MGMT 588 New Venture Management Week 1

MGMT 588 New Venture Management Understanding self and defining goalsUnderstanding self and defining goals –All authors agree that the entrepreneur’s personal attributes (skills, attitude, etc.) are important to success Timmons & Spinelli’s core principlesTimmons & Spinelli’s core principles –Treat others as you want to be treated –Share the wealth with others –Give back to the community

MGMT 588 New Venture Management The likely truth is that we don’t really know why or how some people are more effective as entrepreneurs because there are a plethora of factors that impact success:The likely truth is that we don’t really know why or how some people are more effective as entrepreneurs because there are a plethora of factors that impact success: Who you areWho you are What you valueWhat you value Your knowledge and skillsYour knowledge and skills Your driveYour drive Who you know and who knows youWho you know and who knows you The market, economy, legal environment…The market, economy, legal environment… LuckLuck …

MGMT 588 New Venture Management We know that new businesses create jobs, create individual wealth, create innovation, increase overall philanthropy, etc. (Timmons & Spinelli, ch. 2)We know that new businesses create jobs, create individual wealth, create innovation, increase overall philanthropy, etc. (Timmons & Spinelli, ch. 2) Can you do what you love, take full ownership, implement your ideas, and have potential for great wealth in any organization?Can you do what you love, take full ownership, implement your ideas, and have potential for great wealth in any organization? New ventures are attractive to many people across ethnicities and gender.New ventures are attractive to many people across ethnicities and gender.

MGMT 588 New Venture Management Six Themes (Timmons & Spinelli, ch. 1) –Commitment and determination –Leadership –Opportunity Obsession –Tolerance of risk, ambiguity, uncertainty –Creativity, self-reliance, adaptability –Motivation to excel

MGMT 588 New Venture Management HBR Questions to ask: Are my goals well-defined? Do I have the right strategy? Can I execute the strategy?

MGMT 588 New Venture Management HBR Are my goals well-defined? What do you have to sacrifice?

MGMT 588 New Venture Management You must be honest with yourself about what you want and what you must do to get it… Wrong: No pain, no gain Better: No aim, no gain Balance strategy setting with getting things done.

MGMT 588 New Venture Management Kawasaki Make meaning – it’s your life Make mantra – constant thoughts (don’t forget the visuals) Get going – thinking realistically and concretely

MGMT 588 New Venture Management Kawasaki Think about your business in terms of needs and serving others – e.g. what you find important, what the world needs, etc. You can make money any number of ways, but you can’t find daily fulfillment in the same number of ways

MGMT 588 New Venture Management Example – Society is changing, what do people need? SSPDirect.com – 2003 Mother/daughter team Myrna and Risa Arin Sell computer hardware that helps seniors use technology (e.g., magnified screens, big keys, etc.) –From: Entrepreneur, May 2006

MGMT 588 New Venture Management Example – I’m really good at it Facebook – 2004, Mark Zuckerberg, a Harvard student (21) programming since the sixth grade Developed online technology for students to use to share all types of information (pictures, profiles, etc). Now available on 2100 college campuses and 22,000 High Schools in the U.S. From: Entrepreneur, June 2006

MGMT 588 New Venture Management Example – I can do this better or different than my employer (and they won’t listen to me) Kayak.com – 2004, Steve Hafner and Paul English Steve Hafner was VP at Orbitz Travel search engine (search only, no products), sells advertising space From: Entrepreneur, June 2006

MGMT 588 New Venture Management Example – A huge part of the market is not being served ColorsNW – 2001, Robert Jeffrey, Jr. Regional (Northwest) magazine on multiculturalism. Sales projected to be $1.2 million in From: Entrepreneur, June 2006

MGMT 588 New Venture Management Example – Those losers fired me Bark Busters Franchise – 2004, Christie Price (54) Former marketing executive dealt with unexpected layoffs by starting over From: Entrepreneur, June 2006

MGMT 588 New Venture Management Example – I like it (it’s important to me) OrganicBouquet.com– 2001, Gerald Prolman (46) Has 27 years experience in natural/organic products industry. Wanted socially and environmentally sound change. Online organic flowers. Pays growers a premium but competitively priced due to low marketing costs. From: Entrepreneur, May 2006

MGMT 588 New Venture Management Kawasaki Define your business model – the process of how your business works from obtaining raw materials to reaching your customers. Draw a business model for a local business you frequent.

MGMT 588 New Venture Management Kawasaki - Weave a MAT Milestone: broad objective such as “reach breakeven” or “finalize product specifications” Assumptions: list those things that you don’t know (with data) but guess/hope/assume Tasks: make a to-do list and do it

MGMT 588 New Venture Management Kawasaki Some notes about the reading: Not academic, see author’s background Be careful who you get feedback from in the beginning

MGMT 588 New Venture Management For next time: Read and understand the assigned readings Type your one-page business idea due next week Please look at Kawasaki, Ch. 1 exercises. Please review T/S, P. 28 Profile