Entrepreneurial Manager MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds...

Entrepreneurial Manager

MBAX 6100MBAX 6100

Entrepreneurship & Entrepreneurship &

Small Business ManagementSmall Business Management

MBAX 6100MBAX 6100

Entrepreneurship & Entrepreneurship &

Small Business ManagementSmall Business Management

Frank MoyesFrank MoyesLeeds College of Business Leeds College of Business University of ColoradoUniversity of ColoradoBoulder, ColoradoBoulder, Colorado

““Progress depends upon Progress depends upon unreasonable men.” unreasonable men.”

GB ShawGB Shaw


Today’s AgendaToday’s Agenda

Entrepreneurial ManagerEntrepreneurial Manager Case: CrunchCase: Crunch Entrepreneur InterviewEntrepreneur Interview Tonight 6:00 Business Plan Competition WhitemyerTonight 6:00 Business Plan Competition Whitemyer NREL trip Feb 2NREL trip Feb 2ndnd at at 2:002:00


Entrepreneur InterviewEntrepreneur Interview

Choose person in an area of interestChoose person in an area of interest 3 years in business, 5 employees3 years in business, 5 employees See website for assignment & questionnaireSee website for assignment & questionnaire Visit their office or facilityVisit their office or facility Observe/talk to customersObserve/talk to customers In depth interview – get beyond the hype and self-In depth interview – get beyond the hype and self-

promotionpromotion Take one hour after interview to draw conclusionsTake one hour after interview to draw conclusions


Interview PaperInterview Paper

Write a 6-page 1.5 spaced paper Write a 6-page 1.5 spaced paper Describes the entrepreneur’s background, motivations for starting the Describes the entrepreneur’s background, motivations for starting the

venture, challenges in growing the venture venture, challenges in growing the venture Evaluates the value proposition (target market, product/service description Evaluates the value proposition (target market, product/service description

and unique benefit)and unique benefit) Conclusion: what makes the company successful (or not)? What are your Conclusion: what makes the company successful (or not)? What are your

recommendations for improvement? recommendations for improvement? Discuss how the findings of the interview apply or are meaningful to you. Discuss how the findings of the interview apply or are meaningful to you.

What have you learned about your own potential to be an entrepreneur? What have you learned about your own potential to be an entrepreneur? Objective is to drill down into the company and thoroughly Objective is to drill down into the company and thoroughly

understand the entrepreneur and how s/he does business understand the entrepreneur and how s/he does business


Entrepreneurial ManagerEntrepreneurial Manager

Characteristics & traitsCharacteristics & traits Different types of entrepreneursDifferent types of entrepreneurs Entrepreneurs vs. small businessEntrepreneurs vs. small business


Entrepreneurial CharacteristicsEntrepreneurial Characteristics

Motivated by achievementMotivated by achievement Innovation & creativityInnovation & creativity Internal locus of controlInternal locus of control Risk-takingRisk-taking Tolerance for ambiguityTolerance for ambiguity Sense of independenceSense of independence PassionPassion ““Traits of entrepreneurs are Traits of entrepreneurs are

closest to juvenile delinquents.”closest to juvenile delinquents.”


What Traits Should Be Avoided?What Traits Should Be Avoided?

InvulnerabilityInvulnerability Being MachoBeing Macho Being AuthoritarianBeing Authoritarian ImpulsivityImpulsivity Outer controlOuter control PerfectionistPerfectionist Know it allKnow it all CounterdepencyCounterdepency

Timmons: New Venture Creation


What Assets are Required?What Assets are Required?

NetworkNetwork Supporting spouseSupporting spouse Financial resourcesFinancial resources OptimismOptimism


What Experience Is Required?What Experience Is Required?

AccountingAccounting Recruiting & hiringRecruiting & hiring SellingSelling Financial projectionsFinancial projections Cash flow managementCash flow management Naming a productNaming a product Choosing office decorChoosing office decor


Do You Have the Right Stuff?Do You Have the Right Stuff? Are you a self starter?Are you a self starter? Can you go 6 months to 2 years without getting paid?Can you go 6 months to 2 years without getting paid? Are you willing to give up vacations, weekends and evenings?Are you willing to give up vacations, weekends and evenings? Are you a decision maker?Are you a decision maker? Are you a people person?Are you a people person? Do you handle rejection well?Do you handle rejection well? Do you think will on your feet?Do you think will on your feet? Do you like to sell?Do you like to sell? Do you handle crisis well?Do you handle crisis well? Would you be able to fire someone?Would you be able to fire someone? Do you want total responsibility and accountability?Do you want total responsibility and accountability?

MD Csordos, 35 Business Lessons for Entrepreneurs


Types of EntrepreneursTypes of Entrepreneurs

Personal achieverPersonal achiever Super-salespersonSuper-salesperson Real managerReal manager Expert Idea GeneratorExpert Idea Generator

JB Minor, Four Routes to Entrepreneurial Success


Personal Achiever Personal Achiever (classic entrepreneur)(classic entrepreneur)

Need for high achievementNeed for high achievement Need for performance feedbackNeed for performance feedback Desire to plan and set goalsDesire to plan and set goals Strong individual initiativeStrong individual initiative Strong personal commitmentStrong personal commitment Internal locus of controlInternal locus of control



Super-Salesperson Super-Salesperson (caters to needs of customers)(caters to needs of customers)

Capacity to empathizeCapacity to empathize Social interaction and relationships are importantSocial interaction and relationships are important Need to have strong positive relationships with othersNeed to have strong positive relationships with others Sales force is criticalSales force is critical Background: less education, more experienceBackground: less education, more experience



Real Manager (grow the venture)Real Manager (grow the venture)

Desire to be corporate leaderDesire to be corporate leader Desire to competeDesire to compete DecisiveDecisive Desire of powerDesire of power Desire to stand out in a crowdDesire to stand out in a crowd



Expert Idea Generator Expert Idea Generator (expertise + creativity = innovator)(expertise + creativity = innovator)

Desire to innovateDesire to innovate Love of ideas, curiousLove of ideas, curious Belief that new products are crucialBelief that new products are crucial Intelligence is the competitive advantageIntelligence is the competitive advantage Desire to avoid taking risksDesire to avoid taking risks



Types of EntrepreneursTypes of Entrepreneurs

Personal AchieverPersonal Achiever Super-SalespersonSuper-Salesperson Real ManagerReal Manager Expert Idea GeneratorExpert Idea Generator Are there others?Are there others?


Different Methods Used to Build VenturesDifferent Methods Used to Build Ventures

Independent innovatorsIndependent innovators Pattern multipliers – expand concept through franchise Pattern multipliers – expand concept through franchise

or chainsor chains Speculator – buy and leverage, e.g. landSpeculator – buy and leverage, e.g. land Consolidator – industry roll upConsolidator – industry roll up AcquirersAcquirers Arbitrageur – buy low and sell highArbitrageur – buy low and sell high

K Vesper, New Venture Strategies


Entrepreneurship Entrepreneurship Myths & RealitiesMyths & Realities


Entrepreneurs Are Born?Entrepreneurs Are Born?

100’s of studies: no entrepreneurial prototype100’s of studies: no entrepreneurial prototypeEnvironment, family and self-development are Environment, family and self-development are

keykeyWhy are some countries more entrepreneurial Why are some countries more entrepreneurial

than others? than others? 50,000 chunks50,000 chunks

There is no E gene.


Entrepreneurs are Gamblers?Entrepreneurs are Gamblers?

May be the most risk adverse business peopleMay be the most risk adverse business peopleTake calculated risks, after careful analysis. Try Take calculated risks, after careful analysis. Try

to to MinimizeMinimize Share risks (OPR’s)Share risks (OPR’s)

Entrepreneurs play poker, not slot machines.Entrepreneurs play poker, not slot machines.


Entrepreneurs Want to Be Their Own Boss?Entrepreneurs Want to Be Their Own Boss?

But, you serve many mastersBut, you serve many masters CustomersCustomers SuppliersSuppliers Investors & bankersInvestors & bankers PartnersPartners Employees and their familiesEmployees and their families CommunityCommunity

Double-edged sword. Yes you can make your own Double-edged sword. Yes you can make your own decisions, but there is no-one telling you what to do.decisions, but there is no-one telling you what to do.


Entrepreneurs Are Motivated by Money?Entrepreneurs Are Motivated by Money?

Survey of 500 male entrepreneurs Survey of 500 male entrepreneurs Money 6th out of 10 reasonsMoney 6th out of 10 reasons

Survey of 113 female entrepreneurs Survey of 113 female entrepreneurs Money 11th out of 16 reasonsMoney 11th out of 16 reasons

Desire to achieve, make a differenceDesire to achieve, make a differenceBut, they do like money. Why?But, they do like money. Why?

Money is a way to keep score


Why Start a Business?Why Start a Business?

MoneyMoneyJob securityJob securityLifestyleLifestylePowerPowerHealthHealth

Be your own bossBe your own bossJoy of WinningJoy of WinningFameFameValues & BeliefsValues & BeliefsGet firedGet fired


Entrepreneurs are Lone Wolves?Entrepreneurs are Lone Wolves?

Stereotype inventor working in his labStereotype inventor working in his labMust have a quality management teamMust have a quality management team

Visionary individual is the keyVisionary individual is the key Entrepreneur can’t do everythingEntrepreneur can’t do everything Modify and adapt the visionModify and adapt the vision It’s fun having people around you that you likeIt’s fun having people around you that you like

Entrepreneurs travel in packsEntrepreneurs travel in packsLone wolf can’t get fundingLone wolf can’t get funding


Entrepreneurship Requires Lots of Money?Entrepreneurship Requires Lots of Money?

Opportunity driven, not resource drivenOpportunity driven, not resource drivenLeverage resources: other people’s (OPR’s) Leverage resources: other people’s (OPR’s) Too much money: Too much money:

Lack of disciplineLack of discipline Impulse spendingImpulse spending

Businesses do not fail for lack of moneyBusinesses do not fail for lack of money


Entrepreneurs are LuckyEntrepreneurs are Lucky

Yes!


“Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing. What do they deserve? Nothing.” George C. Ballas, inventor of Weed Eater

Just Do ItJust Do It


Next Week’s ClassNext Week’s Class

Entry StrategyEntry Strategy Read BZ-11Read BZ-11 Case: ICEDELIGHTSCase: ICEDELIGHTS Feb 2 at Feb 2 at 2:00pm2:00pm NREL visit NREL visit


TraitsTraits

Misfits: traits of entrepreneurs are closest to juvenile delinquentsMisfits: traits of entrepreneurs are closest to juvenile delinquents I have discovered that all human evil comes from this, man’s I have discovered that all human evil comes from this, man’s

being unable to sit still in a room. Blaise Pascal, philosopher and being unable to sit still in a room. Blaise Pascal, philosopher and mathematicianmathematician

““Progress depends upon unreasonable men.” GB ShawProgress depends upon unreasonable men.” GB Shaw Entrepreneurs typically work half days. 12 hoursEntrepreneurs typically work half days. 12 hours ““The greatest difficulty in the world is not for people to accept The greatest difficulty in the world is not for people to accept

new ideas, but to forget old ones.” John Maynard Keynesnew ideas, but to forget old ones.” John Maynard Keynes ““If I’m in control, I’m probably going to slow.” Mario AndrettiIf I’m in control, I’m probably going to slow.” Mario Andretti A man who wants to lead an orchestra must turn his back to the A man who wants to lead an orchestra must turn his back to the

crowd.crowd.

Entrepreneurial Manager MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds...

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