Building a World Class Entrepreneurship Program

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This Talk is Based OnBusiness Model GenerationFour Steps to the Epiphany

The Lean Startup

First -What’s A Startup?

Six Types of Startups

Startup

Lifestyle Startups Work to Live their Passion

• Serve known customer with known product

• Pay for their passion

Small BusinessStartup

Small Business StartupsWork to Feed the Family

• Serve known customer with known product

• Feed the family

Small BusinessStartup

Exit Criteria- Business Model found- Profitable business- Existing team< €100K in revenue

Small Business StartupsWork to Feed the Family

• known customer known product

• Feed the family

Small BusinessStartup

- Business Model found- Profitable business- Existing team< $10M in revenue

Small Business Startups

• 5.7 million small businesses in the U.S. <500 employees

• 99.7% of all companies

• ~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf

ScalableStartup

Large Company

Scalable Startup

Goal is to solve for: unknown customer and

unknown features

Search

ScalableStartup

Large Company

Exit Criteria- Business model found- Total Available Market > €300m- Can grow to €50/year

Scalable StartupBorn to Be Big

Search Execute

ScalableStartup

Large Company

- Total Available Market > $500m- Company can grow to $100m/year- Business model found- Focused on execution and process- Typically requires “risk capital”

Scalable Startup

• In contrast a scalable startup is designed to grow big• Typically needs risk capital• What Silicon Valley means when they say “Startup”

Search Execute

ScalableStartup

Large CompanyTransition

Founders depart- Operating executives- Professional Mgmt- Process- Beginning of scale

The Transition – Founders Leave

BuildSearch Execute

ScalableStartup

€3 to 30M Acquisition

Buyable StartupBorn to Be Big

Goal is to solve for: Internet, Mobile, Gaming Apps

Search Sell

ScalableStartup

€3 to e0M Acquisition

Buyable Startup

Goal is to solve for: Internet and Mobile Apps

Search Sell

Sell to larger company

ScalableStartup

Large Company

- Business Model found- i.e. Product/Market fit- Repeatable sales model- Managers hired

What’s A Startup?

A Startup is a temporary organization used to search for a repeatable and scalable business model

Search Execute

Transition Large Company

ScalableStartup

Sustaining Innovation

• Existing Market / Known

customer• Known product feature needs

Large Company Sustaining InnovationInnovate or Evaporate

Large Company Disruptive Innovation

New Division Transition Large

Company

Disruptive Innovation• New Market• New tech, customers, channels

Large Company Disruptive Innovation

New Division Transition Large

Company

Disruptive Innovation• Build• Acquire - IP - Talent - Product - Customers - Business

Large Non-Profit

Social Startup

Social Entrepreneurship Startups

• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies

Each of these startups require different skills

They Can Not Be Taught the Same Way

ScalableStartup

Large CompanyTransition

Business School Versus Entrepreneurship School

Entrepreneurship School

- Hypothesis testing- Business Model design- Customer Development- Agile Development- Metrics- Venture Finance- Design Thinking

- Execution- Accounting- Products- Engineering- Management- Administrative

Business School

ScalableStartup

Large CompanyTransition

Courses- Lean Launchpad- Customer/Agile Development- Business Model Design- Entrepreneurial Management- Creativity and Innovation- Entrepreneurial Finance- User-centric design

Business School

Business School Versus Entrepreneurship Courses

Entrepreneurship School

Courses- Managerial Finance/Accounting- Managing Groups and Teams- Financial Accounting- Operations- Modeling for Optimization- Global Value Chain Strategies

ScalableStartup

Large CompanyTransition

Courses- Lean Launchpad- Customer/Agile Development- Business Model Design- Entrepreneurial Management- Creativity and Innovation- Entrepreneurial Finance- User-centric design

Business School

Business School Versus Entrepreneurship Courses

Entrepreneurship School

I teach this

E-School

• 20th century focus on physical goods

• East coast manufacturing-centric

• East coast B-School-centric

• 21st century focus on virtual and physical goods and channels

• West coast engineering school-centric

One More Thing

Adopted by the U.S. Government

Thanks

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