Entrepreneurship

1. Entrepreneurship An Introduction

2. Entrepreneurial Job Creation An engine that drives the economy

3. Job Creation Since 1980 34 million new jobs have been created in the US Essentially all of them by entrepreneurial companies In the 1960�s 4/5 employees went to work for the Fortune 500 In the 1980�s 1/5 In the 1990�s 1/14 Firms with 100 or less employees create most of the new jobs in the US

4. Entrepreneurship �Because it is opportunity driven and rewards only for talent and performance- and could care less about religion, sex, skin color, social class, national origin and the like- it enables people to pursue and realize their dreams, to falter and to try again, and to seek opportunities that match who they are, what they want to be, and how and where they want to live.� timmons, p.5

5. EntrepreneurshipA Definition Entrepreneurship is: A way of thinking, reasoning and acting Opportunity obsessed Resource stingy Holistic in approach Leadership balanced Creation and/or recognition of opportunities The will and initiative to seize these opportunities Willingness to take risks in a calculated and orderly fashion Shift the odds to your favor

6. The Startup Company Success involves building a team-complementary skills and talents Sensing an opportunity where others see only chaos Find and control resources to pursue the opportunity Insuring we don�t run out of cash Don�t manage-lead!

7. Why Do Startup Companies Succeed? Established Industry leaders look to service and stay close to current customers Do what has worked in the past Find and encourage today�s opportunities Reward people who accumulate assets, people, budgets, plants, products and headcount Won�t support programs their current customers explicitly don�t want. The startup company has an edge, not because the established company can�t compete, but because it isn�t looking. Even when it sees the enemy coming, it is so set in its ways, e.g. culture and strategy, that it can�t change fast enough.

8. Successful startups Reward people for new business opportunities Taking calculated risks Be on the edge The entrepreneur, experiencing entrepreneurial terror, has to be afraid to panic and constantly focuses on �what do I do next�.

9. Paradoxes of Entrepreneurship First you lose money, then you make money. The Seven-up rule. Share the wealth with those who are in the pits with you Entrepreneurship has a strong reactive component-you can�t plan it all Discipline is crucial Patience is crucial , so is persistence Control is an illusion. If you are in control, you are going too slow.

10. Dream Big Dreams Unless this business can pay you at least five times your present salary, the risk and wear and tear won�t be worth it. Job substitute businesses Concepts for businesses that change the way people live or work Most ventures are small Age is no barrier-Col Sanders at KFC The smaller the business the higher the failure rate- regardless of time The longer the business exists, the higher the failure rate The higher the growth rate of the company, and the earlier in the life that growth occurs, the better the chances of survival. Venture Capitalist backing increases the survival rate dramatically Find backers who add value, not just money The Life style venture

11. The Entrepreneurial Process A systematic Viewpoint The elements Opportunity, Resources, and the Team The Relationships Communications, creativity, leadership

12. The Opportunity The Opportunity is at the heart of the process and is evaluated based on Market Demand Market Structure Financial analysis

13. Market Demand The market demand for the product or service Is there a demand Can the customer be reached Does the product or service deliver value Market share-growth potential Is growth sustainable

14. Market Structure The market structure and size Is the market emerging or fragmented How big is it What are the barriers of entry How aggressive is the competition

15. Financial Evaluation The financial analysis Can I make money at this What are the capital requirements Can I break even in 1-2 years

16. Resources Understand and Marshall resources Creativity is a key element Resources consist of Financial Physical assets People The business plan Think Cash last, minimize and control the resources needed It�s not a rocket. You don�t need all the resources on board to start.

17. The Team Teams must be lead (as opposed to managed) so the entrepreneur must exhibit leadership within a leadership system Leadership system consists of leader, followers and the context

18. The entrepreneurial context is unique The leader Learns and teaches faster and better Deals with adversity and is resilient Exhibits integrity, dependability and honesty Builds an entrepreneurial culture and organization The followers (the team) Relevant track record and experience Motivated to excel Determination and persistence Tolerance of ambiguity, risk and uncertainty Creative Team focus of control Adaptable Opportunity obsessed

19. Fit and Balance How the entire system of elements and relationships fits together and stays stable over time. Feedback loops and stability How the founder decides when to perturb the system to avoid brontosaurus capitalism. How the founder decides when to bring the system back into balance as it grows

20. Cowboy or Successful Mgr? Entrepreneurial Reasoning-The Entrepreneurial Mind Successful entrepreneurs exhibit a combination of attitudes and behaviors and solid general management skills. Attitudes and behaviors