Inspiring Entrepreneurship · Entrepreneurial Life Cycle Home Ideal Life Cycle IDEA SEED...
Transcript of Inspiring Entrepreneurship · Entrepreneurial Life Cycle Home Ideal Life Cycle IDEA SEED...
Inspiring Entrepreneurship Creating value through the recognition of business opportunity
Core PMOEntrepreneurial Life Cycle
PHASE IDEA SEED INTRODUCTION GROWTH TRANSITION
Ideal Life Cycle
GO
ALS
Idea
Opportunity
Business models
Business model
Niche and client
Value proposition
Channel
Price
Regular revenues
Acceptable efficiency in operations
Optimize operations
Set up Organization
Scale the business
Company consolidation
Bring Professional Management
RECESSION RENAISSANCE
Temporary Diversions
GO
ALS
Absorb the shock internally
LearningRefocus business model
New business model introduction
Regular revenues
STAGNATION DOWNFALL
Hazard
GO
ALS
Constant SalesMargins shrinkLack of internal energyDependence on
subsidies
Hard to finance WCRHigh StressNegative economic
results
Insp
iring En
trepren
eursh
ip
Core PMO
Framework:
Validation
Mentors
Subject Matter Experts
Third party Market Research
and Survey’s
Own Market Research
Family and Friends
Funds requirement
Minimal or None
Source of funds
Self
Family and Friends
Full time team requirement
Self
Entrepreneurial Life Cycle Home
Ideal Life Cycle
IDEA SEED INTRODUCTION GROWTH TRANSITION
Insp
iring En
trepren
eursh
ip
And few key actions during stage are:
Seek the opportunity behind the idea, and shape it into a rough business model.
Identify and reduce that huge uncertainty.
Learn a lot in both dimensions, deep vertical and wide horizontal.
Market analysis: product, client, rivalry, industry, size, trends (up/down/steady), channel, regulatory, potential new entries
Seek feedback on the idea and the business opportunity, again from trusted people.
The most significant features that describe this stage are listed
below:
Idea Sense
Uncertainty Sacrifice
Informal Public /Private
Austerity Learning
Speed Transition
Goal: Find and define the business opportunity that will allow us to achieve our mission
Entrepreneurial Life Cycle Home
Ideal Life Cycle
IDEA SEED INTRODUCTION GROWTH TRANSITION
Insp
iring En
trepren
eursh
ip
Framework:
Validation
Mentors
Subject Matter Experts
3rd party Market Research
Own Market Research
Family and Friends
Funds requirement
Minimal
Source of funds
Self, Family and Friends
Team requirement
Full time – SELF
Part time – few more
And few key actions during this stage are:
Plan and raise required capital; prefer strategic investors (even if small)
Develop Product – get feedback on your prototypes first
Find and develop Customers (look for friendlycustomers first)
Look for good alliances and partners
Setup advisory board with experts
Incorporate the company
Build an acceptable corporate image
Protect intellectual property
Most significant features of this stage are:
Sense Opportunity
Formal Flexibility
Efficiency Working capital requirement
Vulnerability Heuristic
Validation Dynamism
Goal: Build and validate the business model
Entrepreneurial Life Cycle Home
Ideal Life Cycle
IDEA SEED INTRODUCTION GROWTH TRANSITION
Insp
iring En
trepren
eursh
ip
Framework:
Validation
Mentors
Subject Matter Experts
Third party Market Research
and Survey’s
Own Market Research
Family and Friends
Funds requirement
Minimal or None
Source of funds
Self
Family and Friends
Full time team requirement
Self
And a few key action items in this stage are:
Intensify sales efforts
Distribution channel development
Setup up an organization chart
Main processes definition to back operations
Growth strategy draft
Operational processes optimization
Fluid communication, both formal and informal
Establish internal policies
High attention to quality control and customersatisfaction
Most significant features of this stage are:
Focus Organization chart
Income Planning
Control Growth
Benchmark Efficiency
Goal: Regular income and acceptable efficiency in operations.
Entrepreneurial Life Cycle Home
Ideal Life Cycle
IDEA SEED INTRODUCTION GROWTH TRANSITION
Insp
iring En
trepren
eursh
ip
Framework:
Validation
Mentors
Subject Matter Experts
Third party Market Research
and Survey’s
Own Market Research
Family and Friends
Funds requirement
Minimal or None
Source of funds
Self
Family and Friends
Full time team requirement
Self
And few key actions in this stage are:
List indicators for growth
Name limitations of indicators
Identify growth strategies
Explain implications of expansion
Make recommendations
Suggest methods
Describe management skills
Give reasons for problems
Most significant features of this stage are:
The need to study businesses that are growing
Then nature of growth
The entrepreneurial growth challenge
External growth strategies
Financial, economic and management relatedgrowth indicators
Goal: Manage and measure growth and implement strategies
Entrepreneurial Life Cycle Home
Ideal Life Cycle
IDEA SEED INTRODUCTION GROWTH TRANSITION
Insp
iring En
trepren
eursh
ip
Framework:
Validation
Mentors
Subject Matter Experts
Third party Market Research
and Survey’s
Own Market Research
Family and Friends
Funds requirement
Minimal or None
Source of funds
Self
Family and Friends
Full time team requirement
Self
And few key actions of this stage are:
Public offerings (IPOs)
Trade sales
Management and employee buy-outs and buy-in
Acquisitions, mergers and takeovers
Liquidations, bankruptcies, and write-offs
Most significant features of this stage are:
The first transition begins when one or more persons start to commit time and resources to founding a new firm
The second transition occurs when the gestation process is complete and when the new venture either starts as an operating business or abandon effort
The third transition is the passage from infancy to adolescence – the fledgling new firm's successful shift to an established new firm
Goal: Voluntary (Harvesting) or involuntary (Closure) transition.