Session 1-Entrep Process Review

8/8/2019 Session 1-Entrep Process Review

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The Entrepreneurial Process


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(Coulter)

1. Exploring the Entrepreneurial Context

2. Identifying Opportunities and Possible

Competitive Advantage

Opportunities are positive external trends or changes

that provide unique and distinct possibilities for

innovating and creating value

Competitive advantage is what sets an organizationapart; its competitive edge

3. Starting the Venture

4. Managing the Venture


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Entrepreneurial Process (Hisrich)

1) Identify/Evaluate Opportunity

2) Develop Business Plan

3) Determine Resources Required

4) Manage The Enterprise

McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.


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(Kaplan)

Identify an Opportunity

Develop the Concept - Write the Business

Plan

Determine the resources Required

Acquire the Necessary Financing/Partners

Implement and Manage

Harvest the Venture - Exit Strategy


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Identify an Opportunity

Develop the Concept and

write the plan

Changing DemographicsEmergence of New Market

Process Needs

New Technologies

Regulatory Change

Social Change

New Product/Services

New Processes

Enter New Markets

New Organizational Structures/Forms

Use New Technologies

Use Sales or Distribution Channels

Start Writing the Plan


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Determine the Required

Resources

Acquire the Necessary

Financing/Partners

Need for:Marketing and Sales Expertise

Technical Expertise

Financing Needs

Distribution Channels

Sources of Supply

Licenses, Patents, & Legal Protection

Complete the Business Plan

Debt Supplier FinancingEquity Joint Ventures

Outsourcing Partnerships

Leasing Barter


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Implement and Manage

Harvest the Venture

Implementation of Plan/Pilot Program

Monitor Performance

Payback to Resources Providers

Reinvestment

ExpansionAchievement of Performance Goals

Licensing of Rights

Sell or Merge

Go Public

Shut down Venture


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Why Become an Entrepreneur

For many individuals, there is the perception of

independence and freedom from the politics andrestrictions of corporate America.

Being able "to do one's own thing," and make

one's own decisions, and

exert greater control is an attractive alternative to

the conformity--real or imagined


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The Entrepreneurial Mindset

"A key aspect of establishing an

entrepreneurial mindset is creating the

conditions under which everyone involved

is energized to look for opportunities to

change the business model-Professor RitaMcGrath


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Commonly Shared Entrepreneurial

Characteristics

1.They passionately seek new opportunities always

looking for the chance to profit from change anddisruption in the way business is done.

2.They pursue opportunities with enormousdiscipline..

3.They pursue only the very best opportunities andavoid exhausting themselves and their organizations by chasing after every option.


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Commonly Shared Entrepreneurial

Characteristics

4. The focus is on executionspecifically, adaptive

execution.

5. The entrepreneur engages the energies of

everyone in the company. .


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The Entrepreneurial Process:

Framework for Evaluating VentureProjectFINAL PROJECT REPORT CONTAINS:

Project Performance

what was achieved and reasons for resulting performance. This isthe personal opinion of the group and lessons learned should alsobe included

Administrative Performance

review of how well administrative practices worked (e.g.subcontracting system, sales and collection system, financialreporting system, HR related system, etc.)

Copyright 2007 John Wiley & Sons, Inc. 8-12


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The Entrepreneurial Process:

Framework for Evaluating VentureProject Organizational Structure

identify modifications to help future

Project Teamwork confidential section that identifiedteam members who worked particularly well and possibly

those who have worked poorly with others.

Recommendations for individuals who will be kept for

future assignments

Project Management Techniques recommendations for improvements in skills and techniques for planning,

budgeting, scheduling, resource allocation, control, and risk management


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Principles forSuccessful New Venture (Hisrich)1) Defined Market

2) Durable Products- 18Month Customer Payback

3) Market Growth = 30-50%

in 5 Years

4) Patent Protection

5) No Product SubstitutionsAvailable

6) Products Variants7) No Strong Competition

Present

8) Quick Market Dominance

9) Gross Margin 30-50%

10) Staged Financing

11) ROI = 10X in 5 Years (25-

30%/Year)

12) Positive Cash Flow in 18

Months

13) Strong Management in

Industry


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Successful Entrepreneur

Initiates Creation Process

Devotes Time/Effort

Assumes Risk

Receives Rewards

Independence

Satisfaction

Money


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The Rewards and Challenges of

Being an Entrepreneur

Session 1-Entrep Process Review

Documents

Transcript of Session 1-Entrep Process Review