Module 6 The Launch Business Plan Intellectual Property Exit Opportunities Ethics Elevator Speech

Review

Opportunity Analysis Entrepreneur Opportunity MarketResources Idea

Entrepreneurship as a Process Identify and Evaluate Opportunity Develop Plan Launch Manage Exit/Harvest Acquire Resources

Business Plans Plan for development Sell idea Raise Capital

Example of Business Plan Title Page Table of Contents Executive Summary Business Description Plan Operating Plan Market Analysis Marketing Plan Exit Strategy Financial Plan

Suggestions Be honest Use third person Avoid redundancies 8 1/2-by-11-inch format Professional appearance Professional external review Proprietary and confidential

Intellectual Property

What is Intellectual Property? PatentsProvides owner the right to exclude others from using TrademarksIdentifies unique source of goods or services CopyrightsProtects original works of authorship

Importance of Intellectual Property Competitive Advantage 1. Limited monopoly 2. Protection from competitors 3. Goodwill/Corporate identity Source of Revenue 1. Licensing 2. Cross licensing 3. VC funding for new ventures

Patents What can be patented 1. Machines 2. Methods of Manufacture 3. Compositions of Matter 4. New Uses 5. Plants What are the requirements 1. Novel 2. Non-obvious 3. Useful

Not Patentable Publicly disclosed more than one year from filing - Used, sold, advertised, displayed, published Already known - anywhere Someone else’s invention Ideas Data

Global Issues International treaties Patent laws vary within countries Patents are country specific Importance of a patent depends on enforcement Strength of the legal system is important

Trademarks Identify source of the goods or services Identify source of the goods or services Prevent confusion about source of goods/services Prevent confusion about source of goods/services Must be followed by the appropriate modifier Must be followed by the appropriate modifier Can be registered by not necessary for protection Can be registered by not necessary for protection Must be used in commerce to be recognized Must be used in commerce to be recognized Registration is based on a field or area of commerce Registration is based on a field or area of commerce Owners must police the use of the mark or risk loosing it Owners must police the use of the mark or risk loosing it

Copyrights Provide protection for original works of authorship Attaches upon fixing in a tangible medium Examples: Literary, Musical and Dramatic works Software Pictures Sound recordings

Protection by Copyright What is not protectable 1. Ideas 2. Factual Information Copyright protects against unauthorized copying, reproduction, distribution, public performance or display Duration: Life of the author plus 70 years

Infringement of Intellectual Property Unauthorized use of patents, trademarks, or copyrights Infringement is a legal issue Litigation is often expensive Owners can collect damages for unauthorized use

Licensing Allows owner of a patent, trademark or copyright to allow others to use and to avoid infringement Licenses grant rights to users in exchange for consideration – –Types of consideration - Payments, such as fees or royalties - Exchange for other goods or rights Assignments: grant of ownership rights

Exit Opportunities Liquidate Business Sell Acquired by Another Firm Employee Buyout Family Transition Go Public

Ethical Decisions You need a $5000 loan to stay in business. If you are 100% truthful, the bank will NOT loan you money and you will go bankrupt. If you don’t tell the bank everything, you will get the loan and be able to stay in business. Oh my … how will your family survive without income from the business!

Ethical Decisions You own a bicycle shop. You told a customer that a bicycle repair would be finished by Friday, but you forgot to do the repair. Do you (1) tell the customer that (1) you forgot or (2) the part needed for the repair is on back-order.

Elevator Speech Define Opportunity Describe product/service Explain Target Customers Describe what is special about product Return on Investment Exit

Examples of Elevator Talks vniarchive.html

E ntrepreneurship Web Resources Generaleweb.slu.edu/businessplan.htm enterpriseforum.mit.edu/ US Governmentwww.sba.gov Otherwww.startupjournal.com/

Why entrepreneurship matters Individual Performance Company performance Community performance State performance National performance Societal quality of life

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