MBAX 6100 Entrepreneurship & Small Business Management

1. MBAX 6100Entrepreneurship & Small Business Management Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado “Progress depends upon unreasonable men.” GB Shaw Entrepreneurial Manager

2. Today’s Agenda • Entrepreneurial Manager • Case: Crunch • Entrepreneur Interview • Tonight 6:00 Business Plan Competition Whitemyer • NREL trip Feb 2nd at 2:00 Entrepreneurial Manager

3. Entrepreneur Interview • Choose person in an area of interest • 3 years in business, 5 employees • See website for assignment & questionnaire • Visit their office or facility • Observe/talk to customers • In depth interview – get beyond the hype and self-promotion • Take one hour after interview to draw conclusions Entrepreneurial Manager

4. Interview Paper • Write a 6-page 1.5 spaced paper • Describes the entrepreneur’s background, motivations for starting the venture, challenges in growing the venture • Evaluates the value proposition (target market, product/service description and unique benefit) • Conclusion: what makes the company successful (or not)? What are your recommendations for improvement? • Discuss how the findings of the interview apply or are meaningful to you. What have you learned about your own potential to be an entrepreneur? • Objective is to drill down into the company and thoroughly understand the entrepreneur and how s/he does business Entrepreneurial Manager

5. Entrepreneurial Manager • Characteristics & traits • Different types of entrepreneurs • Entrepreneurs vs. small business Entrepreneurial Manager

6. 0 Entrepreneurial Characteristics • Motivated by achievement • Innovation & creativity • Internal locus of control • Risk-taking • Tolerance for ambiguity • Sense of independence • Passion “Traits of entrepreneurs are closest to juvenile delinquents.” Entrepreneurial Manager

7. 0 What Traits Should Be Avoided? • Invulnerability • Being Macho • Being Authoritarian • Impulsivity • Outer control • Perfectionist • Know it all • Counterdepency Timmons: New Venture Creation Entrepreneurial Manager

8. 0 What Assets are Required? • Network • Supporting spouse • Financial resources • Optimism Entrepreneurial Manager

9. What Experience Is Required? • Accounting • Recruiting & hiring • Selling • Financial projections • Cash flow management • Naming a product • Choosing office decor Entrepreneurial Manager

10. 0 Do You Have the Right Stuff? • Are you a self starter? • Can you go 6 months to 2 years without getting paid? • Are you willing to give up vacations, weekends and evenings? • Are you a decision maker? • Are you a people person? • Do you handle rejection well? • Do you think will on your feet? • Do you like to sell? • Do you handle crisis well? • Would you be able to fire someone? • Do you want total responsibility and accountability? Entrepreneurial Manager MD Csordos, 35 Business Lessons for Entrepreneurs

11. 0 Types of Entrepreneurs • Personal achiever • Super-salesperson • Real manager • Expert Idea Generator JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Manager

12. Personal Achiever (classic entrepreneur) • Need for high achievement • Need for performance feedback • Desire to plan and set goals • Strong individual initiative • Strong personal commitment • Internal locus of control JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Manager

13. Super-Salesperson (caters to needs of customers) • Capacity to empathize • Social interaction and relationships are important • Need to have strong positive relationships with others • Sales force is critical • Background: less education, more experience JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Manager

14. Real Manager (grow the venture) • Desire to be corporate leader • Desire to compete • Decisive • Desire of power • Desire to stand out in a crowd JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Manager

15. 0 Expert Idea Generator (expertise + creativity = innovator) • Desire to innovate • Love of ideas, curious • Belief that new products are crucial • Intelligence is the competitive advantage • Desire to avoid taking risks JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Manager

16. 0 Types of Entrepreneurs • Personal Achiever • Super-Salesperson • Real Manager • Expert Idea Generator • Are there others? Entrepreneurial Manager

17. Different Methods Used to Build Ventures • Independent innovators • Pattern multipliers – expand concept through franchise or chains • Speculator – buy and leverage, e.g. land • Consolidator – industry roll up • Acquirers • Arbitrageur – buy low and sell high K Vesper, New Venture Strategies Entrepreneurial Manager

18. 0 Entrepreneurship Myths & Realities Entrepreneurial Manager

19. Entrepreneurs Are Born? • 100’s of studies: no entrepreneurial prototype • Environment, family and self-development are key • Why are some countries more entrepreneurial than others? • 50,000 chunks There is no E gene. Entrepreneurial Manager

20. 0 Entrepreneurs are Gamblers? • May be the most risk adverse business people • Take calculated risks, after careful analysis. Try to • Minimize • Share risks (OPR’s) Entrepreneurs play poker, not slot machines. Entrepreneurial Manager

21. 0 Entrepreneurs Want to Be Their Own Boss? • But, you serve many masters • Customers • Suppliers • Investors & bankers • Partners • Employees and their families • Community • Double-edged sword. Yes you can make your own decisions, but there is no-one telling you what to do. Entrepreneurial Manager

22. 0 Entrepreneurs Are Motivated by Money? • Survey of 500 male entrepreneurs • Money 6th out of 10 reasons • Survey of 113 female entrepreneurs • Money 11th out of 16 reasons • Desire to achieve, make a difference • But, they do like money. Why? Money is a way to keep score Entrepreneurial Manager

23. Money Job security Lifestyle Power Health Be your own boss Joy of Winning Fame Values & Beliefs Get fired Why Start a Business? Entrepreneurial Manager

24. Entrepreneurs are Lone Wolves? • Stereotype inventor working in his lab • Must have a quality management team • Visionary individual is the key • Entrepreneur can’t do everything • Modify and adapt the vision • It’s fun having people around you that you like Lone wolf can’t get funding Entrepreneurs travel in packs Entrepreneurial Manager

25. Entrepreneurship Requires Lots of Money? • Opportunity driven, not resource driven • Leverage resources: other people’s (OPR’s) • Too much money: • Lack of discipline • Impulse spending Businesses do not fail for lack of money Entrepreneurial Manager

26. Entrepreneurs are Lucky Yes! Entrepreneurial Manager

27. Just Do It 0 “Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing. What do they deserve? Nothing.” George C. Ballas, inventor of Weed Eater Entrepreneurial Manager

28. Next Week’s Class • Entry Strategy • Read BZ-11 • Case: ICEDELIGHTS • Feb 2 at 2:00pm NREL visit Entrepreneurial Manager

29. Traits • Misfits: traits of entrepreneurs are closest to juvenile delinquents • I have discovered that all human evil comes from this, man’s being unable to sit still in a room. Blaise Pascal, philosopher and mathematician • “Progress depends upon unreasonable men.” GB Shaw • Entrepreneurs typically work half days. 12 hours • “The greatest difficulty in the world is not for people to accept new ideas, but to forget old ones.” John Maynard Keynes • “If I’m in control, I’m probably going to slow.” Mario Andretti • A man who wants to lead an orchestra must turn his back to the crowd. Entrepreneurial Manager