuller

36. 20 Core Functions/Skills that need to
be considered
1. Team Building Leadership 11. The Core Technology Technology
2. Ability/Willingness to Delegate 12. Keeping it Safe
3. Articulating a Coherent Vision 13. Technology Assessments
4. Build and Maintain Momentum 14. Managing the Techies
5. Perceptions 15. Priming the Pump
6. Using the Tools Management 16. The Overall Market Marketing
7. Managing the People 17. Marketing Channels
8. Building the Organization 18. Market Assessments
9. Working the Numbers 19. Sales
10. Making the Deals 20.Managing the Brand

40. What happens in the garage stays in
the garage unless …
… there’s a complementary “ecosystem” outside the
garage
In a healthy ecosystem, every
participating species benefits from the
presence of every other participating
species.

43. Things to remember
New beats small and large every time!
No reason not to start something.
Nail it, then scale it.
Get out of the garage!

44. Questions?