1. LIFESTYLE ENTREPRENEURSHIP
WEEK 13 : APRIL 13
MBAX 6860 : Bootstrap Tactics for Entrepreneurs
LIFESTYLE ENTREPRENEURSHIP
April 13, 2007
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2. OVERVIEW Lifestyle entrepreneurship defined Why a lifestyle business?
Benefits & drawbacks
Difference between lifestyle entrepreneurship and entrepreneurship
Who are lifestyle entrepreneurs?
My take on it…
Open issues
Sales role-playing
Week 14
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3. WHAT IS LIFESTYLE ENTREPRENEURSHIP?
April 13, 2007
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4. WHAT IS LIFESTYLE ENTREPRENEURSHIP?
“Somebody who goes into business not primarily for financial rewards but for lifestyle reasons.”
--Mark Henricks
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5. WHY A LIFESTYLE BUSINESS?
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6. WHY A LIFESTYLE BUSINESS?
Independence!
Pursuit of meaningful & fulfilling work
Putting family first
Children, aging parents, special needs child
Work in a desirable locale
Make money! (Listed 4th after independence, setting their own priorities, and balancing work & family – Harris poll 1999)
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7. BENEFITS TO LE
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8. BENEFITS TO LE Being able to control the company
Do what you love / live your passion without too much risk
Positive cash flow from the beginning
Report only to yourself
Relatively constant cash flow
Take time off whenever you want
High flexibility
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9. DRAWBACKS TO LE
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10. DRAWBACKS TO LE Not being able to hire top talent
No options and limited growth
No/limited chance for huge gains
Long hours…but is this really different than J – O – B?
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11. DIFFERENCE BTWN E & LE
Main difference = the degree of focus on money, on sales growth and on expansion for expansion’s sake
LE’s do not run their business for the financial benefit of others-investors
E in high potential companies usually develop product based on tech break-through or raise $ to explore a lucrative opportunity
April 13, 2007
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12. DIFFERENCE BTWN E & LE: ENTREPENEURS
Advantages
Potential for large ROI
Ability to attract outside investors
Attract great talent
Disadvantages
Give up equity/take on large debt
Loss of control to investors
Long wait to + cash flow
April 13, 2007
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13. WHO ARE LE’s? Burned-out Mid-Careerist Special Lifestyle Needs
Money may be good in their jobs, but the lifestyle is not
Special Lifestyle Needs
Work-at-home moms & dads
Ailing parents, disabled family members
Laid Off, Downsized or Fired
“I can finally do what I really want to do!”
April 13, 2007
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14. MY TAKE ON IT… Determine what you want out of your business!!
NOW, create fit between personal goals and business goals
Determine your priorities
Travel intensity, kids, growth, money, prestige, preferred locale, control, etc
April 13, 2007
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15. MY TAKE ON IT… Lifestyle entrepreneurship can be amazing
Better than average income
Flexibility and control to choose what you want to do on a regular basis
A great quality of life
Main drawback = no/limited opportunity for huge gains or equally huge influence for positive change
If it’s the right fit for you based on the alignment between your personal and business goals…GO FOR IT!
April 13, 2007
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16. OPEN ISSUES “Different tactics for product vs. service business?”
Very few…
Service: focus even more on the people side – that, afterall, is what you’re selling!
Trade hours for dollars
Product: more focus will be dedicated towards operational efficiencies…by necessity…
“Easier” growth path opportunities
April 13, 2007
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17. OPEN ISSUES “Learn about the patent process”
Key in my experience: filing date!
Another unbiased opinion from me: patent system is broke – rather FOCUS on doing it better and quicker….
Resources:
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18. WEEK 14 Bootstrap Leadership, Course wrap-up Speaker : Barry Hight
Readings
Tasks
Fit for you and lifestyle entrepreneurship or growth entrepreneurship
Final study questions : posted on website
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19. “Do not follow where the path may lead
“Do not follow where the path may lead. Go instead where there is no path and leave a trail.”
--Unknown
April 13, 2007
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20. SALES PROCESS Customer Salesperson Uninterested Interested Involved
Convinced
Committed
Opening benefit
Investigate
Demonstrate
Obtain Commitment
Get Order
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21. SALES ROLE-PLAYING Demo in class Role-play Feedback on: Pair-up
10 minutes
5-7 minute pitch
3-5 minutes of feedback
Switch – salesperson becomes customer
Feedback on:
Overall effectiveness
Probing questions
Listening
Enthusiasm
April 13, 2007
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