Kawasaki, Chs. 3 and 4

1. Kawasaki, Chs. 3 and 4

2. Kawasaki, Ch. 3, Pitching • One minute to explain your relevance • Shock and awe aren’t usually obvious (except to you) • Use “For instance…” to give specific explanations about what you do…make it concrete…

3. Kawasaki, Ch. 3, Pitching • Use the 10/20/30 rule for presentations: • 10 slides • 20 minutes • 30 point font • E.g., 20 point font; 25 point font; 30 point font; 35 point font

4. Kawasaki, Ch. 3, Pitching • Kawasaki doesn’t give much weight to lofty statements: • Market will be $50 billion • Ability to forecast 5 years of more • Millions of potential customers

5. Kawasaki, Ch. 3, Pitching • It’s about the addressable market • It’s about relevant estimates • It’s about the on-going flexible business model

6. Kawasaki, Ch. 3, Pitching • Total Addressable Market (TAM) • The true size of the potential market you can reach

7. Kawasaki, Ch. 4, Business Plan • Kawasaki gives some sound action advice: • Business plans are required (but not necessarily a navigation tool for entrepreneurs) • Pitch, then plan – write your pitch first, then develop your business plan

8. Kawasaki says keep it at 20 pages or less • One author only (many contributors) • Simple binding and presentation • Simplify financial projections • Key metrics: #customers, locations, etc. • Define assumptions

9. Kawasaki says keep it at 20 pages or less • Typically include 5 year projections • More specific in early year(s) by quarter, then annual • Cover timeframe it takes to earn significant revenues

10. Kawasaki • Write your plan “deliberately” (factual terms as if it will happen precisely as you describe it) • Act “emergently” in a manner that allows you to quickly adapt to the market, opportunities, etc.

11. Kawasaki • Make your business plan stand out by… 1. Having credible referral source 2. List of potential or current customers 3. Real-world knowledge/experience 4. Diagram and graphics that simplify complicated concepts

12. Kawasaki, Chs. 5 and 6

13. Kawasaki, Ch. 5 Bootstrapping • Bootstrap business are NOT necessarily trivial businesses • All businesses should consider cash flow • Advantages of bootstrapping?

14. Kawasaki, Ch. 5 Bootstrapping • What is a bootstrappable business? • Low up-front capital • Short sales cycle • Short payment terms • Recurring revenue • Word-of-mouth advertising (see “Guerilla Marketing”)

15. Kawasaki, Ch. 5 Bootstrapping • Getting the word out… • Internet • Friends and family • Making your product/service visible by talking to everyone • Piggyback on other products, services, or stores

16. Kawasaki, Ch. 5 Bootstrapping • Bottom-up forecasting • How many sales calls can you (or your salespersons) make each day? • How many days of selling? • How many sales calls will convert to actual sales? (Try this out) • How much money will each actual sale bring in?

17. Kawasaki, Ch. 5 Bootstrapping • Prototype • Ship, then test • Fix, ship, fix, ship… • Try small market segments or market testing first • Focus on function, not form

18. Kawasaki, Ch. 5 Bootstrapping • Stay within reality, you can be optimistic and realistic (the red pill) • Let people tell you the truth (get a Morpheus) • Build a board (good guidance and support) • Know what’s big, what’s small

19. Kawasaki, Ch. 6 Recruiting • When you are ready to hire…. • Don’t confuse the former organization with the person • Experience in big organizations isn’t always necessary • Experience in failed organizations isn’t always bad • Hire the person who can learn the job • Hire people who can make meaning from the business

20. Gartner & Bellamy, Ch. 3 • Enterpriser’s skill set • Goal setting at the core • Time management, persuasion, negotiation, networking

21. Gartner & Bellamy, Ch. 3 • Goal setting • Specific is better than vague • Difficult is better than easy • A decision is at the base of goal setting – the decision to act

22. Gartner & Bellamy, Ch. 3 • What is rapport building? • What aspects of your self-assessment indicate your strengths in this area? • Rapport is at the foundation of your credibility.

23. Additional Sources • http://www.hbs.edu/entrepreneurship/resources.html (Harvard Business School) • http://www.internationalentrepreneurship.com/ (information/global by country) • http://online.wsj.com/small-business (Wall Street Journal) • http://eventuring.kauffman.org/ (Kauffman Foundation) • http://www.we-inc.org/ (women entrep.) • http://www.score.org/minorty.html (minority entrep.)

24. Networking • www.sba.gov • Financing information • Start-up kits/information • Search by zip code • www.score.org • Service Core of Retired Executives • Search by zip code • www.scorela.org • SCORE in Glendale

25. Networking • Who is in your network? • Complete inclusion of your relationships • Primary network – those closest to you in business or personal issues • Secondary network – those you have met in doing business • Tertiary network – those you have been introduced to briefly or someone linked to your primary or secondary network

26. Networking • Look for ways to exploit differences among relationships • Prepare, show up, interact • Keep track of contacts, where you meet them, etc. • Keep in touch with people on your list • Use the list • Gartner and Bellamy

27. Networking • Get lists of attendees before meeting • Create interest with short introduction • Spend time with people you don’t know • Focus on what you do to solve problems • Ask for information • Use resources appropriately • Acknowledge leads, support, etc. • Energy and confidence • Posture, body language • Gartner and Bellamy

28. Gartner and Bellamy – Ch. 4 • What are the forms of organization described? What are some advantages and disadvantages of each? • What are the implications of your self-assessment in terms of organizing your business? Be specific.

29. Gartner and Bellamy – Ch. 5 • Read the enterprising ethics case on page 142 and be prepared to discuss questions at the end of the case. • In addition to the case questions, be prepared to discuss what Paul Bass could have/should have done differently – if anything.