LIFESTYLE ENTREPRENEURSHIP WEEK 13 : APRIL 13 MBAX 6860 : Bootstrap Tactics for Entrepreneurs LIFESTYLE ENTREPRENEURSHIP April 13, 2007 BOOTSTRAP

OVERVIEW Lifestyle entrepreneurship defined Why a lifestyle business? Benefits & drawbacks Difference between lifestyle entrepreneurship and entrepreneurship Who are lifestyle entrepreneurs? My take on it… Open issues Sales role-playing Week 14 April 13, 2007 BOOTSTRAP

WHAT IS LIFESTYLE ENTREPRENEURSHIP? April 13, 2007 BOOTSTRAP

WHAT IS LIFESTYLE ENTREPRENEURSHIP? “Somebody who goes into business not primarily for financial rewards but for lifestyle reasons.” --Mark Henricks April 13, 2007 BOOTSTRAP

WHY A LIFESTYLE BUSINESS? April 13, 2007 BOOTSTRAP

WHY A LIFESTYLE BUSINESS? Independence! Pursuit of meaningful & fulfilling work Putting family first Children, aging parents, special needs child Work in a desirable locale Make money! (Listed 4th after independence, setting their own priorities, and balancing work & family – Harris poll 1999) April 13, 2007 BOOTSTRAP

BENEFITS TO LE April 13, 2007 BOOTSTRAP

BENEFITS TO LE Being able to control the company Do what you love / live your passion without too much risk Positive cash flow from the beginning Report only to yourself Relatively constant cash flow Take time off whenever you want High flexibility April 13, 2007 BOOTSTRAP

DRAWBACKS TO LE April 13, 2007 BOOTSTRAP

DRAWBACKS TO LE Not being able to hire top talent No options and limited growth No/limited chance for huge gains Long hours…but is this really different than J – O – B? April 13, 2007 BOOTSTRAP

DIFFERENCE BTWN E & LE Main difference = the degree of focus on money, on sales growth and on expansion for expansion’s sake LE’s do not run their business for the financial benefit of others-investors E in high potential companies usually develop product based on tech break-through or raise $ to explore a lucrative opportunity April 13, 2007 BOOTSTRAP

DIFFERENCE BTWN E & LE: ENTREPENEURS Advantages Potential for large ROI Ability to attract outside investors Attract great talent Disadvantages Give up equity/take on large debt Loss of control to investors Long wait to + cash flow April 13, 2007 BOOTSTRAP

WHO ARE LE’s? Burned-out Mid-Careerist Special Lifestyle Needs Money may be good in their jobs, but the lifestyle is not Special Lifestyle Needs Work-at-home moms & dads Ailing parents, disabled family members Laid Off, Downsized or Fired “I can finally do what I really want to do!” April 13, 2007 BOOTSTRAP

MY TAKE ON IT… Determine what you want out of your business!! NOW, create fit between personal goals and business goals Determine your priorities Travel intensity, kids, growth, money, prestige, preferred locale, control, etc April 13, 2007 BOOTSTRAP

MY TAKE ON IT… Lifestyle entrepreneurship can be amazing Better than average income Flexibility and control to choose what you want to do on a regular basis A great quality of life Main drawback = no/limited opportunity for huge gains or equally huge influence for positive change If it’s the right fit for you based on the alignment between your personal and business goals…GO FOR IT! April 13, 2007 BOOTSTRAP

OPEN ISSUES “Different tactics for product vs. service business?” Very few… Service: focus even more on the people side – that, afterall, is what you’re selling! Trade hours for dollars Product: more focus will be dedicated towards operational efficiencies…by necessity… “Easier” growth path opportunities April 13, 2007 BOOTSTRAP

OPEN ISSUES “Learn about the patent process” Key in my experience: filing date! Another unbiased opinion from me: patent system is broke – rather FOCUS on doing it better and quicker…. Resources: http://www.uspto.gov/web/offices/ac/ido/ptdl/pdf_files/step7.pdf http://www.uspto.gov/web/patents/howtopat.htm http://inventors.about.com/od/firststeps/Inventing_101_For_Beginners.htm http://inventors.about.com/library/bl/toc/blusptofaq.htm April 13, 2007 BOOTSTRAP

WEEK 14 Bootstrap Leadership, Course wrap-up Speaker : Barry Hight Readings Tasks Fit for you and lifestyle entrepreneurship or growth entrepreneurship Final study questions : posted on website April 13, 2007 BOOTSTRAP

“Do not follow where the path may lead “Do not follow where the path may lead. Go instead where there is no path and leave a trail.” --Unknown April 13, 2007 BOOTSTRAP

SALES PROCESS Customer Salesperson Uninterested Interested Involved Convinced Committed Opening benefit Investigate Demonstrate Obtain Commitment Get Order April 13, 2007 BOOTSTRAP

SALES ROLE-PLAYING Demo in class Role-play Feedback on: Pair-up 10 minutes 5-7 minute pitch 3-5 minutes of feedback Switch – salesperson becomes customer Feedback on: Overall effectiveness Probing questions Listening Enthusiasm April 13, 2007 BOOTSTRAP