Introduction to Entrepreneurship

Introduction to Entrepreneurship
Chapter 1 Introduction to Entrepreneurship Bruce R. Barringer R. Duane Ireland Copyright ©2016 Pearson Education, Inc.

Introduction to Entrepreneurship
According to the 2013 GEM study, 12.7% of Americans are actively engaged in starting a business or are the owner/manager of a business that is less than three years old. There is tremendous interest in entrepreneurship in the U.S. and around the world. Copyright ©2016 Pearson Education, Inc.

Indications of Increased Interest in Entrepreneurship
Books Amazon.com lists over 36,900 books dealing with entrepreneurship and 89,900 focused on small business. College Courses In 1985, there were about 250 entrepreneurship courses offered across all colleges in the United States. Today, more than 2,000 colleges and universities in the United States (which is about two-thirds of the total) offer at least one course in entrepreneurship. Copyright ©2016 Pearson Education, Inc.

What is Entrepreneurship?
Academic Definition (Stevenson & Jarillo) Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. Venture Capitalist (Fred Wilson) Entrepreneurship is the art of turning an idea into a business. Explanation of What Entrepreneurs Do Entrepreneurs assemble and then integrate all the resources needed – the money, the people, the business model, the strategy – to transform an invention or an idea into a viable business. Copyright ©2016 Pearson Education, Inc.

Corporate Entrepreneurship 1 of 2
Is the conceptualization of entrepreneurship at the firm level. All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial. The position of a firm on this continuum is referred to as its entrepreneurial intensity. Copyright ©2016 Pearson Education, Inc.

Corporate Entrepreneurship 2 of 2
Entrepreneurial Firms Conservative Firms Proactive Innovative Risk taking Take a more “wait and see” posture Less innovative Risk averse Copyright ©2016 Pearson Education, Inc.

Why Become an Entrepreneur?
The three primary reasons that people become entrepreneurs and start their own firms Desire to be their own boss Desire to pursue their own ideas Financial rewards Copyright ©2016 Pearson Education, Inc.

Characteristics of Successful Entrepreneurs 1 of 3
Four Primary Characteristics Copyright ©2016 Pearson Education, Inc.

Passion for the Business The number one characteristic shared by successful entrepreneurs is a passion for the business. This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives. Product/Customer Focus A second defining characteristic of successful entrepreneurs is a product/customer focus. An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople. Copyright ©2016 Pearson Education, Inc.

Tenacity Despite Failure Because entrepreneurs are typically trying something new, the failure rate is naturally high. A defining characteristic for successful entrepreneurs is their ability to persevere through setbacks and failures. Execution Intelligence The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs. Copyright ©2016 Pearson Education, Inc.

Different Stories

A great generation Palestine-Jordan

Common Myths About Entrepreneurs 1 of 7
Myth 1: Entrepreneurs Are Born, Not Made This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. The consensus of many studies is that no one is “born” to be an entrepreneur; everyone has the potential to become one. Whether someone does or doesn’t become an entrepreneur is a function of their environment, life experiences, and personal choices. Copyright ©2016 Pearson Education, Inc.

Although no one is “born” to be an entrepreneur, there are common traits and characteristics of successful entrepreneurs A moderate risk taker Persuasive Promoter Resource assembler/leverager Creative Self-starter Tenacious Tolerant of ambiguity Visionary Optimistic disposition A networker Achievement motivated Alert to opportunities Self-confident Decisive Energetic A strong work ethic Lengthy attention span Copyright ©2016 Pearson Education, Inc.

Myth 2: Entrepreneurs Are Gamblers Most entrepreneurs are moderate risk takers. The idea that entrepreneurs are gamblers originates from two sources: Entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than people in traditional jobs. Many entrepreneurs have a strong need to achieve and set challenging goals, a behavior that is often equated with risk taking. Copyright ©2016 Pearson Education, Inc.

Myth 3: Entrepreneurs Are Motivated Primarily by Money While it is naïve to think that entrepreneurs don’t seek financial rewards, money is rarely the reason entrepreneurs start new firms. In fact, some entrepreneurs warn that the pursuit of money can be distracting. Copyright ©2016 Pearson Education, Inc.

Myth 4: Entrepreneurs Should Be Young and Energetic Entrepreneurial activity is fairly easily spread out over age ranges. While it is important to be energetic, investors often cite the strength of the entrepreneur as their most important criteria in making investment decisions. What makes an entrepreneur “strong” in the eyes of an investor is experience, maturity, a solid reputation, and a track record of success. These criteria favor older rather than younger entrepreneurs. Copyright ©2016 Pearson Education, Inc.

Myth 5: Entrepreneurs Love the Spotlight While some entrepreneurs are flamboyant, the vast majority of them do not attract public attention. As evidence of this, consider the following question: “How many entrepreneurs could you name?” Most of us could come up with Jeff Bezos of Amazon.com, Mark Zuckerberg of Facebook, Steve Jobs of Apple, and maybe Larry Page and Sergey Brin of Google. But few could name the founders of Twitter, YouTube, Netflix, or DIRECTV, even though we frequently use those firms’ services. Copyright ©2016 Pearson Education, Inc.

Types of Start-Up Firms

Changing Demographics of Entrepreneurs 1 of 4
Women Entrepreneurs While men are more likely to start businesses than women, the number of women-owned businesses is increasing. There were 8.6 women-owned businesses in the United States in 2013, generating over $1.3 trillion in revenue and employing nearly 7.8 million people. In some industries, women control a significant share of the business. Women-owned businesses account for 52% of all businesses in health care. Copyright ©2016 Pearson Education, Inc.

Minority Entrepreneurs There has been a substantial increase in minority entrepreneurs in the United States. Between 2002 and 2007 (the most recent statistics available), minority-owned firms outpaced the growth of non-minority firms in gross receipts, employment, and number of firms. In 2007, there were about 1.9 million African American-owned firms in the United States, 1.5 million Asian American-owned firms, and 2.3 million Hispanic-owned firms. Copyright ©2016 Pearson Education, Inc.

Senior Entrepreneurs The numbers of seniors (those 50 years old and older) starting businesses is substantial and growing. In 2012, 20% of new businesses were started by people between 50 and 59 years old, while another 12.5 percent were founded by individuals 60 years old and older. This increase is attributed to corporate downsizing, an increasing desire among older people for more personal fulfillment in their lives, growing worries about the cost of health care, and similar factors. Copyright ©2016 Pearson Education, Inc.

Young Entrepreneurs A desire to pursue an entrepreneurial career is high among young people. According to a recent Gallop survey, about 4 in 10 kids in grades 5-12 say they plan to start their own business. About 59% of students in grades 5-12 say their school offers classes in how to start a business. About one-third of young people say their parents or guardians have started a business, which provides them a firsthand look at the entrepreneurial lifestyle. Copyright ©2016 Pearson Education, Inc.

الانطربرنور الصغير (الحلقة الأولى)
©الحقوق محفوظة خرابيش. اليوم الأول

السمات الريادية تحديد الهدف السعى للحصول على المعلومات
التخطيط المنتظم الإقناع وخلق الصلات الثقة بالنفس الانتباه للفرص المواظبة (الاستمرارية والمثابرة) الالتزام بالعمل الاهتمام بالجودة والكفاءة المجازفة (المحسوبة) اليوم الأول

مقارنة بين الريادة والوظيفة
نشاط 2: يقوم المتدربين بتحديد ايجابيات وسلبيات الريادة والوظيفة

ايجابيات الريادة انت مدير نفسك – القرار لك وحدك
جميع الأرباح لك انت،لا حدود للثروة شهرة محلية وربما عالمية علاقات اجتماعية واسعة ودور اجتماعي مميز زيادة الثقة بالنفس خاصة مع النجاح والتقدم بالمشروع الفرصة لأخذ دور قيادي في فريق العمل النجاح سوف يشعرك بالارتياح كبير اليوم الأول

تحديات الريادة 1/2 عدم استقرار الدخل مسؤوليات كاملة
مستوى معيشي اقل في البدايات قد تصاب احيانا بالاحباط من التحديات كل الخسائر هي خسائرك اليوم الأول

تحديات الريادة 2/2 ساعات عمل طويلة ومضنية
معاناة من ضغوط العمل وانعكاس ذلك على الحياة الاجتماعية المخاطرة

ايجابيات الوظيفة انتظام الراتب العمل الروتيني لا يحتاج الى جهد كبير
عدم الحاجة لأخذ قرارات مصيرية الراحة المرتبطة بساعات عمل محددة الاستقرار بالمهنة الارباح والخسائر لا تؤثر على الموظف اليوم الأول

تحديات الوظيفة تعمل لإنجاح وارباح شركة غيرك
قوانين صارمة وساعات عمل محددة عمل روتيني وفرص قليلة للتطور اعتماد رئيسي على الدخل الشهري والزيادة السنوية الموظف ليس صاحب قرار تعمل جاهداً ولا تأكل من ما تزرع اليوم الأول

حالة دراسية Dropbox, Maktoob, Bey2ollak – Successful startup that solved a problem اليوم الأول

- حالة دراسية Jawaker, YaMsafer, SuperMama - Any other Palestinian / Arab success stories / jops.ps / اليوم الأول

حالة دراسية Facebook/ Instagram / Global successes (created value)
اليوم الأول

عناصر نجاح الريادي ومشروعه الناشئ
عناصر نجاح الريادي ومشروعه الناشئ ان يكون له هدفا واقعيا قابل للتحقيق وجود ادارة مرنة وجود فريق عمل جيد ومدرب باحتراف ادارة جيدة للموارد المتوفرة والمتاحة قدرةعل المنافسة ادارة مالية ومحاسبية جيدة ودقيقية Successful factors of startups اليوم الأول

المجازفة اليوم الأول

سمة المجازفة لدى الريادي
العمل الريادي يتطلب المجازفة، الريادي يدرك أن: المجازفة المدروسة تعني عائدات عالية. عليه تحمل كافة المسؤولية عن المجازفات التي يقوم بها. المجازفة تتمثل بتحقيق الأهداف.

أنواع المجازفة 2/1 يواجه الريادي أربعة أنواع من المجازفة:
المخاطر المالية: يقوم معظم الرياديين بتمويل مشاريهم الخاصة من ادخاراتهم الشخصية، فاذا فشلوا، فانهم بالتالي يخسرون كافة مدخراتهم واموالهم، فالريادي يقوم بالمجازفة باستعماله هذه الأموال في سبيل نجاحه. الخطر الوظيفي: إن الرياديين يعيشون المجهول يوما بعد يوم، فهم معرضون لخطر الفشل بأي لحظة، ولكنهم لا يخوضون في كل انواع المخاطر، فهم ينظرون الى المجازفة بعقلانية. فهذا يعني أن الرياديين يدرسون الفكرة جيدا ويقدرون نسبة المجازفة فيها قبل المضي بأي أمر كان.

أنواع المجازفة 2/2 المخاطر الاجتماعية والأسرية: يتعرض الريادي للضغوطات من قبل العائلة. حيث يقضي الريادي معظم وقته في العمل، مما يؤدي الى تغيبه المستمر عن بيته وعائلته واصدقائه. المخاطر النفسية: يتعرض الرياديين للكثير من الضغوطات المختلفة والقلق التي تؤثر سلبا على حياة الريادي.

Economic Impact of Entrepreneurial Firms
Innovation Is the process of creating something new, which is central to the entrepreneurial process. Small innovative firms are 16 times more productive than larger innovative firms in terms of patents per employee. Job Creation Small businesses create a substantial number of net new jobs in the United States. Firms with 500 or fewer employees create 65% of new jobs on an annual basis. Copyright ©2016 Pearson Education, Inc.

Entrepreneurial Firms’ Impact on Society and Larger Firms
The innovations of entrepreneurial firms have a dramatic impact on society. Think of all the new products and services that make our lives easier, enhance our productivity at work, improve our health, and entertain us in new ways. Impact on Larger Firms Many entrepreneurial firms have built their entire business models around producing products and services that help larger firms become more efficient and effective. Copyright ©2016 Pearson Education, Inc.

Why Entrepreneurship is a top Priority for Palestine?
since human resources is the only and unique capital. Palestinians economy is struggling to succeed with especially among fresh graduated students. Worldwide entrepreneurship is considered one of the promising solution for this problem. It offers the opportunity to create large number of jobs within few years. This will leads to economic sustainable development and growth.

opportunities and challenges that encounter
entrepreneurship in Palestine : Creating a startup in Palestine is not easy task. Key success ingredients that are either lacking or difficult to find. Opportunities: Market needs, ideas and proposition to fill them Motivated entrepreneurs Political readiness to support Capital needed to get them on the right track. Yet, we believe that Palestine possesses many of the key factors to success. Challenges: Right mindset Right capabilities Good ideas Mentorship and guidance Support for strategy, business model, technology, and product development Clients, industry, service providers, and investors relationships seed stage capital and investor awareness and many other issues

The Entrepreneurial Process
The Entrepreneurial Process Consists of Four Steps Step 1: Deciding to become an entrepreneur. Step 2: Developing successful business ideas. Step 3: Moving from an idea to an entrepreneurial firm. Step 4: Managing and growing the entrepreneurial firm. Copyright ©2016 Pearson Education, Inc.

Steps in the Entrepreneurial Process 1 of 2
Developing Successful Business Ideas Copyright ©2016 Pearson Education, Inc.

Steps in the Entrepreneurial Process 2 of 2

Recognizing Opportunities and Generating Ideas
Chapter 2 Recognizing Opportunities and Generating Ideas Bruce R. Barringer R. Duane Ireland Copyright ©2016 Pearson Education, Inc.

What is an Opportunity? 1 of 2
An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business. Opportunity Defined Copyright ©2016 Pearson Education, Inc.

What is an Opportunity? 2 of 2
Four Essential Qualities of an Opportunity Copyright ©2016 Pearson Education, Inc.

Three Ways to Identify an Opportunity

تحديد المشاكل 4/1 العمل على البحث في الأمور التالية:
الأشياء التي تزعجك. الأمور التي تزعج اقربائك أو اصدقائك أو تمنع الآخرين من فعل ما يريدون ومتى يشاؤون. التطور في مجالي العلوم والتكنولوجيا. البحث عن المشاكل التي تحتاج الى حل: السكان، المجتمع، التكنولوجيا، العلوم، السياسة.

تحديد المشاكل 4/2 استخدام أسئلة "ماذا لو" ( (What if questions.
التلاعب بالأفكار وتحدي القواعد المتعلقة بالمشكلة )مثلاً، تخيل أن تكون ساحراً أو أن تكون طفل وتصنع الخيال.( الغموض والبحث عن احتمالات (مثلاً، القلم هو ما يستخدم للكتابة ولكن من الممكن استعماله ايضا كمؤشر، أو كسلاح أو غيره). البحث عن أفكار في مجالات متنوعة وتطبيقها في المجالات التي تثير اهتمامك. اليوم الأول

3/4 SCAMPER - Substitute Combine Adapt Modify Eliminate Re-arrange
استبدال : فكر في استبدال جزء من المنتج / الخدمة ، من يبحث عن استبدال شئ عادتاً ينتج أقكار جديدة Combine دمج : فكر في دمج جزء أو أكثر من العملية أو الخصائص لتحقيق منتج أو خدمة جديدة أو لتحقيق تازر (Synergy) Adapt تكييف : فكر في أي جزء من المنتج أو الخصائص يمكنك تكييفها يمكنها تغيير طبيعة المنتج /العملية Modify تعديل / تشويه : فكر في تعديل كل أو جزء الوضع الراهن، من خلال ذلك تجبر نفسك على انتاج طرق جديدة للعمل Put to other purposes استخدام المنتج لأغراض أخرى: فكر كيف يمكنك استخدام المنتج / العملية / الوضع الحالي لأغراض أخرى – أو اعادة استخدامها في أي مكان أخر Eliminate القضاء : فكر في ما يمكنك التخلص منه أو القضاء عليه من منتجك لتجعله مختلفاً أو أفضل / أقل تكلفة / أبسط Re-arrange إعادة ترتيب : كيف يمكنك اعادة ترتيب منتجك أو العملية لجعلها مختلفة أو أفضل اليوم الأول

المحقان Macro screening Micro screening المعايير الكلية
المعايير الجزئية افضل فكرة مشروع 10 افكار مشاريع 3 افكار مشاريع فكرة المشروع فكرة العصف الذهني Macro screening Micro screening

وصل النقاط (Triangles)
أوصل جميع النقاط الست عشرة التي تظهر في شكل مربع بواسطة رسم ستة خطوط مستقيمة على ألا ترفع القلم عن الورقة.  يمكن حل التمرين بستة أشكال مختلفة على الأقل Activity 5 اليوم الأول

الإبداع يجب ان نأخذ بعين الإعتبار النقاط التالية عن الإبداع:
الإبداع ليس بالفطرة فقط - بل هو قابل للتعلم. الإبداع بحاجة الى بيئة مناسبة وبحاجة الى دعم ممن هم حول المبدع.

متى يكون الريادي قادر على الابداع؟
في اقصى الحالات التي من الممكن أن يعيشها: عندما يكون متعبا عندما يكون في راحة تامة عندما يكون تحت الضغط وقت اللعب عندما يكون في عطلة عند ممارسة التمارين الرياضية عادة عندما يقوم بشيء مختلف وخارج عن الروتين اليومي الذي يقوم به

جمل وكلمات قاتلة للإبداع
هذا ليس جديدا بالمرة، وين الجديد في الامر! لماذا علينا فعلها بهذه الطريقة، لطالما تعودنا على فعلها بطريقة أخرى! هذا لا يمكن أن ينجح! لا يوجد لدينا امكانيات لتنفيذ ذلك. إذا أردنا أن نفعل هذا، ذلك يعني أن علينا أن نغير كل شيء! أنت لست مسؤولا عن هذا! كمختص وخبير يمكنني أن أخبرك.. لم يقم أحد قبلك بمثل هذا ولذلك من المحتمل أن لا تنجح. اذا كنت لا ترغب في ذلك، يمكنك أن تغادر!

First Approach: Observing Trends 1 of 2
Trends create opportunities for entrepreneurs to pursue. The most important trends are: Economic forces Social forces Technological advances Political and regulatory change It’s important to be aware of changes in these areas. Copyright ©2016 Pearson Education, Inc.

First Approach: Observing Trends 2 of 2
Environmental Trends Suggesting Business or Product Opportunity Gaps Copyright ©2016 Pearson Education, Inc.

Trend 1: Economic Forces
Example of Economic Trend Creating a Favorable Opportunity Economic trends help determine areas that are ripe for new start-ups and areas that start-ups should avoid. A weak economy favors start-ups that help consumers save money. An example is GasBuddy.com, a company started to help consumers save money on gas. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc.
Trend 2: Social Forces Examples of Social Trends Social trends alter how people and businesses behave and set their priorities. These trends provide opportunities for new businesses to accommodate the changes. Aging of the population. The increasing diversity of the workplace. Increased participation in social networks. Growth in the uses of mobile devices. An increasing focus on health and wellness. Copyright ©2016 Pearson Education, Inc.

Trend 3: Technological Advances 1 of 2
Examples of Entire Industries that Have Been Created as the Result of Technological Advances Advances in technology frequently create business opportunities. Computer industry Internet Biotechnology Digital photography Copyright ©2016 Pearson Education, Inc.

Trend 3: Technological Advances 2 of 2
Example: H20Audio Once a technology is created, products often emerge to advance it. An example is H20Audio, a company started by four former San Diego State University students, that makes waterproof housings and earbuds for the Apple iPhone. Copyright ©2016 Pearson Education, Inc.

Trend 4: Political Action and Regulatory Changes 1 of 2
General Example Political action and regulatory changes also provide the basis for opportunities. Laws to protect the environment have created opportunities for entrepreneurs to start firms that help other firms comply with environmental laws and regulations. Copyright ©2016 Pearson Education, Inc.

Trend 4: Political Action and Regulatory Changes 2 of 2
Specific Example OSHA is a government agency that formulates and enforces safety, health, and environmental regulations for the workplace. Safety Compliance Company was started to help other companies comply with OSHA regulations. Company created to help other companies comply with the law. Copyright ©2016 Pearson Education, Inc.

Second Approach: Solving a Problem 1 of 2
Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it. These problems can be pinpointed through observing trends and through more simple means, such as intuition, serendipity, or change. Many companies have been started by people who have experienced a problem in their own lives, and then realized that the solution to the problem represented a business opportunity. Copyright ©2016 Pearson Education, Inc.

Second Approach: Solving a Problem 2 of 2
A problem facing the U.S. and other countries is finding alternatives to fossil fuels. A large number of entrepreneurial firms, like this wind farm, are being launched to solve this problem. Copyright ©2016 Pearson Education, Inc.

Third Approach: Finding Gaps in the Marketplace 1 of 2
A third approach to identifying opportunities is to find a gap in the marketplace. A gap in the marketplace is often created when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to mainstream retailers or manufacturers. Copyright ©2016 Pearson Education, Inc.

Third Approach: Finding Gaps in the Marketplace 2 of 2
Specific Example Product gaps in the marketplace represent potentially viable business opportunities. Tish Cirovolv realized there were no guitars on the market made specifically for females. To fill this gap, she started Daisy Rock Guitars, a company that makes guitars just for women and girls. Copyright ©2016 Pearson Education, Inc.

Personal Characteristics of the Entrepreneur
Characteristics that tend to make some people better at recognizing opportunities than others Prior Experience Cognitive Factors Social Networks Creativity Copyright ©2016 Pearson Education, Inc.

Prior Experience Prior Industry Experience Several studies have shown that prior experience in an industry helps an entrepreneur recognize business opportunities. By working in an industry, an individual may spot a market niche that is underserved. It is also possible that by working in an industry, an individual builds a network of social contacts who provide insights that lead to recognizing new opportunities. Copyright ©2016 Pearson Education, Inc.

Cognitive Factors Cognitive Factors Studies have shown that opportunity recognition may be an innate skill or cognitive process. Some people believe that entrepreneurs have a “sixth sense” that allows them to see opportunities that others miss. This “sixth sense” is called entrepreneurial alertness, which is formally defined as the ability to notice things without engaging in deliberate search. Copyright ©2016 Pearson Education, Inc.

Social Networks 1 of 3 Social Networks The extent and depth of an individual’s social network affects opportunity recognition. People who build a substantial network of social and professional contacts will be exposed to more opportunities and ideas than people with sparse networks. Research results suggest that between 40% and 50% of people who start a business got their idea via a social contact. Strong Tie Vs. Weak Tie Relationships All of us have relationships with other people that are called “ties.” (See next slide.) Copyright ©2016 Pearson Education, Inc.

Social Networks 2 of 3 Nature of Strong-Tie Vs. Weak-Tie Relationships Strong-tie relationships are characterized by frequent interaction and form between coworkers, friends, and spouses. Weak-tie relationships are characterized by infrequent interaction and form between casual acquaintances. Result It is more likely that an entrepreneur will get new business ideas through weak-tie rather than strong-tie relationships. (See next slide.) Copyright ©2016 Pearson Education, Inc.

Social Networks 3 of 3 Why weak-tie relationships lead to more new business ideas than strong-tie relationships Strong-Tie Relationships Weak-Tie Relationships These relationships, which typically form between like-minded individuals, tend to reinforce insights and ideas that people already have. These relationships, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea. Copyright ©2016 Pearson Education, Inc.

Creativity 1 of 2 Creativity Creativity is the process of generating a novel or useful idea. Opportunity recognition may be, at least in part, a creative process. For an individual, the creative process can be broken down into five stages, as shown on the next slide. Copyright ©2016 Pearson Education, Inc.

Creativity 2 of 2 Five Steps to Generating Creative Ideas

Full View of the Opportunity Recognition Process
Depicts the connection between an awareness of emerging trends and the personal characteristics of the entrepreneur Copyright ©2016 Pearson Education, Inc.

Techniques for Generating Ideas
Brainstorming Focus Groups Library and Internet Research Copyright ©2016 Pearson Education, Inc.

Brainstorming Brainstorming Is a technique used to generate a large number of ideas and solutions to problems quickly. A brainstorming “session” typically involves a group of people, and should be targeted to a specific topic. Rules for a brainstorming session: No criticism. Freewheeling is encouraged. The session should move quickly. Leap-frogging is encouraged. Copyright ©2016 Pearson Education, Inc.

Focus Groups Focus Group A focus group is a gathering of five to ten people, who have been selected based on their common characteristics relative to the issues being discussed. These groups are led by a trained moderator, who uses the internal dynamics of the group environment to gain insight into why people feel the way they do about a particular issue. Although focus groups are used for a variety of purposes, they can be used to help generate new business ideas. Copyright ©2016 Pearson Education, Inc.

Library and Internet Research 1 of 3
Library Research Libraries are an often underutilized source of information for generating new business ideas. The best approach is to talk to a reference librarian, who can point out useful resources, such as industry-specific magazines, trade journals, and industry reports. Simply browsing through several issues of a trade journal or an industry report on a topic can spark new ideas. Copyright ©2016 Pearson Education, Inc.

Examples of Useful Search Engines and Industry Reports Large public and university libraries typically have access to search engines and industry reports that would cost thousands of dollars to access on your own. BizMiner ProQuest IBISWorld Mintel LexisNexis Academic Copyright ©2016 Pearson Education, Inc.

If you are starting from scratch, simply typing “new business ideas” into a search engine will produce links to newspapers and magazine articles about the “hottest” new business ideas. If you have a specific topic in mind, setting up Google mail alerts will provide you with links to a constant stream of newspaper articles, blog posts, and news releases about the topic. Targeted searches are also useful. Copyright ©2016 Pearson Education, Inc.

Other Techniques Customer Advisory Boards Some companies set up customer advisory boards that meet regularly to discuss needs, wants, and problems that may lead to new ideas. Day-In-The-Life Research A type of anthropological research, where the employees of a company spend a day with a customer. Copyright ©2016 Pearson Education, Inc.

Encouraging New Ideas Establishing a Focal Point for Ideas Some firms meet the challenge of encouraging, collecting, and evaluating ideas by designating a specific person to screen and track them—for if it’s everybody’s job, it may be no one’s responsibility. Another approach is to establish an idea bank (or vault), which is a physical or digital repository for storing ideas. Encouraging Creativity at the Firm Level Creativity is the raw material that goes into innovation and should be encouraged at the organizational and individual supervisory level. Copyright ©2016 Pearson Education, Inc.

What Is Feasibility Analysis?
Feasibility analysis is the process of determining whether a business idea is viable. It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing. Feasibility Analysis Copyright ©2016 Pearson Education, Inc.

When To Conduct a Feasibility Analysis
Timing of Feasibility Analysis The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business. The thought is to screen ideas before a lot of resources are spent on them. Components of a Properly Conducted Feasibility Analysis A properly conducted feasibility analysis includes four separate components, as discussed in the following slides. Copyright ©2016 Pearson Education, Inc.

Forms of Feasibility Analysis
Product/Service Feasibility Industry/Target Market Feasibility Organizational Feasibility Financial Feasibility Copyright ©2016 Pearson Education, Inc.

Outline for a Comprehensive Feasibility Analysis

Product/Service Feasibility Analysis 1 of 2
Purpose Is an assessment of the overall appeal of the product or service being proposed. Before a prospective firm rushes a new product or service into development, it should be sure that the product or service is what prospective customers want. Product/Service Feasibility Analysis Copyright ©2016 Pearson Education, Inc.

Product/Service Feasibility Analysis 2 of 2
Components of product/service feasibility analysis Product/Service Desirability Product/Service Demand Copyright ©2016 Pearson Education, Inc.

Product/Service Desirability 1 of 3
First, ask the following questions to determine the basic appeal of the product or service. Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or take advantage of a gap in the marketplace? Is this a good time to introduce the product or service to the market? Are there any fatal flaws in the product or service’s basic design or concept? Copyright ©2016 Pearson Education, Inc.

Second, Administer a Concept Test A concept statement should be developed. A concept statement is a one-page description of a business that is distributed to people who are asked to provide feedback on the potential of the business idea. The feedback will hopefully provide the entrepreneur: A sense of the viability of the product or service idea. Suggestions for how the idea can be strengthened or “tweaked” before proceeding further. Copyright ©2016 Pearson Education, Inc.

Product/Service Demand 1 of 4
There are two steps to assessing product/service demand. Step 1: Talking Face-to-Face with Potential Customers. Step 2: Using Online Tools, Such as Google AdWords and Landing Pages, To Assess Demand. Copyright ©2016 Pearson Education, Inc.

Talking Face-to-Face with Potential Customers The only way to know if your product or service is what people want is by talking to them. The idea is to gauge customer reaction to the general concept of what you want to sell, and tweak, revise, and improve on the idea based on the feedback. In some cases, talking with potential customers will cause an entrepreneur to abandon an idea. Entrepreneurs are often surprised to find that a product idea they think solves a problem gets lukewarm reception when they talk to actual customers. Copyright ©2016 Pearson Education, Inc.

Utilizing Online Tools, Such as Google AdWords and Landing Pages, to Assess Demand The second way to assess demand is to utilize online tools to gauge reaction from potential customers. Some entrepreneurs purchase text ads on search engines that show up when a user is searching for a product that is close to their idea. If the searcher clicks on the text ad, they are directed to a landing page that describes the idea. There may be a link on the landing page that says “For future updates please enter your address.” Demand for the idea can be assessed by how many people click on the text ad and enter their address. Copyright ©2016 Pearson Education, Inc.

Utilizing Online Tools, Such as Google AdWords and Landing Pages, to Assess Demand (continued) A variety of additional online tools are available to help assess the demand for a new product or service. Examples include: Sites that provide feedback on business ideas (Foundersuite, Quirky). Market Research (CrowdPicker, Google Trends). Online Surveys (Survey Monkey, Google Consumer Surveys). Q&A Sites (Quora, Stack Overflow). Copyright ©2016 Pearson Education, Inc.

Industry/Target Market Feasibility Analysis 1 of 2
Purpose Is an assessment of the overall appeal of the industry and the target market for the proposed business. An industry is a group of firms producing a similar product or service. A firm’s target market is the limited portion of the industry it plans to go after. Industry/Target Market Feasibility Analysis Copyright ©2016 Pearson Education, Inc.

Industry/Target Market Feasibility Analysis 2 of 2
Components of industry/target market feasibility analysis Industry Attractiveness Target Market Attractiveness Copyright ©2016 Pearson Education, Inc.

Industry Attractiveness 1 of 2
Industries vary in terms of their overall attractiveness. In general, the most attractive industries have the characteristics depicted on the next slide. Particularly important—the degree to which environmental and business trends are moving in favor rather than against the industry. Copyright ©2016 Pearson Education, Inc.

Industry Attractiveness 2 of 2
Characteristics of Attractive Industries Are young rather than old. Are early rather than late in their life cycle. Are fragmented rather than concentrated. Are growing rather than shrinking. Are selling products and services that customers “must have” rather than “want to have.” Are not crowded. Have high rather than low operating margins. Are not highly dependent on the historically low price of key raw materials. Copyright ©2016 Pearson Education, Inc.

Target Market Attractiveness
The challenge in identifying an attractive target market is to find a market that’s large enough for the proposed business but is yet small enough to avoid attracting larger competitors. Assessing the attractiveness of a target market is tougher than assessing the attractiveness an entire industry. Often, considerable ingenuity must be employed to find information to assess the attractiveness of a specific target market. Copyright ©2016 Pearson Education, Inc.

Organizational Feasibility Analysis 1 of 2
Purpose Is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch a business. Focuses on non-financial resources. Organizational Feasibility Analysis Copyright ©2016 Pearson Education, Inc.

Organizational Feasibility Analysis 2 of 2
Components of organizational feasibility analysis Management Prowess Resource Sufficiency Copyright ©2016 Pearson Education, Inc.

Management Prowess Management Prowess A proposed business should candidly evaluate the prowess, or ability, of its management team to satisfy itself that management has the requisite passion and expertise to launch the venture. Two of the most important factors in this area are: The passion that the sole entrepreneur or the founding team has for the business idea. The extent to which the sole entrepreneur or the founding team understands the markets in which the firm will participate. Copyright ©2016 Pearson Education, Inc.

Resource Sufficiency 1 of 2
This topic pertains to an assessment of whether an entrepreneur has sufficient resources to launch the proposed venture. To test resource sufficiency, a firm should list the 6 to 12 most critical nonfinancial resources that will be needed to move the business idea forward successfully. If critical resources are not available in certain areas, it may be impractical to proceed with the business idea. Copyright ©2016 Pearson Education, Inc.

Resource Sufficiency 2 of 2
Examples of nonfinancial resources that may be critical to the successful launch of a new business Affordable office space. Lab space, manufacturing space, or space to launch a service business. Availability of contract manufacturers or service providers. Key management employees (now and in the future). Key support personnel (now and in the future). Ability to obtain intellectual property protection. Ability to form favorable business partnerships. Copyright ©2016 Pearson Education, Inc.

Financial Feasibility Analysis 1 of 2
Purpose Is the final component of a comprehensive feasibility analysis. A preliminary financial assessment is sufficient. Financial Feasibility Analysis Copyright ©2016 Pearson Education, Inc.

Financial Feasibility Analysis 2 of 2
Components of financial feasibility analysis Total Start-Up Cash Needed Financial Performance of Similar Businesses Overall Financial Attractiveness of the Proposed Venture Copyright ©2016 Pearson Education, Inc.

Total Start-Up Cash Needed
The first issue refers to the total cash needed to prepare the business to make its first sale. An actual budget should be prepared that lists all the anticipated capital purchases and operating expenses needed to generate the first $1 in revenues. The point of this exercise is to determine if the proposed venture is realistic given the total start-up cash needed. Copyright ©2016 Pearson Education, Inc.

Financial Performance of Similar Businesses
Estimate the proposed start-up’s financial performance by comparing it to similar, already established businesses. There are several ways to doing this, all of which involve a little ethical detective work. First, there are many reports available, some for free and some that require a fee, offering detailed industry trend analysis and reports on thousands of individual firms. Second, simple observational research may be needed. For example, the owners of New Venture Fitness Drinks could estimate their sales by tracking the number of people who patronize similar restaurants and estimating the average amount each customer spends. Copyright ©2016 Pearson Education, Inc.

Overall Financial Attractiveness of the Proposed Venture 1 of 2
Overall Financial Attractiveness of the Proposed Investment A number of other financial factors are associated with promising business start-ups. In the feasibility analysis stage, the extent to which a business opportunity is positive relative to each factor is based on an estimate rather than actual performance. The table on the next slide lists the factors that pertain to the overall attractiveness of the financial feasibility of the business idea. Copyright ©2016 Pearson Education, Inc.

Overall Financial Attractiveness of the Proposed Venture 2 of 2
Financial Factors Associated With Promising Business Opportunities Steady and rapid growth in sales during the first 5 to 7 years in a clearly defined market niche. High percentage of recurring revenue—meaning that once a firm wins a client, the client will provide recurring sources of revenue. Ability to forecast income and expenses with a reasonable degree of certainty. Internally generated funds to finance and sustain growth. Availability of an exit opportunity for investors to convert equity to cash. Copyright ©2016 Pearson Education, Inc.

First Screen First Screen Shown in Appendix 3.1 is a template for completing a feasibility analysis. It’s called “First Screen” because it’s a tool that can be used in the initial pass at determining the feasibility of a business idea. If a business idea cuts muster at this stage, the next step is to complete a business plan. Copyright ©2016 Pearson Education, Inc.

Developing an Effective Business Model
Chapter 4 Developing an Effective Business Model Bruce R. Barringer R. Duane Ireland Copyright ©2016 Pearson Education, Inc.

What is a Business Model?
“A business model is what a business does and how it makes money.” [As quoted in Boar, Bernard H. The art of strategic planning for information technology ,2nd Edition, John Wiley, 2000] 10/21/2017

What is a Business Model? (continued)
Concept describes the opportunity and strategy $ Value measures the benefit to investors and other stakeholders Capabilities define resources needed to execute strategy 10/21/2017 Adapted from Applegate et al, Corporate Information Strategy and Management, McGraw-Hill/Irwin 2003

Let is now define a Startup
A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty A startup is a temporary organization that is in search of a repeatable and scalable business model 10/21/2017

What a startup is NOT A startup is not a smaller version of a large company (i.e. it is not a doll house) Why is a startup not a smaller version of a large company? 10/21/2017

Startup vs everything else
Problem: Unknown (Market? Customers? Need?) Solution: Unknown (What are we going to build?) Everything else Problem: Known Solution: Known Known: Small business? Clone of an existing business? Existing market, waterfall product development 10/21/2017

What is everything else?
Small businesses Large companies Social entrepreneurship Disruptive companies within large companies 10/21/2017

Startups or SMEs New products/ services Innovation driven
New technology New business model High growth / potential Replicate current product / services Innovation is limited Growth is limited ( for most )

Long Term Social Impact
Value Creation A Map of Socioeconomic Value Creation Economic Impact High Growth Entrepreneurship Transformational Entrepreneurship Small Business Social Entrepreneurship Long Term Social Impact

Long Term Social Impact
Value Creation : A Map of Socioeconomic Value Creation Apple Renewable Energy Economic Impact Advertising Oil &Gas Companies Google Facebook Amazon Fast food Starbucks Twitter Longevity / Personalized Medicine Data Infrastructure Management Consulting Cheap Mobile Phones Crowdfunding Social Games Collaborative Consumption Liquor Stores Microfinance Hair Dressers Laundromats Long Term Social Impact 1 for 1 Marketing Campaigns Wikipedia Most Aid & Charity Disease Treatment & Prevention Fighting Terrorism

Business Models Business Model A business model is a firm’s plan or recipe for how it creates, delivers, and captures value for its stakeholders. The proper time to develop a business model is following the feasibility analysis stage and prior to fleshing out the operational details of the company. A firm’s business model is integral to its ability to succeed both in the short and long term. Copyright ©2016 Pearson Education, Inc.

General Categories of Business Models 1 of 6
Standard Business Models The first category is standard business models. Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value. There are a number of standard or common business models, which are shown on the next two slides. Copyright ©2016 Pearson Education, Inc.

Standard Business Models Business Model Representative Companies Advertising Business Model Google, Facebook Auction Business Model eBay, uBid.com Bricks and Clicks Business Model Apple, Barnes & Noble Franchise Business Model Panera Bread, 24-Hour Fitness Freemium Business Model Dropbox, Pandora Low-Cost Business Model Southwest Airlines, Walmart Manufacturer/Retailer Business Model Fitbit, Tesla Motors Peer-to-Peer Business Model Airbnb, Uber Copyright ©2016 Pearson Education, Inc.

Standard Business Models Business Model Representative Companies Razor and Blades Business Model Game Consoles and Games, Printers and Ink Cartridges Subscription Business Model Birchbox, Netflix Traditional Retailer Business Model Amazon, Whole Foods Markets Copyright ©2016 Pearson Education, Inc.

Disruptive Business Models The second category is disruptive business models. Disruptive business models, which are rare, are ones that do not fit the profile of a standard business model. They are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry. The next slides depict four business models that were disruptive when they were introduced. Copyright ©2016 Pearson Education, Inc.

Disruptive Business Models Business Model Company or Companies That Introduced It Direct-to-Consumer Computer Sales (which allowed consumers to customize their computers) Dell Online Text Ads on Search Engines (allowed advertisers to place ads for products that searchers were already searching for) Yahoo, Google Software as a Service (SaaS) (By moving software to the cloud, allowed users to access the software and their data from anywhere there was an Internet connection) Salesforce.com Copyright ©2016 Pearson Education, Inc.

Disruptive Business Models Business Model Company or Companies That Introduced It Cloud-based Service to Connect Riders and People Willing to Provide Rides (Provided riders with an app that connects them with the owners of private cars) Uber, Lyft Copyright ©2016 Pearson Education, Inc.

What is a business model again?
CS419 Technology Entrepreneurship Week #1 «The Startup» What is a business model again? Diagram of flows between company and customers Scorecard of hypotheses testing Dynamic: Allows rapid change with each iteration and pivot Founder-driven * Alex Osterwalder

Business model - 9 building blocks
CS419 Technology Entrepreneurship Week #1 «The Startup» Business model - 9 building blocks

CUSTOMER SEGMENTS which customers and users are you serving?
which jobs do they really want to get done?

VALUE PROPOSITIONS what are you offering them? what is that
getting done for them? do they care?

CHANNELS how does each customer segment want to be reached? through which interaction points?

CUSTOMER RELATIONSHIPS
what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?

REVENUE STREAMS what are customers really willing to pay for? how?
are you generating transactional or recurring revenues?

KEY RESOURCES which resources underpin your business model? which assets are essential?

KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 146

KEY PARTNERS which partners and suppliers leverage your model?
who do you need to rely on?

COST STRUCTURE what is the resulting cost structure?
which key elements drive your costs?

customer relationships
key activities value proposition customer relationships key partners customer segments cost structure revenue streams key resources channels 149 images by JAM

Business Model نموذج الأعمال
النشاطات الرئيسية علاقة العملاء الشراكات الرئيسية القيمة المقترحة شريحة العملاء الموارد الرئيسية القنوات هيكل التكلفة تدفق الايرادات

نموذج الأعمال Customer segments Value proposition Channels
Customer relationships Revenue streams Key resources Key activities Key Partnerships Cost structure شرائح العملاء القيمة المقترحة القنوات علاقات العملاء تدفقات الايرادات الموارد الرئيسية الانشطة الرئيسية الشراكات الرئيسية هيكل التكلفة اليوم الأول

شرائح العملاء 1/5 - العملاء في كل مكان فما الذي يجعلهم مختلفين؟

شرائح العملاء 2/5 تمثل شرائح العملاء المجموعات المختلفة من الناس أو الشركات الذي يهدف المشروع الناشئ الى الوصول اليها أو خدمتها.

شرائح العملاء 3/5 مجموعات العملاء تمثل شرائح مختلفة من العملاء اذا:
حاجتهم تتطلب وتبرر عرضاً متميزاً يتم الوصول اليهم من خلال قنوات التوزيع المختلفة تتطلب المجموعات الى انواع مختلفة من العلاقات لديهم ربحيات مختلفة الى حد كبير هم على استعداد لدفع ثمن جوانب مختلفة من العرض

شرائح العملاء 4/5 ما هي العناصر التي تفرق بين شرائح العملاء؟
الأعمار المختلفة الجنس الوظيفة أو المهنة الحالة الإجتماعية التقليدي / التقدمية يقودها السعر / تقودها القيمة شغف معين الحاجة / الرغبة السلوك الديانة وغيرها...

شرائح العملاء 5/5 من هم العملاء الرئيسيين لك؟ لمن تخلق قيمة أو تلبي حاجة؟ السوق الكلي السوق المتخصص السوق المجزأة السوق المتنوع السوق المتعدد الجوانب

القيمة المقترحة القيمة المقترحه تصف حزمة المنتجات أو الخدمات التي تخلق قيمة لشريحة محددة من العملاء. القيمة المقترحة هو السبب الذي يجعل العميل أن يلجأ الى شركة واحدة على الأخرى. كل قيمة مقترحة تتكون من حزمة مختارة بعناية من المنتجات والخدمات التي تلبي حاجة أو تحل مشكلة لشريحة محددة من العملاء. قد تكون القيمة المقترحة تمثل حزمة من المنتجات والخدمات المبتكرة والجديدة، وبعضها قد تكون مشابه لعروض مماثلة في السوق مع إضافة الميزات والصفات الجديدة.

ما هي القيمة التي نخلقها للعملاء؟
بعض من العناصر التي يمكن أن تساهم في خلق القيمة للعملاء: الحداثة (تخلق قيمة ليس لها سابق- مثل الفيس بوك ) الأداء (تحسين اداء منتج ) التخصيص المنتج التصميم العلامة التجارية السعر

القنوات 1/2 القنوات تصف كيف سوف تتواصل الشركة مع شرائح العملاء لتقديم القيمة المقترحة لها. قنوات الاتصال، التوزيع والبيع تكون واجهة الشركة مع العملاء – فهذه القنوات هي تشكل نقاط التواصل مع العملاء وتلعب دوراً هاماً في تجربة العملاء.

القنوات 2/2 تقوم القنوات بخدمة وظائف عدة، منها:
توعية العملاء حول منتجات الشركة وخدماتها مساعدة العملاء بتقييم القيمة المقترحة للشركة تسمح للعملاء بشراء منتجات وخدمات محددة تقديم القيمة المقترحة للعملاء تقديم دعم بعد مرحلة الشراء

علاقات العملاء 1/2 هي أنواع العلاقات المختلفة التي تكونها الشركة مع العملاء. سؤال: ما هي العلاقة التي تتوقع شريحة العملاء من شركتنا أن تكونها وتحافظ عليها؟

علاقات العملاء 2/2 تتنوع علاقات العملاء المتعارف عليها وتتمثل بالتالي:
المساعدة الشخصية (العامة والمكرسة). الخدمة الذاتية. الخدمات الآلية. المجتمعات (فمثلاً جوال تستخدم ال Facebook group للتواصل والتفاعل مع العملاء). المشاركة في خلق القيمة (مثل ال youtube).

مصادر الايرادات 1/2 تمثل مصادر الايرادات النقد التي تولده الشركة من كل شريحة عملاء. إذا كان العملاء هم قلب نموذج الأعمال الخاص بشركتك، فمصادر الإيرادات هي الشرايين. سؤال: كم القيمة التي تستعد شريحة العملاء على دفعها؟ وكيف؟

مصادر الإيرادات 2/2 بيع الأصول (Asset Sale)
رسوم الاستخدام (Usage Fee ) رسوم الاشتراك (Subscription Fee) الإقراض / التأجير (Lending/Renting/Leasing) الترخيص (Licensing) رسوم الوساطة (Brokerage Fees) الإعلانات (Advertising)

يعتمد على شريحة العملاء
آلية التسعير التسعير الديناميكي التسعير الثابت السعر قابل للتفاوض بين إثنان أو أكثر من الشركاء اعتمادا على قوة التفاوض و / أو مهارات التفاوض تفاوض (المساومة) اسعار ثابتة لمنتجات، خدمات، أو قيم مقترحهة أخرى محددة لائحة اسعار السعر يعتمد على المخزون ووقت الشراء (تستخدم عادة لموارد القابلة للتلف مثل غرف الفنادق أو مقاعد شركات الطيران) إدارة العوائد السعر يعتمد على عدد ونوعية / ميزة القيم المقترحه يعتمد على ميزة المنتج يعتمد السعر بشكل رئيسي على العرض والطلب في السوق في وقت البيع سعر السوق الحقيقي السعر يعتمد على نوع وميزة شريحة العملاء يعتمد على شريحة العملاء السعر يعتمد على نتائج العطاءات التنافسية والمزاد العلني المزادات السعر كوظيفة يعتمد على الكمية أو حجم المنتج/الخدمة يعتمد على كمية/ حجم

الموارد الرئيسية 1/2 تمثل الموارد الرئيسية الأصول والموارد التي يحتاجها نموذج الأعمال لكي يعمل. كل نموذج الأعمال يتطلب موارد رئيسية. هذه الموارد تسمح للشركة أن تخلق وتقدم قيمة مقترحة لشرائح العملاء، والوصول إلى الأسواق، والحفاظ على العلاقات مع شرائح العملاء، وكسب الإيرادات.

الموارد الرئيسية 2/2 الموارد الرئيسية يمكن أن تكون: مادية مالية فكرية
أيدي عاملة يمكن أن تكون مملوكة أو مستأجرة من قبل الشركة أو يمكن الحصول عليها من الشركاء الرئيسيين.

موارد رئيسية مالية موارد بشرية مادية فكرية
نقد Cash، ائتمان Credit ، أسهم stocks بنايات، ألات أنظمية، سيارات وشواحن، مصانع، أجهزة الكترونية... الموظفين، المستشارين، الرياديين... لعلامات التجارية، والمعرفة الملكية وبراءات الاختراع وحقوق الطبع والنشر والشراكات

النشاطات الرئيسية كل نموذج أعمال يقوم على عدد من الأنشطة الرئيسية، وهذه هي النشاطات الأكثر أهمية لضمان نجاح الشركة. والأنشطة الرئيسية، مثل الموارد الرئيسية، تحتاجها الشركة لكي تخلق وتقدم القيمة المقترحة لشرائح العملاء، والوصول الى الأسواق، والحفاظ على علاقات العملاء، وكسب الإيرادات. ومثل الموارد الرئيسية، تختلف الأنشطة الرئيسية تبعاً لنوع نموذج الأعمال.

منصة / شبكة Platform Network حل المشكلات Problem Solving
ماهي النشاطات الرئيسية التي تحتاجها شركتك لكي تخلق وتقدم القيمة المقترحة لشرائح العملاء؟ منصة / شبكة Platform Network حل المشكلات Problem Solving التصنيع / الإنتاج Production

الشراكات الرئيسية الشراكات الرئيسية للشركة هي شبكة من الموردين والشركاء التي تجعل نموذج الأعمال يعمل ويخلق القيمة المقترحة لشرائح العملاء.

الشراكات الرئيسية من هم شركائنا الرئيسيين؟ من هم موردينا الرئيسيين؟
أي موارد رئيسية نحتاجها من الشركاء؟ أي من نشاطاتنا الرئيسية يقوم بها الشركاء أو تعتمد بشكل رئيسي على الشركاء؟

هيكل التكلفة هيكل التكلفة مكون من جميع التكاليف التي يتحملها المشروع لضمان عمل ونجاح نموذج الأعمال. وهي أهم التكاليف التي يتكبدها نموذج الأعمال. تخلق وتقدم قيمة مقترحة ، وتعزز العلاقة مع العملاء، وتولد الإيرادات والدخل. يمكن حسابة التكاليف بسهولة بعد تحديد الموارد الرئيسية، والأنشطة الرئيسية، والشراكات الرئيسية. بعض من نماذج الأعمال تحركها التكلفة أكثر من غيرها – أما نماذج العمل الخاصة بالريادي والمشاريع التكنولوجية تكون عادةً قد بنيت حول هياكل تكلفة منخفضة.

sketch out your business model
CS419 Technology Entrepreneurship Week #1 «The Startup» sketch out your business model

CS419 Technology Entrepreneurship
Week #1 «The Startup» building block building block building block building block building block building block building block building block building block building block building block

CS419 Technology Entrepreneurship
Week #1 «The Startup» 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

Barringer/Ireland Business Model Template 1 of 2
Although not everyone agrees precisely on the components of a business model, many agree that a successful business model has a common set of attributes. These attributes can be laid out in a visual framework or template so it is easy to see the individual parts and their interrelationships. The Barringer/Ireland Business Model Template is shown in the next slide. Copyright ©2016 Pearson Education, Inc.

Barringer/Ireland Business Model Template 2 of 2

Core Strategy 1 of 5 Core Strategy The first component of the business model is core strategy. A core strategy describes how the firm plans to compete relative to its competitors. The primary elements of core strategy are: Business Mission Basis of Differentiation Target Market Product/Market Scope Copyright ©2016 Pearson Education, Inc.

Core Strategy 2 of 5 Business Mission A business’s mission or mission statement describes why it exists and what its business model is supposed to accomplish. If carefully written and used properly, a mission statement can articulate a business’s overarching priorities and act as its financial and moral compass. A well-written mission statement is something that a business can continually refer back to as it makes important decisions in other elements of its business model. Copyright ©2016 Pearson Education, Inc.

Core Strategy 3 of 5 Basis of Differentiation It’s important that a business clearly articulate the points that differentiate its product or service from competitors. A company’s basis of differentiation is what causes consumers to pick one company’s products over another’s. It is what solves a problem or satisfies a customer need. It is best to limit a company’s basis of differentiation to two to three key points. Make sure that your points of differentiation refer to benefits rather than features. Copyright ©2016 Pearson Education, Inc.

Core Strategy 4 of 5 Target Market The identification of the target market in which the firm will compete is extremely important. A target market is a place within a larger market segment that represents a narrow group of customers with similar interests. A firm’s target market should be made explicit in the business model template. Copyright ©2016 Pearson Education, Inc.

Core Strategy 5 of 5 Product/Market Scope A company’s product/market scope defines the products and markets on which it will concentrate. Most firms start with a narrow (or limited) product/market scope, and pursue adjacent product and market opportunities as the company grows and becomes more financially secure. In completing the business model template, a company should be very clear about its initial product/market scope and project 3-5 years in the future in terms of anticipated expansion. Copyright ©2016 Pearson Education, Inc.

Resources 1 of 3 Resources The second component of a business model is resources. Resources are the inputs a firm uses to produce, sell, distribute, and service a product or service. A firm’s most important resources, both tangible and intangible, must be both difficult to imitate and hard to find a substitute for. This stipulation is necessary for an individual company’s business model to be competitive over the long term. Copyright ©2016 Pearson Education, Inc.

Resources 2 of 3 Core Competencies A core competency is a specific factor or capability that supports a firm’s business model and sets it apart from rivals. A core competency can take on various forms, such as technical know-how, an efficient process, a trusting relationship with customers, expertise in product design, and so forth. Most start-ups will list two to three core competencies in their business model template. Copyright ©2016 Pearson Education, Inc.

Resources 3 of 3 Key Assets Key assets are the assets that a firm owns that enable its business model to work. The assets can be physical, financial, intellectual, or human. Physical assets include physical space, equipment, vehicles, and distribution networks. Intellectual assets include resources such as patents, trademarks, copyrights, and trade secrets, along with a company’s brand and its reputation. Financial assets include cash, lines of credit, and commitments from investors. Human assets include a company’s founder or founders, its key employees, and its advisors. Copyright ©2016 Pearson Education, Inc.

Financials 1 of 5 Financials The third component of a firm’s business model focuses on its financials. This is the only section of a firm’s business model that describes how it earns money—thus, it is extremely important. For most businesses, the manner in which it makes money is one of the most fundamental aspects of its business model. Copyright ©2016 Pearson Education, Inc.

Financials 2 of 5 Revenue Streams A firm’s revenue streams describe the ways in which it makes money. Some businesses have a single revenue stream while others have several. For example, most restaurants have a single revenue stream. Their customers order a meal and pay for it. Other restaurants may have several revenue streams—including meals, a catering service, product sales (such as bottle barbeque sauce for a barbeque restaurant), and apparel products with the name of the restaurant on them. Copyright ©2016 Pearson Education, Inc.

Financials 3 of 5 Cost Structure A business’s cost structure describes the most important costs incurred to support its business model. It costs money to establish a basis of differentiation, develop core competencies, acquire and develop key assets, and so forth. Generally, the goal for this box in a firm’s business model template is threefold: Identify whether the business is a cost-driven or value-driven business. Identify the nature of a business’s costs. Identify the business’s major cost categories. Copyright ©2016 Pearson Education, Inc.

Financials 4 of 5 Financing/Funding Many business models rely on a certain amount of financing or funding to bring their business model to life. At the business model stage projections do not need to be completed to determine the exact amount of money that is needed. An approximation is sufficient. There are three categories of costs to consider: Capital costs. One-time expenses, such as building a Web site and training initial employees. Provisions for ramp-up expenses (most businesses incur costs before they earn revenues). Copyright ©2016 Pearson Education, Inc.

Financials 5 of 5 Financing/Funding (continued) Some entrepreneurs are able to draw from personal resources to fund their business. In other cases, the business may be simple enough that it is funded from its own profits from day one. In many cases, however, an initial infusion of funding or financing is needed. The business model template should indicate the appropriate amount of funding that will be needed and where the money will most likely come from. Copyright ©2016 Pearson Education, Inc.

Operations 1 of 5 Operations The final quadrant in a firm’s business model focuses on operations. Operations are both integral to a firm’s overall business model and represent the day-to-day heartbeat of a firm. Copyright ©2016 Pearson Education, Inc.

Operations 2 of 5 Product (or Service) Production This section focuses on how a firm’s products and/or services are produced. For example, if a firm sells a physical product, the product can be manufactured or produced in-house, by a contract manufacturer, or via an outsource provider. This decision has a major impact on all aspects of a firm’s business model. If a firm is producing a service rather than a physical product, a brief description of how the service will be produced should be provided. Copyright ©2016 Pearson Education, Inc.

Operations 3 of 5 Channels A company’s channels describe how it delivers its product or service to its customers. Businesses either sell direct, through intermediaries (such as distributors and wholesalers), or via a combination of both. Some firms employ a sales force that calls on potential customers to try to close sales. This is an expensive strategy but necessary in some instances. Copyright ©2016 Pearson Education, Inc.

Operations 4 of 5 Key Partners The final element of a firm’s business model is key partners. Start-ups, in particular, typically do not have sufficient resources (or funding) to perform all the tasks necessary to make their business models work, so they rely on key partners to perform important roles. The table on the next slide identifies the most common types of business partnerships. Copyright ©2016 Pearson Education, Inc.

What is the Purpose of Your Business Plan Financials?

Business Plan Financials
Helps you: test various potential business models isolate critical assumptions determine whether this is a viable business opportunity determine how much money you’ll need persuade investors to invest

Business Plan Financials
Helps potential investors: test the viability of your business model evaluate your critical assumptions Are they credible? Do you understand your business? evaluate you as someone who understands how business works from a financial perspective determine whether the investment is potentially attractive evaluate your true financial needs

“The Taste Test” Can you taste the revenues?
Is the revenue scenario credible or will you have to achieve miracles to hit your forecast numbers?

So, how do you convince someone that your revenue scenarios are credible?

Tips for Credibility Show your assumptions and be able to back them up with FACTS based on market research and/or some compelling rationale

Showing a Potential Market

Mistakes to Avoid Assumptions you can’t justify Too much detail
Too high a market share Too much detail Too little detail Not enough growth Too much profit (in later years)

Summary Financials

Income Statement

What is an Income Statement?
Shows financial results of a company over a given period of time Includes: Revenues Cost of Sales (costs directly attributable to the products/services sold) Other Operating Expenses Marketing, Sales Research and Development General and Administrative Earnings before Tax Operating Income Tax Earnings after Tax

Sample Income Statement

Income Statement Questions
What is Revenue? What is Cost of Goods sold? What are some of the components of operating expenses? What is operating profit?

Pro-forma Income Statement
Income Statement ($m) 21.4% 20.6% 17.3% -12.2% -201.2% Operating Margin $68.8 $47.4 $24.8 -$6.6 -$26.3 Operating Income $140.3 $100.4 $64.5 $32.1 $23.8 Other Operating Expenses $112.1 $82.4 $54.1 $28.8 $15.6 Cost of Goods Sold $321.2 $230.2 $143.3 $54.3 $13.1 Revenues 5 4 3 2 1 Years A B C D=A-B-C E=D/A

Detailed Financials (“Appendix”)

Exhibits for Detailed Financials
Typically: 5 years on an annual basis and month-to-month for the first year Components: Assumptions and Outcomes Page Income Statement Detailed Revenue Detailed Expenses Headcount Return on Investment Balance Sheet Cash Flow

Assumptions and Outcomes
Shows key assumptions and the outcomes in terms of profits, etc. Helps show the reasonableness of your analysis Tells the story in summary form, in case someone only looks at this page

Income Statement Revenues Expenses
Summarizes components of revenue Expenses Cost of goods sold Other major components of operating expenses Sales, marketing, general and administrative Research and Development, etc. Earnings before income and tax (or operating income) Tax Profit after tax

Detailed Revenue Shows revenue over time divided into key components:
Product areas Geographies Any components that make sense Documents assumptions and their effects

Detailed Expenses Summarizes key expense categories in major detail
Documents assumptions not summarized elsewhere

Payroll and Headcount Who are you going to hire When will they start?
How much will they earn? Cost of benefits, etc.

Return on Investment Expected investment Expected share of ownership
Change in share of ownership due to other investments Returns on the investment, including dividends and some “terminal value” Discount cash flows to show Internal Rate of Return and Net Present Value

Balance Sheet

What is a Balance Sheet? A snapshot of a company’s financial position at a moment in time Left hand side = Assets Right hand side = Liabilities and Equities Assets must equal liabilities plus equities (hence it is a “balance” sheet)

Balance Sheet

Assets are valuable resources owned by an entity and include:
What is an Asset? Assets are valuable resources owned by an entity and include: Cash Things that are likely to become cash soon (inventories, accounts receivable) Valuable things that help the business produce revenues over a longer period (property, plant, and equipment, etc.)

Liabilities are the claims of creditors and include:
What is a Liability? Liabilities are the claims of creditors and include: Accounts payable Notes payable this year Longer term obligations, such as long term debt

What is an Equity? Equities reflect the “claims” of investors and include: Paid in capital “Retained Earnings” or the sum total of profits after tax that haven’t been paid out through dividends Note: You can’t cash in equities—they represent a claim on the business not an asset.

Cash Flow Statement

Cash Flow Statement Records the Flow of Cash during a given period
Cash inflows include: Profits Sale of assets Reduction in: Accounts Receivables Other assets Cash outflows include: Losses Purchase of assets Increase in:

Cash Flow Statement

Q and A

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