ENTREPRENEURSHIP II

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ENTREPRENEURSHIP II

• Babs Bailey Carryer
• Spring 2002

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Goals of course

• To create, for all intents and purposes, a viable
  new business
• To understand steps necessary in the creation of
  a new venture
• To be able to tell the story of this new venture
  in a dynamic and compelling way

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Innovation

• New product
• New technology
• New integration
• New market
• New industry

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Innovation continued

• Not necessarily new
• Must be unique
• Must have a market

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• Effective innovations start small. They are not
  grandiose. They try to do one specific thing.
  It may be the elementary idea of putting the same
  number of matches in a matchbox. This simple
  notion gave the Swedes a world monopoly on
  matches for half a century.
• Peter Drucker

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We succeeded (in the Normandy Invasion) because
we didnt know it was impossible. Winston
Churchill
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Market opportunity

• Problem
• Pain
• Solution
• Big markets
• Growing markets
• Accessible markets

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Growing the company

• From inception to exit
• The steps necessary
• Experience first hand, not from a book

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Dividing the pie

• Founders
• Investors
• Change over time
• Dilution
• Wealth creation for shareholders
• Different rights with different types of stock

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Legal entity

• C corp
• S corp
• LLC
• Partnership
• Sole proprietorship
• Other

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Funding

• Self
• Friends and family
• Angels and private investors
• Vcs
• Institutions
• Other industry partnerships, customers, etc.

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Hiring management

• CEO, marketing and sales, finance, technical,
  support
• Where do you find good candidates?
• What do you give them?
• How do you keep them?

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Creating a board of directors

• What is a board?
• What do they do and how often?
• Finding and recruiting candidates
• Compensation
• Ongoing governance
• Staying out of trouble
• DO insurance

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Advisors and mentors

• Why have them
• Formal or informal
• Compensation and expectations
• Filling in the gaps of your knowledge

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Market research

• Secondary research
• Primary research
• Comparables
• Finding the market opportunity

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Market analysis

• Segment
• Target
• Position
• Creating a marketing strategy that positions the
  company for success
• Entry, dominance, sustainability

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Financial analysis

• Income statements
• Cash flow
• Balance sheet
• Pro formas
• Expenses
• Revenue streams

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Creating a business plan

• Internal and external uses
• Clear articulation of story
• Blueprint for moving forward
• Focusing on whats important
• Concept, strategy, execution

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Resources

• Bootstrapping resources to marshal and minimize
  resource utilization
• Other peoples money (opm)
• Head skis and money up front
• Networking and network effects