The Entrepreneurial Process

The Entrepreneurial Process (Coulter) 1. it¶s competitive edge 3. Managing the Venture 2 . Starting the Venture 4. Exploring the Entrepreneurial Context 2. Identifying Opportunities and Possible Competitive Advantage ± Opportunities are positive external trends or changes that provide unique and distinct possibilities for innovating and creating value ± Competitive advantage is what sets an organization apart.

Entrepreneurial Process (Hisrich) 1) Identify/Evaluate Opportunity 2) Develop Business Plan 3) Determine Resources Required 4) Manage The Enterprise 3 McGraw-Hill © 2004 The McGraw-Hill Companies. . Inc. All rights reserved.

Write the Business Plan ‡ Determine the resources Required ‡ Acquire the Necessary Financing/Partners ‡ Implement and Manage ‡ Harvest the Venture .Exit Strategy 4 .The Entrepreneurial Process (Kaplan) ‡ Identify an Opportunity ‡ Develop the Concept .

The Entrepreneurial Process Identify an Opportunity Changing Demographics Emergence of New Market Process Needs New Technologies Regulatory Change Social Change Develop the Concept and write the plan New Product/Services New Processes Enter New Markets New Organizational Structures/Forms Use New Technologies Use Sales or Distribution Channels 5 Start Writing the Plan .

& Legal Protection Complete the Business Plan Debt Equity Outsourcing Leasing Supplier Financing Joint Ventures Partnerships Barter 6 Acquire the Necessary Financing/Partners . Patents.The Entrepreneurial Process Determine the Required Resources Need for: Marketing and Sales Expertise Technical Expertise Financing Needs Distribution Channels Sources of Supply Licenses.

The Entrepreneurial Process Implement and Manage Implementation of Plan/Pilot Program Monitor Performance Payback to Resources Providers Reinvestment Expansion Achievement of Performance Goals Licensing of Rights Sell or Merge Go Public Shut down Venture Harvest the Venture 7 .

Why Become an Entrepreneur ‡ For many individuals. there is the perception of independence and freedom from the politics and restrictions of corporate America. ‡ Being able "to do one's own thing." and make one's own decisions. and ‡ exert greater control is an attractive alternative to the conformity--real or imagined 8 .

The Entrepreneurial Mindset ‡ "A key aspect of establishing an entrepreneurial mindset is creating the conditions under which everyone involved is energized to look for opportunities to change the business model´-Professor Rita McGrath 9 .

2. 3.Commonly Shared Entrepreneurial Characteristics 1.They pursue only the very best opportunities and avoid exhausting themselves and their organizations by chasing after every option..They passionately seek new opportunities always looking for the chance to profit from change and disruption in the way business is done. 10 .They pursue opportunities with enormous discipline.

adaptive execution. The entrepreneur engages the energies of everyone in the company. 11 .Commonly Shared Entrepreneurial Characteristics 4. . The focus is on execution²specifically. 5.

The Entrepreneurial Process: Framework for Evaluating Venture Project FINAL PROJECT REPORT CONTAINS: Project Performance ‡ what was achieved and reasons for resulting performance. HR related system. sales and collection system. financial reporting system.) 12 Copyright 2007 John Wiley & Sons. etc. This is the personal opinion of the group and lessons learned should also be included Administrative Performance ‡ review of how well administrative practices worked (e. 8-12 . Inc.g. subcontracting system.

Recommendations for individuals who will be kept for future assignments Project Management Techniques ‡ recommendations for improvements in skills and techniques for planning. and risk management 13 . scheduling.The Entrepreneurial Process: Framework for Evaluating Venture Project Organizational Structure ‡ identify modifications to help future Project Teamwork ± confidential section that identified team members who worked particularly well and possibly those who have worked poorly with others. resource allocation. control. budgeting.

18 Month Customer Payback Market Growth = 30-50% in 5 Years Patent Protection No Product Substitutions Available Products Variants No Strong Competition Present 8) Quick Market Dominance 9) Gross Margin 30-50% 10) Staged Financing 11) ROI = 10X in 5 Years (2530%/Year) 12) Positive Cash Flow in 18 Months 13) Strong Management in Industry 14 .Principles for Successful New Venture (Hisrich) 1) 2) 3) 4) 5) 6) 7) Defined Market Durable Products.

Successful Entrepreneur Initiates Creation Process Devotes Time/Effort Assumes Risk Receives Rewards ‡ Independence ‡ Satisfaction ‡ Money 15 .

The Rewards and Challenges of Being an Entrepreneur 16 .

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