Chapter Three The Entrepreneurial Process Chapter Three Dowling BA 560 Fall Term 2006

BA560 Venture Planning Prof. Dowling 2 Entrepreneurship Defined Entrepreneurship—a way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced

BA560 Venture Planning Prof. Dowling 3 Entrepreneurship Results Value: –Creation –Enhancement –Realization –Renewal For: –Owners –Stakeholders –All Participants

BA560 Venture Planning Prof. Dowling 4 Entrepreneurial Requirements Willingness to take risks –Personal –Financial –Calculated Shift the odds of success Balancing risks with rewards

BA560 Venture Planning Prof. Dowling 5 Classic Entrepreneurship: The Startup Raw startup company—an innovative idea that develops into a high growth company Qualities of a startup company –Strong leadership from the main entrepreneur –Complementary talents and outstanding teamwork of team members –Skill and ingenuity to find and control resources –Financial backing to chase opportunity

BA560 Venture Planning Prof. Dowling 6 Exhibit 3.1

BA560 Venture Planning Prof. Dowling 7 Exhibit 3.2

BA560 Venture Planning Prof. Dowling 8 The Entrepreneurial Process It is opportunity driven It is driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on the fit and balance among these It is integrated and holistic

BA560 Venture Planning Prof. Dowling 9 Think Big for Higher Potential Ventures Don’t think too small Smaller often means higher failure odds Getting the odds in your favor Entrepreneurship should not be a job substitute Odds for survival, growth, and a higher level of success, changes when the ventures reaches a size of people with $2-$3 million in revenues

BA560 Venture Planning Prof. Dowling 10 Exhibit 3.3

BA560 Venture Planning Prof. Dowling 11 Exhibit 3.4

BA560 Venture Planning Prof. Dowling 12 Exhibit 3.5

BA560 Venture Planning Prof. Dowling 13 Exhibit 3.6

BA560 Venture Planning Prof. Dowling 14 Exhibit 3.7

BA560 Venture Planning Prof. Dowling 15 Exhibit 3.8

BA560 Venture Planning Prof. Dowling 16 The Entrepreneurial Team An entrepreneurial leader Learns and teaches—faster, better Deals with adversity, is resilient Exhibits integrity, dependability, honesty Builds entrepreneurial culture and organization

BA560 Venture Planning Prof. Dowling 17 The Entrepreneurial Team Quality of the Team Relevant experience and track record Motivation to excel Commitment, determination, and persistence Tolerance of risk, ambiguity, and uncertainty Creativity

BA560 Venture Planning Prof. Dowling 18 Minimize and Control versus Maximize and Own Unleashing creativity Financial resources AssetsPeople Your business plan Think cash last!

BA560 Venture Planning Prof. Dowling 19 Exhibit 3.9 (a)

BA560 Venture Planning Prof. Dowling 20 Exhibit 3.9 (b)

BA560 Venture Planning Prof. Dowling 21 Exhibit 3.9 (c)

BA560 Venture Planning Prof. Dowling 22 Exhibit 3.9 (d)

BA560 Venture Planning Prof. Dowling 23 Entrepreneur’s Fit and Balance Mind-setKnow-how Relevant experience Track record of team Track record of resources Attractiveness of the venture opportunity