Today We Will Address
What is Entrepreneurship?
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
2
Today We Will Address
What is Entrepreneurship?
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
3
Famous Entrepreneurs
Oprah Winfrey Donald Trump
4
Estee Lauder
Steve Jobs
5
Vera Wang Russell Simmons
6
Definitions of Entrepreneurship
Creation of a new venture (Gartner, 1988)
Change implementing innovation through the
carrying out of new combinations (Schumpeter,
1934)
A way of thinking, reasoning, and acting that is
opportunity obsessed, holistic in approach, and
leadership balanced (Spinellli & Muller, Jr.)
Nexus of enterprising individuals and valuable
opportunities which constitute the process of
existence, discovery, and exploitation of
entrepreneurial opportunities (Shane &
Venkataraman, 2000).
7
Entrepreneurship is used to describe
Creation of new businesses
Small businesses
Sole proprietorships
Family owned businesses
High growth new businesses
Franchises
Intrapreneurship
8
What is Intrapreneurship?
Creation and/or innovation within an
existing business
Intrapreneurial companies
3M
Apple Computer
Need for intrapreneurship
9
Entrepreneurship
as starting a new business
10
Today We Will Address
What is Entrepreneurship?
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
Resources for Entrepreneurship
11
Key #1: Idea Generation
Good entrepreneurial business
ideas
Sources of good
entrepreneurial business ideas
Ideas to avoid
12
Good Entrepreneurial Business Ideas
MARKET DRIVEN
Solve a problem
Find a market need
Customer focused not product driven
Target an identified, sizeable market
segment
13
Good Entrepreneurial Business Ideas
FEASIBLE
Attractive there is a demand
Achievable it can be done
Durable it lasts
Value creating it is worth something
Safe
Affordable for target market
14
Good Entrepreneurial Business Ideas
UNIQUE
Differentiated (vs. commodity)
Faster
Better
Cheaper
15
Good Entrepreneurial Business Ideas
FUNDABLE
Revenue stream Barriers to entry
Manageable risk Growth potential
Sustainable - Market Product pipeline
exists with frequency of Exit plan
purchase Innovative
Scalable or Replicable
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Good Entrepreneurial Business Ideas
INNOVATIVE
Radical vs. Incremental
Innovation framework1
Invention
Extension
Duplication
Synthesis
1 Kuratko & Hodgetts (2001)
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Good Entrepreneurial Business Ideas
INTELLECTUAL PROPERTY
Copyrights
Trademarks
Patents
Trade Secrets
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Idea Generation
Characteristics of good
entrepreneurial business ideas
Sources of good entrepreneurial
business ideas
Ideas to avoid
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Sources of Good Entrepreneurial
Business Ideas
Talk to friends, family and other contacts
Read
Examine surroundings - consider your
Hobbies/activities
Education
Work Experience
Personal Life
Network
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Sources of Good Entrepreneurial
Business Ideas
Recognized needs not effectively met
Geographic or business niches not
currently served or under served
Changes in
Market
Industry
Legal/ Political factors
Technology factors
21
Successful Entrepreneurs
recognize an opportunity
while it is still taking shape
Skate to where the puck will be
not where it is or it was.
22
Idea Generation
Characteristics of good entrepreneurial
business ideas
Sources of good entrepreneurial
business ideas
Ideas to avoid
23
Ideas to Avoid
Unfavorable industries
Unfavorable markets
Crusades
An N of one
One Hit Wonders
Unsafe or illegal products/services
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7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
25
Key #2: Funding
Essential to success of business
Debt
Equity
Hybrids
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Debt Funding
Personal funds
Family & Friends
Credit Cards
Bank Loans
Federal & State Loans
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Equity Funding
Personal funds
Friends and family
Business Angels
Venture Capital
Private Placement
28
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
29
Key#3: Legal Issues
Legal structure
Sole Proprietorship
Partnership
Corporation
Limited Liability Company
30
Legal Issues
Intellectual property
What is it?
Patent
Copyright
Trademark
Trade Secret
Who owns it?
How is it protected?
31
Legal Issues
Regulations
Non-disclosure agreements
Contracts
32
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
33
Key#4: Marketing
How do you get you message out on a small
budget?
Guerilla marketing
Create a buzz that goes viral
Social networks
Endorsements
Promotion
Branding 34
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
35
Key #5: The Business Plan
Road map
Comprehensive document detailing the proposed
venture
Planning Tool describing events that may affect
proposed venture
Used in search for funds
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The Business Plan
Vary in depth, detail, and quality
Tech vs. low tech businesses
Examples
www.bplans.com
WCU Library
Jr.
compilation of actual business plans developed by
Pearce, editor. 37
The Business Plan
Contents
Executive Summary
Business Concept
Industry/Market Analysis
Operations
Marketing Plan
Management Team
Risks
Financial Plan
Appendix
38
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
39
Key#6: You, The Entrepreneur
Build your network
Prepare your resume
Intern to gain experience
Find a mentor
Create a professional image
Behave ethically
Avoid burning bridges
Learn to sell 40
7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
41
Key#7: Do your research
Study your market
Research the industry
Know your competition And there is
always competition
Project your financials Cash flow, startup
costs, break-even, revenue, etc.
Research creates confidence and credibility
42
Communicate Your Research
To refine your idea
To create your business
In your business plan
To create an Elevator Pitch
In selling
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Research Resources
www.cottrellcenter.org
www.sba.gov
www.score.org
www.entrepreneur.com/
http://online.wsj.com/public/page/news-
small-business-marketing.html
44
Today We Addressed
What is Entrepreneurship?
7 Keys to Success
1. Idea Generation
2. The Business Plan
3. Funding
4. Legal Issues
5. Marketing
6. You, the Entrepreneur
7. Do your research
45
Entrepreneurship is a journey
that begins with an idea.
46
