Transcription
ENTREPRENEURSHIP 101:Keys to Starting a BusinessDr. Edwin CottrellEntrepreneurial Leadership CenterFall 2009 - Speaker Series1
Today We Will Address What is Entrepreneurship? 7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research2
Today We Will Address What is Entrepreneurship? 7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research3
Famous EntrepreneursOprah WinfreyDonald Trump4
Estee LauderSteve Jobs5
Vera WangRussell Simmons6
Definitions of Entrepreneurship Creation of a new venture (Gartner, 1988) Change implementing innovation through thecarrying out of new combinations (Schumpeter,1934) A way of thinking, reasoning, and acting that isopportunity obsessed, holistic in approach, andleadership balanced (Spinellli & Muller, Jr.) Nexus of enterprising individuals and valuableopportunities which constitute the process ofexistence, discovery, and exploitation ofentrepreneurial opportunities (Shane &Venkataraman, 2000).7
Entrepreneurship is used to describe Creation of new businessesSmall businessesSole proprietorshipsFamily owned businessesHigh growth new businessesFranchisesIntrapreneurship8
What is Intrapreneurship? Creation and/or innovation within anexisting business Intrapreneurial companies 3M Apple Computer Need for intrapreneurship9
So for today, let’s defineEntrepreneurshipas starting a new business10
Today We Will Address What is Entrepreneurship? 7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research Resources for Entrepreneurship11
Key #1: Idea Generation Good entrepreneurial businessideas Sources of goodentrepreneurial business ideas Ideas to avoid12
Good Entrepreneurial Business IdeasMARKET DRIVEN Solve a problem Find a market need Customer focused not product driven Target an identified, sizeable marketsegment13
Good Entrepreneurial Business IdeasFEASIBLE Attractive – there is a demandAchievable – it can be doneDurable – it lastsValue creating – it is worth somethingSafeAffordable for target market14
Good Entrepreneurial Business IdeasUNIQUE Differentiated (vs. commodity) Faster Better Cheaper15
Good Entrepreneurial Business IdeasFUNDABLE Revenue stream Manageable risk Sustainable - Marketexists with frequency ofpurchase Scalable or Replicable Barriers to entryGrowth potentialProduct pipelineExit planInnovative16
Good Entrepreneurial Business IdeasINNOVATIVE Radical vs. Incremental Innovation framework1 InventionExtensionDuplicationSynthesis1 Kuratko & Hodgetts (2001)17
Good Entrepreneurial Business IdeasINTELLECTUAL PROPERTY CopyrightsTrademarksPatentsTrade Secrets18
Idea Generation Characteristics of goodentrepreneurial business ideas Sources of good entrepreneurialbusiness ideas Ideas to avoid19
Sources of Good EntrepreneurialBusiness Ideas Talk to friends, family and other contacts Read Examine surroundings - consider your––––Hobbies/activitiesEducationWork ExperiencePersonal Life Network20
Sources of Good EntrepreneurialBusiness Ideas Recognized needs not effectively met Geographic or business niches notcurrently served or under served Changes in MarketIndustryLegal/ Political factorsTechnology factors21
Successful Entrepreneursrecognize an opportunitywhile it is still taking shapeSkate to where the puck will benot where it is or it was.O’Malia & & Whistler, 200322
Idea Generation Characteristics of good entrepreneurialbusiness ideas Sources of good entrepreneurialbusiness ideas Ideas to avoid23
Ideas to Avoid Unfavorable industriesUnfavorable marketsCrusadesAn N of oneOne Hit WondersUnsafe or illegal products/services24
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research25
Key #2: Funding Essential to success of businessDebtEquityHybrids26
Debt Funding Personal fundsFamily & FriendsCredit CardsBank LoansFederal & State Loans27
Equity Funding Personal fundsFriends and familyBusiness AngelsVenture CapitalPrivate Placement28
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research29
Key#3: Legal IssuesLegal structure Sole Proprietorship Partnership Corporation Limited Liability Company30
Legal IssuesIntellectual property What is it? PatentCopyrightTrademarkTrade Secret Who owns it? How is it protected?31
Legal Issues “Partnership” agreementsRegulationsNon-disclosure agreementsContracts32
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research33
Key#4: MarketingHow do you get you message out on a smallbudget? Guerilla marketing Create a buzz that goes viral Social networks Endorsements Promotion Branding34
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research35
Key #5: The Business Plan Road map Comprehensive document detailing the proposedventure Planning Tool describing events that may affectproposed venture Used in search for funds36
The Business Plan Vary in depth, detail, and quality Tech vs. low tech businesses Examples www.bplans.com WCU Library “The business planning guide : creating a plan forsuccess in your own business” by David H. Bangs,Jr. “Business plans handbook. Volume 10 : acompilation of actual business plans developed bysmall businesses throughout North America. “ LynnPearce, editor.37
The Business PlanContents Executive Summary Business Concept Industry/Market Analysis Operations Marketing Plan Management Team Risks Financial Plan Appendix38
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research39
Key#6: You, The Entrepreneur Build your networkPrepare your resumeIntern to gain experienceFind a mentorCreate a professional imageBehave ethicallyAvoid burning bridgesLearn to sell40
7 Keys to Success1. Idea Generation2. Funding3. Legal Issues4. Marketing5. The Business Plan6. You, the Entrepreneur7. Do your research41
Key#7: Do your research Study your market Research the industry Know your competition – And there isalways competition Project your financials – Cash flow, startupcosts, break-even, revenue, etc. Research creates confidence and credibility42
Communicate Your Research To refine your ideaTo create your businessIn your business planTo create an Elevator PitchIn selling43
Research Resources /newssmall-business-marketing.html44
Today We Addressed What is Entrepreneurship? 7 Keys to Success1. Idea Generation2. The Business Plan3. Funding4. Legal Issues5. Marketing6. You, the Entrepreneur7. Do your research45
Entrepreneurship is a journeythat begins with an idea.46
Contact InformationMonica Zimmerman, PhD, CPADirector, Cottrell Centermzimmerman@wcupa.edu319 Graduate Business Centerwww.cottrellcenter.orgSatellite Office – 323c Anderson Hall47
The Business Plan Vary in depth, detail, and quality Tech vs. low tech businesses Examples www.bplans.com WCU Library “The business planning guide : creating a plan for success in your own business” by David H. Bangs, Jr. “Business plans handbook. Volume 10 : a compilati
