Entrepreneurship
文章目录 @[toc] Session 1: IntroductionFour P's problem based leaningThree key discussion pointsKey outcomesContentSources (Books)Entrepreneurship ProcessEconomic of Entrepreneurship*Additional* Session 2: Idea Generation & Opportunity RecognitionSelf-Understanding and Entrepreneurial OpportunitiesFuture Trends and Entrepreneurial OpportunitiesLateral Thinking Exercise: [The Six Thinking Hats](/item/六顶思考帽/3202458?fr=aladdin) Session 3: Industry & Market analysis and Customer ValidationIndustry Analysis Session 4: Business ModelFeasibilityStrategyStrategy formation process - hierarchyEntrepreneur's big questionsSources of Superior ProfitabilityTraditional competitive strategies:Perspectives on strategyStrategy Formation in Entrepreneurial OrganizationsEffectuation vs CausationKey Effectuation principles Business ModelsThe Lean Start-up: Build – Measure - LearnWhat is a Business ModelTypes of Revenue Models (by their feature/decisions)Tool: Business Model CanvasTool: [**Value proposition canvas**](/watch?v=ReM1uqmVfP0&t=7s)Case: DropboxHow business is affected by the environmentValue proposition in more detail Session 5: Platforms as a business modelMulti-sided platformCore InteractionDesign the Core InteractionImprove the Core InteractionChoosing Pricing Structures: Cross-subsidising Key operating metrics – CAC & LTV Session 6 FinanceSession 7 RiskTool: Fish-bone TechniqueVC -- *Lots of info* Session 8 Entrepreneur & TeamEntrepreneurMindsetCreativityCognitive biases (errors)Entrepreneurial leadershipEquity split - whenBuilding a team: VestingBoard of directors and board of advisors Session 9 PitchingThe beginningProblem and SolutionMarket & VentureEndingTipsAdvice on PresentingSlidedecks Session 1: Introduction Four P’s problem based leaning Preparation, Presence, Punctuality, Participation
Three key discussion points Major insights Some controversial statements Your personal thoughts and experiences
Key outcomes entrepreneurial opportunities business plans/feasibility studies business model financial needs
Content Entrepreneurial ProcessIdea Generation & Opportunity RecognitionIndustry and Market AnalysisStrategy in the context of Entrepreneurial VenturesBusiness Model AnalysisFinance: preparing financial projections and assessing the financial needs to the ventureEntrepreneur and Entrepreneurial TeamPreparing a business plan and pitching your idea Sources (Books) Essentials of EntrepreneurshipBusiness Model GenerationThe Lean Start-upThe Business Plan WorkbookThe New Business Road TestHow to Write A Great Business PlanEntrepreneurship And Small Business Entrepreneurship Process Opportunity Identification Idea generationOpportunity recognition Opportunity Evaluation Markets & Industries Opportunity Exploitation Strategy & business modelsIP protectionBusiness planningFinancing, teams Economic of Entrepreneurship AdditionalThe Questions Every Entrepreneur Must Answer
The full text of this article is available via EBSCO. Please search using this reference:
The Questions Every Entrepreneur Must Answer. Bhide, Amar. Harvard Business Review Volume: 74 Issue 6 (1996) ISSN: 0017-8012
Session 2: Idea Generation & Opportunity Recognition
Readings:
Baron and Hmieleski, 2018, Chapter 3*
The discipline of innovation
The full text of this article is available via EBSCO. Please search using this reference:
The discipline of innovation. Drucker, Peter. Harvard Business Review Volume: 63 Issue 3 (1985) ISSN: 0017-8012
Tool: Passion Cube –Confused
Self-Understanding and Entrepreneurial OpportunitiesDef. Opportunity
An opportunity is a favourable set of circumstances that creates the need for a new product, service, or a business (Barringer and Ireland, “Entrepreneurship”)
Def. Idea
An idea is “something imagined or pictured in the mind”
Distinguishing ideas, innovation and opportunity
Opportunity Identification
YourselfTrends & changes in external environmentExercises： Self-understanding Exercise: Accomplishments
As a basis for developing an entrepreneurial idea
Significant personal accomplishmentsRank based on significanceKnowledge, Skills & Abilities
AccomplishmentKSA needed1.2.3.4.5.Reflections for KSA
Don’t forget PASSION
Video: Paul Tasener: How I became an entrepreneur at 66
Future Trends and Entrepreneurial OpportunitiesSome interesting trends
Hyper-personalization of everythingLast-mile delivery gets automatedRetailCase
CloudKitchens
Drucker’s 7 Sources of innovation opportunities
Changes within the enterprise or industry
The unexpected (success, failure and events)The incongruity (between reality and ‘ought to be’) Discrepancy or dissonance between what is and what ‘ought to be’Understand the customers’ needs and wants Innovation based upon process needsChanges in industry structure or market structure (that catch everyone unaware) Changes outside the enterprise or industry
Demographics
Changes in perception, mood and meaning
New knowledge (scientific and non- scientific)
Exercise: Trends & Entrepreneurial Opportunities
List -> Select -> Report
Consider:
consumer, design, processesdemands in futurewill opportunities? Lateral Thinking Exercise: The Six Thinking Hats Blue - Process Control Organizing the thinking, making decisions and conclusions, planning for actions White - Facts, Figures and Information Purely facts, neutral and objective Green - Creativity and Alternatives Stands for creativity, everything goes, idea generation, alternatives Yellow - Benefits Optimistic viewpoint, logical positive view of things Black - Caution, Devil’s advocate Critical thinking, spot fatal flaws, make plans ‘tougher’ and more resilient, judges robe, logical reasons are given Red - Intuition and Emotions Emotional thinking, gut instinct, hunches Blue 2 - Process Control Organising the thinking, making decisions and conclusions, planning for actionsSession 3: Industry & Market analysis and Customer Validation
RECOMMENDED READING:
Chapter 4 from the Baron and Hmielski book. It is called “Feasibility analysis: look before you leap”.
Industry AnalysisKey Questions
Is the industry accessible? Can a new venture easily enter?Ripe for innovation / Underserved segments?Are there attractive niches?Techniques to assess Industry Attractiveness
Porter’s 5 Force ModelDisruption
Types: Low-End disruption New Market CreationSession 4: Business Model Feasibility Compelling needRelevant Market segmentsUnique value and advantagesViable Business ModelCapable Team Strategy Strategy formation process - hierarchy Vision - What do we aspire toMission - What do we do? Who do we do it for?Goals - What do we want to achieve?Strategy - Plan of action Entrepreneur’s big questions Are my goals well defined?Do I have the right strategy?Can I execute the strategy? Sources of Superior Profitability Corporate Strategy Industry AttractivenessBusiness Strategy Competitive Advantage Traditional competitive strategies: Cost leadershipDifferentiationFocus Perspectives on strategy Competitive PositionResource-basedStrategic Innovation Strategy Formation in Entrepreneurial Organizations Distributed & decentralized (as a response to turbulence)Emergent & deliberate (at different times)Continuous strategizingNon-linear & adaptiveGenerating multiple strategic options Effectuation vs Causation Key Effectuation principles “Bird in Hand”“Affordable loss”“Lemonade principle”Forming partnerships “crazy quilt” Business Models The Lean Start-up: Build – Measure - Learn Application Hypothesis testingDesign Simple ExperimentsMVP: Minimum Viable ProductPivot – a change of direction Methods What is a Business Model Customer Value Proposition Value proposition canvas Go-to-market StrategyProfit FormulaTechnology / Operations management Types of Revenue Models (by their feature/decisions) Producing goods or servicesSovietisationDistributor/customization LicensingSubscriptionRazor & bladethe major cost is buying into an ecosystemLong Tail Tool: Business Model Canvas Key PartnersKey ActivitiesKey ResourcesValue PropositionCustomer RelationshipsChannelsCustomer SegmentsCost StructureRevenue Streams Tool: Value proposition canvas Case: Dropbox
Key Elements of Dropbox’s business model:
Customer Value Proposition (CVP): Offering: SharingStorageSynchronization Problems-Solutions:Customer Persona / Customer Segment Individual(B2c)Business (B2B) Technology / Operations Management Data centre (on Amazon)Secret sauce Go-to-market DemoA/B testAdWord of mouth Freemium model: Keys to sucess Free user support costCustomer axquisitionConversionProfit Freemium model: Metrics Customer acquisition costs paying/freemarketing spend/new customers Fixed costsVariable costsLife Time Value (LTV) of a customer How business is affected by the environment Key TrendsMarket ForcesIndustry ForcesMacro-economic Forces Value proposition in more detail(video: Strategyzer’s Value Proposition Canvas Explained) Link between Pitches and VP canvas
ourhelpswho want tobyunlikeSession 5: Platforms as a business model Multi-sided platform Key feature Enable direct interactionsDistinct services in different sides Platforms vs. Linear models infrastructurerules Network effects Positive vs. Negative Key issues to Consider Critical massReduction in Transaction CostsSearch Costs Core Interaction Design the Core Interaction Creation core value unit ConsumptionCuration Improve the Core Interaction CustomizationBehaviour Design Choosing Pricing Structures: Cross-subsidising Key operating metrics – CAC & LTV Customer Acquisition CostLife Time Value per customer L T V = c g + k LTV = \frac{c}{g+k} LTV=g+kc c: contribution per customer g: discount rate k: churn rate
Mechanisms that underpin promeration of platforms De-linking assets from value - increases asset utilisation Re-intermediation Market aggregation Key issues to consider Magnet Toolbox Potential Pitfalls - low switching costs www.macrotrends/stocks/charts/GRPN Designing the Core Interaction key elements: Creation core value unit Consumption Curation Improving Customization Growing a platform: the chicken and egg problem Choosing Pricing structures: Cross-subsidising
Session 6 Finance
Statements
Balance SheetProfit & Loss Statement (Income Statement)Cash Flow StatementTypes of activities
OperatingInvestingFinancingCash Flow Drivers
RevenuesCosts and ExpensesCapital ExpendituresWorking CapitalFinancial ChargesConstructing Cash Flow
DirectIndirectKey operating metrics for a (tech) start-up
Revenue growth ratesMarginsCAC - Customer Acquisition CostRetention ratesRetention ratesCustomer Lifetime RevenuesCash conversion cycle
Operating leverage – measure of scalability
Operating Leverage Ratio = Sales Operating Profit − Variable Expenses Operating Profit \text{Operating Leverage Ratio} = \frac{\text{Sales Operating Profit − Variable Expenses}}{\text{Operating Profit}} Operating Leverage Ratio=Operating ProfitSales Operating Profit − Variable ExpensesThe burn rate & the financing need
Session 7 Risk
Summary
Operating environmentStrategy & competitive positionMarketingOperationsFinancial ManagementContingencies & contractsRisk Components
Macro (operating environment)Market“Make-it” – Technology and OperationsManagement (ability, governance)Concentration (on one supplier, buyer…)Contingency (license renewal, regulatory change in the future) Tool: Fish-bone Technique VC – Lots of infoSession 8 Entrepreneur & Team Entrepreneur
Conditions faced
complextime pressureuncertainty Effectuation: Entrepreneurs manage byrelationships & networksinformation and knowledgestrong vision MindsetDimensions
Goal OrientationMeta-cognitive KnowledgeMeta-cognitive ExperienceMeta-cognitive Choice Entrepreneurial mindset – key cognitive characteristicsNeed for autonomyRisk takingTolerance for uncertaintyNeed for AchievementInternal Locus of ControlSelf Efficacy Cognitive and personality factors associated with creativity CreativityEntrepreneur alertness
Alert scanning & searchAlert association and connectionEvaluation and judgment Cognitive biases (errors) Entrepreneurial leadershipKey roles in a start-up Founder, CEO, CFO, CTO/CSO, Marketing director Issues
RelationshipsRewardsRoles Equity split - when Building a team: Vesting Board of directors and board of advisorsSession 9 Pitching The beginning
Short intro - the concept statement
Problem and SolutionProblem
What, and whose, problem are you trying to solve. I.e. what is the opportunity – the unmet need?
How big is the problem?
Market size and growth rates- market research, statistics on trends, examples, etc. Size:
Top down (TAM, SAM, SOM)
Bottom up: # customers x average price x # purchases
Needs
What are the generic needs in the market placeWhat are the more specific needs of identified customersSolution
This can be the technology, product, a process etc.,Unique selling points: Advantages over competition, i.e. faster, cheaper, novel etcWhy is it unique and for whom? Market & VentureCompetition
Competitor analysis (grid plus narrative articulating your VP) What underpins your USP Superior resource and capabilities (great sales and marketing, product / business development, experienced team, etc.)Positioning (e.g. niche market, high barriers to entry (including understanding the customer, distribution agreements, etc.)Secured (“defensible”) IP (e.g. through patents)?Exclusive partnershipsCan you protect yourself from copycats / large incumbents in other ways?What kind of business model will you use
Go to Market SEO, direct sales, referrals, awards, affiliate programmes – chose most appropriate to reach your customer and explain your choice Monetisation (how will you generate revenues – subscriptions, % commission, etc). Explain your choicePeople: Ability to execute, complementarity, set of skills and abilities requiredFunds:
What is the call for action – money, advice, etc
What is the next milestone and how will the money you seek get us there. how will an investor make money?
EndingYour next steps
Feasibility – market entry
Clarify routes to market
Prototypes, business development etc.,
Cash flow forecast and funding plans
Hire key people – when
N.b. for a pitch in class – a brief statement that further work would need to be done to crystallize the opportunity including market analysis, clarifying the routes to market, etc.
Call to action (depending on the audience)
Funding
Advice
Team
Resources
Tips DoDon’tConnect and tell a storyBe defensiveKnow your numbersLie / BluffShow you understand your customerUnderestimate the competitionClearly address the competitionGo in unpreparedEvidence credibilityRely on notesKnow your business modelLeave risks unaddressedBe realistic Advice on PresentingMake it easy to contact you or mention you:
Include your e-mails on the front page of your document
When asking someone to make a connection, consider including a self contained paragraph for your contacts to forward (typically concept statement)
Pack to have at the ready:
1-pager (pdf)
A slide deck (pdf, 10 slides) 15 – 20 page business plan document
2 minute elevator pitch (the shorter, the better)
7-10 minutes presentation + extra slides for Q+A
Slidedecks 30 Legendary Startup Pitch Decks and What You Can Learn From ThemThe Only 10 Slides You Need in Your Pitch[How To Create A Great Investor Pitch Deck For Startups Seeking Financing](/sites/allbusiness/2017/03/04/how-to-create-agreat-investor-pitch-deck-for-startups-seekingfinancing/#fe978aa2003e)pitchdeckexamplesEntrepreneurship