- Starting
a
Business Are You Ready?
January 26, 2013
Center for Entrepreneurship
and Innovation
Alumni Relations
Career Services
School of Management
Center for Entrepreneurship
and Innovation (CEI)
(established 2012)
What is the CEI?
This center is a physical, virtual, and intellectual place where both
undergraduate and graduate students (all disciplines), alumni, staff,
and faculty can find support to develop their ideas into new ventures.
CEI Mission
Our mission is to provide inspiration and guidance.
We help students and alumni to gain more control over their economic
future by developing the ability to create opportunities in the
marketplace for themselves and others.
Workshop Outline
I.
Speed Introductions – Your Idea
II.
Meet the Alumni Entrepreneurs
III.
Understand Entrepreneurship
IV. Understand Yourself
V.
Understand Your Business Idea
VI. Evaluate Business Idea
VII. Question and Answer – Entrepreneurs
No decision rules – Only food for thought
Speed Introduction
Who are you and what is your idea?
5 seconds
Meet the Alumni Entrepreneurs
How did you know you were ready
for entrepreneurship?
Understand Entrepreneurship
What is an entrepreneur?
What is an Entrepreneur?
“An entrepreneur is someone who creates a new
business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources
to capitalize on them”.
(Zimmer and Scarborough)
What is an Entrepreneur?
“A person who does everything he/she can
think of to keep from finding a job.”
(From B.C. by Johnny Hart)
What is an Entrepreneur?
“Part of the problem of capturing the essence of an
entrepreneur is the multifaceted nature of the
entrepreneurial role. Entrepreneurs are often builders,
creators, inventors, managers and leaders, all at the
same time.”
(W. Gibbs Dyer)
The Challenge
“Of all the challenges that entrepreneurs face, nothing matches in
difficulty the everydayness of business ownership. It exists from
the moment you wake up from the moment you collapse in
exhaustion at the end of the day. It’s exhilarating, terrifying and
constant…….If you want an easy job, don’t start your own business.”
(Jan Normam – What No One Ever Tells You )
Odds are Against You!
•
Very high failure rate
•
You can beat the odds!
•
Do your homework
•
Starts with a good idea
•
A good idea – not enough!
Let’s Vote
• Do you still want to be an entrepreneur?
• The odds are against you and it’s hard work!
Understand Yourself
Are you an entrepreneur?
Bill Gates
“When I started Microsoft I didn’t think of it as being
risky….The thing that was scary to me was when I started
hiring my friends, and they expected to be paid.”
Bill Gates, Co-founder - Microsoft
Entrepreneurship - Self Test
Source: Small Business Administration
Entrepreneurship Self Test
Scoring Key:
Yes
3 points
No
2 points
Maybe
0 points
Source: Small Business Administration
Score
Explanation
60 to 75
You can start the business plan. You have the earmarks of an entrepreneur.
48 to 59
You have the potential but you need to push yourself. You may need to
improve your skills in your weaker areas. This can be accomplished by
improving yourself in these areas or by hiring someone with these skills.
37 to 47
You may not want to start a business alone. Look for a partner who can
compliment you in the areas where you are weak.
Less than 37
You will probably be happier and more successful working for someone
else. However, only you can make that decision.
Understand Your Idea
Have you examined your idea – broadest sense?
Idea Type
•
Type A – New Market
•
Type B – New Technology
•
Type C – New Benefit
•
Type D – Replication
Idea Category
Description
Type A
Providing customers with a product or service that does not
exist in their market. Product or service exists in other markets
but not currently available in your market.
Type B
New technology centered on providing customers with a new
product that does not exist in any market.
Type C
Provides customers with an improved product. Basically a
“me-too” product strategy that provides a “new benefit” not
offered by the competition.
Type D
Replication of existing products. “Me-too” w/no differentiation.
Evaluate the Business Idea
What do you think? What factors to consider?
Evaluate the Business Idea
• The Market
• Competition
• Marketing
• Financials
• Management/Technical
• Financial Resources
• Potential Customers
• Personal Goals
• Geography
• Intuition
• Promotion
Evaluation of the Business Idea Tool
Source: University of Wisconsin-Milwaukee - SBDC
Conclusions
Question and Answer
Thank You
Donna Borgus, Director, Alumni Relations
Mike Kahl, Director, Career Services
Gerard Zappia, Dean, School of Management