The Entrepreneurial The Entrepreneurial ProcessProcess

Dr. Mark T. SchenkelDr. Mark T. Schenkel

A Working Definition . . . .A Working Definition . . . .

“ “Entrepreneurship is a way of Entrepreneurship is a way of thinking, reasoning and acting thinking, reasoning and acting that is opportunity obsessed, that is opportunity obsessed, holistic in approachholistic in approach [[emphasis emphasis addedadded]], and leadership balanced” , and leadership balanced” (Timmons, 1999: 27). (Timmons, 1999: 27).

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Star

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Exit/

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Life Cycle of a Business Venture

The Entrepreneurial Process (Timmons, 2000)

Opportunity Resources

Team

Communication

Business PlanFits and Gaps

Creativity Leadership

Capital Market ForcesUncertainty

Ambiguity Exogenous Forces

Founder

Pre-Launch Pre-Launch ProcessProcess

Evaluating IdeasEvaluating Ideas

Does Does the Ideathe Idea = = an an OpportunityOpportunity?? MarketMarket MarginMargin MissionMission

(session 1)(session 1)

The Right Team?The Right Team? The Necessary Resources?The Necessary Resources?

The Start-up The Start-up ProcessProcess

The Start-up ProcessThe Start-up Process

Filling the GapsFilling the Gaps The Business PlanThe Business Plan

Executive SummaryExecutive Summary Market Analysis and Marketing Market Analysis and Marketing

PlanPlan Operating Plan and TeamOperating Plan and Team Financial PlanFinancial Plan

Growing the Growing the BusinessBusiness

Growing the BusinessGrowing the Business

CASH FLOW MANAGEMENTCASH FLOW MANAGEMENT Building a CultureBuilding a Culture MarketingMarketing StaffingStaffing Building Management & Building Management &

Administrative SystemsAdministrative Systems

Exit or Exit or SuccessionSuccession

Entrepreneurial Entrepreneurial StrategiesStrategies

Entry Entry StrategiesStrategies

Competitive Entrepreneurial Competitive Entrepreneurial Strategies Strategies (Peter Drucker)(Peter Drucker)

““Fustest with the Mostest”Fustest with the Mostest” ““Hit ‘em where they Ain’t”Hit ‘em where they Ain’t” The NicheThe Niche Changing Values & Changing Values &

CharacteristicsCharacteristics

Growth Growth StrategiesStrategies

The Discipline of Market LeadersThe Discipline of Market Leaders Michael Treacy and Fred WiersemaMichael Treacy and Fred Wiersema

Operational ExcellenceOperational Excellence Product LeadershipProduct Leadership Customer IntimacyCustomer Intimacy

  OPERATIONAL

EXCELLENCEPRODUCT LEADERSHIP

CUSTOMER INTIMACY

  OPERATIONAL EXCELLENCE

PRODUCT LEADERSHIP

CUSTOMER INTIMACY

Core Business

Structure

Management Systems

Culture

  OPERATIONAL EXCELLENCE

PRODUCT LEADERSHIP

CUSTOMER INTIMACY

Core Business

Efficient distribution

Structure Central authority

Management Systems

Standard procedures

Culture One size fits all

  OPERATIONAL EXCELLENCE

PRODUCT LEADERSHIP

CUSTOMER INTIMACY

Core Business

Product innovation

Structure Flexible

Management Systems

Reward for innovation

Culture Experimentation

  OPERATIONAL EXCELLENCE

PRODUCT LEADERSHIP

CUSTOMER INTIMACY

Core Business

Provide solutions

Structure Empowerment close to customer

Management Systems

Measure: Cost of service/Return

Culture “Have it your way”

  OPERATIONAL EXCELLENCE

PRODUCT LEADERSHIP

CUSTOMER INTIMACY

Core Business

Efficient distribution

Product innovation

Provide solutions

Structure Central authority Flexible Empowerment close to customer

Management Systems

Standard procedures

Reward for innovation

Measure: Cost of service/Return

Culture One size fits all Experimentation “Have it your way”

Questions from your Questions from your end . . . ?end . . . ?