1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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