ENTREPRENEURSHIP
Monica Zimmerman, Ph.D., CPA
West Chester University
Good Ideas - Monica Zimmerman
1
Entrepreneurship
z
z
z
z
z
z
z
z
Creation of new businesses
Small businesses
Sole proprietorships
Family owned businesses
High growth businesses
Franchise ownership
Innovative established businesses
Intrapreneurship
Good Ideas - Monica Zimmerman
2
Intrapreneurship
z
z
Creation and/or innovation within an existing
business
Examples of intrapreneurial companies
z
z
z
3M
Apple Computer
Need for intrapreneurship
Good Ideas - Monica Zimmerman
3
Today we will discuss
entrepreneurship in terms of
The creation of a new business
Good Ideas - Monica Zimmerman
4
IDEA GENERATION
“HOW IT ALL BEGINS”
Good Ideas - Monica Zimmerman
5
ENTREPRENEURIAL
PROCESS
1.
2.
3.
Idea Generation
Feasibility Study
Business Plan
Good Ideas - Monica Zimmerman
6
IDEA GENERATION
z Characteristics
of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
z Group exercise
Good Ideas - Monica Zimmerman
7
IDEA GENERATION
z Characteristics
of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
z Group exercise
Good Ideas - Monica Zimmerman
8
GOOD ENTREPRENEURIAL
BUSINESS IDEAS ARE:
MARKET DRIVEN
z
Solve a problem
z
z
z
Find a market need
Customer focused not product driven
Targets an identified sizeable market
segment
Good Ideas - Monica Zimmerman
9
GOOD ENTREPRENEURIAL
BUSINESS IDEAS ARE:
FEASIBLE
z
z
z
z
z
z
Attractive – there is a demand
Achievable – it can be done
Durable – it lasts
Value creating – it is worth something
Safe
Affordable
Good Ideas - Monica Zimmerman
10
GOOD ENTREPRENEURIAL
BUSINESS IDEAS ARE:
UNIQUE
Faster/Better/Cheaper
z Differentiated (vs. commodity)
z They have a “Special Sauce”
z
Good Ideas - Monica Zimmerman
11
GOOD ENTREPRENEURIAL
BUSINESS IDEAS ARE:
FUNDABLE
z
z
z
z
Revenue stream
Manageable risk
Sustainable - Market
exists with frequency of
purchase
Scaleable or Replicable
z
z
z
z
z
Barriers to entry
Growth potential
Product pipeline
Exit plan
Innovative
Good Ideas - Monica Zimmerman
12
INNOVATIVE
Radical vs. Incremental1
z Invention
z Extension
z Duplication
z Synthesis
1
Kuratko & Hodgetts, Entrepreneurship: Theory, Process, and Practice
Good Ideas - Monica Zimmerman
13
GOOD ENTREPRENEURIAL
BUSINESS IDEAS ARE OFTEN
BASED ON:
Intellectual Property
z Copyrights
z Trademarks
z Patents
z Trade Secrets
Good Ideas - Monica Zimmerman
14
IDEA GENERATION
z Characteristics
of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
z Group exercise
Good Ideas - Monica Zimmerman
15
SOURCES OF GOOD
ENTREPRENEURIAL IDEAS
z
z
z
z
Talk to friends, family and other contacts
Read
Examine surroundings
Consider your
z
z
z
z
z
Hobbies/activities
Education
Work Experience
Personal Life
Network
Good Ideas - Monica Zimmerman
16
SOURCES OF GOOD
ENTREPRENEURIAL IDEAS
z
z
z
Known needs not effectively met
Geographic or business niches not currently
served or under served niches
Changes in
z
z
z
z
Market
Industry
Legal/ Political factors
Technology factors
Good Ideas - Monica Zimmerman
17
Successful Entrepreneurs
recognize an opportunity
while it is still taking shape
Skate to where the puck
will be not where
it is or it was.
O’Malia & & Whistler, 2003
Good Ideas - Monica Zimmerman
18
IDEA GENERATION
Characteristics of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
z Group exercise
z
Good Ideas - Monica Zimmerman
19
GENERATING A GOOD IDEA
Avoid
z
z
z
z
z
z
Unfavorable industries
Unfavorable markets
Crusades
N of one
One Hit Wonders
Unsafe or illegal products/services
Good Ideas - Monica Zimmerman
20
IDEA GENERATION
z Characteristics
of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
z Group exercise
Good Ideas - Monica Zimmerman
21
GROUP EXERCISE
Think of a business idea
z Think of an everyday problem and the
solution for it
z Be creative - No idea is too
obscure/crazy/simple
z One idea per group
z 5 minutes
z
Good Ideas - Monica Zimmerman
22
IDEA GENERATION
z Characteristics
of good
entrepreneurial business ideas
z Sources of good entrepreneurial
business ideas
z Ideas to avoid
Good Ideas - Monica Zimmerman
23
ENTREPRENEURIAL
PROCESS
1.
2.
3.
Idea Generation
Feasibility Study
Business Plan
Good Ideas - Monica Zimmerman
24