1. © Mark T. Schenkel1 Meaning of Success ETP 3700 Dr. Mark T. Schenkel

2. © Mark T. Schenkel2 Exercise Imagine you are returning to BU twenty years from now for homecoming. As you are walking around campus, you run into “Old Dr. Schenkel.” What would you want to be able to tell me about specific accomplishments you have achieved in your life? Why are these things important to you? What would you be planning to do for the next twenty years?

3. © Mark T. Schenkel3 How do we define the term “business”? “The exchange of value between individuals.” Individual A’s CommonIndividual B’s Value Exchange Value Perception Mechanisms Perception

4. © Mark T. Schenkel4 Measuring Entrepreneurial “Success” Income for entrepreneur Wealth for entrepreneur Non-financial goals derived from personal values of the entrepreneur Personal For the business

5. © Mark T. Schenkel5 Integrating non-financial goals Ethics and values Personal definition of “success” in business Family Community Personal interests

6. © Mark T. Schenkel6 “Success in life is having kids who want to come back to visit you when they’ve grown up.” Paul Orfalea, Founder of Kinko’s

7. © Mark T. Schenkel7 Table 1-1 Example of Stakeholder Analysis StakeholderEthical PrincipleApplication Family Create balance between work demands and family time. Establish a more moderate financial growth goal to allow for time with family. Investors Deal with all investors openly and honestly. Develop a financial reporting system that provides full and accurate historical information as well as realistic forecasts. Employees Share financial success with those that helped create it. Profit sharing, stock option plans, phantom stock, ESOP, etc. while still meeting goals of entrepreneur.

8. © Mark T. Schenkel8 Table 1-1 Example of Stakeholder Analysis (continued) StakeholderEthical Principle Application Customers Fair pricingEstablish revenue forecasts that are realistic given this pricing principle. Suppliers Prompt payment for money owed. Establish cash forecasts that are based on an assumption of prompt payment of all invoices submitted by suppliers/vendors. Banker Honest disclosure of information Assure timely and accurate financial reporting and reasonable financial forecasting. Community Reliable employment for the community. Manage cash flow to allow for stable employment even during times of temporary slowdowns

9. © Mark T. Schenkel9 Video “The Personal Side” How do each of the entrepreneurs in this video measure success?

10. © Mark T. Schenkel10 Exercise Imagine you start a business in college that turns out to be so successful so quickly that you are able to sell your business for $20 million as you are about to graduate… What would be the first thing you would do with the money? How would your goals in life change? What would you want to be doing ten years from now?