Entrepreneurship
28 Sept 2023
A disciplined approach to
new company design and creation
Prof. Juan A. Latasa
Most of the Diagrams and Cartoons have been taken from the book: Aulet, B. (2013). Disciplined
Entrepreneurship : 24 steps to a successful startup. Hoboken, New Jersey: John Wiley & Sons, Inc.
a no ser que se indique lo contrario. Copyright © 2013 by Bill Aulet.
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Agenda Today
Class 1:
1. Housekeeping
2. Intro (cont´d)
3. Team Creation
Class 2:
1. Idea selection
2. Intro to the 24 steps
3. Filtering Exercise
4. Step 1 (if time allows)
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Syllabus (1)
Syllabus: Entrepreneurship (formerly, Business Planning)
UFV 1T: Sept.- Dec.2023
Prof. Juan A. Latasa (juanantonio.latasa@ufv.es)
Weeks
(2 Classes per Week)
LEGENDS:
Regular Classes
Group Tutoring + Visits
Holidays / Xmas Dinner
Guest Speakers
Final Presentations
Reading (before the class)
Deliverables / Comments
Class Lecture / Topic
(Dates and topics may vary depending on
progress)
Week 1
Thurs. Sept. 14th
Introduction to the Class:
1st hour
MIT & Entrepreneurship
Housekeeping: Logistics, Grading, Syllabus etc
Intros of all
2nd hour
Overview of 24 steps for Disc.Eship.
What makes an Idea a Good Idea? Filtering of Ideas
Week 2
Thursday Sept 21st
Top 100 Innovation Leaders Award - No class
Week 3
Thursday Sept 28th
(Note: Class this week together International Program+ Computer Engineering)
1st hour
Filtering Ideas & Team Speed Dating
(Cont´d) Overview of 24 steps for Disc.Eship.
Step 1: Market Segmentation
Step 2: Select a Beachhead Market
Step 4: Calculate TAM
2nd hour
Week 4
Thursday Oct.5th
1st hour
Step 3: Build an End-User Profile
Step 5: Profile the "Persona"
2nd hour
Step 6: Full Life Cycle
Step 7: High level product specification
Disc.Eship book intro
Chapter 1+2
Bring 3 ideas to start a company: After class, teams formed
Send Executive Summary per team (over weekend)
Chapter 4
Chapter 3
Chapter 5
Chpater 6
Chapter 7
Do Primary Market Research (PMR)
Select Beachhead, calculate TAM, etc.
Week 5
Thurs. Oct.12th
(Spanish National Holiday - No Class)
Week 6
Thurs. Oct.19th
1st hour
2nd hour
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Review
Step 9: Next 10 Customers
Step 8: Quantify Value Proposition
(Step 10: Skip)
Step 11: Chart your Competitive Position
Juan A. Latasa
Chapter 9
Chapter 8
Chapter 9 + 10
Chapter 11
Bring PERSONA (from previous Homework)
PMR - Bring 10-12 customer I+Os (from previous Homwork)
Syllabus (2)
Week 7
Thursday Oct. 26th
1st hour
Step 12: How does your customer acquire your product?
2nd hour
Step 13: Map the process to acquire a paying customer
Step 14 Calculate Total TAM size
Chapter 12
Bring HLPS + QVP!!
Chapter 13
Chapter 14
Bring Competition Matrix
Week 8
Thursday Nov.2nd
1st hour
Homework Review: Q&A - Pending issues
2nd. Hour
Bring ALL HOMEWORK:
Step 15: Business Model
Chapter 15
Step 16: Set your pricing framework
Step 18: Map the Sales Process to acquire a Customer
Chapter 16
Chapter 18
Week 9
Thursday Nov 9th
1st hour
Step 17: Calculate LTV of acquired customer
2nd hour
Step 19: Calculate Cost of Acquisition (COCA)
Practice LTV+COCA + Group Exercise: Start-up Storming
Week 10
Thursday Nov 16th
(MIT 12th Investor´s Forum in the morning)
Basic concepts in a Digital Marketing Plan
Week 11
Thursday Nov 23rd
Steps 20-21: Identify and Test Key Assumptions
Step 22: Define the Min. Viable business Product (MVBP)
Step 23: Show that the dogs will eat the dog food
Step 24: Develop Product Plan
Chapter 17
Chapter 19
Bring explanation on Business Model and Pricing
Tutoring by Groups
Guest Speaker Marketing Dir.
Chapters 20 & 21
Chapter 22
Chapter 23
Chapter 24
TBC -- JM Rosado
Bring Initial LTV + COCA
Week 12
Thurs. Nov 30th
1st hour
"Buffer" for delayed / skipped material / Wrap-up
2nd hour
TUTORING BY GROUPS (1/2 hour each group)
Week 13
Thurs. Dec. 7th
1st hour
2nd hour
TBD This week
"Buffer" for delayed / skipped material / Wrap-up
TUTORING BY GROUPS (1/2 hour each group)
Entrepreneur Christmas Dinner!! (TBC)
Week 14
Thurs. Dec.14th
FINAL GROUP PRESENTATIONS 2-5pm
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Send Prod. Plan (MVBP + tested Key Assumptions)
Bring ALL Homework (Steps 1-24)
(Note: Only for the teams required -- could change the day)
Another Reminder:
Rules of the game
• Continuous Evaluation: Surprise quizzes,
deliverables as planned in Syllabus = 30%
• Attendance (sign-up sheets) + Class
Participation in the classroom (and outside) =
30% (see next slide)
• Final Exam / Project Presentation = 40%
• Teams of 4-5 (next session)
• … Start thinking about 3 great ideas!!
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About MiT
• Innovation Echosystem at MIT
https://youtu.be/WSkDqpBctfA
• Introduction to MiT:
https://youtu.be/bB7yb2Hryso
• The next 100 Years: The Nano Building
https://youtu.be/WrRXfOiwSqY
• MiT OpenCourseWare:
https://youtu.be/tbQ-FeoEvTI
• MIT Nobel Prizes:
https://youtu.be/E-Do27uom3k
- 85 Nobel Prizes in last 60 years!!
- 8 between 1987-1991 (when I studied there! ;-)
- 30 in Physics in Total. 3 consecutive years while I was there for
my Professors: Steinberg (1988), Ramsey (1989), Friedman
+Kendall 1990)
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Top100 Lideres Award
(Sept 21st, Seville)
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Why being an Entrepreneur?
1. Control your own destiny: beg vs. create awesome job
2. Attackers vs. Defenders: Attackers make all the money &
have all the fun, e.g., Zuckerberg, Brin, Jobs
3. Starting companies is LESS risky than thought, and so
much more rewarding
4. Nothing will use your talents more than starting a
company
5. The Best Reason (at least for me): To change the world!!
… First requirement: Ability to believe in (and get others
excited about) something that does not yet exist.
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An approach …
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… Why
• Increase the quality of life
• Right a Wrong
• Prevent the end of
something good
https://www.youtube.com/
watch?v=z1OgSSaZYe0
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The Art of the Start 2.0
(by Guy Kawasaki)
Great companies begin by asking simple questions
(pick your favourite one!):
–Therefore what? Instagram
–Isnt this interesting? McDonalds
–Is there a better way? Apple 1
–It is possible, so why don´t we make it? Motorola
–Where is the market leader weak? Google vs IBM
–… Why doesn´t our company do this? (My own life
story! ;-) Vodafone Internet TV
https://www.youtube.com/watch?v=XUGn9VYQ11k
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A link between Innovation and Growth
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What Makes a Good Idea to Start a
Company?
Key Question for you: Is this important?
• Yes
– If you are not over a good target, your bombs are much, much less
effective
– Your ability to recruit people
– Your ability to put your head down and go and not look back
– Credibility in the longer term with customers & others
– Build your expertise that makes you unique
• No
– It will change
– You get 1-2 major adjustments (e.g., A123)
– Don’t use as an excuse not to do the job properly up front
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Sifting Out Good Ideas from Bad
Inspiration
Market
Technology
Personal Filter
Business Filter
External
Filter
Execution
Filter
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Other
Personal Filter
• The idea won’t go away
• You really, really care
• You can explain it
• Will making it happen be fun to you?
• Can you see yourself doing it for 3+ years?
• Can you get the other people you need excited about it?
• Is it within your domain of expertise?
• Does it fit with your overall personal goals?
Special thanks to Bill Warner – founder of Avid
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Business Filter
• Is it “10x” better than the alternatives – in the areas that
matter to your target customer?
• Do the people who would buy it have $’s?
• Do you know what the core of the idea is?
• Is the core defensible and sustainable?
• Is it scalable?
• Can you show how it will be profitable on the back of a
napkin
• Is there anyone who can block you out?
• Is the market attractive enough? (think Exit)
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External Filter
• Do the people you need to convince get it?
• Can you recruit the team you need?
• Do the customers buy it?
• Do the business partners you need buy it?
• Do the investors buy the story, if you need investors?
• Is the timing right?
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Execution Filter
• Market adoption rate and other issues
• What things need to go right? How many?
• What things, if they went wrong, would kill you?
• What competitors will you have as soon as you launch your
new venture? How will they react?
• How do you assess the overall risk?
• What did you miss? Did you ask experts in this area?
• Does the idea continue to motivate you and others when
honestly facing with the downside?
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Importance of Compelling Company
Name, Tag Line & Elevator Pitch
• Need to be able to tell your story quickly and in a
compelling manner that gets others excited
• Must not be longer than 30sec-1 min!!
• Decide on a good project name
• Great sanity check
• Might not get it right at first but if you can’t over
time, worth thinking hard about moving forward –
may still make sense but DBYOBSTM (Don’t Believe
Your Own BS Too Much)
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Definition of Innovation
Innovation =
Invention
+
Commercialization
(Corollary JAL: or better times commercialization squared)
Source: Prof. Edward B. Roberts, MIT Sloan
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Intellectual Property – Including
the “No strings-attached rule”
1. Submissions constitute “public disclosure”: if you’ve got an amazing secret,
disguise it. We don’t care about how the technology works for this class – it is
a black box for the sake of this class. This is a venture creation class not a
technology class.
2. Do not write “confidential” or “proprietary” on your assignments or
submitted plans.
3. We reserve the right to distribute submitted plans to your classmates, & will
use non-secure email/websites.
4. This is an academic environment – information produced in this course is
done so for educational purposes and does not belong to anyone. You have
no stake to an equity claim in a company because of your work in this class.
Any companies that start, start after this class with a clean slate. (the “No
strings-attached rule”)
5. Implicit permission to use in future classes unless you tell us otherwise
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Team Formation
• Teams 1 – 7 International Group (4 people each)
+
• Teams 1-7 Engineering Group (3 people each)
=
• New Teams 1-7 (7 people each)
• If anybody wants to split up in a smaller team of
3-4, feel free to do it.
• Plus there are 2 teams in Spanish (3-4 each)
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Get to know each other game
• Team members introduce themselves and tell
3 things about them.
• 2 are Truth, 1 is a lie (an imaginative one! ;-)
• The rest have to guess which one is the lie.
... Have fun!!!
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Class 2 objectives
1. Ideation
2. Overview of the 24 steps
3. Step 1 (if time allows)
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Part 2
Overview of the 24 Steps
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Bill Aulet - Introduction to Disciplined Entrepreneurship
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Definition of Entrepreneurship – 2 Types
(Both are OK for the ideas selected in class)
Entrepreneurship
IDE
(Innovation-Driven
Entrepreneurship)
Global Markets
SME
(Small Medium Enterprise)
Regional Markets
Ej: Restaurants
Dry Cleaners
Home / personal Services
•
•
•
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Δt is short
Linear growth
Less investment required
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Ej, B2B / B2C “hits”
IMPORTANT: Sustainable competitive
advantage at Core
•
•
•
Δt is long
Exponential growth
A lot of investment required
But What is Happening
Crisis in Entrepreneurship Education
“Education by Storytelling”
Gets the Spirit but Not the Skills
Makes it Sound Easy
It is Not! Requires Discipline
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Successful Entrepreneurship
=
+
•Spirit
of a pirate
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•Skills
of a Navy Seal
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Hence, “Disciplined Entrepreneurship”
“A 24 step systematic approach to help you
dramatically increase the odds that you will
build a product that the market wants and will
be highly profitable, and/or impactful, to you as
well – for new and experienced entrepreneurs”
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24 Steps, 6 Themes
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First Step: Process of Generating a
New Idea
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What elements do you need to
generate ideas?
1.Idea
2.Team
3.Process
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But…
I do not
have any
Good
ideas!
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Exercise: Idea Diary
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Ideas
1. Crazy ideas welcome!
2.Think about how to “hack” the system
3.The more ideas, the better
4.The do not have to, often cannot be, complete ideas – this
is only the beginning
5.If you think they are all good ideas and they are all logical
and can work… then you are not being creative enough
6.Bring 20 ideas as a team for the next class!
7.Yes, you can!
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An example
• Students are tired of moving…. How about a “foldable”
sofa?!
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1st key lesson
from Entrpreneurship 101
• What is is the single and sufficient condition to start a
company?
1.________To have a PAYING CUSTOMER ________________
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How to reach that 1st Customer
Market
Target Beach Head
Customer
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Path to specifity
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Idea Selection Matrix
Idea 1
Idea 2
Idea 3
Etc
Personal Filter
Business Introduce values per team member (1-10)
External
Get an Average total
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Next Week
• Work in teams on ideas, and do Filtering
Matrix:
– Send 1 email with team names and a short
description of Project
– Send Filtering Matrix
– Prepare and come ready to do Elevator Pitch (ony
2 people per team)
• Read D.E. Book Chapters 1-5 (if you did not do
before).
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ENTREPRENEURSHIP CENTER UFV
Edificio –
Central
– Modulo
5 – Buhardilla
Edificio Central
Modulo
5 – Buhardilla
Centro de Emprendimiento UFV
Centro de Emprendimiento UFV
91 709 14 00 Ext – 2191
91 709 14 00 Ext – 2191
emprendimiento@ufv.es
emprendimiento@ufv.es
www.emprendimientoufv.es
•
•
My email:
Juanantonio.latasa@ufv.es
•
(Note: Preferably communications through UFV CANVAS)
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@Emprender UFV
www.emprendimientoufv.es
@Emprender UFV