1. ENTREPRENEURSHIP II Babs Bailey Carryer Spring 2002

2. 1/16/022 Goals of course To create, for all intents and purposes, a viable new business To understand steps necessary in the creation of a new venture To be able to tell the story of this new venture in a dynamic and compelling way

3. 1/16/023 Innovation New product New technology New integration New market New industry

4. 1/16/024 Innovation continued Not necessarily “new” Must be unique Must have a market

5. 1/16/025 Effective innovations start small. They are not grandiose. They try to do one specific thing. It may be the elementary idea of putting the same number of matches in a matchbox. This simple notion gave the Swedes a world monopoly on matches for half a century. Peter Drucker

6. 1/16/026 We succeeded (in the Normandy Invasion) because we didn’t know it was impossible. Winston Churchill

7. 1/16/027 Market opportunity Problem Pain Solution Big markets Growing markets Accessible markets

8. 1/16/028 Growing the company From inception to exit The steps necessary Experience first hand, not from a book

9. 1/16/029 Dividing the pie Founders Investors Change over time Dilution Wealth creation for shareholders Different rights with different types of stock

10. 1/16/0210 Legal entity C corp S corp LLC Partnership Sole proprietorship Other

11. 1/16/0211 Funding Self Friends and family Angels and private investors Vcs Institutions Other: industry partnerships, customers, etc.

12. 1/16/0212 Hiring management CEO, marketing and sales, finance, technical, support Where do you find good candidates? What do you give them? How do you keep them?

13. 1/16/0213 Creating a board of directors What is a board? What do they do and how often? Finding and recruiting candidates Compensation Ongoing governance Staying out of trouble D&O insurance

14. 1/16/0214 Advisors and mentors Why have them Formal or informal Compensation and expectations Filling in the gaps of your knowledge

15. 1/16/0215 Market research Secondary research Primary research Comparables Finding the market opportunity

16. 1/16/0216 Market analysis Segment Target Position Creating a marketing strategy that positions the company for success Entry, dominance, sustainability

17. 1/16/0217 Financial analysis Income statements Cash flow Balance sheet Pro formas Expenses Revenue streams

18. 1/16/0218 Creating a business plan Internal and external uses Clear articulation of story Blueprint for moving forward Focusing on what’s important Concept, strategy, execution

19. 1/16/0219 Resources Bootstrapping resources to marshal and minimize resource utilization Other people’s money (opm) Head skis and money up front Networking and network effects