1. CFA 201: The Entrepreneurial Mindset in Communications and Fine Arts, Online
Professor Edward Lee Lamoureux, Ph.D.
Bradley University
College of Communications and Fine Arts
CLASS SEVEN

2. Organization Contexts
WE ARE AT PHASE 8
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

3. #8 Economic Models/ Logic of the Enterprise
Degree/type of operating leverage
“leverage” = ways to balance gains (profits/benefits) v. loses (risks/costs)
There are many ways to juggle leverage aspects. Here are two examples:
If you have to borrow a LOT of money at high interest rates, your business is highly leveraged (and you have narrow profit opportunities & high risks)
As your business acquires fixed assets, your operating revenue can increase.

4. #8 Economic Models/ Logic of the Enterprise
Relative Volume
Base your business on high volume & you can lower prices, but then you have to do a high volume to survive.
Base your business on low volume and you’ll have to charge more. You don’t have to do much business, but you have to do at least some.

5. #8 Economic Models/ Logic of the Enterprise
Contribution margin
How much does the product/service cost (to make/provide) against it’s price (when sold)? [in effect, what’s the “profit margin”?]
High profit margins=lower sales requirements
Low profit margins=higher sales requirements

6. #8 Economic Models/ Logic of the Enterprise
Revenue Drivers
Certain activities/positions “drive” success & profit. How many can (or do you need to) achieve for success?
Marketing Strength
Leadership/management strength
New opportunity developments
Performance excellence

7. Organization Contexts
PHASE 9
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

8. #9 Resources Types and Strategies
Types of Resources you’ll need (some more, others less)
Physical
Relational
Organizational
Financial
Intellectual
Human
Technological

9. #9 Resources Types and Strategies
Strategies for acquiring needed resources
Purchase them
DIY
Sell shares/give equity
Borrow/Share/Barter
Lease/Rent
Outsource
License/Partner

10. Organization Contexts
PHASE 10
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

11. #10 Prioritizing Financing Sources
Variables when considering financing
Founder’s need for control (high to low)
Risk (high to low)
Amount of Money needed (high to low)
Potential Sources
Self
FFF: Friends/Family/Fools
Bank loans: always want collateral
SBA loans: sometimes have category set-asides
Angels: thousands to tens of thousands
VCs: hundred thousand and above
Public Offering: sell public stock (usually not until one has had bunches of success or has high potential or visibility)

12. #10 Prioritizing Financing Sources
Variables when considering financing
Founder’s need for control (high to low)
Self --- F&F --- Bank loan --- SBC loan --- angels --- VCs
Risk (high to low)
Self --- F&F --- angels --- VCs ---SBA --- Bank loan
Amount of Money needed (high to low)
VCs --- Angels --- Bank loan --- SBA --- F&F --- self

13. Organization Contexts
PHASE 11
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

14. #11 Venture Types Start Up Small Business Family Business
Social Venture
Corporate Venture (Intre-preneurial)
Public sector Entrepreneurship

15. #11 Venture Types Growth Orientation
Marginal/Survival
Lifestyle
Managed Growth
High Growth

16. Organization Contexts
PHASE 12
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

17. #12 Venture Life Cycle Pre-Start Up Existence/Survival
Sustainable Business Model
Success Maintenance or Success-Growth
Resource Maturity
Harvest (or not)
Re-cycle/start over/serial

18. Organization Contexts
#2: Find Opportunities and #3: Analyze Opportunities in detail in classes 10 & 11 respectively
Find (2)
Evaluate (3)
Opportunities
#2 & 3
Types of Ventures
(11)
Types of Entrepreneurs (4)
Entrepreneurial
Enterprise #1
Organization Contexts
The Entrepreneur
#4 & 5
Life cycles/stages
(12)
Type(s) of investments they make (5)
The Concepts
Resources
Types of Innovation
(6)
Prioritizing sources (10)
Competitive Entry Wedge (7)
Types and strategies (9)
Economic models
(8)

19. For class 8
I of the I’MART analyses (p. 16 & 17).Watch “Eat, Sleep, Make Art,” Jeffrey Fisher Webinar 4:00-43:00.
Assignment 3, I of the I’MART analyses Chart, is due , Oct. 10.
We won’t meet on the 10th
Watch the video, do the assignments and reading, work on paper 2, do Oct 24.

20. CFA 201: The Entrepreneurial Mindset in Communications and Fine Arts, Online
Professor Edward Lee Lamoureux, Ph.D.
Bradley University
College of Communications and Fine Arts
CLASS SEVEN