Introduction to Entrepreneurship (70-415)
Fall 2007 – Tues-Thur 12 – 1:20pm
Scaife Hall - Auditorium
Professor R.F. Culbertson
Teaching Assistant Mansour Nehlawi
Required Texts:
Technology Ventures: From Idea to Enterprise (Second Edition)
Richard C. Dorf and Thomas H. Byers
McGraw Hill (2008)
ISBN 978-0-07-335043-1/MHID 0-07-335043-5
Course Web Site – www.mhhe.com/dorfbyers2e (once you log on and register and
provide a password, another site will be utilized,
http://highered.mcgrawhill.com/0073529222. Support materials, DVDs etc are available
on the site.
Additional materials/videos are available at http://edcorner.stanford.edu and at
http://eclips.cornell.edu/homepage.do.
“Starting Something: An Entrepreneur’s Tale of Control, Confrontation, and
Corporate Culture”
Ravel Media LLC, ISBN 1-932881-01-8, LCCN: 2004093746
“Starting Something”- DVD. Produced by Pennsylvania State University, Smeal
College of Business, and Farrell Center for Corporate Innovation and Entrepreneurship
(available at Carnegie Mellon bookstore).
Eleven Key Management issues are explored in depth in this book and accompanying
DVD.
1. “The Mindset, the Passion, the Idea” – the entrepreneurial mindset
2. “Seven Degrees of Separation” – the power of networks
3. “Your money, my life” – bootstrapping
4. “Angels” – the value of mentors
5. “Partners” – the pros and cons of choosing a business partner
6. “Culture” – how do you build and sustain an innovative culture while growing
7. “Hiring and Firing” – building a successful team
8. “Change Management” – knowing when to step aside
9. “VCs and Investment Banks” – when greed takes over
10. “David and Goliath” – dealing with large corporations
11. “Balance” – family/work issues
Reference Books (not required reading)
The Art of the Start (highly recommended)
Guy Kawasaki
Portfolio, Published by the Penguin Group (2004)
ISBN 1-59184-056-2
www.garage.com
New Venture Creation: Entrepreneurship for the 21st Century (7th Edition)
Jeffry A. Timmons and Stephen Spinelli
McGraw Hill Irwin (2007)
ISBN 0-07-249840-4
www.mhhe.com/timmons6e
Business Plans That Win $$$$ - Lessons from the MIT Forum
Stanley R. Rich and David E. Gumpert
Harper & Row Publishers (1985)
ISBN 0-06-091391-6
Outrageous Optimism – Wisdom for the Entrepreneurial Journey
Jack Roseman and Steve Czetli
Corbett Publishing 2004)
ISBN 0-9745135-1-2
www.rosemaninstitute.com
Course Description
This course is an introduction to entrepreneurship designed to develop skills related to
entrepreneurship and innovation for non-business undergraduate and graduate students
in the School of Engineering at Carnegie Mellon University (CIT). The course assumes
no background courses in business and is appropriate for those who are interested in
bringing innovations to market either through new companies or existing companies.
The course provides an overview of entrepreneurship and innovation, develops an
entrepreneurial frame of mind, and provides a framework for learning the rudiments of
how to generate ideas. Students come up with or are presented with potential ideas and
learn how to develop these ideas into opportunities, and to explore their potential for
becoming viable businesses. They learn how to do market research, to develop go-tomarket strategies, value propositions and to differentiate their products or services from
potential competitors. The focus is on understanding and developing strategies for
approaching the key elements of the entrepreneurial process – opportunity, resources
and team. The course consists of a balance of lectures, case studies and encounters
with entrepreneurs, investors and business professionals. The students are exposed to
financial and intellectual property issues, and encounter a real world perspective on
entrepreneurship, innovation and leadership. The output of the course is a “minibusiness plan” or venture opportunity screening document that can be developed into a
business plan in a subsequent course entitled New Venture Creation (70-416) or through
independent study.
Course Administration
This is an entirely different kind of class than any other that you have taken. It is
certainly less academic and more real life. In a sense it is a “real world” application of
academic business courses. It requires creative and innovative thinking, and promotes
a different way of viewing life. The course is time-consuming, but one that you should
truly enjoy. It may change your life and career. Accordingly grading is a little less
quantitative than typical courses – in many cases there is not a “right” or a “wrong”
answer.
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Students are expected to be present, prompt, prepared, and participatory
If you cannot make a class, please inform me of a TA beforehand
If you must miss a class it is expected that you will hand in a two page summary
of the reading material assigned for that day, or a review of course materials
used for that day which will be posted on the course Black board
Grades consist of the following components:
Situation Analyses/exercises assigned for class discussion:
15%
Project Summary for assigned projects:
15%
Venture Opportunity Screening Documents/Pitches, market research plan
for selected project
40%
Oral Presentations in Class
10%
Classroom participation and participation in discussions and cases
(sharing of ideas, synthesis of thoughts, etc.
20%
(Students are expected to hand in their case summaries and assigned
situation analyses – these are an essential basis for preparation for
enlightened class discussions). Additionally:
 Late assignments will be graded docked ½ grade per day of
delinquency
 It is understood that grades are important. Feel free to check with
me regarding your grade and performance if you have questions
or concerns.
 Presentations should be interesting, and rehearsed. The class
size will determine the length of presentation and time limits will
be enforced.
What am I looking for in grading your pitches for the projects?
 Is it an opportunity? Articulation of the opportunity, understanding
of the marketplace and the competition – a reasonable amount of
market research.
 Can you win? Development of a winning strategy (differentiation,
value proposition, sustainable competitive advantage, business
and revenue model)
 Is it worth it (or not)? How does an investor get $ back?
 I am not grading you on the viability of your proposed opportunity
or company per se. You may decide that the opportunity is not
worth pursuing at all, or not for you. It’s the ability to analyze the
situation and to understand, develop a strategy and make an
informed go/no go decision that is important for the class. I’m not
making an investment decision!
There will be several guest speakers and guest entrepreneurs throughout the semester.
It is expected that all students attend these sessions and ask questions. The speakers
have given up their valuable time to share their experiences and expect your active
participation. Please make them feel that they have invested their time wisely.
Contact Information for R.F. Culbertson
Cellphone
412-855-8767
Email
rfc@getabby.com
Office Hours – by appointment
(Tepper – Room 355)
Contact Information for Mansour Nehlawi
Cellphone
412-251-3263
Email
mnehlawi@andrew.cmu.edu
Office Hours – by appointment
Course Schedule – Entrepreneurship // 70-415
Fall 2007
Week Date
Topic
Assignment
A.
“Two roads diverged in a wood – and I took the road less traveled?”
1
8-28
What is ‘E’-Thinking / Idea vs Opportunity
Assignment for today:
Introduction / Overview
Read Chapter 1 in Dorf, Byers
Handouts to be discussed:
Syllabus
Course Goals –
a.
Idea vs. Opportunity
b.
Primary Market Research
Use ‘E’-thinking to:
(1) evaluate your first job opportunity,
(2) find your first apartment,
(3) of find your first ‘mate’.
2
8-30
Creativity … 11 steps to increase it …
Assignment for today:
Read Chapter 2 in Dorf, Byers
Putting in a framework for a creative environment.
How to come up with good ideas?
3
9-4
Creativity – Part 2
Assignment for today:
Prepare Answers to possible questions you will be asked by
Honda buyers
9-6
Selling / Persuasion / Discovery … Part I
Assignment for today:
Get ready to answer ‘selling’ questions about your product /
service.
How would you sell yourself? (recruiters are coming)
Why would you buy your product or service / what pain are you solving?
9-11
Presentation of Paragon Honda Results
Assignment for today:
Read Chapter 3 – Dorf, Byers
- creating a sustainable competitive advantage
2 Min. to present, 2 Min = Q & A
Turn in Paragon Honda Results
4
5
In your Teams (Team Captain) – who could you have done ‘without’ and
who did you depend upon the most?
6
9-13
Selling Part 2
Assignment for today:
How are you going to present yourself to the Recruiters?
How will a typical job interview go?
Hand out 20 Greatest Ideas
7
9-18
Idea vs Opportunity / Team Building … criteria
Assignment for today:
Go over the 20 Greatest Ideas – Briefly …
SELL your own ideas … the ones you’ll work on for the next 10
weeks…
Form VOSG Project Teams  Have our Team come up with your
idea/opportunity that you’re going to pursue during the bulk of this course
9-20
Negotiating …
Assignment for today:
Read Chapter 8 in Dorf, Byers
Appendix B – Case Study – YAHOO!
8
Corporate Culture.xls
Do Negotiating Exercise
B.
“Miles to go before I sleep … ”
9
9-25
Presentations – Summary of Project Plans
Review of VOSG Requirements …
Assignment for today:
Present your ‘Killer Idea’
Format is:
2 minutes to present
2 minute for Q&A
9-27
1st APPRENTICE PROJECT …. how to / why / when …
Assignment for today:
Read Chapter 12 in Dorf, Byers
Discuss:
Entrepreneurial Teams.ppt
Entrepreneurial Teams 101.doc
Entrepreneurial Teams 102.doc
Team Communication…
Myers-Briggs Analysis
Pick / Form Apprentice Teams …
10
C.
She sells sea shells down by the seashore.
11
10-2
Secondary Market Research (Internet)
Assignment for today:
Read / Discuss Mueller Case (to be given out)
To be discussed:
Marketing 102.ppt / E-Marketing.ppt
How to do ‘financial’ / secondary market research
New technology – how to make money / other than IPO?
Is making money the goal… really?
How much money is enough and does that mean you’re successful?
Discuss Gary and George Mueller Case …
12
10-4
Primary Market Research
Assignment for today:
Read Chapter 4 – Dorf, Byers
To be discussed: Marketing 101.pp5
:
10-09
Apprentice Review
R.F. / Mansour meet with 4 teams each / each for 15 minutes each – to
review ideas / paths / and thoughts.
Meetings will occur during class time
10-11
Financial Accounting ( Part 1 )
Assignment for today:
Read Chapter 17 – Dorf, Byers
Focus on the Balance Sheet / Income Statement / Cash Flow Model.
Will knowing 2 out of 3 (rev / profit / burn-rate) suffice?
13
14
C.
Doin’ the right thing / what’s that?
15
10-16
Financial Accounting ( Part 2 )
Assignment for today:
Read Chapter 17 – Dorf, Byers
Handouts to be discussed:
Cash Management.ppt
Corporate Valuation.ppt
Cost Accounting 101.ppt
10-18
Apprentice Turn-In / Review
Money turned in // top and bottoms of each team are noted
What went right / what went wrong?
Distribution of Cash!
10-23
VOSG Review Session
R.F. / Mansour meet with 4 teams each / each for 15 minutes each – to
review ideas / paths / and thoughts.
Meetings will occur during class time
10-25
Boot-Strapping (Lifestyle Choices)
Yahoo Case Study …
Jay Katarinsic – Guest Speaker
General Manger of Draper / Triangle Venture Fund
From IDEA TO IPO in 14 Weeks
10-30
VOSG – Prelim - Presentations – Again – Review / Remember
Assignment for today:
Format is:
3 minutes to present / 3 minute for Q&A
16
17
18
19
20
11-1
VOSG – Prelim - Presentations – Again – Review / Remember
Assignment for today:
Format is:
3 minutes to present / 3 minute for Q&A
21
11-6
Ethics …
Assignment for today:
Read NVC Ch.9, p.303-318
Discuss 316-318 - Postoak Case
Handouts to be discussed:
Ethics.doc
Ethics - Policies - Procedures.doc
Ethics.ppt
22
11-8
D.
Employee Motivation / Stock Options / Stock Valuation
Assignment for today:
Chapter 12, Dorf & Byers
Discuss:
CorporateMotivation.ppt
Stock Option Plan 101.doc
Stock Option Plan 102.doc
The Finishing Move …
23
11-13
VOSG Review Session
R.F. / Mansour meet with each team / each for 15 minutes each – to
review ideas / paths / and thoughts.
Meetings will occur during class time
11-15
Intellectual Property Rights (IPR) …
Patents / Copyrights / TradeMarks
GUEST SPEAKER – Rob Kucler (Reed Smith)
OR
Angel Investors – Going the Other Way
Situational Analysis
11-20
Completed VOSG Presentations …
Format = 10 Min. – time distribution up to presenter
11-24
No Class – Thanksgiving Holiday
27
11-27
Completed VOSG - Presentations
Format = 10 Min. – time distribution up to presenter
28
11-29
Completed VOSG – Presentations
Format = 10 Min. – time distribution up to presenter
29
12-4
Pass in Complete VOSG / Run-Off  Top 3  Who Wins??
Assignments:
Read NVC Ch. 18 p. 573-595
Handouts:
What Else Can Go Wrong.ppt
24
25
26
Class Analysis of Proposals
Best of the Best Presentations Awards – real prizes!
Given $1MM you can invest in $250K increments … who would you
invest in? Winner ( top 3 ) get prizes … real prizes.
30
12-6
Course Critique / Prizes / Good-Bye
Questions, Course Critique and applying the entrepreneurial way of
thinking to seeking a job.
Handouts:
CEO Job is Never Done.ppt
Self-Assessment.doc (compare to beginning )
Extra – If Needed – Interview an Entrepreneur:
*Interview him/her (face to face preferred, over phone is okay) - Ask the right questions that will
get insightful answers. Learn something from this person! Suggestions:
- what was your biggest loss/win?
- why are you still doing this??
- if you could do anything right now, what would you do?
*BRIEFLY present the highlights to the class - (not everyone on the team has to speak, but
everyone must be there). Requirements:
- really get to know your "e-person" - boil down WHO they are in
a few sentences (ie Steve Jobs is not just a guy who started a
computer company - there is more insight to this story)
- please do not share what the person 'did' - instead, we want
their insights, take-aways, learnings, wisdom, etc
- share one "wacky fact" that will make us laugh
- share one fact that will potentially make us sad
- be concise, clear, and interesting!
*Hand in a single page "Learnings/Findings" summary OUTLINE. Requirements:
- again, show us that you really got to know your "e-person"
- highlight your top 4 questions w/ answers
- list the 2 facts from above - wacky fact, sad fact
- MUST BE IN BRIEF OUTLINE FORMAT