Entrepreneurship Barton College 9/24/2012
Why do some people become Entrepreneurs? They become Entrepreneurs for different reasons. – Grasshopper Grasshopper – The Call of the Entrepreneur The Call of the Entrepreneur – Teen Entrepreneurs Teen Entrepreneurs – Stories Stories – More Stories More Stories – Unlikely Entrepreneur Unlikely Entrepreneur – Stanford Series Stanford Series – Champions of Change: Young Entrepreneurs Champions of Change: Young Entrepreneurs
What type of people make GOOD Entrepreneurs?
Steps in Starting a new Business 1.Work in the Industry “before” you start the business; or at least have some experience with the product or service – Take advantage of the many business “incubators” available – Become friends with someone in the industry – READ.. READ….READ…. (Unlike 20 years ago….. Tons of information are available) 2.Discover your personality type & what makes you tick – Myers Briggs (ESFJ) – Be self reflective….(understanding yourself is more important than your aptitude) 3.Business Planning & Staging the Business 1.Idea 2.Proof of Concept 3.Business Plan Marketing Plan [Product (Service), Pricing, Place, Promotion, People (your segment & relationship building)] Legal Formation (Sole proprietorship, LLC, LLP) Product/Service MUST have a Value Proposition (Customer and Company) Financing Plan & Stages of the Financing Plan (Capital Plan) – High Level Budget to detailed Budget with Controls (monitoring) Operational Plan (Who does what and when) Organizational Personnel Plan (becomes more important as the company grows) – Team Building, management roles, compensation, training
High Level View of Entrepreneur Process
Familiar Entrepreneurs
Marketing Plan Should answer the following questions: – Who are our target buyers? – What sources of uniqueness or positioning in the market do we have? Do we have anything that is strategic, novel, or unique? – Where will we implement our marketing spending plans? – When will marketing spending plans occur? – How much sales, spending, and profits will we achieve?
Marketing Plan Elements Situation Analysis Goals and Objectives of your business Opportunity and Issue Analysis Market Strategy Sales and Marketing Plan
Situation Analysis Describe the current “Market Environment” for your product or service. – Who is the competition? – How do they offer or sell their product or service? How do they get this product to market (Channels)
Market Summary Market: past, present, & future – Review changes in market share, leadership, players, market shifts, costs, pricing, competition Early Adopters/ Pioneers Mass Market/ Followers End of Life Time Number of customers
Product Definition Clear state purpose or function of the product or service. Identify its unique selling proposition and value added offered to its potential customers. Identify its target market, consumer profile and competitive arena.
Competition The competitive landscape – Provide an overview of product competitors, their strengths and weaknesses – Position each competitor’s product against new product – SWOT – Stength Weakness, opportunites A B C D Performance Price