Entrepreneurship

Agenda
What should you expect to learn

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An Opportunity
An Idea
Gut feel

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What is entrepreneurship?

Entrepreneurship
Strategic thinking and risk-taking behavior that
results in the creation of new opportunities for
individuals and/or organizations.
Entrepreneurs
Risk-taking individuals who take actions to
pursue opportunities and situations others may
fail to recognize or may view as problems or
threats.
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Study Question 1: What is entrepreneurship?

Entrepreneurs are
People who introduce a new product or
operational change in an existing organization.
Person conducting own business (Webster)
Person who sets up business deals in order to
make profits (Collins Cobuild)

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 Definition
Capacity and willingness to

Conceptualize Organize Manage

a productive venture with all the attendant risks,

while seeking profit as a reward.
 Entrepreneurs Young Bill Gates at
work!
Are people who launch and
run their own businesses.
When they start out, they
must perform many of the
basic functions that
professional managers Bill Gates still at
perform. work!
As their companies grow,
sometimes, they hire
professional managers.
Inventors & Entrepreneurs
Entrepreneurs are not
same as inventors...
Inventor might only
create a new product.
An entrepreneur will
Alexander Graham Bell gather resources,
organize talent, and
provide leadership to
make it a commercial
success
 WHY
Fire in the belly
You come from a line of people who couldn't
work for someone else
You're a lousy employee.
You see more than one definition of "job
security
You've gone as far as you can go, or you're not
going anywhere at all.
You've done the market research already
You've got the support of your family.
You know you cannot do it alone
Personal traits and characteristics of
entrepreneurs.

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 Wear an Entrepreneurs hat

Business idea Let us think of a Business idea.

Describe the business (products/ services) in detail
Market opportunity What is the market opportunity for this business ?
Sales potential, Target customers, Competition, Price
How to monetize the business idea?
How to capitalize on the market opportunity and generate
Business plan growing and sustainable revenues and profits?
What resources do we need for the business ?
Capital, Skills, Facilities, Equipment etc.
Risks and concerns What are the risks involved in the business?
Foresee and identify the risks to the business. Think of
methods to hedge against these risks.
 Ideation Pain Points

If its your own chances are you will go

complaining about it
Do something about your pain point(Job Portal)
Wait for others to do something ( Traffic and
delay in reaching airport)

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 Pleasure Point

Want to make money from what gives me

pleasure( Sound engineer, musician and
event organizer) Live Gig

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 Aspirational Point
Tulleeho.com(combination of old hunting
cry Tully Ho and Hindi word Tullee)-
everything about spirits, products, trends,
news, places and like.
Do we know the difference between wine
tulip and champagne flute?
Do we know how to make mouth watering
cocktail?
How to serve wine with a particular
cuisine?
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 Situational
All people living in Maharashtra close to
sugarcane fields have known for years that
because of the distance between home and
fields, switching the irrigation systems on
and off is challange
Nano Ganesh(by Santosh Jain): An
application that sits on your mobile in the
form of a button
Farmers can now operate their irrigation
systems without wasting energy 15
 People First

Normally : First the idea and then hire a

team
HP had a different take-put good people
first and they would create great producty
Ex: SGI to Netscape(James Clark and Mark
Andreeson)

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 Idea Extension

When mobile technology was new in India,

you could go to your nearby store and have
your card recharged
Extention of this technology by Eko India-
to bring banking to rural India, more than
100,000 villagers operating their bank
accounts thro mobiles

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 Far-Sightedness
In 1940s, Edwin land had gone for a weekend to
hills with 5 yrs daughter. Everytime he clicked
pictures of her, she ran up screaming show me, I
want to see it.
He used to say it will take 36 exposures of the
films to show you and She asks why cant I see
now?
That made him think , why cant camera produce
instant pictures?
A birth of POLAROID.
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 Cause-Crusader
Naandi Foundation(1998)- One of the fastest
growing social sector Org. Objective: Make
Poverty , a history in India
Feeds 1.2 mn hungry children every day, provides
safe drinking water to 3 mn people everyday, runs
1726 schools, works with 12,000 adivasi farmers
to export over a mn kg of coffee
B2G model where they convince the govt to
outsource all initiatives to them for a fee and
turnover..Rs 100 Cr.

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 Serendipity
During great depression of 1930s, Earl Silas
Tupper worked in plastic Factory in Massachusetts
There was a by product called Slag which was
nothing but an evil-smelling greasy white
petroleum waste
One fine day- Slag could actually be converted
into a nice translucent plastic which was not
brittle, smelly or breakable. It did not lose the
shape nor react to hot or cold
A birth of TUPPERWARE!
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 Culture

Young couple(Dheeraj and Reena Gupta) in

2001 in Mumbai decided to create an iconic
brand of a local food Vada Pav
They applied the successful western fast
food model to this immensely popular local
snack food- 43 outlets, 40k customers,
turnover Rs 20 Cr.

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Myths on entrepreneurship?

Common myths about entrepreneurs:

Entrepreneurs are born, not made.
Entrepreneurs are gamblers.
Money is the key to entrepreneurial success.
You have to be young to be an entrepreneur.
You must have a degree in business to be an
entrepreneur.

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Eight reasons why many small businesses fail.

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How to become Entrepreneur
Take up challenge
Look for idea and be rational
Start small
Leave Secure Job ?
Have a backup plan

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How does one start a new venture?

Important issues in new tech venture creation:

Does the entrepreneur have good ideas and the courage to give
them a chance?
Is the entrepreneur prepared to meet and master the test of strategy
and competitive advantage?
Can the entrepreneur identify a market niche that is being missed
by other established firms?
Can the entrepreneur identify a new market that has not yet been
discovered by existing firms?
Can the entrepreneur generate first-mover advantage by exploiting
a niche or entering a market before competitors?
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Study Question 3: How does one start
a new venture?
Questions that keep a new tech venture focused on its
customers
Who is your customer?
How will you reach key customer market segments?
What determines customer choices to buy or not buy your
product/service?
Why is your product/service a compelling choice for the customer?
How will you price your product/service for the customer?
How much does it cost to make and deliver your product/service?
How much does it cost to attract a customer?
How much does it cost to support and retain a customer?

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Stages in the life cycle of an entrepreneurial
firm.

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How does one start a new venture?

Basic items that should be included in a business plan:

Executive summary
Industry analysis
Company description
Product and services description
Market description
Marketing strategy
Operations description
Staffing description
Financial projection
Capital needs
Milestones
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How does one start a new venture?

Forms of legal ownership

Sole proprietorship
Partnership
General partnership
Limited partnership
Limited liability partnership
Corporation
Limited liability corporation (LLC)

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How does one start a new venture?

Financing the new venture

Sources of outside financing
Debt financing
Equity financing
Equity financing alternatives
Venture capitalists
Initial public offerings
Angel investors
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