Starting the Venture The Entrepreneurial Process Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset The Entrepreneurial Process Patterns of Entrepreneurship Chapter 1 Copyright 2006 Jack M. Kaplan & Anthony C. Warren

Session Outline What is Entrepreneurship Definition Examples The 5 Step Entrepreneurial Process Entrepreneurial Characteristics Why? The Choice Types Common Characteristics Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

What is Entrepreneurship? Root of the Word From the French word entreprendre, which refers to individuals who “undertook” the risk of a new enterprise Today’s Meaning The process of planning, organizing, operating, and assuming the risk of a business venture Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

What is Entrepreneurship? Today’s Meaning More than just the creation of a business; it also includes the generation and implementation of an idea. It is about being a dynamic thinker and operator which includes effective communication to all of your stakeholders It is not about being a maverick; entrepreneurs must think tactically and strategically, and operate in a similar fashion Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

Quick Facts Annual creation of 600,000 to 800,000 new companies. More employees work for entrepreneurial ventures than any other sector in the economy No sector of the U.S., and world, economy has been as vital, dynamic, and creative as entrepreneurship Think: Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

5 Stage Entrepreneurial Process Stage 1: Conducting Opportunity Analysis Innovate and create the vision Conduct market analysis and research Evaluate the Competition Research Pricing and Sales Strategies Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

5 Stage Entrepreneurial Process Stage 2: Developing the Plan and Setting up the Company Set Goals and Objectives Start Writing the Plan Investigate New Processes and Technologies Determine pricing, market, and distribution channels Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

5 Stage Entrepreneurial Process Stage 3: Acquiring Financial Partners and Sources of Funding Innovate and create the vision Conduct market analysis and research Evaluate the Competition Research Pricing and Sales Strategies Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

5 Stage Entrepreneurial Process Stage 4: Determining the Resources Required and Implementing the Plan Determine value of licenses, patents, and copyrights Prepare the organization for growth Develop a business model to maximize value retention Manage the finances Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

5 Stage Entrepreneurial Process Stage 5: Scaling and Harvesting the Venture Prepare a full business plan Discuss options and alternatives Sell or Merge Go Public Form a Strategic Alliance Communicate the opportunity Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset Why? Independence and Freedom from the restrictions of corporate America Being able to “do your own thing” Plateauing in current job Opportunity for sustained growth and mobility Flexibility Financial reward Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset The Choice As the economy has shifted to place a premium on portable skills and knowledge, as well as effective networks, entrepreneurship has become a viable career alternative. Serial Entrepreneur—Someone who starts, grows, and sells several businesses over the course of their career. Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset Types of Entrepreneurs Aspiring Entrepreneurs—Dream of starting a business; they hope for the chance to be their own bosses, but have not yet made the leap from their current employment into the uncertainty of a startup. Research indicates that, at any given time, 7 million adults are trying to start businesses in the U.S. Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset Types of Entrepreneurs Lifestyle Entrepreneurs—Have developed an enterprise that fits their individual circumstances and style of life. Intention is to earn income for themselves and their families. Sometimes referred to as “small businesses” or “mom-and-pop shops”. 13 million Americans (25 million if you count part-timers) run their own business from home. Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset Types of Entrepreneurs Growth Entrepreneurs—Have both the desire and ability to grow as fast and as large as possible. These firms are the most dynamic job generators in the U.S. economy. There are over 300,000 entrepreneurial companies with more than 50 employees that are growing at a rate of 20 percent per year. Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneur Mindset Types of Entrepreneurs One of the major mistakes aspiring entrepreneurs make when starting out is NOT to closely question what they want to be when, “they grow up”. Each type of entrepreneur is a control and lifestyle choice with many advantages and disadvantages that must be considered Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren

The Entrepreneurial Mindset Common Characteristics Passionately seek new opportunities and are always looking for the chance to profit from change and disruption in the way business is done Pursue opportunities with tremendous discipline Pursue only the very best opportunities, and avoid exhausting themselves and their organizations by chasing after every option Focus on execution—specifically, adaptive execution Engage the energies of everyone in their domain Chapter 1 What is Entrepreneurship? 5 Stage Entrepreneurial Process The Entrepreneurial Mindset Copyright 2006 Jack M. Kaplan & Anthony C. Warren