Start up and New venture Management

1. UNIT 1.
ENTRPRENEUR
Dr. Kiran S. Shinde
Asst. Professor,
SIMS Kopargaon

3. An entrepreneur
An entrepreneur is an individual who initiates, manages, and
takes the risks associated with a business or enterprise. They
often identify opportunities, innovate, and organize resources
to transform ideas into profitable ventures. Entrepreneurship
involves creativity, resilience, risk-taking, and a proactive
approach to problem-solving.
Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new businesses.

5. Visionary: They have a clear vision of what they want to achieve.
Risk-taker: They are comfortable with uncertainty and willing to
take calculated risks.
Adaptability: They can pivot quickly in response to market
changes or feedback.
Persistence: They remain dedicated to their goals despite setbacks.
Networking Skills: They build valuable connections and
partnerships.
Leadership: They inspire and lead teams towards a shared vision.

6. Behavior and Motivations:
Entrepreneurs are often motivated by various factors, including:
Passion: They are driven by a deep passion for their idea or cause.
Autonomy: They seek independence and the ability to make their own
decisions.
Impact: They want to make a difference, solve problems, or meet unmet needs
in society.
Financial Rewards: While not the sole motivator, financial success is often a
goal.

7. Lean Startup Approach:
The lean startup methodology, popularized by Eric
Ries, emphasizes creating and managing startups in a
more efficient and cost-effective way.
A lean startup is a method used to found a new
company or introduce a new product on behalf of
an existing company. The lean startup method
advocates developing products that consumers
have already demonstrated they desire so that a
market will already exist as soon as the product
is launched.

8. Lean Startup Approach:
Build-Measure-Learn: Developing a product in iterations, measuring
its performance, and learning from user feedback to make
improvements.
Minimum Viable Product (MVP): Creating a basic version of the
product to test assumptions and gather feedback early.
Validated Learning: Using data and feedback to validate assumptions
and make informed decisions.

9. Entrepreneurial Ecosystem:
The entrepreneurial ecosystem refers to the interconnected network of
various entities, resources, and factors that support and influence
entrepreneurship within a specific region or industry.
It includes entrepreneurs, investors, mentors, government policies,
educational institutions, accelerators, incubators, support
organizations, and more.
A robust ecosystem fosters innovation, provides resources, facilitates
networking, and creates an environment conducive to entrepreneurial
activities.

10. Entrepreneurs make numerous strategic decisions throughout their
entrepreneurial journey. These decisions span various aspects of the
business, including:
Product Development: Identifying what product or service to offer,
refining it based on market feedback.
Market Entry: Deciding when and how to enter a market,
considering competition, timing, and target audience.
Resource Allocation: Allocating finances, time, and human resources
effectively to maximize outcomes.
Entrepreneurs and Strategic Decisions:

11. Entrepreneurs and Strategic Decisions:
Partnerships and Collaborations: Choosing strategic
partnerships, collaborations, or alliances to enhance growth.
Scaling: Deciding when and how to scale the business,
whether in terms of production, market reach, or workforce.
Strategic decisions involve evaluating risks, analyzing
market trends, considering available resources, and aligning
actions with long-term goals.

12. Sustainability of Entrepreneurship:
Sustainability in entrepreneurship refers to the ability of a business or
entrepreneurial endeavor to maintain long-term success, growth, and
impact. This sustainability can be viewed from various perspectives:
Economic Sustainability: Generating profits and maintaining
financial stability to ensure continued operations.
Environmental Sustainability: Building businesses that minimize
negative environmental impacts and may even contribute positively
to sustainability efforts.

13. Sustainability of Entrepreneurship:
Social Sustainability: Contributing to societal well-being,
creating job opportunities, and engaging in ethical practices.
Sustainability in entrepreneurship involves a balance
between profit-making and creating positive impacts while
considering the environmental and social implications of
business decisions.

14. Dilemmas of an Entrepreneur for Success:
Risk vs. Stability:
Dilemma: Balancing risk-taking with the need for stability
and security.
Handling Strategy: Entrepreneurs often face decisions
where taking risks is necessary for growth. Mitigate risks by
conducting thorough research, creating contingency plans,
and seeking advice from mentors or experts.

15. Dilemmas of an Entrepreneur for Success:
Innovation vs. Market Demand:
Dilemma: Balancing the drive for innovation with meeting
existing market demands.
Handling Strategy: Strive to innovate while staying
connected to customer needs. Continuously gather
feedback, test ideas through minimum viable products, and
pivot when necessary to align innovation with market
demands.

16. Short-Term Gains vs. Long-Term Vision:
Dilemma: Balancing short-term gains with long-term
sustainability and vision.
Handling Strategy: Keep the long-term vision in mind while
making short-term decisions. Align short-term goals with
the overall vision to ensure consistency and avoid
compromising the company's future for immediate gains.

17. Handling Doubts on Survival of Business:
1. Market Research and Validation:
Conduct thorough market research to understand
your target audience, their needs, and the
competitive landscape. Validate your business idea
through surveys, interviews, and tests to gain
confidence in its potential for success.

18. 2. Lean Approach and Adaptability:
Embrace the lean startup methodology. Develop a minimum
viable product (MVP) to test the market without extensive
investment. Be ready to pivot and adapt based on market
feedback and changing conditions.

19. 3. Financial Planning and Prudent Management:
Maintain a clear understanding of your finances. Develop a
realistic budget, monitor cash flow, and be frugal with
expenditures. Explore funding options and ensure there's a
financial buffer to weather uncertainties.

20. Handling Doubts on Survival of Business:
4. Seek Guidance and Support:
Surround yourself with mentors, advisors,
or a supportive network. Their insights and
experiences can offer guidance and help
you navigate doubts or uncertainties more
effectively.

21. Handling Doubts on Survival of Business:
5. Resilience and Mindset:
Cultivate resilience and a growth mindset. Accept that setbacks and
doubts are part of the entrepreneurial journey. Learn from failures,
stay adaptable, and persevere through challenging times.
Entrepreneurship is inherently risky, but strategic planning,
adaptability, market understanding, and a resilient mindset can
significantly improve the chances of a business surviving and
thriving.

22. Failures in entrepreneurship can stem
from various struggles.
Product/Market Related Struggles:
1. Product-Market Fit:
Struggle: Failure to meet the market's needs or failure to find a viable market for
the product/service.
Importance of Resilience: Resilience helps entrepreneurs adapt to feedback,
pivot if necessary, and persist in refining their product to better align with
market demands.

23. Failures in entrepreneurship can stem
from various struggles.
Financing Challenges:
2. Insufficient Funding:
Struggle: Inadequate capital to sustain or grow the business.
Importance of Resilience: Resilience encourages entrepreneurs to explore
diverse funding sources, bootstrap, manage finances effectively, and seek
creative solutions during financial constraints.
Managerial Issues:

24. Failures in entrepreneurship can stem
from various struggles.
3. Poor Management and Decision-Making:
Struggle: Ineffective leadership, mismanagement of resources, or lack of strategic decision-
making.
Importance of Resilience: Resilience prompts entrepreneurs to learn from managerial mistakes,
seek mentorship, and develop leadership skills to steer the business effectively through
challenges.

25. Failures in entrepreneurship can stem
from various struggles.
Importance of Resilience in Overcoming Struggles:
1. Adaptability and Learning from Failure:
Resilience enables entrepreneurs to bounce back from setbacks, adapt to changing
circumstances, and learn from failures rather than being discouraged by them.
2. Perseverance and Grit:
It allows entrepreneurs to persist in the face of adversity, setbacks, and uncertainty, enabling
them to stay focused on their goals and continue working towards success.

26. Failures in entrepreneurship can stem
from various struggles.
3. Problem-Solving and Creativity:
Resilience fosters a mindset that encourages creative
problem-solving. Entrepreneurs with resilience tend to find
innovative solutions to challenges, even in dire situations.

27. Failures in entrepreneurship can stem
from various struggles.
4. Maintaining Mental Health and Well-being:
Resilience helps in maintaining mental health and well-being during stressful
periods, allowing entrepreneurs to make better decisions and handle pressures
effectively.
Entrepreneurial failures often result from challenges in product-market fit,
financing, managerial decisions, and more. However, resilience is a crucial trait
that empowers entrepreneurs to persist, adapt, learn, and innovate in the face
of these struggles. Building resilience helps entrepreneurs navigate difficulties,
mitigate risks, and increase the likelihood of overcoming obstacles on the path
to success.

28. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
When to Incorporate:
Business Viability:
◦ Ensure there is a market for your product or service before incorporating.
◦ Validate your business idea through market research and customer feedback.
Revenue Generation:
◦ Consider incorporating when you're ready to start generating revenue or seeking investment.

29. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
When to Incorporate:
Liability Protection:
◦ If personal liability protection is important to you, incorporating early can help shield personal assets
from business debts and liabilities.
Seeking Investment:
◦ Many investors prefer to invest in formalized legal structures, so incorporating may be necessary when
seeking funding.

30. How to Incorporate:
How to Incorporate:
1. Choose a Business Structure:
Select a suitable legal structure based on your
business needs (e.g., LLC, Corporation, Sole
Proprietorship, Partnership). Each structure has
different legal, tax, and operational implications.

31. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
2. Name Reservation:
Check the availability of your desired
business name and reserve it with the
appropriate state authority.

32. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
3. Prepare Articles of Incorporation:
Draft and file the Articles of Incorporation with the
Secretary of State or relevant state agency. This document
typically includes business name, purpose, location,
structure, and other basic information.
If your business operates in multiple states, you may need
to file for foreign qualification in those states where you
have a physical presence or conduct significant business
activities.

33. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
4. Obtain Necessary Licenses and Permits:
Depending on your industry and location,
obtain the required business licenses, permits,
and tax IDs.

34. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
5. Create Corporate Bylaws/Operating
Agreement:
Establish internal rules and guidelines for how
your corporation/LLC will operate. This
document outlines shareholder/member rights,
responsibilities, and the structure of decision-
making processes.

35. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
6. Appoint Directors/Managers:
Appoint directors for corporations or managers for
LLCs, depending on the chosen business structure.
7. Issue Shares/Ownership Interests:
Allocate shares or ownership interests among
shareholders/members as per the business
structure.

36. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
Where to Incorporate:
1. State of Incorporation:
Choose the state where you want to incorporate.
Many businesses choose the state where they
primarily operate or Delaware due to its
favorable corporate laws and established legal
precedents.

37. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
Where to Incorporate:
2. Foreign Qualification:
If your business operates in multiple states, you
may need to file for foreign qualification in
those states where you have a physical presence
or conduct significant business activities.

38. Incorporating a business involves a series of
legal steps to establish it as a separate legal
entity from its owners
Where to Incorporate:
3. Consider Legal and Tax Implications:
Different states have varying regulations, taxes,
and fees associated with incorporation. Research
these aspects to determine the most suitable
location for your business.