TEMPLE UNIVERSITY A national leader in entrepreneurship education and applied learning Ranked 13...
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Transcript of TEMPLE UNIVERSITY A national leader in entrepreneurship education and applied learning Ranked 13...
TEMPLE UNIVERSITY
A national leader in entrepreneurship education and applied learning
Ranked 13th in the U.S. for undergraduate programs by Entrepreneur magazine and the Princeton Review
Cited for excellence in entrepreneurship by Fortune Small Business, forbes.com and U.S. News and World Report
Awarded for “Outstanding Contributions to the Discipline of Entrepreneurship” by the Global Consortium of Entrepreneurship Centers in fall 2009 – just one of three universities globally
SUCCESSFUL ENTREPRENEURS[ CHARACTERISTICS ]
Passion for the business Vision and endless ideas Product/customer focus: Must satisfy
customer needs Persevere through setbacks and failures Executional excellence: Translate
creativity into action & generate measurable returns
POWER OF ENTREPRENERIAL THINKING
What makes a successful entrepreneur? Seeing opportunity where others don’t Innovation: better, faster, cheaper, easier “Fire in the Belly” Willingness to take risks Extreme work ethic
3 KEY PROCESSES
Idea Generation Creativity
Opportunity
Recognition
Increasing Relevance to Founding Venture
TYPES OF INTELLIGENCE
ANALYTIC INTELLIGENCE- The ability to analyze and evaluate ideas, solve problems and make decisions
CREATIVE INTELLIGENCE- Going beyond what is given to generate novel and interesting ideas
PRACTICAL INTELLIGENCE- The ability that individuals use to find the best fit between themselves and the demands of the environment
SOCIAL INTELLIGENCE- The ability to understand and manage all types of people and to act wisely in human relations
SUCCESSFUL INTELLIGENCE- The acquisition and use of what you need to know to be successful in a particular environment
SUCCESSFUL INTELLIGENCE
SUCCESS
PRACTICALINTELLIGENCE
ANALYTICINTELLIGENCE
CREATIVEINTELLIGENCE
SUCCESSFULINTELLIGENCE
CONFLUENCE APPROACH
Creativity emerges from a confluence of Intellectual abilities Broad, rich knowledge base Appropriate style of thinking Personality attributes Intrinsic, task-focused motivation Environment supportive of creative ideas
ADDITIONAL ASPECTS
OPPORTUNITYRECOGNITION
ACTIVE SEARCH
PRIOR KNOWLEDGE
ENTREPRENEURIALALERTNESS
SOCIAL NETWORKS
PATTERN RECOGNITION
Seeing links between seemingly unconnected trends, changes, events
Connections form an identifiable pattern
ENTREPRENEURIAL OPPORTUNITY
Situation in which a person can develop a new business idea
that has potential to generate profit
OPPORTUNITIES FROM CHANGE
Truly valuable entrepreneurial opportunities come from an external change that either: Makes it possible to do things that had not been
done before Makes it possible to do something in a more
valuable way
CHANGE LEADS TO POTENTIAL
New technology Political and regulatory shifts Social and demographic change
POTENTIAL
FORMS OF OPPORTUNITY
Entrepreneurs develop business ideas by:• Developing new products and services• Tapping new markets• Formulating new methods of production• Identifying new raw materials• Developing new ways of organizing processes
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Idea is thought, impression, notion Opportunity: favorable set of circumstances
that create need for product or service. Ex: Jeff Bezos/Amazon
Opportunity has four essential qualities Attractive Durable Timely Creates/adds value for buyer/user
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Observing/Study Trends Economic factors Social factors Technological Advances Political Action and regulatory statutes
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Economic Forces– Consumers level of disposable income– Interest rate changes– More women in workforce– Currently: global recession
Social Forces– Both parents working: fast food– People too busy: digital organizers– Life stress: spas, wellness clinics
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Family & work patterns Aging of the population Increasing diversity in the workplace Globalization of industries Increased focus in health care & fitness Proliferation of computers & Internet Increase in numbers of cell phone users New forms of music & entertainment
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Technological Advances Cell phones: allows people to be mobile E-commerce: accommodates busy
schedules and working from home/remote locations
Political Action New laws: help companies comply; ex: SoX Terrorism: Products & services to protect
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Solving a Problem Observe people’s challenges Look for problems Listen to people’s complaints Think of your own challenges
RECOGNIZING OPPORTUNITIES& GENERATING IDEAS
Personal characteristics for opportunity recognition Prior experience in an industry Entrepreneurial alertness/6th sense Social networks Creativity: preparation, incubation, insight,
evaluation, elaboration
SMALL GROUP EXERCISE
What opportunities exist? Group should choose a market and identify a BIG
PERVASIVE PROBLEM customers face. Brainstorm some products or services to solve
those problems Share ideas with larger group
TECHNIQUES IN GENERATING IDEAS
Brainstorming: generate ideas quickly, no analysis or decision making Enthusiasm, originality, lots of ideas Freewheeling, lively No criticism allowed Session moves quickly Leapfrogging encouraged
TECHNIQUES IN GENERATING IDEAS
Focus groups People selected are familiar with issues What’s on customers mind Conducted by trained moderator Success depends on moderator’s ability to
ask questions and keep on track
TECHNIQUES IN GENERATING IDEAS
Surveys: gathering info from sample of individuals By phone, mail, online, in person Random portions of population Customer Advisory Boards
FEASIBILITY ANALYSIS
The process to determine if a business idea is viable worth pursuing Product/service feasibility analysis Industry/market feasibility Organizational feasibility Financial feasibility
FEASIBILITY ANALYSIS[ PRODUCT / SERVICE ]
Concept testing: validate customer interest, desirability & purchase intent Validate underlying premise Help develop the idea Try to estimate sales
FEASIBILITY ANALYSIS[ PRODUCT / SERVICE ]
New Business Concept Paper Description of product/service offered Intended target market Benefits of product/service Description of how the product will be
positioned versus similar ones in market Description how the product would be sold or
distributed
FEASIBILITY ANALYSIS[ PRODUCT / SERVICE ]
Usability Testing: Measures product’s ease of use and the user’s perception of the experience using model or prototype
FEASIBILITY ANALYSIS[ INDUSTRY / MARKET ]
Industry attractiveness
Market timeliness
Identification of niche market
FEASIBILITY ANALYSIS[ INDUSTRY / MARKET ]
Industry Attractiveness Large and growing Important to the customer Fairly young rather than
older/mature High rather low operating margins Not being crowded
*Primary and secondary research is needed
FEASIBILITY ANALYSIS[ INDUSTRY / MARKET ]
Market Timeliness Improved product = market exists
Breakthrough product: First mover advantage Second mover advantage
Identifying a niche market
FEASIBILITY ANALYSIS[ ORGANIZATIONAL ]
Sufficient management expertise, organizational competence & resources to successfully launch a business
Management ability Resource sufficiency
FEASIBILITY ANALYSIS[ FINANCIAL ]
Total start-up cash needed Financial performance of similar
businesses Overall financial attractiveness of the
proposed venture
EVALUATING OPPORTUNITIES[ QUICK SCREEN ]
Looks at: Markets and Margins Competitive Advantages Value Realization Overall Potential
Exercise: Evaluate your group’s idea using the first two screens
MARKETS & MARGINS
Need/want/problem Identified Unfocused
Customers Reachable, receptive
Unreachable, loyal to others
Market Size $100 million + Less than $10 million
Market Growth Rate More than 20% Less than 20% or shrinking
Gross Margin >40%, durable <20%, fragile
COMPETITIVE ADVANTAGES
Barriers to Competitors’ Entry
Defensible None
Contacts and Networks
Key access Limited
Degree of Control High Low
Prices and Cost High Low
Supply & distributionchannels
High Low
THOUGHTS
I know quite certainly that I myself have no special talent; curiosity, obsession and dogged endurance, combined with self-criticism, have brought me to my ideas.
- Albert Einstein
The air is full of ideas. They are knocking you in the head all the time. You only have to know what you want, then forget it, and go about your business. Suddenly, the idea will come through. It was there all the time.
- Henry Ford
A mediocre idea that generates enthusiasm will go further than a great idea that inspires no one.
- Mary Kay Ash