1. ENCOURAGING AND ENABLING ENTREPRENEURSHIP…
ENCOURAGING AND ENABLING ENTREPRENEURSHIP…
WORLDWIDE

2. Idea to Impact –
making YOUR business idea a reality

3. Part I –
Business Basics

4. Business is fundamentally quite simple.

5. Solve somebody’s problem for money.
All you have to do is…
Solve somebody’s problem for money.

6. BUT many businesses miss the mark.

8. GOOD NEWS!

10. Four
Fundamental Factors
are common to almost all successful startups.

11. If these aren’t right,
nothing else matters.

12. But,
if they are in order,
you have

13. your very own
button.

14. solve somebody’s problem for money.
Remember,
all you have to do is…
solve somebody’s problem for money.

15. Who is somebody? What is his problem?
And…
What is his problem?

16. What is a Market? Bounded Addressable Growing Compelling
Population (somebody)
Bounded
Addressable
Growing
Situation (problem)
Compelling

17. A compelling situation is one on which the population will take action, whether you exist or not.

18. 150
Dunbar’s Number

19. The size of…
A Neolithic farming village
A Hutterite settlement
A military company
An academic sub-specialization
The number of meaningful social relationships a human can maintain, based on the size of the neo-cortex of the brain.

20. 6
Degrees of Separation

21. As a practical matter…
actual social relationship groups overlap, so we have to modify the Dunbar Number when we perform calculations related to our true networking reach.
In any case, it is clear that each of us who has access to the internet is separated from every other internet user by no more than 6 degrees.

22. 2,000,000,000
Smartphone Users

23. YOU HAVE
GLOBAL REACH!

29. Solve the (niche) problem – for money, of course.
So what next?
Solve the (niche) problem –
for money, of course.

30. What is your Magic? Sustainable, profitable, competitive advantage…
Why will the population choose you to address their situation? Will they keep choosing you as time goes on? Can you make money every time they choose you?

31. Fundamental Rule of Thumb for Entrepreneurs…
At its heart, what you are doing must genuinely matter to your customers. It must clearly set you apart from your competitors. And also, by the way, you have to be able to make a profit from it.
Customers = S curve
Genuinely matter = compelling need
Set you apart = Magic

32. solve somebody’s problem for money.
Remember,
all you have to do is…
solve somebody’s problem for money.

33. Who are your Mentors? An incredibly cheap insurance policy…
Even the brightest and best can’t possibly know it all.
Mentors provide information, opinion, and advice.
By this definition, Google is a mentor. It just doesn’t filter as well as a human with relevant experience.
The cheapest and best way to reduce risk is to run assumptions and strategies past lots of experienced people.
Define information, opinion, and advice

34. Define information, opinion, and advice
And the 4th Factor is…
MOXIE
Define information, opinion, and advice

35. I hereby formally urge you to…
Cultivate your MOXIE ! Without an abundant supply of it, you will not succeed.
MOXIE Pronunciation: \ˈmäk-sē\ Function: noun. Etymology: from Moxie, a trademark for a soft drink. Date: (1) Energy, pep, (2) Courage, determination, (3) Know-how.

36. MOXIE is the quality of maintaining focus and persevering beyond the point when a less committed person would quit.

37. "Nothing in this world can take the place of persistence
"Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."
Calvin Coolidge

38. What is it, really?
Where does it come from?

39. Inherent ability to act…
Mind - Intellectual capacity
Curiosity
Creativity
Discernment
Muscle - Physical capacity
Health
Strength
Stamina
Power
Together, they define your

40. Remember, if you wear yourself out, physically or mentally…
YOU WILL GIVE UP!

41. Next order of business…
Understand your own motivation. Figure out what IT is.

42. Theory of Human Motivation
Abraham Maslow…
Theory of Human Motivation
Physiological needs
Safety needs
Love/belonging
Esteem
Self-actualization

43. Daniel Pink…
Drive
Autonomy
Mastery
Membership

44. Marty Lechner…
Motives
Sex
Fear
Greed

45. Tinsley Oden… Motives Glory* Sex Fear Greed
* Perhaps validation by peers. Perhaps strong societal benefit.

46. Purpose Reasons to act… Together, they define your
Motives - Emotional involvement
Passion
Me-first
Meaning - Spiritual involvement
Significance
Others-first
Together, they define your
Purpose

47. Remember, if you conclude at some point that you are not going to get what you really want…
YOU WILL QUIT!

48. The strength of your MOXIE is your POWER multiplied by your PURPOSE

49. Four Fundamental Factors…
MARKET
MAGIC
MENTORS
MOXIE
Define information, opinion, and advice

50. Short Break

51. Part II –
Testing Your Concept

52. GOALS ARE FOR WISHERS, DREAMERS AND LOSERS!

53. What’s that you say? Goals are weak expressions of intent!
Goal-setting implies permission to fail.
As people approach their goals, they reduce their effort.
Outcomes are out of our control.
A commitment, on the other hand, is a promise to act.
It is your promise to yourself.
It is your promise to those around you.

54. Vision... What would success look like?
Tell a vision story. Everyone will understand.

55. WINNERS DO NOT SET GOALS!
just

56. WINNERS MAKE COMMITMENTS!

57. 21,477

58. Katie Francis

59. The POWER of COMMITMENT…
“Until one is committed, there is hesitancy. Concerning all acts of initiative (and creation) there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too. All sorts of things occur to help one that would not otherwise have occurred. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents and meetings and material assistance which no man would have dreamed would come his way.”
W.H. Murray The Story of Everest

60. Commitment to RELEVANT ACTIONS…
"If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.” Henry David Thoreau

61. Commitment to IMPECCABLE EXECUTION…
Vince Lombardi…
“We are going to relentlessly chase perfection, knowing full well we will not catch it, because nothing is perfect.  But we are going to relentlessly chase it, because in the process we will catch excellence.”
“I have absolutely no interest in just being good.”

62. Commitment to TIGHT FOCUS… …because there will be shiny objects.
"The secret of success is constancy of purpose.” Benjamin Disraeli

63. WINNERS MAKE COMMITMENTS!

64. How to express a commitment…
NO GOAL LANGUAGE!!
Short introduction, if needed to make the context clear - why the commitment is relevant.
Precise action(s) to be performed, by date(s) certain, and how they can be measured or confirmed.
Confirm that you personally control the resources necessary to execute the action(s).

65. Your first big commitment…
Write a simple elevator speech
Define information, opinion, and advice

66. Your Elevator Speech
Introduction – a 7-second attention grabber related to the problem you are solving.
Why should your listener care?
What will your business do?
For what specific target group will you do it?
Why do they need it?
Why will they pick you over a competitor or substitute?
Call to action. What you want your listener to do next.

67. Amateurs practice until they get it right.
Professionals practice until they cannot get it wrong.

68. Your second big commitment…
Deliver it to an appropriate audience for review and commentary.
Define information, opinion, and advice

69. Most common mistake… CONFIRMATION goggles!

70. Easiest thing to miss…

71. The Ladder of Inference
I take Actions
I adopt Beliefs
I draw Conclusions
I make Assumptions
I add Meanings
I select Data
Reflexive Loop
I filter fresh Data based on my earlier Beliefs.
Pool of Neutral Data
Adapted from the 5th Discipline Fieldbook, Peter Senge, 1994.

72. Your third big commitment…
Revise your elevator speech
Define information, opinion, and advice

73. Part III –
Making It Real

74. First –
Make sure you understand your patent and copyright positions. Have an introductory chat with a patent attorney.

75. Second –
Make sure you and any partners understand the legal implications of the partnership arrangement you have planned. Have an introductory chat with an attorney.

76. Third –
Begin to build, then expand, your network of MENTORS. You can start with the people in this room, both your peers, and the moderator.

77. Meanwhile –
Turn your elevator speech into a slide presentation aimed carefully and specifically at attracting private investors. This is the next test of the strength of your concept.

78. The VT KnowledgeWorks Business Concept Workspace
Market Opportunity
Population(s) being served
Boundaries
Addressability
Size/growth projections
Need/Want intensity
Class of need/want (survival, health, profit, pleasure)
Range of variation in client value perception (big difference, small difference)

79. Magical Advantages
Core differentiators (comparison to competitors and substitutes)
Product/service features (intellectual property)
Pricing (buyer cost of delivered product/service)
Promotional scheme(s) uniqueness
Placement/distribution channel scheme(s) uniqueness
People – relative strength of team
Profitability options – gross margin advantage
Strength of differentiation
Range of variation (big difference, small difference)
Sustainability (competitors’ ability to respond)

80. Third party data confirmation(s) Primary sources Secondary sources
Mentor Strength
Third party data confirmation(s)
Primary sources
Secondary sources
Personal advisory network member confirmation
MOXIE Supply
Power
Entrepreneur’s education & experience
Entrepreneur’s health and fitness
Purpose
Entrepreneur’s personal motivation
Societal impact

81. Money Matters
Financial model
Projected investment requirements
Exit value justification

82. Finally –
Get involved in a formal startup support program, such as VT KnowledgeWorks, I-Corps, The Launch Place, TechStars, etc.

83. They will help you – Decide what form of legal entity is appropriate
Confirm your market
Understand your competition
Select distribution options
Expand your network
Find investors

84. WINNERS DO NOT SET GOALS!
just

85. WINNERS MAKE COMMITMENTS!

86. Remember this…
Do, or do not... there is no try.

87. ENCOURAGING AND ENABLING ENTREPRENEURSHIP…
ENCOURAGING AND ENABLING ENTREPRENEURSHIP…
WORLDWIDE