Stages of Entrepreneurship Dr. Milton Silver

Outline Critical Stages of Entrepreneurship Critical Stages of Entrepreneurship Major Activities along the stages Major Activities along the stages Transition to next class Transition to next class

Basics: Five Best Ways to Get Rich Inheritance Inheritance Marry rich Marry rich Win a state lottery Win a state lottery Be a show-biz celebrity Be a show-biz celebrity Start a company Start a company –From Stolze, Start up

Major Stages of Entrepreneurship Converging on the idea Converging on the idea Business Plan Business Plan Business Formation Business Formation Growth/ exit Growth/ exit Going public Going public

A Framework to Think About Ideas for Entrepreneurship

Existing Products Modified Products New Products Existing Markets Identifiable Markets New Markets

Women’s Shampoo Alternative Greeting Cards Solid state still camera Clothes for professional women Overnight package delivery Specialty sports car Mobile pet grooming device Personal Computers Laser discs Existing Products Modified Products New Products Existing Markets Identifiable Markets New Markets

1. Converging on the idea In many cases, the decision start a business precedes the idea In many cases, the decision start a business precedes the idea Many ideas fall by the way side, since they are either technically not feasible or financially not viable or both Many ideas fall by the way side, since they are either technically not feasible or financially not viable or both So you need to do enough ‘research’ to converge on the idea So you need to do enough ‘research’ to converge on the idea  Documentary  Experience

Ideas: Intellectual Property The meaning of the term The meaning of the term Four forms of legal defense Four forms of legal defense  Patent  Copyright  Trademark  Trade Secret Confidentiality Agreements Confidentiality Agreements In many cases, you will need legal help!

2.Business Plan Development Four major elements: New product/ service development New product/ service development Business Model Business Model Financial Model Financial Model Operating plan Operating plan

3.Business Formation Type of company: legal form, registration Type of company: legal form, registration Financing new product development: Financing new product development:  Family and friends  SBIR grants  NCIA awards/ Ben Franklin grants  Angels Frugal: This is the time for extreme frugality

Example – BAIDA Entrepreneurs To be announced… Incubator Incubator SBDC SBDC Colleges Colleges

4.Growth/exit Difference between life style and growth companies Difference between life style and growth companies Growth will require Growth will require  infusion of capital through internally generated funds  Sometimes employment of venture capitalists  Passive investors Growth will also require organization, as taught in business schools (Michael Dell story) Growth will also require organization, as taught in business schools (Michael Dell story)

Exit Various reasons Various reasons Story of Land’s End Story of Land’s End

5. Going Public Initial Public Offering Initial Public Offering Probably the point in time the entrepreneur extracts the value of his/her efforts

Major Stages of Entrepreneurship Converging on the idea Converging on the idea Business Plan Business Plan Business Formation Business Formation Growth/ exit Growth/ exit Going public Going public