The Entrepreneurial Process Patterns of Entrepreneurship Chapter 1
The Entrepreneurial Process • Identify an Opportunity • Develop the Concept - Write the Business Plan • Determine the resources Required • Acquire the Necessary Financing/Partners • Implement and Manage • Harvest the Venture - Exit Strategy
The Entrepreneurial Process Identify an Opportunity Develop the Concept and write the plan Changing Demographics Emergence of New Market Process Needs New Technologies Regulatory Change Social Change New Product/Services New Processes Enter New Markets New Organizational Structures/Forms Use New Technologies Use Sales or Distribution Channels Start Writing the Plan
The Entrepreneurial Process Determine the Required Resources Acquire the Necessary Financing/Partners Need for: Marketing and Sales Expertise Technical Expertise Financing Needs Distribution Channels Sources of Supply Licenses, Patents, & Legal Protection Complete the Business Plan Debt Supplier Financing Equity Joint Ventures Outsourcing Partnerships Leasing Barter
The Entrepreneurial Process Implement and Manage Harvest the Venture Implementation of Plan/Pilot Program Monitor Performance Payback to Resources Providers Reinvestment Expansion Achievement of Performance Goals Licensing of Rights Sell or Merge Go Public Shut down Venture
Why Become an Entrepreneur • For many individuals, there is the perception of independence and freedom from the politics and restrictions of corporate America. • Being able "to do one's own thing," and make one's own decisions, and • exert greater control is an attractive alternative to the conformity--real or imagined
The Entrepreneurial Mindset • "A key aspect of establishing an entrepreneurial mindset is creating the conditions under which everyone involved is energized to look for opportunities to change the business model”-Professor Rita McGrath
Commonly Shared Entrepreneurial Characteristics 1.They passionately seek new opportunities always looking for the chance to profit from change and disruption in the way business is done. 2.They pursue opportunities with enormous discipline.. 3.They pursue only the very best opportunities and avoid exhausting themselves and their organizations by chasing after every option.
Commonly Shared Entrepreneurial Characteristics 4. The focus is on execution—specifically, adaptive execution. 5. The entrepreneur engages the energies of everyone in the company. .