Venture Planning Chapter 1 Dowling BA 560 Fall Term 2006

The Entrepreneurial Mind Lead entrepreneurs who find and seize opportunities and grow higher potential ventures do things differently. They are anchored by attitudes and behaviors and by the “chunks” of experience, skills, know-how, and contacts they possess.

The Entrepreneurial Mind The successful entrepreneur is a visionary who participates in the day-to-day routine to achieve a long- term objective and who is generally passionate and not exclusively profit- oriented.

The Entrepreneurial Mind Successful entrepreneurs share three common traits: Perseverance A builder’s mentality A strong propensity for taking calculated risks

The Entrepreneurial Mind Traits like initiative, a willingness to take charge, perseverance, and adaptability are not enough. Successful entrepreneurs get that way because of WHAT THEY DO.

The Entrepreneurial Mind The Fit Concept What is required in any situation depends on the mix and match of the key players and how promising and forgiving the opportunity is, given the founders’ strengths and shortcomings.

Six Dominant Themes Commitment & determination Leadership Opportunity obsession Tolerance of risk, ambiguity and uncertainty Creativity, self-reliance and ability to adapt Motivation to excel

Six Dominant Themes Total commitment is required by almost all entrepreneurial ventures. Entrepreneurs live under constant pressures for their firms to start up, then survive, then grow. Commitment & Determination

Six Dominant Themes Leadership Successful entrepreneurs are experienced, including having knowledge of the technology and marketplace. They are patient leaders, capable of installing tangible visions and managing for the longer haul. They actively build a team.

Successful entrepreneurs are obsessed – with opportunity. Opportunity obsession Six Dominant Themes Entrepreneurs get others to share inherent financial and business risks with them. Tolerance of risk, ambiguity, uncertainty

The high levels of uncertainty and very rapid rates of change that characterize new ventures require highly adaptive forms of organization – ones that can adapt and change rapidly. Entrepreneurs aren’t afraid of failing; rather, they are more intent on succeeding. Creativity, self-reliance and ability to adapt Six Dominant Themes

Motivation to excel: Entrepreneurs… Set High Goals. Selectively sort out opportunities. Use goals to define priorities and as means to measure progress. Insist on highest standards of integrity and reliability.

Six Dominant Themes Do you agree with the following statement? “Entrepreneurs have a low need for status and power, and they derive personal motivation from the challenge and excitement of creating and building enterprises. They are driven by a thirst for achievement, rather than by status and power.”

The Entrepreneurial Mind Desirable Attitudes and Behaviors Energy, health & emotional stability Creativity & innovativeness Intelligence Capacity to inspire Values

Shaping Entrepreneurial Careers 10 or more years of experience Built contacts Know-how: An established track record in the industry, market and tech niche Intimate knowledge of customer, distributors and marketing experience. Enough net worth to contribute to the venture or enough experience to win the confidence of investors.

The Entrepreneurial Mind Lemons & Pearls Seven years is a realistic time frame to expect to grow a higher potential business to a point where a capital gain can be realized.

The Entrepreneurial Mind Entrepreneur’s Creed Make opportunity and results your obsession – not money. Make heroes out of others – a team builds a business; an individual makes a living.