Entrepreneurship Start, Survive and Grow Dr. Travis Perera Postgraduate Institute of Management

Who Are Entrepreneurs? Entrepreneurs are: — Persons who start and/or operate a business. — Individuals who discover market needs and launch new firms to meet those needs. — Risk takers who provide an impetus for change, innovation, and progress. — All active owner-managers (founders and/or managers of small businesses).

8 reasons why people start their own businesses 1.Creating true wealth and financial freedom 2.Being in control of your own future 3.Lifestyle choices 4.Desire for independence 5.Feeling like you have a purpose 6.Change in circumstances 7.Necessity – not enough income 8.Necessity – no income

What Makes a Successful Entrepreneur? SUCCESSFUL ENTREPRENEUR Strong Business Plan Execution Quality Opportunity Entrepreneurial Qualities THE DNA Innovative, Action oriented, Extremely self- confident, Achievement Oriented, Decisive, Affiliation oriented ENVIRONMENT An innovative technology, An attractive market, Risks- Market, Technology, Team, Financial MANAGEMENT Business formation. Product development, Customer development, Financial management COMPONENTS Idea, Startup, Technology, Customer, Financials

5 Signs That You're an Entrepreneur at Heart 1.Entrepreneurs are passionate, inside and outside of work 2.Entrepreneurs are committed to building businesses, not just coming up with great ideas 3.Entrepreneurs know how to focus, yet are comfortable moving in multiple directions at once 4.Entrepreneurs are happy 5.Entrepreneurs can be employees Ref: Inc.com, 2012

1.Not starting small 2.Founders give up 3.Not continuously learning 4.Not innovating 5.Poor team 6.Startup over-spends 7.Lack of planning

Identifying Startup Ideas Opportunity Recognition – Identification of potential new products or services that may lead to promising businesses Entrepreneurial Alertness – Readiness to act on existing, but unnoticed, business opportunities Good Investment Qualities – Products that serve clear and important needs – Products that customers know about – Products that customers can afford – A good idea is not the same as a good opportunity. Ref: Inc.com, 2012

Start Lean, Pivot/Persevere What do successful startups have in common? — They started out with one idea, learnt and changed to another Pivot: change directions but stay grounded in what we’ve learned.

Minimum Viable Product (MVP) The minimum set of features needed to learn from early customers and partners — Avoid building products that nobody will need — Maximize the learning for every Rupee spent Minimum Viable Product Product Vision

Unique Value Proposition (UVP) “Unique Value Proposition: A single, clear compelling message that states why you are different and worth buying.” – Steve Blank The Four Steps to the Epiphany Be different, but make sure your difference matters Target early adopters Focus on the end in mind Pick your words carefully and own them Answer: 5W+1H

The Lean Startup Business Model PROBLEM SOLUTION UNIQUE VALUE PROPOSITION UNIQUE ADVANTAGE CUSTOMER SEGMENTS KEY METRICSCHANELS COST STRUCTUREREVENUE STREAMS Top 3 problems Top 3 features in a minimum viable product Single clear compelling message that states why you are different and worth buying Cant be easily copied or bought Target customers Key activities you measure Path to customers Fixed costs Variable costs Revenue model Lifetime revenue Margins Adapted from Osterwalder,