Creating New Businesses

Entrepreneurial Orientation EO refers to the processes, practices, and decision- making styles of organizations that act entrepreneurially. What are the key characteristics of people or organizations that think entrepreneurially? Autonomy Competitive aggressiveness Innovative Proactive Risk-taking

Why be an Entrepreneur? Independence. 38%. Have your voice, Self-expression Passion to create Exciting/Challenging, Want risk Profit Exploit opportunities, fill a need, find a niche Snowed heard a sales pitch Speed to market Social entrepeneurship / intrinsic value Leave a legacy, family business, maintain a legacy Pride, ownership Freedom (escaping a bad situation) Tax benefits As an investment Women entrepreneurs

What prevents people from doing so? Financial insecurity Fear of failure and of the unknown Lack of resources (financial, talent, confidence) Too many ideas/resources (never pulling the trigger) Strong competition Government and red tape Negative influences (friends, social networks) Looking around at others Family obligations (opportunity costs) Complacency Time commitment Don’t want to wear all the hats

Where do ideas come from? Meeting a demand From your current career (50%) Solutions to problems Passion Grad class / education Innovation, new applications & technologies Improving efficiency Other people. other business Inspiration, values Improving llives

Internal vs External Which is better? Why? A. Outside-In. Looking for needs in the marketplace and then relating those opportunities to your own capabilities as an entrepreneur. PESTEL A. Inside-Out. Evaluating your own capabilities and then looking at what new products or services you might be able to offer to the market.

How to Evaluate a New Venture? Current sales How much you are paying yourself Competition When will I see ROI, compared to other owners Looney Tunes projections? Comodity vs value add? Money already spent Product/Service Feaibility Distribution plan Operating agreements, Alliances Resources (capital, PP&E) and what is needed Available market, segmentation of market Launch plan -Personal interest/knowledge -Equity, Decision-making control -Vision/mission -My time -Projected margins -Team, reputation, experience* -Commitment -Risks -Protection -Timing -Threats -Growth rate