1. Entrepreneurial Manager MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado “Progress depends upon unreasonable men.” GB Shaw

2. Entrepreneurial Manager Today’s Agenda  Entrepreneurial Manager  Case: Crunch  Entrepreneur Interview  Tonight 6:00 Business Plan Competition Whitemyer  NREL trip Feb 2 nd at 2:00

3. Entrepreneurial Manager Entrepreneur Interview  Choose person in an area of interest  3 years in business, 5 employees  See website for assignment & questionnaire  Visit their office or facility  Observe/talk to customers  In depth interview – get beyond the hype and self- promotion  Take one hour after interview to draw conclusions

4. Entrepreneurial Manager Interview Paper  Write a 6-page 1.5 spaced paper  Describes the entrepreneur’s background, motivations for starting the venture, challenges in growing the venture  Evaluates the value proposition (target market, product/service description and unique benefit)  Conclusion: what makes the company successful (or not)? What are your recommendations for improvement?  Discuss how the findings of the interview apply or are meaningful to you. What have you learned about your own potential to be an entrepreneur?  Objective is to drill down into the company and thoroughly understand the entrepreneur and how s/he does business

5. Entrepreneurial Manager  Characteristics & traits  Different types of entrepreneurs  Entrepreneurs vs. small business

6. Entrepreneurial Manager Entrepreneurial Characteristics  Motivated by achievement  Innovation & creativity  Internal locus of control  Risk-taking  Tolerance for ambiguity  Sense of independence  Passion “Traits of entrepreneurs are closest to juvenile delinquents.”

7. Entrepreneurial Manager What Traits Should Be Avoided?  Invulnerability  Being Macho  Being Authoritarian  Impulsivity  Outer control  Perfectionist  Know it all  Counterdepency Timmons: New Venture Creation

8. Entrepreneurial Manager What Assets are Required?  Network  Supporting spouse  Financial resources  Optimism

9. Entrepreneurial Manager What Experience Is Required?  Accounting  Recruiting & hiring  Selling  Financial projections  Cash flow management  Naming a product  Choosing office decor

10. Entrepreneurial Manager Do You Have the Right Stuff?  Are you a self starter?  Can you go 6 months to 2 years without getting paid?  Are you willing to give up vacations, weekends and evenings?  Are you a decision maker?  Are you a people person?  Do you handle rejection well?  Do you think will on your feet?  Do you like to sell?  Do you handle crisis well?  Would you be able to fire someone?  Do you want total responsibility and accountability? MD Csordos, 35 Business Lessons for Entrepreneurs

11. Entrepreneurial Manager Types of Entrepreneurs  Personal achiever  Super-salesperson  Real manager  Expert Idea Generator JB Minor, Four Routes to Entrepreneurial Success

12. Entrepreneurial Manager Personal Achiever (classic entrepreneur)  Need for high achievement  Need for performance feedback  Desire to plan and set goals  Strong individual initiative  Strong personal commitment  Internal locus of control JB Minor, Four Routes to Entrepreneurial Success

13. Entrepreneurial Manager Super-Salesperson (caters to needs of customers)  Capacity to empathize  Social interaction and relationships are important  Need to have strong positive relationships with others  Sales force is critical  Background: less education, more experience JB Minor, Four Routes to Entrepreneurial Success

14. Entrepreneurial Manager Real Manager (grow the venture)  Desire to be corporate leader  Desire to compete  Decisive  Desire of power  Desire to stand out in a crowd JB Minor, Four Routes to Entrepreneurial Success

15. Entrepreneurial Manager Expert Idea Generator (expertise + creativity = innovator)  Desire to innovate  Love of ideas, curious  Belief that new products are crucial  Intelligence is the competitive advantage  Desire to avoid taking risks JB Minor, Four Routes to Entrepreneurial Success

16. Entrepreneurial Manager Types of Entrepreneurs  Personal Achiever  Super-Salesperson  Real Manager  Expert Idea Generator  Are there others?

17. Entrepreneurial Manager Different Methods Used to Build Ventures  Independent innovators  Pattern multipliers – expand concept through franchise or chains  Speculator – buy and leverage, e.g. land  Consolidator – industry roll up  Acquirers  Arbitrageur – buy low and sell high K Vesper, New Venture Strategies

18. Entrepreneurial Manager Entrepreneurship Myths & Realities

19. Entrepreneurial Manager Entrepreneurs Are Born?  100’s of studies: no entrepreneurial prototype  Environment, family and self-development are key  Why are some countries more entrepreneurial than others?  50,000 chunks There is no E gene.

20. Entrepreneurial Manager Entrepreneurs are Gamblers?  May be the most risk adverse business people  Take calculated risks, after careful analysis. Try to  Minimize  Share risks (OPR’s) Entrepreneurs play poker, not slot machines.

21. Entrepreneurial Manager Entrepreneurs Want to Be Their Own Boss?  But, you serve many masters  Customers  Suppliers  Investors & bankers  Partners  Employees and their families  Community  Double-edged sword. Yes you can make your own decisions, but there is no-one telling you what to do.

22. Entrepreneurial Manager Entrepreneurs Are Motivated by Money?  Survey of 500 male entrepreneurs  Money 6th out of 10 reasons  Survey of 113 female entrepreneurs  Money 11th out of 16 reasons  Desire to achieve, make a difference  But, they do like money. Why? Money is a way to keep score

23. Entrepreneurial Manager Why Start a Business?  Money  Job security  Lifestyle  Power  Health  Be your own boss  Joy of Winning  Fame  Values & Beliefs  Get fired

24. Entrepreneurial Manager Entrepreneurs are Lone Wolves?  Stereotype inventor working in his lab  Must have a quality management team  Visionary individual is the key  Entrepreneur can’t do everything  Modify and adapt the vision  It’s fun having people around you that you like Entrepreneurs travel in packs Lone wolf can’t get funding

25. Entrepreneurial Manager Entrepreneurship Requires Lots of Money?  Opportunity driven, not resource driven  Leverage resources: other people’s (OPR’s)  Too much money:  Lack of discipline  Impulse spending Businesses do not fail for lack of money

26. Entrepreneurial Manager Entrepreneurs are Lucky Yes!

27. Entrepreneurial Manager “Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing. What do they deserve? Nothing.” George C. Ballas, inventor of Weed Eater Just Do It

28. Entrepreneurial Manager Next Week’s Class  Entry Strategy  Read BZ-11  Case: ICEDELIGHTS  Feb 2 at 2:00pm NREL visit

29. Entrepreneurial Manager Traits  Misfits: traits of entrepreneurs are closest to juvenile delinquents  I have discovered that all human evil comes from this, man’s being unable to sit still in a room. Blaise Pascal, philosopher and mathematician  “Progress depends upon unreasonable men.” GB Shaw  Entrepreneurs typically work half days. 12 hours  “The greatest difficulty in the world is not for people to accept new ideas, but to forget old ones.” John Maynard Keynes  “If I’m in control, I’m probably going to slow.” Mario Andretti  A man who wants to lead an orchestra must turn his back to the crowd.