1. Enterpreneurship: Commercializing Technolgies Taking Research from the Lab to the Real World: Is Having a Good Idea Enough? Dorothy H. Air, PhD Associate Senior Vice President Entrepreneurial Affairs University of Cincinnati and Director of Operations CincyTechUSA July 15, 2009

2. Entrepreneurship: Test your knowledge Myths (New Venture Creation by Timmons and Spinelli)  Entrepreneurs are born and not made  Anyone can start a business  Entrepreneurs are gamblers  Entrepreneurs experience much stress and pay a high price  Money is the most important start-up ingredient

3. Entrepreneurship: Test your knowledge Myths Con’t. (New venture Creation by Timmons and Spinelli)  Entrepreneurs should be young and energetic  Entrepreneurs are motivated solely by money  If an entrepreneur is talented, success will come in a year or two  Any entrepreneur with a good idea can raise money  Start and fail at a business, and you will never raise money again

4. Becoming a Successful Entrepreneur: Critical Factors Novel technology Interest in forming a business Passion and drive to succeed Willingness to sacrifice Willingness to accept and implement advice Ability to take informed and calculated risks

5. Becoming a Successful Entrepreneur: Critical Factors Flexibility and Resilience Leadership Persistence Optimism and Self-confidence Experience from Wage Earning Jobs Knowledge Focus on value of technology – not $$

6. Becoming a Successful Entrepreneur: Critical Factors Communication skills Attention to Detail Ability to Build Relationships and Collaborate Team Building Ability to Innovate and Think Outside Box Ability to Think BIG

7. Becoming a Successful Entrepreneur: Critical Factors Willingness to assume responsibility Commitment to ethics Self-insight into strengths and limitations Understanding of length of time to succeed Right Management team Solid business plan

8. The Business Plan Is it necessary to have a fully developed and written business plan? What purposes can it serve? What should be included in the plan? How do you get started? Is there help available?

9. Commercialization of Technology: Where do you start? Do your own homework on the commercial viability of technology Seek external advice on best commercialization pathway Outline a business plan

10. Commercialization of Technology: Where do you start? Seek external feedback on business plan Take advantage of available resources to help move forward, esp. business resources Determine what role you want/should play in the new venture

11. Developing a Business Plan: Asking AND Answering the Right Questions Business Overview  What is your company’s business?  What is the problem solved by your business idea?  Why is your business idea the best one to do this?  At what stage of development is your business idea? Market Opportunity  How large is the market?  Is there segmentation in the market?  Which segment is REACHABLE?  Who are your competitors?  How will you enter the market?  Are there barriers?  Is the competition fragmented or is it an emerging industry?

12. Developing a Business Plan: Asking AND Answering the Right Questions Product or Services  What problem will be solved or void filled?  What is/are the products?  Who will use the product?  Why is the market appealing?  Why is your product different?  What are your advantages over others? Sales and Awareness Strategies  How will you gain and maintain market shares?  Who are the influencers who will need to be convinced? Intellectual Property/Branding Strategies  What is the company’s IP or branding strategy  Who owns the IP?  How is the IP/brand protected?

13. Developing a Business Plan: Asking AND Answering the Right Questions Management Team and Advisors  Who serves on the Board of Directors?  Who serves on the Advisory Board?  What skills does your team have?  Why will these skills help the company to succeed?  What skills does your team need? Investment Opportunity  How will your company generate income?  How much investment does your company need and over what period of time?  Where will you get the funding?  How will the funds be used?  What business milestones will the company achieve?  What is the exit strategy for investors?

14. Sources of Funding Getting Started: Personal Savings Personal Credit Cards Borrowed Money from 3 F’s (Friends. Family and Fools) 2 nd or 3 rd Mortgage

15. Sources of Funding  Seed Stage Sources  Federal Grants – Variable  State Grants – Variable  Foundations - Variable  SBIR/STTR – Phase 1 (feasibility) $100,000; Phase 2 (full R&D) $750,000  Loans – SBA, Bank – variable  Seed Funds – typically up to $500,000  Angel Investments – typically $250,000 – 750,000  Later Stage Sources  Venture Capital  Early Stage $3,000,000/year  Growth $8,000,000/year