PGDM 6 The Entrepreneurial Process Start Up Factors
PGDM 6 The Entrepreneurial Process Start Up Factors
PGDM 6 The Entrepreneurial Process Start Up Factors
Entrepreneurship definition
Critical factors for start-up
Components of start-ups
Evaluating Opportunities
Ask questions as they come up
Meeting
Today
What is entrepreneurship?
A person who destroys the existing economic order by introducing new
products and services, by creating new forms of organization, or by
exploiting new raw materials - Schumpeter
Someone who perceives an opportunity and creates an organization to
pursue it - Bygrave
Most current:
Spontaneity; Discipline;
opportunism processes
Start-up Stats
Opportunity Driven
Opportunity
The Opportunity
Opportunity Driven
Opportunity
The Opportunity
Opportunity
Life Cycle
100M
50M
y
ni t
r tu
25M
po
op
of
ow
nd
3M
Wi
Opportunity Driven
Opportunity Driven
Opportunity
The Opportunity
Evaluating an opportunity = The 3 M’s
#1 Market demand – value proposition, name potential
customers
#2 Market size and structure - $100m+, emerging or
fragmented (not perfectly competitive)
#3 Margin Analysis – 40%gm
Understand and use Resources
Unleash creativity
Resources
.
Resources
Fortune 500 start-up capital
25% less than Rs5,000
50% less than Rs25,000
75% less thanRs$100,000
Fewer than 5% began with more than Rs1 million
Entrepreneur
Entrepreneurial Team Characteristics
Tolerance of risk and Communicators
ambiguity Commitment and
Motivation to excel determination
Leadership Team locus of control
Creativity Adaptability
RELEVANT EXPERIENCE
AND
OPPORTUNITY OBSESSION
Entrepreneur and Management Team
Relevant industry experience
Getting involved in something you love to do
Passion!
Entrepreneur Characteristics
Burning desire to achieve - getting out there
Internal locus of control - I control my destiny
10 D’s
Dream, Decisiveness, Doers, Determination, Dedication, Devotion,
Details, Destiny, Dollars, Distribute
Critical factors for start-ups
#1 Opportunity
#2 Entrepreneur
#3 Resources
The Timmons Model: EOR
Uncertainty
Opportunity Entrepreneur
Business Plan
Fits & Gaps
Uncertainty Uncertainty
Resources
Uncertainty
How do I use the model?
Opportunity
Entrepreneur
Business Plan
Fits & Gaps
Resources
“If I am in control, I’m
probably moving too slow!”
- Mario Andretti